Severn Trent (SVT) AI Stock Analysis

• Market Cap: £8.37B
• Dividend Yield: 4.5%
• Average Volume (3M): 463.51K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.51
• Revenue Growth: 10.68%
• EPS Growth: 35.18%
• Country: UK
• Employees: 7,040
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Water
• EPS (TTM): 1.01
• Shares Outstanding: 301,086,030
• 10 Day Avg. Volume: 505,828
• 30 Day Avg. Volume: 463,512
• PEG Ratio: 0.65
• Price to Book (P/B): 4.29
• Price to Sales (P/S): 3.13
• P/FCF Ratio: -11.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £2,855.00
• Price Target Upside: 0.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 3,065.00p ▲(8.11% Upside)

Severn Trent's overall score reflects strong earnings call sentiment and positive technical indicators. Financial performance is solid but challenged by high leverage and negative free cash flow. Valuation is reasonable with an attractive dividend yield, supporting a stable investment outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective pricing strategies, supporting long-term business sustainability and expansion.

Operational Efficiency

Operational efficiency improvements and strategic focus on innovation enhance competitive positioning and profitability over the long term.

Infrastructure Services Growth

Growth in infrastructure services diversifies revenue streams and capitalizes on sector trends, strengthening the company's market position.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase vulnerability to economic downturns, posing risks to long-term financial stability.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity challenges, which could constrain future investment and operational capabilities.

Regulatory Challenges

Regulatory changes could increase compliance costs and operational complexities, impacting long-term strategic planning and profitability.

Severn Trent Business Overview & Revenue Model

Company Description

Severn Trent Plc operates as a water and sewerage company in England and Wales. It operates in two segments, Regulated Water and Waste Water, and Business Services. The Regulated Water and Waste Water segment offers water and waste water services to approximately 4.8 million households and businesses in the Midlands and Wales. The Business Services segment generates renewable energy from anaerobic digestion, hydropower, wind turbines, and solar technology; manages and sells land; and offers search services. It also provides contract services to municipal and industrial clients in the United Kingdom; and the United Kingdom Ministry of Defense for design, build, and operation of water and waste water treatment facilities and networks, as well as services to developers. The company was founded in 1974 and is headquartered in Coventry, the United Kingdom.

How the Company Makes Money

Severn Trent generates revenue primarily through the provision of water and wastewater services to residential, commercial, and industrial customers. The company operates under a regulated framework, where its pricing is determined by periodic reviews conducted by the water regulator, Ofwat, ensuring that it can recover its costs and earn a reasonable return on investment. Key revenue streams include fixed charges for water supply, usage-based charges, and charges for sewerage and wastewater treatment services. Additionally, Severn Trent benefits from long-term contracts and partnerships with local authorities and businesses, further stabilizing its revenue base. The company also invests in infrastructure projects and innovative technologies, which can create new revenue opportunities and improve operational efficiencies.

Severn Trent Financial Statement Overview

Summary

Severn Trent shows strong revenue growth and solid operating profit margins. However, high leverage and negative free cash flow pose significant challenges, indicating potential vulnerability to external shocks.

Income Statement

Severn Trent has demonstrated consistent revenue growth over the past years, with a notable increase from £1.94 billion in 2022 to £2.43 billion in 2025. The gross profit margin is strong, consistently above 90%, which indicates efficient cost management. However, the net profit margin is relatively low, peaking at 9.45% in 2025, suggesting challenges in controlling non-operating expenses or taxes. EBIT and EBITDA margins have shown stability, supporting overall profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio, reaching 5.48 in 2025, which may indicate potential financial leverage risks. However, the return on equity (ROE) improved to 12.95% in 2025, reflecting better profitability relative to shareholder equity. The equity ratio remains low at about 11.13%, suggesting a higher reliance on debt financing, which could pose risks during economic downturns.

Cash Flow

Operating cash flow has grown steadily, reaching £912.3 million in 2025, showing strong cash generation capability. However, free cash flow has become increasingly negative, culminating in -£680.5 million in 2025 due to high capital expenditures. The operating cash flow to net income ratio indicates strong cash earnings capability, but the negative free cash flow to net income ratio highlights potential liquidity challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.65B	2.43B	2.34B	2.17B	1.94B	1.83B
Gross Profit	777.10M	2.23B	536.60M	1.27B	1.17B	1.10B
EBITDA	1.30B	1.16B	886.70M	1.03B	997.40M	891.50M
Net Income	315.40M	229.40M	140.20M	132.20M	-87.20M	212.20M
Balance Sheet
Total Assets	17.25B	15.91B	14.20B	12.24B	11.59B	11.09B
Cash, Cash Equivalents and Short-Term Investments	1.45B	1.02B	953.20M	34.20M	115.40M	56.20M
Total Debt	0.00	9.70B	8.27B	7.30B	6.73B	6.62B
Total Liabilities	15.44B	14.14B	12.37B	11.27B	10.33B	9.95B
Stockholders Equity	1.81B	1.77B	1.83B	970.60M	1.26B	1.14B
Cash Flow
Free Cash Flow	-814.40M	-680.50M	-356.40M	-190.20M	62.90M	60.00M
Operating Cash Flow	869.20M	912.30M	813.30M	549.50M	709.50M	696.60M
Investing Cash Flow	-1.70B	-1.54B	-1.19B	-721.70M	-650.10M	-634.90M
Financing Cash Flow	1.24B	718.60M	1.30B	93.20M	4.30M	-66.30M

Severn Trent Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2835.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SVT, the sentiment is Positive. The current price of 2835 is above the 20-day moving average (MA) of 2795.05, above the 50-day MA of 2764.52, and above the 200-day MA of 2635.64, indicating a bullish trend. The MACD of 18.97 indicates Positive momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 25.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SVT.

Severn Trent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NG	76 Outperform	£57.98B	19.92	7.87%	4.15%	-9.52%	35.74%
SSE	74 Outperform	£27.55B	26.36	9.92%	2.98%	1.78%	-50.72%
UU	72 Outperform	£8.17B	20.35	20.43%	4.45%	15.76%	254.82%
SVT	71 Outperform	£8.37B	26.44	17.41%	4.50%	10.68%	35.18%
PNN	67 Neutral	£2.51B	84.93	2.50%	6.56%	19.50%	―
CNA	66 Neutral	£7.98B	-36.64	-5.95%	2.86%	-4.82%	-123.58%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Severn Trent Corporate Events

Severn Trent Updates Market on Total Voting Rights and Share Capital

Severn Trent has confirmed that, as of 31 December 2025, its issued share capital comprises 303,304,639 ordinary shares, of which 2,218,618 are held in treasury, leaving 301,086,021 voting shares in circulation. The updated voting rights figure provides shareholders and market participants with the denominator needed to assess and report changes in their holdings under UK disclosure and transparency regulations, reinforcing compliance and transparency in the company’s shareholder base.

The most recent analyst rating on (GB:SVT) stock is a Buy with a £3000.00 price target. To see the full list of analyst forecasts on Severn Trent stock, see the GB:SVT Stock Forecast page.

Severn Trent Director Helen Miles Sells 22,000 Shares but Retains Above-Required Stake

Severn Trent has disclosed that board director and Person Discharging Managerial Responsibilities (PDMR) Helen Miles sold 22,000 ordinary shares in the company on 18 December 2025 at a price of 2,758 pence per share on the London Stock Exchange, leaving her with a beneficial holding of 47,697 shares. The company noted that Miles continues to hold shares in excess of Severn Trent’s shareholding requirement for her role, signalling continued alignment of management interests with shareholders despite the disposal and indicating no change to the company’s governance or strategic direction.

The most recent analyst rating on (GB:SVT) stock is a Buy with a £3000.00 price target. To see the full list of analyst forecasts on Severn Trent stock, see the GB:SVT Stock Forecast page.

Severn Trent Announces Share Capital and Voting Rights Update

Severn Trent Plc has announced its total voting rights and issued share capital as of November 30, 2025. The company’s issued share capital consists of 303,303,359 ordinary shares, with 301,084,741 voting rights, after accounting for shares held in Treasury. This information is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:SVT) stock is a Hold with a £3027.00 price target. To see the full list of analyst forecasts on Severn Trent stock, see the GB:SVT Stock Forecast page.

Severn Trent Expands Market Presence with New Share Listing

Severn Trent Plc has applied for the listing of 802,000 additional Ordinary shares on the London Stock Exchange, with the expectation that these shares will be admitted to the Official List on November 28, 2025. This move is part of the company’s ongoing efforts to enhance its market presence and provide liquidity, aligning the new shares with existing ones to maintain shareholder value.

The most recent analyst rating on (GB:SVT) stock is a Hold with a £3027.00 price target. To see the full list of analyst forecasts on Severn Trent stock, see the GB:SVT Stock Forecast page.

Severn Trent Publishes Supplementary Prospectus for €12 Billion Note Programme

Severn Trent Plc has announced the publication of a Supplementary Prospectus, approved by the Financial Conduct Authority, for its €12 billion Euro Medium Term Note Programme. This development is significant for the company’s financial strategy, potentially impacting its market positioning and offering implications for stakeholders by enhancing its capital-raising capabilities.

The most recent analyst rating on (GB:SVT) stock is a Hold with a £3027.00 price target. To see the full list of analyst forecasts on Severn Trent stock, see the GB:SVT Stock Forecast page.

Severn Trent Announces New CEO as Liv Garfield Steps Down

Severn Trent Plc has announced the appointment of James Jesic as the new CEO, succeeding Liv Garfield who will step down at the end of 2025. Jesic, who has been with the company since 2003, is expected to continue the company’s trajectory of sustainable growth and investment, particularly in its water and waste networks across the Midlands. His appointment follows a comprehensive evaluation process, and he is recognized for his operational expertise and leadership within the company. This leadership transition is seen as a strategic move to maintain Severn Trent’s position as a sector leader, with Jesic poised to lead the company into its next phase of growth.

The most recent analyst rating on (GB:SVT) stock is a Hold with a £28.49 price target. To see the full list of analyst forecasts on Severn Trent stock, see the GB:SVT Stock Forecast page.

Severn Trent Reports Robust Financial Growth Amid Record Investments

Severn Trent PLC reported a strong financial performance for the first half of the fiscal year, with a 57% increase in PBIT and a 74% growth in adjusted EPS. The company is embarking on its largest-ever investment program, aiming to enhance customer service and environmental outcomes. Severn Trent is upgrading its performance incentives and expects to achieve significant earnings growth while maintaining top-rated environmental performance. The company is also focusing on cost efficiency and expects to continue its leadership in the sector through strategic investments and operational excellence.

The most recent analyst rating on (GB:SVT) stock is a Hold with a £28.49 price target. To see the full list of analyst forecasts on Severn Trent stock, see the GB:SVT Stock Forecast page.

Severn Trent Announces Share Capital and Voting Rights Update

Severn Trent Plc has announced its issued share capital as of October 31, 2025, which consists of 303,295,950 ordinary shares, with 2,218,618 held in treasury. This results in a total of 301,077,332 voting rights available to shareholders, a key metric for investors under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:SVT) stock is a Sell with a £2626.00 price target. To see the full list of analyst forecasts on Severn Trent stock, see the GB:SVT Stock Forecast page.

Severn Trent Director’s Share Transfer Notification

Severn Trent Plc announced a notification regarding the transfer of ordinary shares by Sarah Legg, a Non-Executive Director, to a new nominee CREST account. This transaction, which involved no change in beneficial ownership, was conducted on the London Stock Exchange. The announcement is in compliance with the UK Market Abuse Regulation, ensuring transparency in the company’s managerial activities.

The most recent analyst rating on (GB:SVT) stock is a Sell with a £2626.00 price target. To see the full list of analyst forecasts on Severn Trent stock, see the GB:SVT Stock Forecast page.

Severn Trent Achieves Record Sixth Year of Top Environmental Performance

Severn Trent Plc has achieved a record sixth consecutive year of four-star status in the Environment Agency’s Environmental Performance Assessment, showcasing its industry-leading environmental performance. This accomplishment reflects the company’s significant investment in infrastructure and its commitment to environmental improvements, which include completing numerous environmental schemes and achieving high compliance rates in wastewater management.

The most recent analyst rating on (GB:SVT) stock is a Sell with a £2626.00 price target. To see the full list of analyst forecasts on Severn Trent stock, see the GB:SVT Stock Forecast page.