United Utilities (UUGRY) AI Stock Analysis

• Market Cap: $10.35B
• Dividend Yield: 4.47%
• Average Volume (3M): 3.59K
• Price to Earnings (P/E): 30.7
• Beta (1Y): 0.03
• Revenue Growth: 11.73%
• EPS Growth: N/A
• Country: US
• Employees: 6,000
• Sector: Utilities
• Sector Strength: 57
• Industry: Regulated Water
• EPS (TTM): 0.62
• Shares Outstanding: 340,944,200
• 10 Day Avg. Volume: 2,395
• 30 Day Avg. Volume: 3,592
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 9.63
• Enterprise Value/Gross Profit: 10.58
• Enterprise Value/Ebitda: 18.78
• 1Y Price Target: $32.00
• Price Target Upside: 4.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $32.00 ▲(4.85% Upside)

United Utilities' stock score is primarily influenced by its solid financial performance, characterized by strong revenue growth and efficient cost management. However, high leverage and capital expenditures are potential risks. Technical indicators suggest a neutral trend, while the valuation indicates a potentially overvalued stock with an attractive dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective service delivery, supporting long-term business sustainability.

Cash Generation

Strong cash generation capabilities enhance financial flexibility, allowing the company to invest in infrastructure and manage debt effectively.

Efficient Cost Management

Efficient cost management contributes to profitability and competitive advantage, enabling the company to maintain stable margins despite industry challenges.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to finance operations and growth initiatives in the long term.

Capital Expenditures

Significant capital expenditures can strain liquidity, necessitating careful management to ensure long-term financial health and operational capacity.

Moderate Profitability

Moderate profitability due to high operational costs may limit reinvestment opportunities and affect the company's competitive positioning over time.

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 project management services. The company operates 42,000 kilometers of water pipes; and 78,000 km of wastewater pipes. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.

How the Company Makes Money

United Utilities generates revenue primarily through the provision of water and wastewater services to residential, commercial, and industrial customers. The company's revenue model is largely regulated, with prices set by Ofwat, the economic regulator for the water sector in England and Wales. Key revenue streams include fixed charges for water supply, volume-based charges linked to water usage, and sewerage services. United Utilities also benefits from capital investment projects funded through regulatory frameworks, which allow for infrastructure improvements and expansions. Additionally, the company may engage in partnerships with local governments or organizations for environmental initiatives and sustainability projects, contributing to its earnings.

United Utilities Financial Statement Overview

Summary

United Utilities shows strong revenue growth and efficient cost management, with high operating cash flow indicating strong cash generation. However, high leverage and capital expenditures pose potential risks, necessitating careful debt management.

Income Statement

United Utilities shows strong growth with a revenue increase from the previous year, leading to an improved EBIT margin. The Gross Profit Margin is high, indicating efficient cost control. However, the Net Profit Margin reflects moderate profitability, impacted by high operational costs.

Balance Sheet

The company's Debt-to-Equity ratio is relatively high, suggesting significant leverage, which is common in the regulated utilities sector. While the Return on Equity is reasonable, indicating effective use of equity, the equity ratio is low, highlighting potential financial risk.

Cash Flow

Operating cash flow is robust and exceeds net income, reflecting strong cash generation capabilities. However, negative Free Cash Flow indicates high capital expenditure, which could strain liquidity if not managed carefully.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.15B	1.95B	1.82B	1.86B	1.81B
Gross Profit	2.00B	1.73B	754.10M	884.30M	874.30M
EBITDA	1.19B	988.60M	865.00M	1.06B	1.06B
Net Income	264.70M	126.90M	204.90M	-56.80M	453.40M
Balance Sheet
Total Assets	16.77B	15.65B	14.53B	14.44B	14.18B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.40B	340.40M	240.90M	744.10M
Total Debt	10.79B	10.00B	8.44B	7.98B	8.45B
Total Liabilities	14.77B	13.60B	12.02B	11.48B	11.15B
Stockholders Equity	2.00B	2.06B	2.51B	2.96B	3.03B
Cash Flow
Free Cash Flow	-79.90M	-19.00M	93.50M	305.90M	221.80M
Operating Cash Flow	918.10M	745.10M	787.50M	934.40M	865.80M
Investing Cash Flow	-987.20M	-731.40M	-593.40M	-639.70M	-555.70M
Financing Cash Flow	358.80M	1.04B	-85.00M	-809.70M	-89.70M

United Utilities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.52
• 50DMA: Negative
• 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 UUGRY, the sentiment is Positive. The current price of 30.52 is below the 20-day moving average (MA) of 30.67, above the 50-day MA of 30.43, and above the 200-day MA of 27.61, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 51.35 is Neutral, 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	$15.73B	8.01	30.12%	2.35%	30.74%	143.94%
WTRG	69 Neutral	$10.76B	16.41	10.02%	3.47%	20.70%	14.59%
CWT	69 Neutral	$2.72B	19.95	8.49%	2.64%	0.62%	-24.24%
AWR	66 Neutral	$2.82B	22.42	13.77%	2.60%	8.55%	13.57%
AWK	66 Neutral	$28.30B	25.21	10.40%	2.30%	13.37%	13.29%
Sector *	66 Neutral	$17.40B	17.96	5.60%	3.67%	6.62%	11.55%
UUGRY	63 Neutral	$10.35B	30.68	13.03%	4.47%	11.73%	―