European utilities have reversed their outperformance in the fourth quarter of 2023 because of a fall in wholesale power prices in the wake of gas prices after a very mild winter, and a pickup in interest rates due to inflation receding more slowly than expected. The former led to some of the companies, most exposed to power prices, cutting their guidance for 2024.
Returns will likely increase in the next regulatory regime AMP8 starting in April 2025 due to the surge in interest rates since 2021.
The company lacks diversification, which brings regulatory risk.
|
Metric
|
UU.
|
PNN
|
SVT
|
|---|---|---|---|
Price/Earnings (Normalized) | 345.57 | 209.19 | 39.43 |
Price/Book Value | 3.19 | 1.68 | 7.09 |
Price/Sales | 3.69 | 2.07 | 2.69 |
Price/Cash Flow | 9.56 | 18.07 | 9.06 |
|
Metric
|
UU.
|
PNN
|
SVT
|
|---|---|---|---|
Quick Ratio | 1.73 | 1.16 | 0.85 |
Current Ratio | 1.80 | 1.27 | 0.88 |
Interest Coverage | 0.34 | 0.77 | 1.09 |
|
Metric
|
UU.
|
PNN
|
SVT
|
|---|---|---|---|
Return on Assets (Normalized) | 0.63% | 0.15% | 1.18% |
Return on Equity (Normalized) | 3.83% | 0.70% | 14.38% |
Return on Invested Capital (Normalized) | 2.00% | 2.19% | 5.04% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
AWK
| American Water Works Co Inc | Wsprnmp | Jmzklyx | $22.9 Bil | |
SBS
| Companhia De Saneamento Basico Do Estado De Sao Paulo ADR | — | Yxzcn | $10.5 Bil | |
WTRG
| Essential Utilities Inc | Qzpyfvkv | Klgwmrc | $9.6 Bil | |
STRNY
| Severn Trent PLC ADR | — | Vbhrdwr | $9.0 Bil | |
SVTRF
| Severn Trent PLC | — | Sprqwy | $9.0 Bil | |
UUGWF
| United Utilities Group PLC Class A | Ysmldswy | Dgj | $8.6 Bil | |
UUGRY
| United Utilities Group PLC ADR | Yjnhsdr | Kbd | $8.6 Bil | |
GGDVY
| Guangdong Investment Ltd ADR | — | Ffx | $3.0 Bil | |
GGDVF
| Guangdong Investment Ltd | — | Wgbk | $3.0 Bil | |
CWT
| California Water Service Group | — | Vwvg | $2.6 Bil |
