Utilities Sector Report
Market Cap: $4.0T
Stocks: 196
Median P/E: 13.8x
Median ROIC: 5.8%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
The Utilities sector includes electric, gas, and water utilities as well as independent power producers and renewable energy operators. Regulated business models provide earnings visibility and support above-average dividend yields. The sector offers defensive characteristics in downturns, though faces capital-intensive transition costs as the energy mix shifts toward renewables.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | -0.6% | -0.1% |
| 1 Week | +0.2% | +0.1% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +0.4% | 0.0% |
| 1 Year | +19.8% | +9.8% |
| 3 Years | +79.6% | +17.2% |
| 5 Years | +111.8% | +14.3% |
Today's Breadth: 47 advancing · 94 declining · 39 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 13.8x | 6.7x | 20.7x | -14% |
| P/B | 1.5x | 0.7x | 2.2x | -5% |
| P/S | 1.9x | 0.8x | 2.8x | — |
| P/FCF | 12.4x | 8.0x | 29.0x | — |
| EV/EBITDA | 10.7x | 8.7x | 12.9x | — |
| EV/EBIT | 18.6x | 13.9x | 22.0x | — |
Earnings Yield
6.3%
FCF Yield
-1.9%
Below Fair Value
36% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 55.0% | 50.8% | 33.3% | 77.6% |
| Operating Margin | 22.1% | — | 16.3% | 24.7% |
| Net Margin | 12.5% | 11.6% | 9.2% | 16.6% |
| FCF Margin | -3.3% | — | -12.7% | 8.1% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 10.8% | — | 7.1% | 12.2% |
| ROA | 2.8% | — | 2.0% | 3.4% |
| ROIC | 5.8% | 5.1% | 5.3% | 6.8% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | +10.2% | +3.4% | +8.1% |
| EPS | +11.8% | +6.3% | +6.7% |
| Free Cash Flow | +15.9% | +4.5% | +5.2% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
1.5x
Net Debt / EBITDA
5.2x
Interest Coverage
2.4x
Current Ratio
0.7x
Altman Z-Score
Safe (>3): 17 (9%)
Gray (1.8–3): 21 (11%)
Distress (<1.8): 154 (80%)
Piotroski F-Score
Strong (7–9): 53 (27%)
Moderate (4–6): 116 (59%)
Weak (0–3): 27 (14%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| ENIC | 1 | $404.8B | 1.3x | — | 73.8% | 4.9% | -8.4% | 137.2% | 0.0% | 4/9 |
| NEE | 2 | $191.2B | 24.2x | 17.1x | 6.1% | 24.9% | +10.7% | 2.8% | +1.5% | 3/9 |
| SO | 3 | $106.2B | 22.1x | 12.4x | 6.0% | 14.7% | +10.6% | 3.4% | +0.4% | 3/9 |
| ENEL-MI | 4 | $103.3B | 9.8x | 5.5x | 13.0% | 9.5% | -20.8% | 6.5% | — | 4/9 |
| DUK | 5 | $101.5B | 18.4x | 10.8x | 5.7% | 15.2% | +6.2% | 3.6% | -4.1% | 3/9 |
| WM | 6 | $93.4B | 33.0x | 15.7x | 10.3% | 10.7% | +14.2% | 1.5% | -1.1% | 2/9 |
| CEG | 7 | $91.4B | 48.6x | 20.1x | 29.1% | 9.1% | +8.3% | 0.4% | -2.1% | 4/9 |
| WMB | 8 | $87.4B | 27.8x | 14.9x | 8.8% | 21.9% | +13.8% | 3.4% | +0.2% | 5/9 |
| EPD | 9 | $80.9B | 11.9x | 11.0x | 11.6% | 11.1% | -6.4% | — | +2.9% | 2/9 |
| AEP | 10 | $72.3B | 17.2x | 12.7x | 6.8% | 16.4% | +10.9% | 3.3% | +1.1% | 4/9 |
| KMI | 11 | $71.5B | 19.7x | 13.0x | 5.8% | 18.0% | +12.2% | 4.3% | -1.5% | 4/9 |
| RSG | 12 | $66.7B | 31.1x | 15.4x | 10.7% | 12.9% | +3.5% | 1.1% | -0.5% | 4/9 |
| ET | 13 | $64.8B | 12.4x | 8.2x | 8.6% | 5.2% | +3.5% | 0.1% | +1.2% | 2/9 |
| SRE | 14 | $62.8B | 32.2x | 21.9x | 1.3% | 13.1% | +3.9% | 2.9% | +3.0% | 1/9 |
| LNG | 15 | $57.8B | 7.8x | 6.0x | 28.5% | 26.7% | +27.2% | 1.1% | +5.8% | 7/9 |
| SOMN | 16 | $57.1B | 12.7x | 9.3x | 6.0% | 14.7% | +10.6% | 5.5% | +1.2% | 5/9 |
| D | 17 | $54.7B | 17.0x | 14.3x | 6.8% | 18.2% | +14.2% | 4.6% | +3.2% | 2/9 |
| VST | 18 | $54.6B | 74.2x | 15.0x | 7.7% | 4.2% | +3.0% | 0.6% | +3.0% | 4/9 |
| OKE | 19 | $53.4B | 13.3x | 10.7x | 8.6% | 10.1% | +55.0% | 5.7% | +1.9% | 4/9 |
| TRGP | 20 | $52.5B | 21.4x | 11.7x | 14.3% | 10.9% | +4.0% | 2.1% | -1.0% | 3/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Electric Services | 82 | $2.0T | 51.3% | |
| Electric & Other Services Combined | 34 | $760.0B | 19.2% | |
| Natural Gas Transmission | 14 | $418.7B | 10.6% | |
| Refuse Systems | 7 | $207.4B | 5.2% | |
| Natural Gas Distribution | 12 | $149.1B | 3.8% | |
| Diversified Utilities | 2 | $104.4B | 2.6% | |
| Natural Gas Transmisison & Distribution | 7 | $73.4B | 1.9% | |
| Gas & Other Services Combined | 5 | $71.9B | 1.8% | |
| Water Supply | 14 | $49.7B | 1.3% | |
| Regulated Gas | 3 | $24.9B | 0.6% | |
| Regulated Water | 3 | $20.8B | 0.5% | |
| Hazardous Waste Management | 2 | $16.5B | 0.4% | |
| Independent Power Producers | 1 | $11.2B | 0.3% | |
| Cogeneration Services & Small Power Producers | 2 | $10.3B | 0.3% | |
| Renewable Utilities | 6 | $9.7B | 0.2% |
Showing top 15 of 17 industries.
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
1%
Median Piotroski F
6/9
Profitable Years
9 of 10
Dividends & Shareholder Returns
Paying Dividends
74%
Median Div Yield
4.0%
Median Buyback Yield
0.0%
Shareholder Yield
3.6%
Payout Ratio
61.5%
Div Growth (3Y)
5.9%
Div Growth (5Y)
5.9%
Strengths & Weaknesses
Strengths
- +[Growth]Revenue growth is accelerating: median 1-year growth of 10.2% exceeds the 3-year CAGR of 3.4%, signaling improving demand conditions.
- +[Profitability]High pricing power with a median gross margin of 55.0%, reflecting differentiated products or strong brand moats.
Weaknesses
- −[Breadth]Narrow weakness: only 26.1% of stocks advanced today, suggesting widespread selling pressure.
- −[Financial Health]80.2% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at 2.4x, leaving limited cushion for debt servicing if earnings decline.
- −[Profitability]Below-average capital returns with a median ROIC of 5.8%, suggesting limited pricing power or capital-intensive operations.