Severn Trent Plc
Severn Trent Plc Fundamental Analysis
Severn Trent Plc (SVTRF) shows moderate financial fundamentals with a PE ratio of 29.64, profit margin of 11.92%, and ROE of 17.63%. The company generates $2.7B 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 57.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SVTRF's fundamental strength across five key dimensions:
Efficiency Score
WeakSVTRF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSVTRF shows balanced valuation metrics.
Growth Score
ModerateSVTRF shows steady but slowing expansion.
Financial Health Score
ExcellentSVTRF maintains a strong and stable balance sheet.
Profitability Score
WeakSVTRF struggles to sustain strong margins.
Key Financial Metrics
Is SVTRF Expensive or Cheap?
P/E Ratio
SVTRF trades at 29.64 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SVTRF's PEG of 1.10 indicates fair valuation.
Price to Book
The market values Severn Trent Plc at 5.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.32 times EBITDA. This is generally considered low.
How Well Does SVTRF Make Money?
Net Profit Margin
For every $100 in sales, Severn Trent Plc keeps $11.92 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 $17.63 in profit for every $100 of shareholder equity.
ROA
Severn Trent Plc generates $1.83 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 $871.07M, reflecting robust business health.
Free Cash Flow
Severn Trent Plc generates weak or negative free cash flow of $-816.23M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.71 in free cash annually.
FCF Yield
SVTRF converts -8.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SVTRF Stacks Against Its Sector Peers
| Metric | SVTRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.64 | 20.59 | Worse (Expensive) |
| ROE | 17.63% | 906.00% | Weak |
| Net Margin | 11.92% | 814.00% | Weak |
| Debt/Equity | 0.00 | 1.50 | Strong (Low Leverage) |
| Current Ratio | 1.43 | 1.52 | Neutral |
| ROA | 1.83% | 88.00% | Weak |
SVTRF outperforms its industry in 1 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