Pennon Group Plc (PNN.L)
Pennon Group supplies drinking water and manages wastewater for millions of households mainly across the south-west of England.
Is Pennon Group Plc a good stock for a UK beginner?
The honest version: Pennon Group supplies drinking water and manages wastewater for millions of households mainly across the south-west of England.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
successful completion of major capital investment programmes
prolonged political pressure on water industry ownership and profits
What does Pennon Group Plc do?
Households and businesses pay regular water and sewerage bills to Pennon Group, providing a steady flow of cash that funds its massive pipe networks and treatment plants. Because water is an essential service, demand stays relatively constant come rain or shine, though the business relies heavily on borrowing to maintain and upgrade its infrastructure. A key radar point for anyone studying this utility is how regulators cap the prices the company can charge customers, directly shaping its annual income.
On our factor screen it looks strongest on growth and income, and weakest on momentum.
- ✓Pays a dividend - about 6.3% a year
- ✓Growing - revenue up about 22% over the year
- !Carries a lot of debt - roughly 3.5x its equity
- Growth screens high (86/100)
- Provides an essential service with reliable, captive customer demand
- Attractive dividend yield that catches the eye of income-focused learners
- Lower market volatility than typical growth stocks
- Momentum screens low (15/100)
- Strict oversight from regulators limiting how much profit can be made
- Potential environmental fines for spills or pollution incidents
- Rising interest rates making company debt more expensive to service
What do Pennon Group Plc's numbers mean?
Does Pennon Group Plc pay a dividend?
Yes - Pennon Group Plc currently pays a dividend of about 6.3% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Pennon Group Plc report earnings, and how did recent quarters go?
Pennon Group Plc is next scheduled to report on about 2026-12-01 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
More in Utilities
United Utilities
PG&E
Edison International
The AES Corporation
Vistra Corp.
Pinnacle West Capital Corporation
Dominion Energy, Inc.
Eversource EnergyWhat are the scenarios for Pennon Group Plc?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Pennon Group Plc?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Provides an essential service with reliable, captive customer demand
- Attractive dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone. that catches the eye of income-focused learners
- Lower market volatility than typical growth stocks
- Carries significant debt to fund large-scale pipe and plant networks
- Net profit margin is squeezed down to 7.1% by operating costs and interest
- Recent 12-month share price move has drifted downwards by 7.1%
- Strict oversight from regulators limiting how much profit can be made
- Potential environmental fines for spills or pollution incidents
- Rising interest rates making company debt more expensive to service
The write-up's own warning lights — if these start happening, the case above changes.
- A permanent shift in government policy regarding private ownership of utilities
- Drastic changes to the allowed returns set by industry regulators
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.