United Utilities Group PLC
United Utilities Group PLC Fundamental Analysis
United Utilities Group PLC (UUGRY) shows strong financial fundamentals with a PE ratio of 15.05, profit margin of 22.46%, and ROE of 27.94%. The company generates $2.6B in annual revenue with strong year-over-year growth of 21.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.5/100 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 UUGRY's fundamental strength across five key dimensions:
Efficiency Score
WeakUUGRY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentUUGRY trades at attractive valuation levels.
Growth Score
ModerateUUGRY shows steady but slowing expansion.
Financial Health Score
ModerateUUGRY shows balanced financial health with some risks.
Profitability Score
ModerateUUGRY maintains healthy but balanced margins.
Key Financial Metrics
Is UUGRY Expensive or Cheap?
P/E Ratio
UUGRY trades at 15.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, UUGRY's PEG of 0.16 indicates potential undervaluation.
Price to Book
The market values United Utilities Group PLC at 3.97 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -0.49 times EBITDA. This is generally considered low.
How Well Does UUGRY Make Money?
Net Profit Margin
For every $100 in sales, United Utilities Group PLC keeps $22.46 as profit after all expenses.
Operating Margin
Core operations generate 41.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.94 in profit for every $100 of shareholder equity.
ROA
United Utilities Group PLC generates $3.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
United Utilities Group PLC generates strong operating cash flow of $1.39B, reflecting robust business health.
Free Cash Flow
United Utilities Group PLC generates weak or negative free cash flow of $-112.84M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.33 in free cash annually.
FCF Yield
UUGRY converts -1.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How UUGRY Stacks Against Its Sector Peers
| Metric | UUGRY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.05 | 19.57 | Better (Cheaper) |
| ROE | 27.94% | 904.00% | Weak |
| Net Margin | 22.46% | 858.00% | Weak |
| Debt/Equity | 5.13 | 1.40 | Weak (High Leverage) |
| Current Ratio | 2.55 | 1.39 | Strong Liquidity |
| ROA | 3.26% | -4843.00% (disorted) | Weak |
UUGRY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews United Utilities Group PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.71%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
29.42%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
59.61%
Industry Style: Defensive, Dividend, Income
High Growth