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STSTRNY

Severn Trent PLC

$STRNY·$12B·Regulated Water·Utilities
$42.54+0.1%YTD+8.9%1Y+19.6%
Mentions · last 7 days
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Price updated 11d ago·X counts updated 11d ago
STSTRNY
$STRNYSevern Trent PLC
$42.54+0.07%0 posts
AI analysisFundamentalsVoices on X
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AI verdict & sentimentAI analysisGenerated by AI from underlying data

Today's AI verdict on what's driving $STRNY, plus how loud the X conversation is and which way it's leaning.

AI analysis

TickerTalks’ read on the fundamentals and what’s driving the move.

Proven numbersWinding up for a moveAI verdict · as of 2026-08-13

Trading in a tight range and building pressure — a move looks likely soon, but the direction isn't clear yet.

Severn Trent PLC — UK regulated water utility — TTM +21%, YTD +9%, but Aug 3 broker downgrade ('time to stop buying') marks the coil at 75% of range.

Severn Trent Plc is a Coventry, UK-based regulated water and wastewater utility — Regulated Water and Waste Water (Severn Trent Water + Hafren Dyfrdwy), Business Services (non-regulated operating services, Green Power biomass, property development). Market cap $12.5B.

  • AMP8 (2025-2030) UK water regulatory period underway with heavy infrastructure investment: May 20 news 'Severn Trent upgrades earnings outlook after investing £1.9bn in infrastructure' + July 9 'keeps 2027 targets unchanged' — the RAB-growth (regulated asset base) thesis is intact.
  • Aug 3 broker note titled 'Time to stop buying Severn Trent shares' — sentiment inflection point after TTM +21% has priced in much of the AMP8 investment story; the coil is on whether operational execution + rates keep up with the required capex intensity.
  • 24x TTM P/E and 14x EV/EBITDA — expensive but standard for UK regulated water; last four EPS surprises: -35%, -20%, -34%, -15% — consistently missing consensus even as the regulator-approved capex framework compounds RAB.

What extends the coil upward: interim results showing operational cost containment despite AMP8 capex; capital-markets-day dividend or capital-return clarity. What breaks it: Ofwat regulatory pushback on 2027 target framework, or another 20%-plus EPS miss.

What to watch: Interim H1 FY27 results (typical mid-Nov cadence); Ofwat AMP8 regulatory / rate-review activity; £1.9B infrastructure spend cost efficiency. Also watch peer United Utilities, Pennon for UK water utility read.

On the calendar: 2026-11-18 — H1 FY27 interim results (approximate)

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What it does

Plain-English summary of the business — what they sell and how they make money.

UK regulated water and sewage utility serving ~4.8 million households in England and Wales.

Industry overviewAI analysisGenerated by AI from underlying data

Where Regulated Water sits in its cycle right now — and what that implies for $STRNY.

Regulated Water · Utilities

No material change from last week — Severn Trent's England and Wales regulated operations earn Ofwat-set inflation-linked returns on capital investment while AWR's California utility and..

What this means for $STRNY

Direct beneficiary — UK regulated water and sewage utility serving ~4.8 million households in England and Wales; core revenue tied directly to the primary demand driver in regulated water.

Top industry ETF

$XLUUtilities Select Sector SPDR
+2.8%YTD
+1.8%1Y

Fundamentals & catalyst

Profitability, valuation, and the next earnings event — at a glance, with rule-of-thumb signals.

Key ratios

P/E
24.1How much investors are paying per dollar of profit the company actually earned in the last 12 months. Lower means the stock looks cheaper relative to earnings.~15–25 is typical for the S&P 500; high-growth names trade 30+; hyper-growth or speculative can be 100+ or negative.
ROIC
3.7%What percentage return the business earns on every dollar of capital (equity + debt) deployed in operations. The cleanest measure of business quality.Above ~15% is high-quality; consistently above 25% suggests a real moat. Below the company's cost of capital is value-destroying.
Op margin
30.4%Operating profit (after sales, marketing, R&D, and overhead but before interest and taxes) as a percentage of revenue. The clearest view of how well the underlying business is run.Mature business above 20% is healthy; software businesses can run 30%+; commodity / retail businesses operate in single digits.
FCF yield
-10.9%Free cash flow (operating cash flow minus capex) divided by the company's market cap. The cash-on-cash return you'd get owning the whole business at today's price.Above ~5% is attractive; below ~2% means you're paying up for growth. Capital-light businesses (software) run higher than capital-heavy ones (utilities).
P/S
3.2Same idea as P/E but per dollar of revenue. Useful for companies that aren't profitable yet, where P/E is meaningless.Under ~2 is cheap; software / SaaS often runs 8–15; well above 20 implies the market is pricing in very high future growth.
ROE
20.3%Net income as a percentage of shareholders' equity. Similar to ROIC but counts only the equity side.Above 20% is strong, but can be inflated by leverage — a heavily indebted company can show high ROE with weak underlying ROIC.
Gross margin
30.4%Revenue minus the direct cost of producing what was sold, as a percentage of revenue. The first read on whether the product is structurally profitable.Software / SaaS is typically 70%+; consumer goods 30–50%; commodity / hardware businesses can be under 20%.
D/E
6.0Total debt divided by shareholders' equity. Measures how much the business runs on borrowed money versus owner capital.Under 1 is conservative; 1–2 is typical for mature businesses; over 2 is leveraged and more sensitive to interest rates.

Past earnings

QuarterReportedActualEstimateSurprise
Q1 2026May 27, 2026$0.65$1.00-35.3%
Q3 2025Nov 18, 2025$1.01$1.26-19.8%
Q1 2025May 20, 2025$0.38$0.57-34.0%
Q3 2024Nov 20, 2024$0.62$0.72-14.6%

Quarterly trend

QuarterRevenueYoYGrossOpEPSFCF
Q4 FY26$1.4B+20.6%28.3%28.3%$0.49$-699.4M
Q2 FY26$1.4B+23.1%32.5%32.5%$0.76$-282.0M
Q4 FY25$1.2B+9.5%25.7%23.8%$0.29$-532.1M
Q2 FY25$1.2B+14.7%25.8%24.0%$0.47$-108.6M

Forward consensus

5-year forecast · up to 12 analysts
FYRevenueRangeEPSRangeAnalysts
FY26$2.9B$2.8B – $2.9B$1.80$1.75 – $1.8412
FY27$3.2B$3.1B – $3.2B$2.08$2.01 – $2.1211
FY28$3.5B$3.4B – $3.6B$2.54$2.46 – $2.5911
FY29$3.7B$3.6B – $3.8B$2.73$2.65 – $2.806
FY30$3.9B$3.8B – $4.0B$2.71$2.62 – $2.777

Setup & momentum

Volume, range, and moving-average position — the technical setup driving short-term moves.

Right now

Vol vs 30dToday's traded share volume divided by the average over the prior 30 trading days. ≥3× signals unusual interest; below 1× is quiet.0.3×Today's traded share volume divided by the average over the prior 30 trading days. ≥3× signals unusual interest; below 1× is quiet.
52w rangeWhere the latest close sits between the 52-week low (0%) and high (100%). Above 80% is extended; below 30% is basing or in a downtrend.75%Where the latest close sits between the 52-week low (0%) and high (100%). Above 80% is extended; below 30% is basing or in a downtrend.
vs 50d MALatest close vs the 50-day simple moving average. Positive = short-term trend is up.+4.9%Latest close vs the 50-day simple moving average. Positive = short-term trend is up.
vs 200d MALatest close vs the 200-day simple moving average. Positive = long-term trend is up.+5.2%Latest close vs the 200-day simple moving average. Positive = long-term trend is up.

Recent news

Latest headlines from major outlets, sourced and timestamped — context for whatever just moved.

Time to stop buying Severn Trent shares - brokerproactiveinvestors.co.uk·23d agoSevern Trent keeps 2027 targets unchangedproactiveinvestors.co.uk·48d agoSevern Trent PLC (STRNY) Q4 2026 Earnings Call Prepared Remarks Transcriptseekingalpha.com·93d agoSevern Trent PLC (STRNY) Q4 2026 Earnings Call Prepared Remarks Transcriptseekingalpha.com·98d agoSevern Trent upgrades earnings outlook after investing £1.9bn in infrastructureproactiveinvestors.co.uk·98d ago

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