Severn Trent PLC (GB:SVT)
LSE:SVT
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Severn Trent
(LSE:SVT)
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Rating:71Outperform
Price Target:
3,503.00 p
▲(9.74% Upside)
Action:UpgradedDate:12/07/25
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
Regulated RAB-backed revenue
Severn Trent's core earnings are set by Ofwat via allowed revenues and the regulated asset base (RAB), creating predictability in cash flows and returns. This regulated framework supports durable revenue visibility, underpins capital recovery and de-risks topline volatility across AMP cycles.
Negative Factors
High financial leverage
Severn Trent's elevated leverage implies material reliance on debt financing, increasing interest rate sensitivity and reducing balance sheet flexibility. High gearing constrains the firm's ability to absorb shocks, raises refinancing risk during large capex cycles, and limits financial manoeuvreability.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated RAB-backed revenue
Severn Trent's core earnings are set by Ofwat via allowed revenues and the regulated asset base (RAB), creating predictability in cash flows and returns. This regulated framework supports durable revenue visibility, underpins capital recovery and de-risks topline volatility across AMP cycles.
Read all positive factors
Severn Trent (SVT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£9.61B
Dividend Yield4.5%
Average Volume (3M)463.51K
Price to Earnings (P/E)8.5
Beta (1Y)0.64
Revenue Growth10.68%
EPS Growth35.18%
CountryUK
Employees7,040
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)1.01
Shares Outstanding301,089,630
10 Day Avg. Volume505,828
30 Day Avg. Volume463,512
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)4.29
Price to Sales (P/S)3.13
P/FCF Ratio-11.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£3,206.20Price Target Upside0.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.05
Revenue Forecast (FY)£3.09B
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 ...
How the Company Makes Money
Severn Trent makes most of its money from regulated water and wastewater services delivered by Severn Trent Water. Revenue is primarily earned by charging households and businesses for (1) clean water supply (including metered and unmetered tariff...
Severn Trent Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
Severn Trent has reported a strong performance in the first half of the year, with significant achievements in ODI performance, financial strength, and infrastructure services growth. While there are challenges in customer satisfaction and regulatory changes on the horizon, the company is well-prepared and optimistic about future opportunities. The sentiment is overall positive, driven by confidence in achieving strategic goals and maintaining financial health.Positive Updates
Strong ODI Performance
Severn Trent reported that about 90% of their measures are green, indicating strong performance across the basket of ODIs. Specific achievements include being on track for their eighth year hitting the leakage target, finding and fixing more leaks than ever, and recovering quickly after a summer with 1/3 more bursts than usual.
Negative Updates
Challenges in Customer Satisfaction
Severn Trent acknowledged that their CMEC scores are only mid-table and aim to improve these to podium positions, indicating ongoing challenges in customer satisfaction.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong ODI Performance
Severn Trent reported that about 90% of their measures are green, indicating strong performance across the basket of ODIs. Specific achievements include being on track for their eighth year hitting the leakage target, finding and fixing more leaks than ever, and recovering quickly after a summer with 1/3 more bursts than usual.
Read all positive updates
Company Guidance
During the recent Severn Trent half-year results presentation, the company provided several key metrics and guidance for future performance. Severn Trent upgraded its ODI guidance, forecasting at least £300 million in outperformance over the next 4.5 years, with 90% of measures currently green. The company highlighted strong performances in key areas such as spills, pollution, and leakage, with a focus on innovation and operational efficiency. Severn Trent also announced a target to maintain gearing at 60% to 65% by the end of the AMP, supported by capital efficiencies of at least £500 million. The company plans to reinvest these efficiencies to further enhance performance and is preparing for future growth opportunities, including potential capital reopeners. Additionally, Severn Trent aims to double the EBITDA of its Infrastructure Services division, leveraging strategic acquisitions and sector growth. The company remains committed to delivering strong returns with a projected 13% RoRE for the fiscal year, driven by higher inflation and operational outperformance.Severn Trent Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
65
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 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 | 10.86B | 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
Positive
3192.00
Price Trends
3083.10
Positive
2929.18
Positive
2767.95
Positive
Market Momentum
6.74
Negative
58.87
Neutral
91.19
Negative
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 3192 is above the 20-day moving average (MA) of 3072.55, above the 50-day MA of 3083.10, and above the 200-day MA of 2767.95, indicating a bullish trend. The MACD of 6.74 indicates Negative momentum. The RSI at 58.87 is Neutral, neither overbought nor oversold. The STOCH value of 91.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SVT.
Severn Trent Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £66.23B | 21.31 | 7.66% | 4.15% | -9.52% | 35.74% | |
74 Outperform | £32.62B | 16.49 | 7.09% | 2.98% | 1.78% | -50.72% | |
72 Outperform | £9.31B | 8.14 | 20.12% | 4.45% | 15.76% | 254.82% | |
71 Outperform | £9.61B | 8.54 | 17.64% | 4.50% | 10.68% | 35.18% | |
67 Neutral | £2.63B | 9.64 | 3.09% | 6.56% | 19.50% | ― | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
59 Neutral | £9.66B | -112.68 | 1.68% | 2.86% | -4.82% | -123.58% |
* Utilities Sector Average
GB:SVT
Severn Trent
3,192.00
814.50
34.26%
GB:CNA
Centrica
213.40
78.82
58.57%
GB:PNN
Pennon Group plc
556.50
147.08
35.93%
GB:SSE
SSE
2,706.00
1,257.21
86.78%
GB:UU
United Utilities
1,365.00
396.52
40.94%
GB:NG
National Grid
1,331.60
399.82
42.91%
Severn Trent Corporate Events
Regulatory Filings and Compliance
Severn Trent Updates Share Capital and Voting Rights
Neutral
Apr 1, 2026
Severn Trent has confirmed that as of 31 March 2026 its issued share capital comprises 303,308,247 ordinary shares, of which 2,218,618 are held in treasury, leaving 301,089,629 voting rights in issue. The updated share and voting rights figures pr...
Private Placements and FinancingRegulatory Filings and Compliance
Severn Trent Updates €12 Billion Medium-Term Note Programme with New Supplementary Prospectus
Neutral
Mar 24, 2026
Severn Trent has published a new supplementary prospectus for its €12 billion Euro Medium Term Note programme, which has been approved by the Financial Conduct Authority. The document updates the existing prospectus for notes that can be iss...
Regulatory Filings and Compliance
Severn Trent Updates Market on Share Capital and Voting Rights
Neutral
Mar 2, 2026
Severn Trent has updated the market on its share capital and voting rights position as of 28 February 2026, confirming an issued share capital of 303,306,820 ordinary shares, of which 2,218,618 are held in Treasury, leaving 301,088,202 voting righ...
Business Operations and StrategyFinancial Disclosures
Severn Trent Lifts Investment to Top of Range as Performance Targets Hold
Positive
Feb 11, 2026
Severn Trent reported strong early momentum in the current regulatory period, with operational and environmental performance on track and financial results in line with expectations. Benefiting from insourcing and early scaling of its programmes, ...
Regulatory Filings and Compliance
Severn Trent Updates Market on Total Voting Rights and Share Capital
Neutral
Feb 2, 2026
Severn Trent has confirmed that as of 31 January 2026 its issued share capital comprises 303,306,555 ordinary shares, of which 2,218,618 are held in treasury, leaving 301,087,937 shares carrying voting rights. The updated total voting rights figur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.