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04.08.25 11:52:12 |
Be Wary Of United Utilities Group (LON:UUU.) Und seine Rückkehr auf Kapital |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Was sind die zugrunde liegenden Trends, die wir in einem Unternehmen suchen sollten? Unter anderem wollen wir zwei Dinge sehen: erstens eine wachsende Kapitalrendite (ROCE) und zweitens eine Expansion in der Kapitalmenge des Unternehmens. Einfach gesagt, diese Arten von Unternehmen sind Mischmaschinen, was bedeutet, dass sie ständig reinvestieren ihre Gewinne zu immer höheren Renditen. Nachdem wir gesagt haben, dass wir von einem ersten Blick auf die United Utilities Group (LON:UU.) nicht aus unseren Stühlen springen, wie Renditen Trend sind, aber lassen Sie uns einen tieferen Blick haben.
Wir haben 21 US-Bestände gefunden, die prognostiziert werden, eine Dividendenrendite von über 6% im nächsten Jahr zu zahlen. Sehen Sie die vollständige Liste kostenlos.
Was ist Return on Capital Employed (ROCE)?
Wenn Sie noch nicht mit ROCE gearbeitet haben, misst es den "Return" (Vorsteuergewinn) ein Unternehmen erzeugt aus Kapital, das in seinem Geschäft beschäftigt ist. Die Formel für diese Berechnung auf United Utilities Group ist:
Return on Capital Employed = Ergebnis vor Zinsen und Steuern (EBIT) ÷ (Total Assets - Current Liabilities)
0,041 = UK£636m ÷ (UK£17b - UK£1.1b) (Auf der Grundlage der folgenden zwölf Monate bis März 2025).
So hat die United Utilities Group einen ROCE von 4,1%. Das ist allein eine geringe Kapitalrendite, aber sie entspricht den durchschnittlichen Renditen der Branche von 3,6 %.
Sehen Sie sich unsere neueste Analyse für United Utilities Group LSE:UU an. Kapitalrendite 4. August 2025
Oben können Sie sehen, wie der aktuelle ROCE für United Utilities Group mit seinen früheren Kapitalrenditen vergleicht, aber es gibt nur so viel, dass Sie aus der Vergangenheit sagen können. Wenn Sie sehen möchten, was Analysten vorschlagen, sollten Sie sich unseren kostenlosen Analystenbericht für United Utilities Group anschauen.
Wie läuft der ROCE Trend der United Utilities Group?
Auf der Oberfläche inspiriert der Trend der ROCE bei United Utilities Group nicht das Vertrauen. Um genauer zu sein, ist ROCE in den letzten fünf Jahren von 5,9% gefallen. Angesichts des Kapitaleinsatzes und des Umsatzes scheint es jedoch, dass das Unternehmen derzeit mit kurzfristigen Renditen Wachstum verfolgt. Und wenn das erhöhte Kapital zusätzliche Renditen generiert, wird das Geschäft und damit die Aktionäre langfristig profitieren.
Die Bottom Line
Zusammenfassend lässt sich feststellen, dass die United Utilities Group trotz geringerer kurzfristiger Renditen nach Wachstum reinvestiert und dadurch einen höheren Umsatz aufweist. Und die Aktie folgte der Rückgabe von 58% an die Aktionäre in den letzten fünf Jahren. Sollten diese Wachstumstrends weitergehen, wären wir optimistisch für den Vorrat.
Geschichte geht weiter
Noch eine Sache, wir entdeckten 2 Warnzeichen gegenüber United Utilities Group, dass Sie interessant finden könnten.
Für diejenigen, die gerne in solide Unternehmen investieren, überprüfen Sie diese Freelist von Unternehmen mit soliden Bilanzen und hohen Renditen auf Eigenkapital.
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Dieser Artikel von Simply Wall St ist allgemein in der Natur. Wir liefern Kommentare basierend auf historischen Daten und Analystenprognosen nur unter Verwendung einer unvoreingenommenen Methodik und unsere Artikel sind nicht als Finanzberatung gedacht. Es stellt keine Empfehlung dar, Aktien zu kaufen oder zu verkaufen, und berücksichtigt nicht Ihre Ziele oder Ihre finanzielle Situation. Wir wollen Ihnen langfristig fokussierte Analyse durch grundlegende Daten bringen. Beachten Sie, dass unsere Analyse möglicherweise nicht in den neuesten preisempfindlichen Unternehmensankündigungen oder qualitativen Material ausschlaggebend ist. Einfach Wand St hat keine Position in den genannten Beständen.
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15.07.25 05:04:57 |
United Utilities Group Full Year 2025 Earnings: EPS Misses Expectations |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
United Utilities Group (LON:UU.) Full Year 2025 Results
Key Financial Results
Revenue: UK£2.15b (up 10.0% from FY 2024). Net income: UK£264.7m (up 109% from FY 2024). Profit margin: 12% (up from 6.5% in FY 2024). The increase in margin was driven by higher revenue. EPS: UK£0.39 (up from UK£0.19 in FY 2024).
Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.LSE:UU. Revenue and Expenses Breakdown July 15th 2025
All figures shown in the chart above are for the trailing 12 month (TTM) period
United Utilities Group EPS Misses Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.9%.
In the last 12 months, the only revenue segment was Regulated UK Water and Wastewater Business contributing UK£2.15b. Explore how UU.'s revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Global Water Utilities industry.
Performance of the market in the United Kingdom.
The company's share price is broadly unchanged from a week ago.
Risk Analysis
It is worth noting though that we have found 2 warning signs for United Utilities Group that you need to take into consideration.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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29.06.25 07:31:16 |
With 86% institutional ownership, United Utilities Group PLC (LON:UU.) is a favorite amongst the big guns |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Key Insights
Given the large stake in the stock by institutions, United Utilities Group's stock price might be vulnerable to their trading decisions The top 13 shareholders own 51% of the company Insiders have sold recently
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To get a sense of who is truly in control of United Utilities Group PLC (LON:UU.), it is important to understand the ownership structure of the business. With 86% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let's take a closer look to see what the different types of shareholders can tell us about United Utilities Group.
View our latest analysis for United Utilities Group LSE:UU. Ownership Breakdown June 29th 2025
What Does The Institutional Ownership Tell Us About United Utilities Group?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
United Utilities Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at United Utilities Group's earnings history below. Of course, the future is what really matters.LSE:UU. Earnings and Revenue Growth June 29th 2025
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. United Utilities Group is not owned by hedge funds. Our data shows that BlackRock, Inc. is the largest shareholder with 12% of shares outstanding. For context, the second largest shareholder holds about 8.8% of the shares outstanding, followed by an ownership of 5.1% by the third-largest shareholder.
A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Story Continues
Insider Ownership Of United Utilities Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own less than 1% of United Utilities Group PLC. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own UK£2.4m worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.
General Public Ownership
With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over United Utilities Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for United Utilities Group that you should be aware of before investing here.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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15.04.25 13:40:11 |
Is SJW Group (SJW) Stock Outpacing Its Utilities Peers This Year? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Has SJW (SJW) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.
SJW is a member of our Utilities group, which includes 106 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. SJW is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for SJW's full-year earnings has moved 0.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, SJW has returned 12.5% so far this year. At the same time, Utilities stocks have gained an average of 4.4%. As we can see, SJW is performing better than its sector in the calendar year.
Another Utilities stock, which has outperformed the sector so far this year, is United Utilities Group PLC (UUGRY). The stock has returned 7.5% year-to-date.
In United Utilities Group PLC's case, the consensus EPS estimate for the current year increased 24.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, SJW belongs to the Utility - Water Supply industry, which includes 12 individual stocks and currently sits at #85 in the Zacks Industry Rank. This group has gained an average of 17.3% so far this year, so SJW is slightly underperforming its industry in this area.
United Utilities Group PLC, however, belongs to the Utility - Electric Power industry. Currently, this 60-stock industry is ranked #50. The industry has moved +5.2% so far this year.
Investors with an interest in Utilities stocks should continue to track SJW and United Utilities Group PLC. These stocks will be looking to continue their solid performance.
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SJW Group (SJW) : Free Stock Analysis Report
United Utilities Group PLC (UUGRY) : Free Stock Analysis Report
Story Continues
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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01.04.25 10:18:00 |
Southern Company Enhances Security With OneLayer's Bridge Platform |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
The Southern Company’s SO subsidiary, Southern Linc, has taken a significant step in enhancing the security and management of its CriticalLinc LTE network by partnering with OneLayer, a leader in private LTE/5G OT management and Zero Trust security. Through this partnership, the company aims to optimize network efficiency and security at scale by leveraging OneLayer’s Bridge Platform.
An Insight Into SO’s CriticalLinc LTE Network
Southern Linc’s CriticalLinc LTE network is built on Ericsson’s core network technology that spans 122,000 square miles. The network supports essential utility and commercial operations across a wide variety of devices and applications. The company’s services include electric grid control and monitoring devices, cellular routers, smartphones, hotspots, laptops, sensors and many more. With the increasing demand for network access, Southern Linc recognized the need for a robust security and management solution. Therefore, OneLayer’s Bridge platform emerged as the ideal choice.
How Will OneLayer’s Bridge Platform Help Southern Linc?
OneLayer’s Bridge platform offers high-accuracy device fingerprinting, correlating device identities across IP and cellular networks and providing real-time detection of hidden devices, and an all-inclusive asset management solution.
The company’s Bridge platform will provide Southern Linc with complete control over all connected devices. The solution enables efficient profiling, classification and monitoring of network assets, ensuring seamless device communication. With these facilities, Southern Linc can better manage its expanding network in an efficient manner while maintaining the high level of security required for critical utility operations.
Advancing Digital Transformation in Utilities
Apart from providing enhanced security, OneLayer’s partnership with Southern Linc supports the utilities’ broader goals in their digital transformation journey. Its efficiency in providing services like network segmentation, policy enforcement and rapid threat response enables utility providers to operate securely and efficiently in an increasingly connected world.
SO’s Zacks Rank and Key Picks
The Southern Company deals with the generation, transmission and distribution of electricity and serves approximately 9 million customers through its seven electric and natural gas distribution units. Currently, SO has a Zacks Rank #3 (Hold).
Investors interested in the utility sector might look at some better-ranked stocks like EDP, S.A. EDPFY, United Utilities Group PLC UUGRY and CMS Energy Corporation CMS. While EDP and United Utilities currently sport a Zacks Rank #1 (Strong Buy) each, CMS Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Story Continues
EDP ranks among Europe's major electricity operators. It is one of Portugal's largest business groups.
United Utilities was created from the merger of North West Water and Norweb in November 1995, and its principal activities are managing and operating the regulated electricity distribution, water and wastewater networks in northwest England. The Zacks Consensus Estimate for UUGRY's 2025 earnings indicates 92.86% year-over-year growth.
Jackson, MI-based CMS Energy is the parent holding company of Consumers, an electric and gas utility, and NorthStar Clean Energy, a primarily domestic independent power producer and marketer. The Zacks Consensus Estimate for CMS' 2025 earnings indicates 7.78% year-over-year growth.
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Southern Company (The) (SO) : Free Stock Analysis Report
CMS Energy Corporation (CMS) : Free Stock Analysis Report
Energias de Portugal (EDPFY) : Free Stock Analysis Report
United Utilities Group PLC (UUGRY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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26.03.25 09:30:00 |
Southern Company & EPRI Join Forces to Fast-Track Energy Innovation |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
The Southern Company SO and the Electric Power Research Institute (EPRI) have recently joined forces to launch the Emerging Technologies Pilot (ETP) Program to provide innovative solutions in the energy sector that are both efficient and sustainable. This initiative aims to bridge the gap between cutting-edge startups and the energy industry, ensuring that promising new technologies are swiftly validated and integrated.
This collaboration will make use of Southern Company's expertise in delivering energy to homes and businesses while drawing on EPRI's experience in linking startups with energy providers through its Incubatenergy Labs program.
SO’s ETP Program to Accelerate Innovation
Many corporations struggle with the complications of implementing new products or services and want to speed up the time it takes to gain value from new technologies. Speeding up this time-consuming procedure to gain more value will create a structured environment where startups can showcase their solutions, undergo rigorous testing and gain traction in the energy market. The collaboration will address this speed-up process by streamlining pilot selection, enhancing resource utilization and reducing risk.
Under this program, Southern Company will pinpoint key strategic and operational needs, while EPRI will leverage its vast network and technical expertise to connect with companies offering technologies that will align with their goals. Using EPRI's research and insights, Southern Company will identify and advance the most promising concepts for future development.
A Future of Reliable, Affordable and Resilient Energy
With the ETP Program, Southern Company aims to stay at the forefront of energy innovation, ensuring its customers benefit from cleaner and more efficient power solutions. EPRI’s commitment to research and rapid deployment aligns perfectly with this mission, fostering a collaborative approach that benefits the entire industry. This partnership represents a major step toward a future where emerging technologies seamlessly integrate into the energy landscape, delivering reliability and affordability to all.
SO’s Zacks Rank and Key Picks
The Southern Company deals with the generation, transmission and distribution of electricity and serves approximately nine million customers through its seven electric and natural gas distribution units. Currently, SO has a Zacks Rank #3 (Hold).
Investors interested in the utility sector might look at some better-ranked stocks like EDP, S.A. EDPFY, United Utilities Group PLC UUGRY and Ameren Corporation AEE. While EDP and United Utilities currently sport a Zacks Rank #1 (Strong Buy) each, Ameren carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Story Continues
EDP ranks among Europe's major electricity operators, as well as being one of Portugal's largest business groups.
United Utilities was created from the merger of North West Water and Norweb in November 1995, and its principal activities are managing and operating the regulated electricity distribution, water and wastewater networks in northwest England. The Zacks Consensus Estimate for UUGRY's 2025 earnings indicates 92.86% year-over-year growth.
Ameren Corporationis a utility company that generates and distributes electricity and natural gas in Missouri and Illinois. The Zacks Consensus Estimate for AEE's 2024 earnings indicates 6.70% year-over-year growth.
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Ameren Corporation (AEE) : Free Stock Analysis Report
Southern Company (The) (SO) : Free Stock Analysis Report
Energias de Portugal (EDPFY) : Free Stock Analysis Report
United Utilities Group PLC (UUGRY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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19.03.25 16:00:08 |
United Utilities Group (UUGRY) Upgraded to Strong Buy: Here's Why |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
United Utilities Group PLC (UUGRY) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for United Utilities Group is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For United Utilities Group, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Story Continues
Earnings Estimate Revisions for United Utilities Group
For the fiscal year ending March 2025, this company is expected to earn $1.62 per share, which is a change of 92.9% from the year-ago reported number.
Analysts have been steadily raising their estimates for United Utilities Group. Over the past three months, the Zacks Consensus Estimate for the company has increased 21%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of United Utilities Group to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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United Utilities Group PLC (UUGRY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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26.02.25 12:24:43 |
Sewage overflows ‘not good enough’, boss of North West water supplier says |
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The water firm behind historic sewage spills in the UK’s Lake Windermere has said issues cannot be fixed “instantly”, as heavy rainfall and storms in the North West of England have driven more flooding incidents.
The chief executive of United Utilities also said she was “alive to the issues of trust and transparency” in the water sector after receiving a £1.4 million pay packet last year.
United Utilities was the latest supplier to face questioning by a group of MPs on the Environment, Food and Rural Affairs Committee.
Last year, the company was accused of failing to report more than 100 million litres of untreated sewage that it illegally dumped into Windermere over a three-year period.
Chief executive Louise Beardmore said that the company needed to rebuild trust in the North West after the scandal, and following an increase in pollution incidents last year.
“It is heartbreaking… I am very clear about the need to improve in this area,” she told the committee.
“It is not something we’re going to be able to fix instantly.
“It is a serious of infrastructure programmes… and at the same time, we’re going to have to look more long term about how we react to the impacts of climate change, particularly in some of the hot-spots in the North West.”
Ms Beardmore added: “Our performance isn’t good enough… we have one of the highest rates of internal sewer flooding across the country.”
This is partly due to a higher level of rainfall in the region last year leading to more major storms and flash flooding, and a greater number of power cuts.
She said the company had “fast-tracked” a programme to rebuild all of the wastewater treatment works around Lake Windermere and improve the water quality.
United Utilities is set to increase consumer bills by 32% over the coming five years, which will help pay for a £13.7 billion investment plan in the wider region between 2025 and 2030.
The boss took home a pay packet of £1.4 million last year, made up of a base salary worth £690,000, plus benefits, bonuses and long-term share awards.
Asked by MPs to justify the bonuses, Ms Beardmore said: “Shareholders are entirely paying for that so it’s not passed onto customers int terms of customer bills.”
“I think we’re all very alive to the issue of remuneration and trust in the sector and the changes that need to follow,” she added.
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26.02.25 06:05:31 |
United Utilities Group (LON:UU.) shareholders have earned a 1.0% CAGR over the last three years |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
As an investor its worth striving to ensure your overall portfolio beats the market average. But if you try your hand at stock picking, you risk returning less than the market. We regret to report that long term United Utilities Group PLC (LON:UU.) shareholders have had that experience, with the share price dropping 10% in three years, versus a market return of about 21%. It's down 14% in about a quarter.
So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.
See our latest analysis for United Utilities Group
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During five years of share price growth, United Utilities Group moved from a loss to profitability. We would usually expect to see the share price rise as a result. So it's worth looking at other metrics to try to understand the share price move.
Given the healthiness of the dividend payments, we doubt that they've concerned the market. Revenue has been pretty flat over three years, so that isn't an obvious reason shareholders would sell. So it might be worth looking at how revenue growth over time, in greater detail.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).LSE:UU. Earnings and Revenue Growth February 26th 2025
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So we recommend checking out this freereport showing consensus forecasts
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, United Utilities Group's TSR for the last 3 years was 3.1%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.
Story Continues
A Different Perspective
Investors in United Utilities Group had a tough year, with a total loss of 0.9% (including dividends), against a market gain of about 15%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 4%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with United Utilities Group , and understanding them should be part of your investment process.
For those who like to find winning investments this freelist of undervalued companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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29.01.25 08:10:22 |
United Utilities and South West Water hike dividends amid bill increases |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Water companies United Utilities and South West Water have said they will raise dividends to shareholders as they confirmed consumer bill increases of 32% and 23%, respectively, over the coming five years.
United Utilities, which serves about seven million customers around Manchester and Liverpool, and South West Water’s parent company Pennon said they had agreed the bill increases negotiated with regulator Ofwat last year.
The regulator’s decision, made in December, means the typical billpayer across the UK will see their payments rise by an average of £86 this April and was met with outrage from consumer groups.
The increases come amid high levels of sewage spills and underinvestment in pipes, sewers and reservoirs over the last decade.
The companies have said they need to increase bills to pay for improvements to their infrastructure to reduce pollution incidents.
Despite this, United Utilities and Pennon also said they will raise dividend payouts to shareholders this year so that they increase in line with inflation.
United Utilities’ boss Louise Beardmore said the rise in bills would raise £13 billion to invest in its infrastructure across the North West.
She said the total was the “largest investment in water and wastewater infrastructure in over 100 years”.
Pennon, meanwhile, whose companies serve about 1.8 million customers, said it will tap investors for £490 million via a sale of new shares.
It said the money will go towards a £3.2 billion investment in its pipes and sewers over the coming years.
The group’s chief executive Susan Davy said the company has “listened to customers” and that the bill rises would pay for “record levels of investment”.
She said the money would go towards “fixing storm overflows, building new reservoirs and creating natural habitats for wildlife”.
The smaller SES Water, which Pennon also bought last year and serves Surrey, Sussex and Kent, will reduce bills by 3% over the five-year period.
The companies had the option of appealing Ofwat’s decision on bills to the competition regulator, but the announcements on Wednesday signal they will not.
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