United Utilities Earnings: Fiscal 2023 Loss Slightly Smaller Than Expected; Shares Rich

May 25, 2023

We maintain our GBX 850 fair value estimate after no-moat United Utilities UU. 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.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

More on this Topic

Saputo Earnings: Inflation Buoys Top-Line Growth, but We See Bumpy Road Ahead; Shares Rich

Erin Lash

Dassault Systèmes: Capital Markets Day Reveals CEO Change, but Digitizing Reality Remains the Focus

Julie Sharma

ChargePoint Earnings: Focus Remains on Progress Toward Profitability

Brett Castelli

United Airlines: New Planes To Deliver Efficient Capacity but Drain Cash Flow; Lowering Fair Value

Nicolas Owens

Tesla Opens Supercharging Network to GM and Ford

While we see the news as positive for the industry, there’s no impact on our fair value estimate for Tesla stock.

Seth Goldstein

Transparency is our policy. Learn how it impacts everything we do

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

How we make money

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your personal data

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

Verify your identity, personalize the content you receive, or create and administer your account.
Provide specific products and services to you, such as portfolio management or data aggregation.
Develop and improve features of our offerings.
Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

How we approach editorial content

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.