# United Utilities Group PLC (UU.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Utilities / Water Utilities. Price 1325p, market value 9.8 billionp.

## Valuation
- **P/E (trailing): 15.4×** (5-yr avg 3262.4×, 3-yr avg 3174.0×). United Utilities Group PLC trades at 15.4× trailing earnings, well below its own five-year average of 3262.4×: cheap by its own standards. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 12.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.10**. A PEG of 0.10 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.1×**. Each dollar of revenue is priced at 2.1×.
- **Price / book: 4.0×**. The shares trade at 4.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 7.2×**. Enterprise value is 7.2× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -1.8%** (5-yr avg 0.0%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 6.5%**. The inverse of the P/E: 6.5% of the price is earned each year.

## Profitability
- **Gross margin: 67.7%**. United Utilities Group PLC keeps 67.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 36.2%**. 36.2% of revenue is left after running the business, an exceptional level.
- **Net margin: 22.4%**. 22.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 26.2%**. 26.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 10.8%**. Return on all capital, debt included, is 10.8%.
- **Return on assets: 4.7%**. Each dollar of assets produces 4.7% of profit.

## Growth
- **Revenue growth (1 yr): 22.0%** (3-yr 12.8%/yr, 5-yr 7.7%/yr). Revenue grew 22.0% over the last year, against 7.7% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 120.5%** (3-yr 42.1%/yr, 5-yr 5.4%/yr). Earnings per share rose 120.5%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 5.13**. Debt is 5.13 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 3.6×**. It would take 3.6 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 2.2×**. Operating profit covers interest 2.2×, thin but manageable.
- **Current ratio: 2.55** (quick 2.54). Current assets cover the next year's liabilities 2.55 times.
- **Altman Z-score: 0.98**. A Z-score of 0.98 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 3.94%** (1p per share, trailing). United Utilities Group PLC yields 3.94%, an income-level yield.
- **Payout ratio: 61%**. 61% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 14**. 14 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 4.1%/yr** (1-yr 3.9%). The dividend has grown 4.1% a year over five years.
- **Shareholder yield: 4.0%**. Dividends plus net buybacks return 4.0% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (14 analysts). 14 analysts cover United Utilities Group PLC; the consensus is buy, with an average price target of 1510p (+14% 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): 20.7%** (YTD 13.6%, 3-mo 3.7%). The shares are up 20.7% over twelve months including dividends.
- **From 52-week high: -11.5%** (20.6% above the low). Trading 11% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 38**. An RSI of 38 is neutral.
- **Beta (1 yr): 1.05** (volatility 23%). 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=UU.L · Page: https://foliofundamentals.com/stocks/uu.l

Not investment advice.