# Severn Trent Plc (SVT.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Utilities / Water Utilities. Price 2926p, market value 8.8 billionp.

## Valuation
- **P/E (trailing): 23.8×** (5-yr avg 4051.2×, 3-yr avg 3559.0×). Severn Trent Plc trades at 23.8× trailing earnings, well below its own five-year average of 4051.2×: cheap by its own standards. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 11.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.19**. A PEG of 0.19 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.7×**. Each dollar of revenue is priced at 1.7×.
- **Price / book: 4.8×**. The shares trade at 4.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 7.7×**. Enterprise value is 7.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -18.2%** (5-yr avg -0.1%). 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: 28.3%**. Severn Trent Plc keeps 28.3% of revenue after the direct cost of what it sells.
- **Operating margin: 27.4%**. 27.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 13.1%**. 13.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 20.2%**. 20.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 8.5%**. Return on all capital, debt included, is 8.5%.
- **Return on assets: 3.4%**. Each dollar of assets produces 3.4% of profit.

## Growth
- **Revenue growth (1 yr): 16.7%** (3-yr 9.4%/yr, 5-yr 9.2%/yr). Revenue grew 16.7% over the last year, against 9.2% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 61.8%** (3-yr 33.2%/yr, 5-yr 6.7%/yr). Earnings per share rose 61.8%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 5.97**. Debt is 5.97 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 4.1×**. It would take 4.1 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 2.5×**. Operating profit covers interest 2.5×, thin but manageable.
- **Current ratio: 1.39** (quick 1.35). Current assets cover the next year's liabilities 1.39 times.
- **Altman Z-score: 0.86**. A Z-score of 0.86 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: 4.23%** (1p per share, trailing). Severn Trent Plc yields 4.23%, an income-level yield.
- **Payout ratio: 100%**. 100% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 9**. 9 straight years of increases.
- **Dividend growth (5 yr): 4.2%/yr** (1-yr 3.9%). The dividend has grown 4.2% a year over five years.
- **Shareholder yield: 3.9%**. Dividends plus net buybacks return 3.9% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (13 analysts). 13 analysts cover Severn Trent Plc; the consensus is hold, with an average price target of 3247p (+11% 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): 16.5%** (YTD 6.7%, 3-mo 1.8%). The shares are up 16.5% over twelve months including dividends.
- **From 52-week high: -12.3%** (22.9% above the low). Trading 12% 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): 39**. An RSI of 39 is neutral.
- **Beta (1 yr): 1.05** (volatility 22%). Beta of 1.05 against the FTSE All-Share: the shares move roughly with the market.

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

Not investment advice.