Utilities Sector

Comprehensive analysis of the utilities sector

+0.32%1D Performance
5 Companies
$38.15B Market Cap
Total Companies
5
Total Market Cap
$38.15B
Avg P/E Ratio
12.0
Avg ROE
6.1%
↑ 6.11%

Sector Performance Overview

Performance Metrics

1 Week-5.06%
1 Month-4.4%
3 Months-0.4%
6 Months-3.4%
YTD-0.03%
1 Year-19.82%

Sector Characteristics

Key Industries

Regulated ElectricRenewable Utilities

Investment Style

DefensiveDividendIncome
No data found for the Utilities sector in this country.

Leading Companies by Market Cap

SymbolCompanyPriceChangeMarket CapP/EVolume
EOAN.SWE.ON SE$10.608↑+0.00%27.70B5.741,025
BKW.SWBKW AG$172.5↓-0.46%9.10B14.7344,481
EDHN.SWEnergiedienst Holding AG$38.7↓-1.28%1.28B12.171,264
ESUN.SWEdisun Power Europe AG$52↑+3.59%59.64M18.911,061
RWE.SWRWE AG$24.87↑+0.00%08.26300
Showing top 5 companies by market capitalization

Understanding the Utilities Sector

The utilities sector represents a significant segment of the modern economy, encompassing 5 companies with a combined market capitalization of $38.15B. This sector includes key industries such as Regulated Electric, Renewable Utilities, each contributing to the sector's overall performance and market dynamics. The sector's diverse composition provides investors with exposure to multiple business models and growth opportunities within the utilities space.

Investment opportunities in the utilities sector are characterized by companies with defensive, dividend, income strategies. The sector's financial profile includes an average P/E ratio of 12.0 and an average ROE of 6.1%, reflecting the fundamental strength and profitability metrics across the sector's constituent companies. Investors should consider these metrics when evaluating investment opportunities and assessing risk-return profiles within this sector.

The utilities sector's recent performance shows varied results across different time horizons, with 1-day performance at +0.32% and year-to-date performance at -0.03%. This performance data, combined with the sector's fundamental characteristics, provides valuable insights for investors considering portfolio allocation to the utilities sector. The sector's investment appeal lies in its defensive, dividend, income nature, offering opportunities for both growth-oriented and income-focused investment strategies.

Frequently Asked Questions

The utilities sector includes companies involved in regulated electric, renewable utilities. Major companies include E.ON SE, BKW AG, Energiedienst Holding AG, Edisun Power Europe AG, and RWE AG and many others that drive technological innovation.
The utilities sector has generally outperformed the broader market over the long term, driven by continuous innovation and digital transformation trends. However, it's also known for higher volatility compared to more traditional sectors, with significant price swings during market cycles.
Key risks include high market volatility, rapid technological obsolescence, intense competition, regulatory challenges, and sensitivity to economic cycles. Additionally, many utilities companies trade at high valuations, making them vulnerable to market corrections.
Focus on metrics like revenue growth, profit margins, return on equity (sector average: 6.11%), free cash flow, and price-to-earnings ratio (sector average: 11.96). Also consider competitive positioning, intellectual property, management quality, and the company's ability to adapt to technological changes.
The utilities sector is characterized by defensive, dividend, income investment styles. This sector offers exposure to companies across various industries including regulated electric, renewable utilities, providing investors with diversified opportunities within the sector's ecosystem.
The utilities sector can be excellent for long-term investors who can tolerate volatility and believe in continued technological advancement. The sector's growth potential is driven by ongoing innovation and increasing digitalization across all aspects of business and life.

Explore Other Sectors

Healthcare

Medical devices, pharmaceuticals, biotechnology

Financials Services

Banks, insurance, investment services

Energy

Oil, gas, renewable energy companies

Consumer Cyclical

Retail, automotive, entertainment

Industrials

Manufacturing, aerospace, defense

Basic Materials

Chemicals, metals, mining companies