# Pennon Group Plc (PNN.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Utilities / Water Utilities. Price 454p, market value 2.1 billionp.

## Valuation
- **P/E (trailing): 23.9×**. Pennon Group Plc trades at 23.9× trailing earnings. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 13.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.06**. A PEG of 0.06 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.0×**. Each dollar of revenue is priced at 1.0×.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 9.0×**. Enterprise value is 9.0× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -31.9%** (5-yr avg -0.2%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 4.2%**. The inverse of the P/E: 4.2% of the price is earned each year.

## Profitability
- **Gross margin: 80.3%**. Pennon Group Plc keeps 80.3% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 20.8%**. 20.8% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 7.1%**. 7.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.5%**. 6.5% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 6.3%**. Return on all capital, debt included, is 6.3%.
- **Return on assets: 0.6%**. Each dollar of assets produces 0.6% of profit.

## Growth
- **Revenue growth (1 yr): 23.2%** (3-yr 17.4%/yr, 5-yr 15.7%/yr). Revenue grew 23.2% over the last year, against 15.7% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 218.8%** (3-yr 680.2%/yr, 5-yr -7.5%/yr). Earnings per share rose 218.8%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 3.48**. Debt is 3.48 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 6.1×**. It would take 6.1 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 1.0×**. Operating profit covers interest only 1.0×: fragile.
- **Current ratio: 1.51** (quick 1.49). Current assets cover the next year's liabilities 1.51 times.
- **Altman Z-score: 0.84**. A Z-score of 0.84 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 6.32%** (0p per share, trailing). Pennon Group Plc yields 6.32%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 146%**. The dividend exceeds earnings (146% payout), which is rarely sustainable outside REITs and one-off years.
- **Dividend growth (5 yr): -9.7%/yr** (1-yr -11.2%). The dividend has not grown over five years.
- **Shareholder yield: -15.5%**. Dividends plus net buybacks return -15.5% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (13 analysts). 13 analysts cover Pennon Group Plc; the consensus is buy, with an average price target of 577p (+27% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -0.5%** (YTD -12.3%, 3-mo -9.9%). The shares are down 0.5% over twelve months including dividends.
- **From 52-week high: -25.0%** (2.4% above the low). Trading 25% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 46**. An RSI of 46 is neutral.
- **Beta (1 yr): 1.23** (volatility 26%). Beta of 1.23 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PNN.L · Page: https://foliofundamentals.com/stocks/pnn.l

Not investment advice.