Severn Trent Plc
Severn Trent Plc Fundamental Analysis
Severn Trent Plc (STRNY) shows moderate financial fundamentals with a PE ratio of 30.20, profit margin of 11.91%, and ROE of 14.99%. The company generates $2.6B in annual revenue with moderate year-over-year growth of 8.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STRNY's fundamental strength across five key dimensions:
Efficiency Score
WeakSTRNY struggles to generate sufficient returns from assets.
Valuation Score
ModerateSTRNY shows balanced valuation metrics.
Growth Score
ModerateSTRNY shows steady but slowing expansion.
Financial Health Score
ModerateSTRNY shows balanced financial health with some risks.
Profitability Score
WeakSTRNY struggles to sustain strong margins.
Key Financial Metrics
Is STRNY Expensive or Cheap?
P/E Ratio
STRNY trades at 30.20 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, STRNY's PEG of 1.12 indicates fair valuation.
Price to Book
The market values Severn Trent Plc at 3.91 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -2.29 times EBITDA. This is generally considered low.
How Well Does STRNY Make Money?
Net Profit Margin
For every $100 in sales, Severn Trent Plc keeps $11.91 as profit after all expenses.
Operating Margin
Core operations generate 28.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.99 in profit for every $100 of shareholder equity.
ROA
Severn Trent Plc generates $1.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Severn Trent Plc generates strong operating cash flow of $870.27M, reflecting robust business health.
Free Cash Flow
Severn Trent Plc generates weak or negative free cash flow of $-816.24M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.71 in free cash annually.
FCF Yield
STRNY converts -8.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.91
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How STRNY Stacks Against Its Sector Peers
| Metric | STRNY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.20 | 20.59 | Worse (Expensive) |
| ROE | 14.99% | 906.00% | Weak |
| Net Margin | 11.91% | 814.00% | Weak |
| Debt/Equity | 5.95 | 1.50 | Weak (High Leverage) |
| Current Ratio | 1.43 | 1.52 | Neutral |
| ROA | 1.36% | 88.00% | Weak |
STRNY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Severn Trent Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
12.23%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-61.85%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-18.06%
Industry Style: Defensive, Dividend, Income
Declining