United Utilities Group PLC Class A
UU.: XLON (GBR)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| GBX 1,578.00 | Fyhk | Brztzyl |
United Utilities Earnings: Fiscal 2023 Loss Slightly Smaller Than Expected; Shares Rich
We maintain our GBX 850 fair value estimate after no-moat United Utilities released a net loss slightly smaller than expected by us and FactSet consensus and guided for fiscal 2024 earnings below consensus. The firm will pay a GBX 45.1 dividend on fiscal 2023 earnings, 4.6% higher than in fiscal 2022, in line with the November 2021 Consumer Price Index including owner-occupiers' housing costs, implying a 4.4% yield. Shares look materially overvalued.