United Utilities (UUGRY)
OTHER OTC:UUGRY
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United Utilities
(OTC:UUGRY)
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Rating:73Outperform
Price Target:
$40.00
â–²(10.74% Upside)
Action:UpgradedDate:12/07/25
United Utilities shows strong technical performance and solid financial management, with positive momentum in the stock price. While the valuation suggests potential overvaluation, the attractive dividend yield compensates for this. The earnings call highlighted both achievements and challenges, with a focus on future growth and regulatory engagement.
Positive Factors
Regulated revenue model
United Utilities operates under a multi-year regulatory framework that allows recovery of efficient operating costs and a return on its regulated asset base. This structure provides durable, predictable cash flows tied to infrastructure investment and regulatory allowances, reducing revenue volatility over regulatory periods.
Negative Factors
High leverage common in sector
A relatively high debt-to-equity and low equity ratio reflect structurally elevated leverage typical for utilities but increase sensitivity to interest cost shifts and limit maneuverability. Over multi-month horizons, this raises refinancing and covenant risks if macro costs or credit conditions worsen.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated revenue model
United Utilities operates under a multi-year regulatory framework that allows recovery of efficient operating costs and a return on its regulated asset base. This structure provides durable, predictable cash flows tied to infrastructure investment and regulatory allowances, reducing revenue volatility over regulatory periods.
Read all positive factors
United Utilities (UUGRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.39B
Dividend Yield4.28%
Average Volume (3M)26.05K
Price to Earnings (P/E)8.2
Beta (1Y)0.14
Revenue Growth19.58%
EPS Growth264.49%
CountryUS
Employees6,000
SectorUtilities
Sector Strength65
IndustryRegulated Water
Share Statistics
EPS (TTM)1.39
Shares Outstanding340,944,200
10 Day Avg. Volume19,128
30 Day Avg. Volume26,051
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)3.44
Price to Sales (P/S)3.20
P/FCF Ratio-86.04
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue8.08
Enterprise Value/Gross Profit11.88
Enterprise Value/Ebitda14.49
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.03
Revenue Forecast (FY)$3.75B
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 makes money primarily through regulated revenues earned from providing water supply and wastewater services to customers in its appointed service area. The core revenue stream is customer billing: (1) household and non-household w...
United Utilities Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements in cash performance, regulatory engagement, and strong financial positioning. However, challenges regarding regulatory uncertainty, environmental ratings, and initial ODI penalties were notable concerns. The company expressed optimism about handling future investments and transformations.Positive Updates
Strong Cash Performance and Customer Affordability
The company maintained strong cash performance despite an increase in bills, doubling the number of customers on affordability schemes to mitigate impact.
Negative Updates
Disappointing EPA Rating
Received a 2-star rating from the EPA, highlighting challenges with energy resilience and pollution due to storms and power interruptions.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Cash Performance and Customer Affordability
The company maintained strong cash performance despite an increase in bills, doubling the number of customers on affordability schemes to mitigate impact.
Read all positive updates
Company Guidance
In the recent United Utilities Fiscal '26 Interim Results Q&A session, the company provided guidance on several key metrics impacting their strategic outlook. The discussion highlighted their engagement with regulatory bodies concerning the AMP8 reopeners, focusing on asset health improvements and new investment drivers like PFAS and data centers. Expectations for the December white paper include 88 recommendations, emphasizing investor-friendly strategies and regulatory clarity. The company is pushing for a national social tariff to help with affordability as they double the number of customers on affordability schemes. Financially, United Utilities maintains robust metrics with a net debt to RCV gearing of 60%, benefiting from inflationary tailwinds, and a strong balance sheet within their 55%-65% target range. They anticipate a 100 basis point outperformance from financing, ODIs, and PCDs over AMP8, despite a penalty position this year, with improvements expected as infrastructure investments mature. The strategic policy statement from Ofwat and the EA is also anticipated in December, providing further direction for regulatory and environmental strategies.United Utilities Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.37B | 2.15B | 1.95B | 1.82B | 1.86B | 1.81B |
| Gross Profit | 1.61B | 2.00B | 1.73B | 754.10M | 884.30M | 874.30M |
| EBITDA | 1.32B | 1.19B | 988.60M | 1.18B | 1.06B | 1.06B |
| Net Income | 401.03M | 264.70M | 126.90M | 204.90M | -56.80M | 453.40M |
Balance Sheet | ||||||
| Total Assets | 17.53B | 16.77B | 15.65B | 14.53B | 14.44B | 14.18B |
| Cash, Cash Equivalents and Short-Term Investments | 1.94B | 1.67B | 1.40B | 340.40M | 240.90M | 744.10M |
| Total Debt | 11.38B | 10.79B | 10.00B | 8.44B | 7.98B | 8.45B |
| Total Liabilities | 15.54B | 14.77B | 13.60B | 12.02B | 11.48B | 11.15B |
| Stockholders Equity | 1.99B | 2.00B | 2.06B | 2.51B | 2.96B | 3.03B |
Cash Flow | ||||||
| Free Cash Flow | -58.82M | -79.90M | -19.00M | 93.50M | 305.90M | 221.80M |
| Operating Cash Flow | 1.13B | 918.10M | 745.10M | 787.50M | 934.40M | 865.80M |
| Investing Cash Flow | -873.40M | -987.20M | -731.40M | -593.40M | -639.70M | -555.70M |
| Financing Cash Flow | 150.57M | 358.80M | 1.04B | -85.00M | -809.70M | -89.70M |
United Utilities Technical Analysis
Positive
36.12
Price Trends
35.46
Positive
33.64
Positive
32.04
Positive
Market Momentum
0.04
Negative
54.99
Neutral
94.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UUGRY, the sentiment is Positive. The current price of 36.12 is above the 20-day moving average (MA) of 35.18, above the 50-day MA of 35.46, and above the 200-day MA of 32.04, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 94.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UUGRY.
United Utilities Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $12.39B | 8.21 | 19.97% | 4.28% | 19.58% | 264.49% | |
71 Outperform | $11.47B | 17.43 | 9.18% | 3.48% | 21.35% | 20.96% | |
68 Neutral | $21.44B | 10.77 | 20.64% | 2.22% | -10.23% | -26.87% | |
66 Neutral | $26.43B | 22.91 | 10.34% | 2.51% | 12.29% | 13.13% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $3.01B | 21.42 | 13.10% | 2.64% | 10.28% | 13.56% | |
58 Neutral | $2.73B | 20.13 | 7.68% | 2.88% | -2.60% | -33.78% |
* Utilities Sector Average
UUGRY
United Utilities
35.89
10.72
42.60%
AWR
American States Water
76.89
3.70
5.05%
AWK
American Water
135.37
-2.04
-1.49%
WTRG
Essential Utilities
40.47
4.15
11.42%
CWT
California Water Service
45.71
-0.29
-0.62%
SBS
Companhia De Saneamento
30.44
14.86
95.32%
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.