United Utilities Group PLC (UU.L) stock analysis

In our weekly check, United Utilities Group PLC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4.

About United Utilities Group PLC

United Utilities Group PLC is an Utilities company (Regulated Water) based in the United Kingdom, listed on LSE as UU.L.

What our checks show for UU.L

Red flags

• Net debt is 6.1x a year of EBITDA (debt/equity 5.13). That limits room in a downturn and raises refinancing risk.
• Free cash flow is negative (-4.2% of revenue): the business spends more cash than it brings in.
• Recovering from its deepest fall took about 4.5 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating profit covers interest only 3.5 times: a weak year could make the payments hard.
• The stock has fallen as much as 46% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 6.3%.

Strengths

• The net margin rose by 25.5 points over 5 years, to 22.4%.
• The gross margin is 48.6% and has risen by 1.1 points: pricing power is holding.
• Operating cash flow is 2.35x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 2.4 points from today's 22.4%.
• Earnings per share grew 42.1% a year over the last 3 years.
• Net profit grew 42% a year over the last 3 years.

Next earnings report: 2026-11-12

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Questions

What grade does United Utilities Group PLC (UU.L) have?

In our weekly check, United Utilities Group PLC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of UU.L stock?

This week's biggest flags for United Utilities Group PLC: High debt, Weak free cash flow, Slow recovery after falls. In total 7 of 25 checks show a warning or a red flag.

What does United Utilities Group PLC do?

United Utilities Group PLC is an Utilities company (Regulated Water) based in the United Kingdom, listed on LSE as UU.L.

When does United Utilities Group PLC report earnings next?

The next earnings report is expected on 2026-11-12. 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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