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Utilities Sector Report

Electric Utilities Industry Report

Market Cap: $2.9T
Stocks: 120
Median P/E: 12.5x
Median ROIC: 5.8%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Utilities sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day-0.7%0.0%
1 Week+0.1%0.0%
1 Month
3 Months
6 Months
YTD+0.4%0.0%
1 Year+20.8%+9.1%
3 Years+75.4%+14.2%
5 Years+86.0%+9.3%

Today's Breadth: 30 advancing · 52 declining · 36 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E12.5x5.5x17.9x-15%
P/B1.3x0.6x1.8x-3%
P/S1.6x0.8x2.3x
P/FCF9.7x1.2x30.6x
EV/EBITDA10.4x8.7x12.3x
EV/EBIT18.5x13.8x21.5x
Earnings Yield
7.3%
FCF Yield
-3.3%
Below Fair Value
35% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin62.2%61.2%33.3%77.6%
Operating Margin22.1%18.9%24.5%
Net Margin12.5%11.9%11.1%16.4%
FCF Margin-8.8%-11.9%0.2%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE10.9%8.9%12.1%
ROA2.8%2.5%3.1%
ROIC5.8%5.1%5.6%6.3%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+10.6%+3.3%+7.7%
EPS+21.0%+6.3%+6.0%
Free Cash Flow+50.2%+16.3%-3.2%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
1.6x
Net Debt / EBITDA
5.4x
Interest Coverage
2.4x
Current Ratio
0.7x

Altman Z-Score

Safe (>3): 5 (4%)
Gray (1.8–3): 4 (3%)
Distress (<1.8): 109 (92%)

Piotroski F-Score

Strong (7–9): 36 (30%)
Moderate (4–6): 74 (62%)
Weak (0–3): 10 (8%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
ENIC1$404.8B1.3x73.8%4.9%-8.4%137.2%0.0%4/9
NEE2$191.2B24.2x17.1x6.1%24.9%+10.7%2.8%+1.5%3/9
SO3$106.2B22.1x12.4x6.0%14.7%+10.6%3.4%+0.4%3/9
ENEL-MI4$103.3B9.8x5.5x13.0%9.5%-20.8%6.5%4/9
DUK5$101.5B18.4x10.8x5.7%15.2%+6.2%3.6%-4.1%3/9
CEG6$91.4B48.6x20.1x29.1%9.1%+8.3%0.4%-2.1%4/9
AEP7$72.3B17.2x12.7x6.8%16.4%+10.9%3.3%+1.1%4/9
SOMN8$57.1B12.7x9.3x6.0%14.7%+10.6%5.5%+1.2%5/9
D9$54.7B17.0x14.3x6.8%18.2%+14.2%4.6%+3.2%2/9
VST10$54.6B74.2x15.0x7.7%4.2%+3.0%0.6%+3.0%4/9
ETR11$51.9B23.6x12.3x5.8%13.6%+9.0%2.6%+1.5%3/9
EXC12$48.8B16.0x5.3x7.9%11.4%+5.3%3.7%+1.1%2/9
XEL13$47.5B21.6x11.6x6.3%13.8%+9.1%3.1%+0.7%1/9
PEG14$40.6B19.1x15.1x6.7%17.4%+18.3%3.1%+2.8%1/9
ED15$40.1B17.5x9.7x6.0%12.0%+10.9%3.3%+1.6%4/9
PCG16$39.0B13.3x10.0x5.3%10.4%+2.1%0.3%+1.6%1/9
WEC17$37.7B21.8x15.0x6.2%15.9%+14.0%3.4%+1.9%3/9
NRG18$33.8B40.0x14.2x13.2%2.6%+9.2%1.1%+1.7%4/9
DTE19$30.7B18.4x12.0x6.5%9.2%+26.9%3.4%+1.1%2/9
AEE20$30.4B18.7x12.9x5.8%16.6%+15.4%2.9%+1.9%4/9

Industry Composition

IndustryStocksMarket Cap%
Electric Services82$2.0T69.9%
Electric & Other Services Combined34$760.0B26.2%
Diversified Utilities2$104.4B3.6%
Cogeneration Services & Small Power Producers2$10.3B0.4%

Quality Distribution

0
1
2
3
4
5
6
7
8
9

Quality Score (0-9)

High Quality (7+)
0%
Median Piotroski F
6/9
Profitable Years
10 of 10

Dividends & Shareholder Returns

Paying Dividends
80%
Median Div Yield
4.2%
Median Buyback Yield
0.0%
Shareholder Yield
4.0%
Payout Ratio
63.2%
Div Growth (3Y)
5.9%
Div Growth (5Y)
5.9%

Strengths & Weaknesses

Strengths

  • +[Growth]Revenue growth is accelerating: median 1-year growth of 10.6% exceeds the 3-year CAGR of 3.3%, signaling improving demand conditions.
  • +[Profitability]High pricing power with a median gross margin of 62.2%, reflecting differentiated products or strong brand moats.
  • +[Valuation]Attractive valuations: current median P/E of 12.5x is 15.4% below the 5-year average, presenting potential value opportunity.

Weaknesses

  • [Breadth]Narrow weakness: only 25.4% of stocks advanced today, suggesting widespread selling pressure.
  • [Cash Flow]Deteriorating cash flow with a median 5-year FCF CAGR of -3.2%, raising sustainability concerns for capital allocation.
  • [Financial Health]92.4% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
  • [Leverage]Elevated leverage with a median Debt/Equity of 1.6x, increasing sensitivity to interest rate changes and economic downturns.

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