Severn Trent Plc (STRNY) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Severn Trent Plc (STRNY) trades at $42.65 with AI Score 46/100 (Grade C). Severn Trent Plc is a water and sewerage company operating in England and Wales. Market cap: $12.9B, Sector: Utilities.
Price as of Aug 21, 2026 · Last analyzed: Mar 16, 2026Analyst Coverage for STRNY: STRNY does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates STRNY against Utilities peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
STRNY: this read rests on a single discipline (MoonshotScore) — the other council disciplines have no scored data yet.
How is this calculated? →Why this analysis is different
- A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
Severn Trent Plc (STRNY) Utility Operations & Dividend Profile
Severn Trent Plc, a UK-based water and sewerage company, serves approximately 4.8 million households and businesses in the Midlands and Wales. Operating in the regulated water sector, the company also diversifies into renewable energy and business services, distinguishing it from pure-play utilities with its integrated approach.
What Is the Investment Thesis for STRNY?
Severn Trent presents a stable investment profile within the regulated water sector, underpinned by its essential service provision and geographic focus in the Midlands and Wales. The company's dividend yield of 3.91% offers an attractive income stream for investors seeking consistent returns. Growth catalysts include ongoing investments in infrastructure upgrades and potential expansion of its Business Services segment, particularly in renewable energy. However, investors may want to evaluate the risks associated with regulatory changes and potential environmental liabilities. The company's P/E ratio of 30.07 reflects its position as a mature, regulated utility.
Based on FMP financials and quantitative analysis
STRNY Key Highlights
Serves approximately 4.8 million households and businesses in the Midlands and Wales, providing a stable customer base.
- Operates with a profit margin of 11.9%, indicating efficient cost management and profitability.
- Offers a dividend yield of 3.91%, providing an attractive income stream for investors.
- Beta of 0.56 suggests lower volatility compared to the overall market, making it a relatively stable investment.
- Gross margin of 29.4% reflects the company's ability to manage its cost of services effectively.
Who Are STRNY's Competitors?
STRNY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CHUEF Chubu Electric Power Company, Incorporated | $16.85 | +0.00% | $12.7B | 49 |
| ELIAF Elia Group SA/NV | $154.75 | +0.00% | $16.9B | 52 |
| ERRAF Emera Incorporated | $18.24 | +0.00% | $12.8B | 51 |
| ITGGF Italgas S.p.A. | $10.06 | +0.00% | $10.2B | 53 |
| OSGSF Osaka Gas Co., Ltd. | $37.59 | +0.00% | $14.3B | 45 |
| SVTRF Severn Trent Plc | $40.03 | +0.00% | $12.1B | 42 |
| UUGRY United Utilities Group PLC | $38.68 | +0.23% | $14.4B | 57 |
| WTRG Essential Utilities, Inc. | $40.41 | -1.56% | $11.5B | 70 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are STRNY's Key Strengths?
Stable revenue stream from regulated water and wastewater services.
- Established infrastructure network.
- Diversification into renewable energy generation.
- Strong regional presence in the Midlands and Wales.
What Are STRNY's Weaknesses?
Exposure to regulatory changes and environmental liabilities.
- Capital-intensive infrastructure requirements.
- Limited geographic diversification.
- Dependence on weather patterns and water resource availability.
What Could Drive STRNY Stock Higher?
Investments in infrastructure upgrades to improve service quality and reduce water leakage.
- Expansion of renewable energy generation capacity to diversify revenue streams.
- Potential regulatory changes that could impact tariffs and investment decisions.
- Technological innovation to improve operational efficiency and customer service.
- Contract wins in the Business Services segment for municipal and industrial clients.
What Are the Key Risks for STRNY?
Financial-distress signal — its Altman Z-Score of 0.98 sits in the distress zone (elevated bankruptcy risk).
- Regulatory scrutiny and compliance costs associated with operating in the regulated water industry.
- Climate change and water scarcity impacting water resource availability.
- Aging infrastructure requiring costly repairs and maintenance.
- Fluctuations in currency exchange rates affecting the value of the ADR.
- Economic downturn impacting demand for water and wastewater services.
What Are the Growth Opportunities for STRNY?
- Expansion of Renewable Energy Generation: Severn Trent has the opportunity to further expand its renewable energy generation capabilities through anaerobic digestion, hydropower, wind turbines, and solar technology. The market for renewable energy is growing, driven by government incentives and increasing environmental awareness. This expansion could provide a new revenue stream and enhance the company's sustainability profile. Timeline: Ongoing.
- Infrastructure Upgrades and Investments: The aging water infrastructure in the UK requires significant upgrades and investments. Severn Trent can capitalize on this opportunity by securing contracts for infrastructure projects, improving its service quality, and reducing water leakage. This will require capital expenditure but will improve efficiency and reduce operational costs. Timeline: Ongoing.
- Geographic Expansion within the UK: While primarily focused on the Midlands and Wales, Severn Trent could explore opportunities to expand its regulated water and wastewater services to other regions in the UK. This expansion would require regulatory approvals and significant capital investment, but could increase the company's customer base and market share. Timeline: Medium-term (3-5 years).
- Business Services Growth: Severn Trent's Business Services segment, which provides contract services to municipal and industrial clients, offers growth potential. The company can leverage its expertise in water and wastewater treatment to secure additional contracts and expand its service offerings. This segment diversifies the company's revenue streams and reduces its reliance on regulated services. Timeline: Ongoing.
- Technological Innovation: Investing in innovative technologies, such as smart water meters and advanced data analytics, can improve operational efficiency, reduce costs, and enhance customer service. These technologies can also help the company to better manage water resources and respond to changing environmental conditions. Timeline: Ongoing.
What Are STRNY's Competitive Advantages?
- Regulatory barriers to entry in the regulated water industry.
- Essential service provision creates stable demand.
- Established infrastructure network provides a competitive advantage.
- Geographic focus in the Midlands and Wales allows for regional expertise.
What Does STRNY Do?
Founded in 1974 and headquartered in Coventry, UK, Severn Trent Plc has evolved into a leading water and sewerage company. The company operates primarily in England and Wales, providing essential water and wastewater services to a substantial customer base. Its core business revolves around the Regulated Water and Waste Water segment, which caters to approximately 4.8 million households and businesses in the Midlands and Wales. Beyond its regulated operations, Severn Trent has diversified into the Business Services segment. This includes generating renewable energy through anaerobic digestion, hydropower, wind turbines, and solar technology, demonstrating a commitment to sustainability. The company also manages and sells land, offers search services, and provides contract services to municipal and industrial clients in the UK. Severn Trent extends its expertise to the UK Ministry of Defense, handling the design, build, and operation of water and wastewater treatment facilities and networks. Additionally, the company provides services to developers, further broadening its scope within the utilities and infrastructure sectors.
What Products and Services Does STRNY Offer?
- Provides water and wastewater services to households and businesses.
- Operates and maintains water and sewerage infrastructure.
- Generates renewable energy through various technologies.
- Manages and sells land.
- Offers search services.
- Provides contract services to municipal and industrial clients.
- Designs, builds, and operates water and wastewater treatment facilities for the UK Ministry of Defense.
- Provides services to developers.
How Does STRNY Make Money?
- Generates revenue from regulated water and wastewater services based on tariffs set by regulators.
- Earns revenue from the sale of renewable energy.
- Receives income from land management and sales.
- Derives revenue from contract services provided to municipal, industrial, and government clients.
What Industry Does STRNY Operate In?
Severn Trent operates within the regulated water industry in the UK, a sector characterized by high barriers to entry and essential service provision. The industry is subject to stringent regulatory oversight, influencing pricing and investment decisions. Market trends include increasing demand for water resources, aging infrastructure requiring upgrades, and growing emphasis on environmental sustainability. Severn Trent competes with other regulated water companies, such as CHUEF (China Utility Environmental Protection), but differentiates itself through its integrated approach, encompassing both regulated services and renewable energy generation.
Who Are STRNY's Key Customers?
- Households in the Midlands and Wales.
- Businesses in the Midlands and Wales.
- Municipal and industrial clients in the UK.
- The UK Ministry of Defense.
- Property developers.
Company Profile
Severn Trent Plc operates in the Regulated Water industry within the Utilities sector. It is headquartered in Coventry, GB. The company is led by CEO James Jesic. STRNY has traded publicly since 2010.
Key Financial Metrics
Return on equity for Severn Trent Plc stands at 20.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.1%, showing how much profit it generates from its asset base. STRNY trades at a trailing price-to-earnings ratio of 25.13, above the Utilities sector average of ~19x. Its free cash flow yield is -10.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.39 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.0%, the inverse of the P/E and a quick read on earnings relative to price.
STRNY Valuation & Market Position
With a $12.9B market cap, Severn Trent Plc sits in the large-cap segment of the market. Relative to its peer group, STRNY's quantitative score of 46/100 is roughly in line with the peer average of 50/100.
Quarterly Financial Performance: Severn Trent Plc
Revenue for Severn Trent Plc came in at $1.42B during Q1 2026, a 1.3% contraction versus the preceding quarter. The company recorded net income of $145.8M, with diluted EPS of $0.49. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Utilities. Across the four most recent quarters, STRNY averaged $0.50 in diluted EPS.
Financial Health
Severn Trent Plc's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.98 places it in the distress zone, a signal of elevated financial risk.
Earnings Track Record
Severn Trent Plc has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 2.3% above estimates on average.
Forward Outlook
Wall Street analysts project Severn Trent Plc revenue of about $2.88B for fiscal 2026, with EPS near $1.80. The estimate reflects 12 contributing analysts.
STRNY Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2026
Bull Case vs Bear Case
Bull Case
- Severn Trent's consistent dividend payouts make it attractive in a volatile market, offering a sense of stability akin to consumer staples during economic downturns.
- Recent insider buying suggests confidence in the company's long-term prospects, similar to how insider activity fueled optimism around Amazon in its early growth phases.
- The regulatory environment in the UK provides a degree of predictability for water utilities, unlike sectors heavily influenced by fluctuating commodity prices or consumer trends.
- Community sentiment indicates strong support for Severn Trent's commitment to environmental sustainability, mirroring the positive perception of companies actively addressing climate change.
Bear Case
- Negative media coverage related to sewage discharge incidents could damage Severn Trent's reputation, similar to the PR crises faced by BP after the Deepwater Horizon oil spill.
- Increased scrutiny from regulatory bodies could lead to higher compliance costs and potential fines, impacting profitability, much like the challenges faced by heavily regulated financial institutions post-2008.
- Community discussions reveal concerns about rising water bills amid cost-of-living pressures, potentially leading to customer dissatisfaction and political pressure.
- Broader market anxieties about inflation and interest rate hikes could negatively impact utility stocks as investors seek higher-growth opportunities, comparable to the tech sell-off during periods of rising rates.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · April 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.42B | $146M | $0.49 |
| Q3 2025 | $1.43B | $227M | $0.75 |
| Q1 2025 | $1.21B | $88M | $0.29 |
| Q3 2024 | $1.22B | $141M | $0.47 |
Based on FMP financials and quantitative analysis
STRNY Latest News
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· Dec 16, 2019
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· Dec 13, 2019
STRNY Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for STRNY.
Price Targets
Wall Street price target analysis for STRNY.
STRNY MoonshotScore
What does this score mean?
The MoonshotScore rates STRNY 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: James John Jesic
Unknown
Information on James John Jesic's background is not available in the provided data. Without additional context, his career history, education, and previous roles remain unknown. Further research would be needed to provide a comprehensive profile.
Track Record: Information on James John Jesic's track record is not available in the provided data. Key achievements, strategic decisions, and company milestones under his leadership are unknown. Further research would be needed to assess his performance.
Severn Trent Plc ADR Information Unsponsored
An American Depositary Receipt (ADR) is a certificate representing shares of a foreign company trading on U.S. stock exchanges. For STRNY, each ADR represents a certain number of Severn Trent Plc's ordinary shares. This allows U.S. investors to invest in Severn Trent without directly dealing with foreign exchanges.
- Home Market Ticker: London Stock Exchange, United Kingdom
- ADR Level: 1
- ADR Ratio: 1:1
- Home Market Ticker: STRN
STRNY OTC Market Information
The OTC Other tier represents the lowest tier of the over-the-counter (OTC) market. Companies in this tier often have limited or no reporting requirements, making it difficult to assess their financial health and operational performance compared to companies listed on exchanges like the NYSE or NASDAQ. Investing in OTC Other stocks carries significantly higher risk due to the lack of transparency and regulation.
- OTC Tier: OTC Other
- Limited financial disclosure increases the risk of investing in STRNY on the OTC market.
- Lower trading volume and wider bid-ask spreads can lead to price volatility and difficulty in executing trades.
- Potential for fraud or manipulation is higher on the OTC market due to less regulatory oversight.
- OTC Other tier stocks may be subject to delisting or trading suspensions.
- Lack of readily available information makes it challenging to assess the company's true value and prospects.
- Verify the company's registration and legal standing.
- Obtain and review any available financial statements, even if unaudited.
- Research the company's management team and their track record.
- Assess the company's business model and competitive landscape.
- Understand the regulatory environment in which the company operates.
- Consult with a financial advisor to assess the risks and potential rewards.
- Check for any news articles or reports that may raise red flags.
- Established operations as a water and sewerage company in the UK.
- Serves a large customer base of approximately 4.8 million households and businesses.
- Operates in a regulated industry, which provides some level of oversight.
- ADR listing, even at Level 1, suggests some degree of compliance and transparency.
- Involvement in renewable energy generation indicates a commitment to sustainability.
Common Questions About STRNY (Utilities)
What does the AI Score mean for STRNY?
STRNY holds an AI Score of 46/100 (Grade: C). This is an educational research signal, not a buy or sell recommendation. Severn Trent Plc is a water and sewerage company operating in England and Wales. They provide essential services to millions of households and businesses, while also engaging in renewable energy …
What does Severn Trent Plc do?
Severn Trent Plc operates as a water and sewerage company in England and Wales, providing essential services to approximately 4.8 million households and businesses. The company manages the entire water cycle, from sourcing and treating water to collecting and treating wastewater.
What are the main risks for STRNY?
The main risks for Severn Trent Plc include regulatory risks associated with operating in the regulated water industry, such as potential changes in tariffs and compliance costs. Environmental risks, such as climate change and water scarcity, could impact water resource availability and operational costs. Infrastructure risks relate to the aging water infrastructure requiring costly repairs and maintenance.
What are the key factors to evaluate for STRNY?
Severn Trent Plc (STRNY) holds an AI score of 46/100 (low). Severn Trent presents a stable investment profile within the regulated water sector, underpinned by its essential service provision and geographic focus in the Midlands and Wales. Not financial advice.
How frequently does STRNY data refresh on this page?
STRNY's price was last updated on Aug 21, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven STRNY's recent stock price performance?
Severn Trent Plc (STRNY) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Stable revenue stream from regulated water and wastewater services. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider STRNY overvalued or undervalued right now?
Severn Trent Plc (STRNY) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research STRNY before investing?
Before investing in Severn Trent Plc (STRNY), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding STRNY to a portfolio?
Key strength of Severn Trent Plc (STRNY): Stable revenue stream from regulated water and wastewater services. Weigh rewards against risks and diversify. Not financial advice.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on available information and may be subject to change.
- Analyst consensus is not available and requires further research.
- OTC market data may be limited and less reliable than exchange-listed data.