ScoreWhy is Severn Trent Plc ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Operating profit has grown by an annual rate 8.43% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 10.86% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate 8.43% of over the last 5 years
3
With a growth in Net Profit of 158.41%, the company declared Very Positive results in Sep 25
- The company has declared positive results for the last 2 consecutive quarters
- ROCE(HY) Highest at 17.41%
- DIVIDEND PER SHARE(HY) Highest at GBP 2.78
- INTEREST COVERAGE RATIO(Q) Highest at 300
4
With ROE of 15.70%, it has a expensive valuation with a 5.33 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 22.51%, its profits have risen by 14.3% ; the PEG ratio of the company is 2.4
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Severn Trent Plc should be less than 10%
- Overall Portfolio exposure to Other Utilities should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Severn Trent Plc for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Severn Trent Plc
20.83%
0.77
20.57%
FTSE 100
13.98%
1.15
13.60%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.76%
EBIT Growth (5y)
8.43%
EBIT to Interest (avg)
1.48
Debt to EBITDA (avg)
7.67
Net Debt to Equity (avg)
4.83
Sales to Capital Employed (avg)
0.24
Tax Ratio
27.41%
Dividend Payout Ratio
158.91%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
6.07%
ROE (avg)
10.86%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
Price to Book Value
5.33
EV to EBIT
24.76
EV to EBITDA
15.27
EV to Capital Employed
1.71
EV to Sales
7.11
PEG Ratio
2.37
Dividend Yield
320.79%
ROCE (Latest)
6.91%
ROE (Latest)
15.70%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
ROCE(HY)
Highest at 17.41%
DIVIDEND PER SHARE(HY)
Highest at GBP 2.78
INTEREST COVERAGE RATIO(Q)
Highest at 300
RAW MATERIAL COST(Y)
Fallen by -48.37% (YoY
CASH AND EQV(HY)
Highest at GBP 1,454.1 MM
NET SALES(Q)
Highest at GBP 1,436.9 MM
OPERATING PROFIT(Q)
Highest at GBP 710.1 MM
OPERATING PROFIT MARGIN(Q)
Highest at 49.42 %
PRE-TAX PROFIT(Q)
Highest at GBP 240.8 MM
NET PROFIT(Q)
Highest at GBP 176.63 MM
EPS(Q)
Highest at GBP 0.76
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.78 times
INTEREST(Q)
Highest at GBP 236.7 MM
Here's what is working for Severn Trent Plc
Interest Coverage Ratio
Highest at 300
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at GBP 2.78 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (GBP)
Net Sales
Highest at GBP 1,436.9 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Operating Profit
Highest at GBP 710.1 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
Operating Profit Margin
Highest at 49.42 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at GBP 240.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Net Profit
Highest at GBP 176.63 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
EPS
Highest at GBP 0.76
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Cash and Eqv
Highest at GBP 1,454.1 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -48.37% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at GBP 243.6 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (GBP MM)
Here's what is not working for Severn Trent Plc
Interest
Highest at GBP 236.7 MM
in the last five periods and Increased by 25.04% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (GBP MM)
Debtors Turnover Ratio
Lowest at 2.78 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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