United Utilities (UUGRY) AI Stock Analysis

• Market Cap: $10.54B
• Dividend Yield: 5.62%
• Average Volume (3M): 736.00
• Price to Earnings (P/E): 31.8
• Beta (1Y): 0.09
• Revenue Growth: 12.20%
• EPS Growth: N/A
• Country: US
• Employees: 6,000
• Sector: Utilities
• Sector Strength: 77
• Industry: Regulated Water
• EPS (TTM): 0.62
• Shares Outstanding: 340,944,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 736
• PEG Ratio: -0.15
• Price to Book (P/B): 5.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 154.61
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ―

United Utilities demonstrates strong operational performance and positive market momentum, but is challenged by high leverage, declining profitability, and negative free cash flow. The stock's high P/E ratio suggests overvaluation, though its attractive dividend yield provides a cushion. Overall, while the company is operationally sound, financial risks and valuation concerns temper the outlook.

United Utilities Business Overview & Revenue Model

Company Description

United Utilities Group PLC (UUGRY) is a prominent water and wastewater services provider in the United Kingdom. The company operates primarily in the North West of England, delivering essential services to approximately seven million people and 200,000 businesses. United Utilities is responsible for the management of water supply, waste treatment, and water recycling processes to ensure environmental sustainability and compliance with regulatory standards.

How the Company Makes Money

United Utilities makes money primarily by charging customers for water supply and wastewater services. Its revenue model is based on regulated price controls set by the Water Services Regulation Authority (Ofwat), which determines the prices the company can charge its customers. These charges are typically billed to households and businesses on a regular basis. Additionally, United Utilities may generate revenue through infrastructure services and engineering projects, as well as through partnerships with governmental and environmental organizations aimed at improving water management and sustainability practices. The company also invests in innovation and technology to enhance operational efficiency, potentially leading to cost savings and increased profitability.

United Utilities Financial Statement Overview

Summary

United Utilities shows stable operational performance with strong revenue growth and efficient cost management. However, a significant decline in net profit margin and negative free cash flow pose concerns. High leverage increases financial risk, though the company maintains a reasonable equity position. Overall, while the company is performing well in terms of operations, financial stability could be affected by its high debt levels and negative free cash flow.

Income Statement

United Utilities has demonstrated consistent revenue growth, with a 6.84% increase from the previous year. The gross profit margin is robust at 88.71%, indicating efficient cost management. However, the net profit margin decreased significantly from 11.23% to 6.51%, reflecting a decline in profitability. EBIT and EBITDA margins are relatively strong, suggesting good operational performance despite the drop in net income.

Balance Sheet

The company maintains a high debt-to-equity ratio of 4.86, which suggests a leveraged position that could pose risks in volatile markets. However, the equity ratio is stable at 13.13%, reflecting a healthy level of stockholder's equity relative to total assets. Return on equity has dropped to 6.17%, indicating lower returns for investors compared to the previous year.

Cash Flow

Free cash flow has turned negative, indicating potential liquidity issues, although operating cash flow remains strong at 745.1 million. The operating cash flow to net income ratio is high, revealing good cash generation from operations relative to net income. However, the free cash flow to net income ratio is negative, highlighting challenges in sustaining capital expenditures.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.95B	1.82B	1.86B	1.81B	1.86B
	Gross Profit
1.73B	754.10M	884.30M	874.30M	908.40M
	EBIT
480.20M	441.40M	641.50M	641.00M	688.00M
	EBITDA
988.60M	865.00M	1.06B	1.06B	1.17B
	Net Income Common Stockholders
126.90M	204.90M	-56.80M	453.40M	106.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.40B	340.40M	240.90M	744.10M	528.10M
	Total Assets
15.65B	14.53B	14.44B	14.18B	14.04B
	Total Debt
10.00B	8.44B	7.98B	8.45B	8.36B
	Net Debt
8.58B	8.43B	7.74B	7.71B	7.83B
	Total Liabilities
13.60B	12.02B	11.48B	11.15B	11.08B
	Stockholders Equity
2.06B	2.51B	2.96B	3.03B	2.96B
Cash Flow		Free Cash Flow
-19.00M	93.50M	305.90M	221.80M	135.20M
	Operating Cash Flow
745.10M	787.50M	934.40M	865.80M	815.20M
	Investing Cash Flow
-731.40M	-593.40M	-639.70M	-555.70M	-598.80M
	Financing Cash Flow
1.04B	-85.00M	-809.70M	-89.70M	-27.80M

United Utilities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 30.27 is below the 20-day moving average (MA) of 30.47, above the 50-day MA of 29.29, and above the 200-day MA of 26.48, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of -30.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UUGRY.

United Utilities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBS	76 Outperform	$14.38B	7.87	28.57%	2.59%	26.64%	151.43%
WTRG	75 Outperform	$10.48B	16.78	9.78%	3.49%	16.41%	5.65%
AWK	74 Outperform	$27.52B	25.69	10.43%	2.35%	11.79%	11.69%
UUGRY	66 Neutral	$10.54B	31.81	13.03%	5.62%	12.20%	―
AWR	65 Neutral	$3.00B	24.04	13.95%	2.39%	6.79%	5.96%
Sector *	64 Neutral	$8.52B	10.34	4.25%	5.88%	4.06%	-12.76%
CWT	63 Neutral	$2.77B	20.39	8.67%	2.58%	3.83%	-8.75%