United Utilities (GB:UU)
LSE:UU
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United Utilities
(LSE:UU)
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Rating:68Neutral
Price Target:
1,544.00 p
▲(14.33% Upside)
Action:DowngradedDate:05/03/26
The score is driven primarily by improving earnings/cash generation but held back by high and rising leverage plus consistently weak free cash flow. Technicals are supportive with a strong trend, while valuation is attractive (low P/E and solid yield). Earnings-call commentary is broadly positive but includes meaningful regulatory and ODI-related risks.
Positive Factors
Revenue & Earnings Recovery
The company’s step-up to double-digit revenue growth and sharply higher net income in 2026 indicates improving core earnings power within its regulated framework. For 2–6 months this supports sustainable cash generation potential and strengthens the base for funding AMP investments and shareholder returns.
Negative Factors
High Leverage
A highly levered capital structure materially increases sensitivity to interest rates and refinancing cycles. Over a multi-month horizon this constrains strategic flexibility, raises financing costs for AMP investment, and amplifies downside risk if regulatory returns or cash flow underperform expectations.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Earnings Recovery
The company’s step-up to double-digit revenue growth and sharply higher net income in 2026 indicates improving core earnings power within its regulated framework. For 2–6 months this supports sustainable cash generation potential and strengthens the base for funding AMP investments and shareholder returns.
Read all positive factors
United Utilities (UU) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£10.32B
Dividend Yield4.45%
Average Volume (3M)1.91M
Price to Earnings (P/E)6.5
Beta (1Y)0.61
Revenue Growth21.96%
EPS Growth121.69%
CountryUK
Employees6,000
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)N/A
Shares Outstanding742,864,000
10 Day Avg. Volume1,575,852
30 Day Avg. Volume1,906,953
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)4.00
Price to Sales (P/S)3.43
P/FCF Ratio-81.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,525.71Price Target Upside12.97% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
United Utilities Business Overview & Revenue Model
Company Description
United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is also involved in the renewable energy generation, corporate trustee, financing, and property management activities; and provision of consulting, and pro...
How the Company Makes Money
United Utilities primarily makes money by operating as a regulated monopoly water and wastewater provider. The main revenue stream is regulated customer charges (billed to households and non-household customers) for water supply and sewerage servi...
United Utilities Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
47
Neutral
Cash Flow
56
Neutral
| Breakdown | Mar 2026 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.62B | 2.15B | 1.95B | 1.86B | 1.81B |
| Gross Profit | 1.27B | 2.00B | 1.66B | 884.30M | 874.30M |
| EBITDA | 1.59B | 1.19B | 992.70M | 1.19B | 1.16B |
| Net Income | 586.80M | 264.70M | 126.90M | -56.80M | 453.40M |
Balance Sheet | |||||
| Total Assets | 18.13B | 16.77B | 15.65B | 14.44B | 14.18B |
| Cash, Cash Equivalents and Short-Term Investments | 1.79B | 1.67B | 1.40B | 240.90M | 744.10M |
| Total Debt | 11.49B | 10.79B | 10.00B | 7.98B | 8.45B |
| Total Liabilities | 15.89B | 14.77B | 13.60B | 11.48B | 11.15B |
| Stockholders Equity | 2.24B | 2.00B | 2.06B | 2.96B | 3.03B |
Cash Flow | |||||
| Free Cash Flow | -110.20M | -79.90M | -19.00M | 305.90M | 221.80M |
| Operating Cash Flow | 1.38B | 918.10M | 745.10M | 934.40M | 865.80M |
| Investing Cash Flow | -1.48B | -987.20M | -731.40M | -639.70M | -555.70M |
| Financing Cash Flow | 221.40M | 358.80M | 1.04B | -809.70M | -89.70M |
United Utilities Technical Analysis
Positive
1350.50
Price Trends
1336.76
Positive
1271.22
Positive
1203.07
Positive
Market Momentum
11.22
Negative
52.56
Neutral
34.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:UU, the sentiment is Positive. The current price of 1350.5 is above the 20-day moving average (MA) of 1328.58, above the 50-day MA of 1336.76, and above the 200-day MA of 1203.07, indicating a bullish trend. The MACD of 11.22 indicates Negative momentum. The RSI at 52.56 is Neutral, neither overbought nor oversold. The STOCH value of 34.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:UU.
United Utilities Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £63.57B | 21.31 | 7.66% | 4.15% | -9.52% | 35.74% | |
74 Outperform | £30.22B | 16.49 | 7.09% | 2.98% | 1.78% | -50.72% | |
71 Outperform | £9.43B | 8.54 | 17.64% | 4.50% | 10.68% | 35.18% | |
68 Neutral | £10.32B | 6.46 | 20.12% | 4.45% | 21.96% | 121.69% | |
67 Neutral | £2.54B | 9.64 | 3.09% | 6.56% | 19.50% | ― | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
59 Neutral | £9.07B | 2.73 | 1.68% | 2.86% | -2.11% | -104.48% |
* Utilities Sector Average
GB:UU
United Utilities
1,389.50
354.09
34.20%
GB:CNA
Centrica
200.20
56.27
39.10%
GB:PNN
Pennon Group plc
538.50
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GB:SVT
Severn Trent
3,133.00
614.97
24.42%
GB:SSE
SSE
2,507.00
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52.96%
GB:NG
National Grid
1,277.60
296.70
30.25%
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.