Pennon Group PLC PEGRY

UtilitiesWater & Related UtilitiesUnited Kingdom

Last close 9.91 USD on Nov 1, 2026, −24.4% year to date

Quant rating

Quant rating D Rank 72 of 89 in Utilities

Growth A 7 of 89
Valuation B 26 of 89
Quality C 58 of 89
Revisions D 78 of 89
Momentum D 81 of 89

Wall Street consensus Buy (2.23)Average target 5.87 USD −40.7%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 3.2B
Enterprise value: 9.3B
52-week range: 8.79 – 16.35
3-year range: 8.79 – 16.35
Dividend yield: 7.92%
Beta (5 years): 0.71
Shares outstanding: 680M
Next earnings: Dec 1, 2026

About the company

Pennon Group plc is an environmental infrastructure company focused on the United Kingdom water sector. The Company’s segments include Water and Non-household retail. The Water segment comprises the regulated water and wastewater services undertaken by South West Water Limited (South West Water) and the regulated water services undertaken by Sutton and East Surrey Water plc (SES Water). The Non-household retail business reflects the services provided by Pennon Water Services Limited and South East Surrey Water Services (SESWS). South West Water provides water and wastewater services in Devon, Cornwall and parts of Dorset and Somerset and water only services in parts of Dorset, Hampshire, Wiltshire and Bristol. SES Water provides water only services in the South East region. SESWS provides water and wastewater retail services to non-household customer accounts. Pennon Water Services Limited provides water and wastewater retail services to non-household customers across Great Britain.

Growth and profitability fiscal year ends March 31

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	1,707	1,354	1,146	983	1,041	–
Revenue growth	26.1%	18.1%	16.6%	−5.5%	21.0%	14.7%
EPS (basic, normalized)	0.34	−0.13	0.06	0.07	0.40	–
EPS growth	–	–	−13.8%	−83.5%	–	–
Gross margin	96.9%	95.1%	94.3%	95.8%	97.1%	95.8%
Net margin	7.1%	−5.5%	−1.0%	0.0%	1.9%	0.5%
ROE	6.4%	−4.4%	−0.8%	0.0%	0.7%	0.4%

Balance sheet, last quarter
Cash & short-term investments (mil)	–
Current ratio	–
Long-term debt (mil)	–
Net debt (mil)	–
Total equity (mil)	–
Net debt / equity	–
Net debt / EBITDA	–

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2026 actual	1,707	+26.1%	5.4x	694	+54.6%	13.4x	0.34	+370.8%	29.1x
2027	1,834	+7.4%	5.1x	750	+8.1%	12.3x	0.34	−1.6%	29.5x
2028	1,925	+5.0%	4.8x	817	+8.9%	11.3x	0.34	+0.8%	29.3x
2029	2,006	+4.2%	4.6x	876	+7.2%	10.6x	0.34	−0.2%	29.4x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	1,834	+0.3%	+0.4%	−0.2%	0.34	−7.4%	−8.8%	−18.3%
2028	1,925	+0.4%	+0.5%	−0.8%	0.34	−13.9%	−15.0%	−28.1%
2029	2,006	+0.3%	+0.3%	+1.2%	0.34	−21.1%	−22.5%	−29.9%

Earnings surprises

Reported results versus consensus, last 10 fiscal quarters
	FQ-9	FQ-8	FQ-7	FQ-6	FQ-5	FQ-4	FQ-3	FQ-2	FQ-1	FQ0
Sales reported (mil)	–	–	–	–	–	–	–	–	–	–
Sales mean (mil)	–	–	–	–	–	–	–	–	–	–
Surprise	–	–	–	–	–	–	–	–	–	–
EPS reported	–	–	–	–	–	–	–	–	–	–
EPS mean	–	–	–	–	–	–	–	–	–	–
Surprise	–	–	–	–	–	–	–	–	–	–

FQ0 is the most recent reported quarter, FQ-1 the one before, and so on.

Peer comparison Water & Related Utilities

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
PEGRY Pennon Group PLC	3.2B	–	7.1%	1.29x	29.5x	29.3x	12.3x	11.3x
WBI WaterBridge Infrastructure LLC	3.8B	6.55x	2.3%	2.25x	54.9x	47.1x	13.8x	11.2x
AWR American States Water Company	3.4B	3.54x	19.8%	3.05x	23.3x	22.5x	15.4x	14.5x
CWT California Water Service Group	3.0B	5.20x	12.8%	1.66x	19.4x	18.2x	12.1x	10.7x
HTO H2O America	2.9B	5.12x	12.8%	1.31x	20.4x	21.7x	12.8x	11.7x
BJWTY Beijing Enterprises Water Group Ltd	1.8B	–	6.6%	0.35x	799.4x	759.1x	16.5x	16.1x
Mean		5.10x	10.2%	1.65x	157.8x	149.7x	13.8x	12.6x
Median		5.16x	9.9%	1.49x	26.4x	25.9x	13.3x	11.5x

Technical analysis

1M−15.8%
3M−20.6%
1Y−25.6%
3Y+13.4%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Pennon Group PLC, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	1,707	1,354	1,146	983	1,041	860
Cost of revenue	52.9	66.8	65.4	41.4	30.1	24.9
Gross profit	1,655	1,287	1,081	942	1,010	835
Selling, general & administrative expenses	199	208	154	136	119	109
Research & development	–	–	–	–	–	0
Depreciation/amortization	254	242	217	191	193	165
Interest expense (income), operating	1.1	–	–	–	–	–
Unusual expense (income)	28.3	48.7	32.7	19.6	20.8	5.9
Other operating expenses	769	646	500	461	388	294
Operating income	403	143	177	135	291	262
Net interest income (expense)	−244	−225	−184	−143	−121	−74.5
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−7.4	−12.0	−5.2	−2.1	−2.0	−5.8
Net income before taxes	151	−93.9	−11.5	−10.5	168	182
Provision for taxes	28.8	−20.5	−0.8	−11.0	147	34.2
Minority interest	−1.5	−1.4	−1.3	−0.4	−0.3	0.3
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	121	−74.8	−12.0	0.1	20.2	148
Extraordinary items	–	–	–	–	0	2,280
Net income	121	−74.8	−12.0	0.1	20.2	2,428
EBIT, normalized	428	192	209	131	310	268
EBITDA, normalized	682	434	426	322	503	433
Basic EPS, normalized	0.34	−0.13	0.06	0.07	0.40	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Pennon Group PLC, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	441	540	169	177	682	3,677
Receivables	574	483	432	293	358	287
Total inventory	20.2	16.5	16.7	12.3	10.1	7.4
Prepaid expenses	24.2	24.0	24.4	11.3	–	11.6
Other current assets	100	99.7	76.7	52.3	7.4	347
Total current assets	1,160	1,163	719	546	1,057	4,331
Property, plant & equipment	8,327	7,556	6,784	5,521	5,600	4,438
Goodwill	238	232	227	202	215	58.3
Intangibles	89.2	80.4	76.1	18.4	18.3	1.7
Long-term investments	12.0	3.1	2.4	2.0	–	0
Note receivable	9.4	–	–	–	12.6	–
Other long-term assets	55.4	68.6	66.5	106	107	17.4
Total assets	9,890	9,104	7,875	6,395	7,009	8,846
Liabilities
Accounts payable	289	179	287	186	141	103
Payable/accrued	–	–	–	–	–	–
Accrued expenses	85.5	73.6	51.1	58.8	44.4	42.4
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	200	333	304	154	315	122
Other current liabilities	192	184	106	40.0	44.3	41.8
Total current liabilities	767	770	748	438	545	308
Long-term debt	6,275	5,551	4,766	3,707	3,890	3,812
Minority interest	4.8	3.2	1.8	0.5	0.1	−0.1
Other liabilities	981	909	893	862	901	613
Total liabilities	8,028	7,233	6,409	5,008	5,336	4,733
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	381	372	220	197	212	237
Additional paid-in capital	998	975	503	293	309	320
Retained earnings (accumulated deficit)	451	523	743	897	1,152	3,556
Treasury stock	−2.4	–	–	–	–	–
Other equity	33.5	0	0	0	0	0
Total equity	1,862	1,871	1,466	1,387	1,674	4,113
Total liabilities & shareholders' equity	9,890	9,104	7,875	6,395	7,009	8,846

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Pennon Group PLC, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	122	−73.4	−10.7	0.5	20.5	2,428
Depreciation, depletion & amortization	255	242	217	191	193	165
Deferred taxes	–	–	–	–	–	–
Non-cash items	280	219	189	137	293	−2,080
Changes in working capital	−184	−267	−207	−140	−174	−222
Cash from operations	474	121	188	188	331	290
Investing activities
Capital expenditures	−843	−864	−756	−408	−301	−262
Other investing cash flows	32.7	−10.1	−74.6	187	−419	4,979
Cash from investing	−810	−874	−831	−221	−720	4,717
Financing activities
Financing cash flow items	2.2	–	–	–	–	0
Cash dividends paid	−177	−164	−141	−125	−2,089	−254
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	398	1,284	786	−97.4	−567	−1,727
Cash from financing	223	1,120	645	−223	−2,655	−1,980
Foreign exchange effects	–	–	–	–	–	–
Net change in cash	−113	367	2.1	−256	−3,043	3,027
Free cash flow	−369	−743	−568	−220	30.6	27.8

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.