Severn Trent Plc (SVT.L) stock analysis
In our weekly check, Severn Trent Plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3.
About Severn Trent Plc
Severn Trent Plc is an Utilities company (Regulated Water) based in the United Kingdom, listed on LSE as SVT.L.
What our checks show for SVT.L
Red flags
- Net debt is 7.6x a year of EBITDA (debt/equity 5.97). That limits room in a downturn and raises refinancing risk.
- Free cash flow is negative (-34.3% of revenue): the business spends more cash than it brings in.
- Pay in shares equals 0% of free cash flow: it dilutes shareholders.
Warning signs
- Operating profit covers interest only 3.6 times: a weak year could make the payments hard.
- The stock has fallen as much as 41% from a peak. Would you have held through that?
- Recovering from its deepest fall took about 2.2 years.
- Return on capital (ROCE) is only 5.3%.
Strengths
- The net margin rose by 17.6 points over 5 years, to 13.1%.
- Operating cash flow is 2.49x net profit: the profit arrives as real cash.
- Analysts expect earnings per share to grow about 29.7% a year over the next years.
- Analysts expect the net margin to improve by 9.2 points from today's 13.1%.
- Earnings per share grew 32.8% a year over the last 3 years.
- Net profit grew 41.1% a year over the last 3 years.
Next earnings report: 2026-11-18
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Questions
What grade does Severn Trent Plc (SVT.L) have?
In our weekly check, Severn Trent Plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of SVT.L stock?
This week's biggest flags for Severn Trent Plc: High debt, Weak free cash flow, Heavy stock pay. In total 7 of 25 checks show a warning or a red flag.
What does Severn Trent Plc do?
Severn Trent Plc is an Utilities company (Regulated Water) based in the United Kingdom, listed on LSE as SVT.L.
When does Severn Trent Plc report earnings next?
The next earnings report is expected on 2026-11-18. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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