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United Utilities Group PLC UU. Stock Quote

| Rating as of

XLON:UU.

Morningstar‘s Stock Analysis UU.

Valuation
Currency in GBX
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

United Utilities' First-Half Results Bear No Surprises; Shares Rich

Tancrede Fulop, CFA Senior Equity Analyst

Analyst Note

| Tancrede Fulop, CFA |

We maintain our fair value estimate of GBX 850 per share along with our no-moat rating after United Utilities released fiscal 2023 first-half results largely in line with what it preannounced in its late September trading statement. Interim dividend is set at GBX 15.7, 4.6% higher than last year, in line with the guidance. The final dividend should also grow by 4.6%, implying a total fiscal 2023 dividend of GBX 46 and a 4.4% yield, in line with the sector median. On the other hand, we foresee a 5.1% average annual decline in adjusted EPS through fiscal 2027, well below the 2.3% average annual growth that we project for the sector in the meantime. All in all, we view the shares as significantly overvalued despite an unappealing earnings profile.

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Key Statistics UU.

Company Profile UU.

Business Description

United Utilities Group is primarily a holding company for United Utilities Water, the country's largest regulated water and wastewater utility, serving customers in northwest England, including Manchester and Liverpool.

Contact
Lingley Green Avenue, Great Sankey, Haweswater House
Warrington, WA5 3LP, United Kingdom
T +44 1925237000
Industry Utilities - Regulated Water
Most Recent Earnings
Fiscal Year End Mar 31, 2023
Employees 6,000

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