Morningstar

United Utilities Earnings: Fiscal 2023 Loss Slightly Smaller Than Expected; Shares Rich

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Securities In This Article
United Utilities Group PLC Class A
(UU.)

We maintain our GBX 850 fair value estimate after no-moat United Utilities UU. released a net loss slightly smaller than expected by us and FactSet consensus and guided for fiscal 2024 earnings below consensus. The firm will pay a GBX 45.1 dividend on fiscal 2023 earnings, 4.6% higher than in fiscal 2022, in line with the November 2021 Consumer Price Index including owner-occupiers’ housing costs, implying a 4.4% yield. Shares look materially overvalued.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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About the Author

Tancrede Fulop, CFA

Senior Equity Analyst
More from Author

Tancrede Fulop, CFA, is a senior equity analyst, Europe, for Morningstar*. He covers main European utilities and renewables. His coverage includes the largest diversified utilities like Iberdrola or Enel, pure renewables developers like Orsted and regulated utilities like National Grid.

Before joining Morningstar in 2017, Fulop worked for Schlumberger Business Consulting as a financial and economist analyst. He wrote a piece on the consequences of the COP 21 for the oil & gas industry and conducted financial & operational due diligences of OFS companies. Previously, he was a senior research associate covering European utilities for Raymond James from 2011 to 2015. He built up power price forecasts.

Fulop holds a bachelor’s degree in economics and management and a master’s degree in finance from the University Paris II Pantheon-Assas. He also holds the Chartered Financial Analyst® designation.

* Morningstar Holland BV (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

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