Disclaimer : We don’t directly give advice to buy or sell shares. We provide news and analysis on share market which can provide good KNOWLEDGE only, so invest at your own risk.
Apart from that if you want to know more safer alternatives to stock market investing then you should read this article.
If you are new to share market or stocks, you can learn more basics of Stocks Market Analysis here.
In this Share Market analysis news article you are going to get info on Leading European Utility Stocks which are related with Power, Gas & Water sector.
European Utility Stocks Companies : Power, Gas & Water Sector Company Name Country Exchange Ticker Primary Services Market Cap (€B) Stock Price (Dec 2024) Net Profit (Latest, €B) Iberdrola S.A. Spain BME: IBE Electricity, renewables ~72.5 €12.20 €4.1 (2024 Annual) National Grid plc UK LSE: NG Electricity/gas transmission ~42.3 £10.45 (~€12.18) £2.8 (~€3.26) (2024) Enel S.p.A. Italy BIT: ENEL Electricity, renewables ~64.8 €6.75 €3.9 (2024 Annual) ENGIE S.A. France EPA: ENGI Electricity, gas, energy services ~33.9 €14.60 €2.5 (2024 Annual) E.ON SE Germany XETRA: EOAN Electricity/gas distribution ~35.2 €12.05 €1.8 (Q3 2024) SSE plc UK LSE: SSE Electricity generation/transmission ~21.4 £18.30 (~€21.33) £1.5 (~€1.75) (2024) Veolia Environnement S.A. France EPA: VIE Water, waste, energy ~25.1 €29.80 €1.2 (2024 Annual) RWE AG Germany XETRA: RWE Electricity, renewables ~28.6 €38.90 €3.0 (2024 Annual) Terna S.p.A. Italy BIT: TRN Electricity transmission ~16.3 €7.95 €0.9 (Q3 2024) Ørsted A/S Denmark CPH: ORSTED Offshore wind ~22.7 DKK 400 (~€53.60) -€0.8 (Q3 2024 loss) ČEZ Group Czech Republic PSE: CEZ Electricity, gas ~12.4 CZK 850 (~€34.20) €1.1 (2024 Annual) EVN Group Austria VIE: EVN Electricity, gas, water ~3.8 €22.40 €0.3 (2024 Annual) MVV Energie AG Germany XETRA: MVV1 Energy supply, waste-to-energy ~1.9 €28.15 €0.1 (2024 Annual) Acea S.p.A. Italy BIT: ACE Electricity, water ~4.2 €14.25 €0.2 (2024 Annual)
Extra Reference : Euronext
Fundamental & Financial Analysis of European Utility Stocks Companies : Company Name Country D/E P/E P/B ROE (%) ROA (%) EPS (€) Div. Yield (%) Iberdrola S.A. (BME: IBE)Spain 1.2x 17.5 1.8 10.3 3.5 0.68 4.1% National Grid plc (LSE: NG)UK 2.1x 14.2 1.5 10.8 3.2 0.72 (€0.84) 5.3% Enel S.p.A. (BIT: ENEL)Italy 1.8x 16.8 1.6 9.5 2.8 0.42 5.8% ENGIE S.A. (EPA: ENGI)France 0.9x 13.6 1.2 8.7 3.0 1.55 5.1% E.ON SE (XETRA: EOAN)Germany 1.5x 19.5 2.0 10.1 2.5 0.63 4.7% SSE plc (LSE: SSE)UK 1.4x 18.3 2.2 12.0 4.1 1.20 (€1.40) 5.5% Veolia Environnement (EPA: VIE)France 1.1x 20.8 1.9 9.2 3.3 1.85 3.2% RWE AG (XETRA: RWE)Germany 0.7x 9.5 1.3 13.5 5.0 4.30 3.5% Terna S.p.A. (BIT: TRN)Italy 1.3x 15.2 1.7 11.2 4.2 0.48 4.3% Ørsted A/S (CPH: ORSTED)Denmark 1.6x N/A (loss) 1.4 -4.8 -1.2 -2.10 0% ČEZ Group (PSE: CEZ)Czech Republic 0.8x 11.3 1.1 9.8 4.5 1.65 (CZK 41.2) 6.0% EVN Group (VIE: EVN)Austria 0.6x 12.7 1.0 8.0 3.8 1.40 4.0% MVV Energie AG (XETRA: MVV1)Germany 1.0x 14.0 1.3 9.3 3.1 2.10 3.8% Acea S.p.A. (BIT: ACE)Italy 1.2x 13.5 1.4 10.5 3.6 0.95 4.5%
Top 5 Picks Based on Fundamentals – European Utility Stocks🥇 RWE AG (Germany) Why: Best EPS (4.30), top ROE (13.5%) and ROA (5.0%), lowest P/E (9.5) → undervalued with strong profitability.Dividend Yield: Moderate at 3.5%Outlook: Strong across all metrics, ideal for growth + value investors .🥈 ČEZ Group (Czech Republic) Why: Low D/E (0.8x), solid ROE/ROA, very high dividend yield (6.0%), P/E at 11.3 → very balanced.Bonus: Attractive for dividend-focused and defensive investors .🥉 SSE plc (UK) Why: Highest ROE (12%), strong EPS (1.20), high dividend yield (5.5%), moderate P/E.Balanced play on growth and yield.🔹 ENGIE S.A. (France) Why: Low D/E (0.9x), solid EPS (1.55), stable ROE/ROA, and a healthy dividend yield (5.1%)Appeals to: Stable income-focused investors.🔹 EVN Group (Austria) Why: Lowest D/E (0.6x), stable margins, decent dividend (4.0%) and good ROA (3.8%)Good for: Conservative or long-term defensive portfolios. ⚠️ Companies to Watch With Caution Company Red Flags Ørsted A/S Negative ROE, ROA, and EPS, no dividend → financial stress or strategic transformation phase. Veolia Environnement Highest P/E (20.8), low yield (3.2%) → may be overvalued compared to peers.
Investment Strategy Tips for European Utility Stocks : Growth & Value : RWE, ČEZHigh Dividends : ČEZ, Enel, National Grid, SSEDefensive Holdings : EVN, ENGIEAvoid : Ørsted (until it recovers from current losses)Piotroski Scores (Dec 2024/Mar 2025) Company F-Score Strengths Weaknesses RWE AG (RWE)8 High ROA (5%), strong cash flow, reduced debt. Slight margin compression. SSE plc (SSE)7 Robust ROE (12%), improved asset turnover. High leverage (D/E 1.4x). Iberdrola (IBE)7 Stable margins, positive cash flow. Moderate debt (D/E 1.2x). ČEZ Group (CEZ)7 Low debt, high yield, solid ROA (4.5%). Declining asset turnover. Enel (ENEL)6 High dividend, operating cash flow growth. Rising leverage (D/E 1.8x). ENGIE (ENGI)6 Low debt (D/E 0.9x), stable cash flow. Flat gross margins. Terna (TRN)6 High ROA (4.2%), no equity dilution. Low revenue growth. EVN Group (EVN)6 Ultra-low debt (D/E 0.6x), defensive. Weak asset turnover. National Grid (NG)5 Reliable cash flow, high yield. High leverage (D/E 2.1x), equity issuance. E.ON (EOAN)5 Improving current ratio. Low ROA (2.5%), margin pressure. Veolia (VIE)4 Waste/energy transition growth. Overvalued (P/E 20.8x), high debt. Ørsted (ORSTED)2 Offshore wind potential. Negative ROA/ROE, cash burn.
Key Takeaways :Top Picks (High F-Score + Fundamentals): RWE (8) : Best combo of profitability and deleveraging.SSE (7) & Iberdrola (7) : Strong cash flows + operational efficiency.Avoid: Ørsted (2) : Financial distress (losses, high debt).Veolia (4) : Overvalued with weak Piotroski metrics.Credit Ratings Overview – European Utility Stocks CompaniesCompany Moody’s S&P Outlook Key Debt Risk Iberdrola Baa1 BBB+ Stable Moderate leverage (1.2x D/E) National Grid A3 A- Negative* High debt (2.1x D/E), UK regulatory risk Enel Baa2 BBB Stable Elevated leverage (1.8x D/E) ENGIE A2 A Stable Low risk (0.9x D/E), state-backed E.ON Baa1 BBB+ Stable Stable cash flows, 1.5x D/E SSE plc A3 A- Stable Managed capex, 1.4x D/E Veolia Baa2 BBB Positive Waste/energy growth offsets debt RWE Baa1 BBB+ Positive Strong renewables shift, 0.7x D/E Terna Baa1 BBB+ Stable Regulated grid, low business risk Ørsted Baa3 BBB- Negative Offshore wind volatility, 1.6x D/E ČEZ Group A3 A- Stable Gov-backed, 0.8x D/E EVN Group A2 A Stable Ultra-conservative (0.6x D/E) MVV Energie Baa3 BBB- Stable Small-scale, regional focus Acea Baa2 BBB Stable Italian regulatory exposure
Conclusion : Future Investment Insights – European Utility Companies – Power, Gas & Water Sector Long-Term Investment Potential Criteria : Stable cash flows, renewable focus, solid ROE/ROA, manageable debt, ESG alignment, policy support.
Company Long-Term Strengths Why Good for Long-Term RWE AG (Germany) Low D/E, high ROE (13.5%), strong EPS (4.30), major renewables expansion Strong transition from coal to green energy, resilient profits, Germany’s energy shift supports future growth. Iberdrola S.A. (Spain) Global presence, decent yield (4.1%), ROE of 10.3% One of the world’s largest renewable producers, strong long-term infrastructure and ESG profile. ENGIE S.A. (France) Low D/E (0.9x), strong EPS (1.55), dividend ~5% Balanced growth, gas and renewables diversification, policy support in France and EU. SSE plc (UK) ROE of 12%, high dividend (5.5%), energy transition leadership Large investment in wind and grid infrastructure; government-backed green projects. ČEZ Group (Czech Republic) High dividend (6%), low valuation (P/E 11.3), strong ROA (4.5%) Regional dominance, state support, strong cash flows, stable outlook. EVN Group (Austria) D/E only 0.6x, consistent EPS (1.40), low risk utility Conservative utility with stable earnings, long-term grid and water investments. Enel S.p.A. (Italy) Global operator, EPS support (0.42), dividend ~5.8% Strong transition into digital/renewables; exposure to Latin America & Europe boosts diversification. National Grid (UK) Regulated business, solid EPS (0.72), dividend 5.3% Monopoly in UK grid operations ensures cash flow stability; US expansion adds growth tailwinds.
Short-Term Investment Potential Criteria : Attractive valuation (P/E, P/B), high dividends, earnings momentum, low debt, macro tailwinds.
Company Short-Term Strengths Why Good for Short-Term RWE AG (Germany) Lowest P/E (9.5), highest EPS (4.30), strong ROE Undervalued given growth outlook, offers capital appreciation in next 12–18 months. ČEZ Group (Czech Republic) High dividend yield (6%), low P/E, solid EPS Cheap valuation + strong payout makes it a great defensive short-term buy. National Grid (UK) Dividend (5.3%), stable cash flows, regulated asset base Safe haven during volatile periods; consistent payout ensures income flow. ENGIE S.A. (France) EPS (1.55), low P/E (13.6), strong dividend (5.1%) Attractive mix of value + income; gas business still doing well in near term. MVV Energie AG (Germany) Strong EPS (2.10), P/E at 14, ROE ~9.3% Mid-cap with solid earnings and undervalued relative to peers. SSE plc (UK) 5.5% dividend, green focus Likely to benefit short term from rising green energy demand and policy support.
Comparison Summary Timeframe Best Companies Investment Rationale Long-Term RWE, Iberdrola, ENGIE, SSE, ČEZ Strong transition to renewables, solid earnings, policy tailwinds, ESG alignment Short-Term RWE, ČEZ, ENGIE, National Grid, MVV Energie Attractive valuation, strong dividend yields, short-term earnings resilience
Bullish Outlook (Strong financials + growth prospects)RWE AG (Germany) ✅SSE plc (UK) ✅ENGIE S.A. (France) ✅Enel S.p.A. (Italy) ✅Iberdrola S.A. (Spain) ✅ČEZ Group (Czech Republic) ✅🔴 Bearish/Neutral Outlook (High risk, weak earnings, valuation concerns) Ørsted A/S (Denmark) ❌ (Loss-making, negative returns) Veolia Environnement (France) ⚠️ (Overvalued, low yield) E.ON SE (Germany) ⚠️ (Weak ROA, high P/B) Acea S.p.A. (Italy) ⚠️ (Slow growth, defensive only) Best Overall Picks Rank Company Reason ⭐ 1 RWE AG (Germany) Low P/E, high ROE/EPS, renewables-driven growth ⭐ 2 ČEZ Group (Czech Republic) High dividend, solid valuation, strong regional utility ⭐ 3 SSE plc (UK) Green capex + strong dividend ⭐ 4 ENGIE S.A. (France) Clean energy, low debt, consistent earnings ⭐ 5 Iberdrola S.A. (Spain) Global green expansion, balanced performance
So, this was the full stocks analysis of European Utility Stocks – Power , Gas & Water sector. I hope you liked it.
Happy Investing
