# Severn Trent (SVT.LSE)

Canonical: https://gigainvestors.com/s/SVT.LSE

Analysis as of: 2026-10-16T07:35:27.303Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 3,216.00 per share; close as of 2026-10-15.

Estimated value: low GBX 786.68 per share, central GBX 903.32 per share, high GBX 1,012.27 per share. Buy at or below the central value GBX 903.32 per share. Valuation as of 2026-10-16T07:35:27.303Z; scenarios are not confidence intervals.

Expected annual return: 4.5% at the stated quote. About 4.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.31×

- FY2018: 0.31×

- FY2019: 0.31×

- FY2020: 0.32×

- FY2021: 0.29×

- FY2022: 0.29×

- FY2023: 0.27×

- FY2024: 0.20×

- FY2025: 0.25×

- FY2026: 0.34×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.6%

- ROIC, second-lowest year: 4.2%

- Typical minus recent gross margin: -0.2 pp

- Typical gross margin (annual median): 60.3%

- Recent gross margin (lower of latest and 3-year median): 60.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 39.8%

- ROIC including acquisitions, ten-year median: 1.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 8.1%

- FY2018: 6.5%

- FY2019: 6.5%

- FY2020: 5.1%

- FY2021: 5.6%

- FY2022: 4.6%

- FY2023: 5.5%

- FY2024: 3.6%

- FY2025: 4.2%

- FY2026: 5.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 23M

- Net income, five-year total: GBP 786M

- Return on incremental invested capital: 3.6%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 2.5 pp

- Working capital / revenue, final three-year average: 14.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.27×

- FY2023: 0.83×

- FY2024: 0.83×

- FY2025: -2.02×

- FY2026: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.5% vs 4.2%

- Per-share earnings: 1.39 to 0.76 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.5%

- Ordinary dilution, 5-year annual growth: 4.2%

- Market cap gain: GBP 3.7B

- Cumulative retained earnings: GBP -488M

- Diluted shares, 10-year annual growth: 2.5%

- Diluted shares, 5-year annual growth: 4.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -7.3%

- Per-share value change: GBP -0.63

- Per-share value, starting three-year median: GBP 1.39

- Per-share value, ending three-year median: GBP 0.76

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.0%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 373M

- Cumulative net income, 10 years: GBP 2.1B

- ROIC, first three-year median: 6.5%

- ROIC, last three-year median: 4.2%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 1.45

- FY2018: GBP 1.07

- FY2019: GBP 1.32

- FY2020: GBP 0.66

- FY2021: GBP 0.86

- FY2022: GBP -0.35

- FY2023: GBP 0.52

- FY2024: GBP 0.47

- FY2025: GBP 0.76

- FY2026: GBP 1.23

### accounting: pass

- Sloan accruals: -3.1%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.49×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.20×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -5.4%

- FY2018: -5.4%

- FY2019: -5.3%

- FY2020: -6.8%

- FY2021: -6.0%

- FY2022: -8.4%

- FY2023: -5.0%

- FY2024: -4.7%

- FY2025: -4.3%

- FY2026: -3.1%

## Holders

## Price story

Price needs cash profits to grow 21.8% a year for ten years · sales +16.7%

Story as of 2026-10-16T10:00:04.948Z; price observation 2026-10-15.

Price needs cash profits to grow 21.8% a year for ten years

### Sales · FY2025–2026

sales +16.7%; source https://filings.xbrl.org/213800RPBXRETY4A4C59/2026-03-31/ESEF/GB/0/213800RPBXRETY4A4C59-2026-03-31/reports/213800RPBXRETY4A4C59-2026-03-31-T01.xhtml; observed 2026-07-21.

- FY2017: GBP 1.6B 

- FY2018: GBP 1.7B 

- FY2019: GBP 1.8B 

- FY2020: GBP 1.8B 

- FY2021: GBP 1.8B 

- FY2022: GBP 1.9B 

- FY2023: GBP 2.2B 

- FY2024: GBP 2.3B 

- FY2025: GBP 2.4B 

- FY2026: GBP 2.8B 

### Gross margin · FY2026

gross margin 60.5%; source https://filings.xbrl.org/213800RPBXRETY4A4C59/2026-03-31/ESEF/GB/0/213800RPBXRETY4A4C59-2026-03-31/reports/213800RPBXRETY4A4C59-2026-03-31-T01.xhtml; observed 2026-07-21.

- FY2017: 77.2% 

- FY2018: 33.3% 

- FY2019: 33.5% 

- FY2020: 62.5% 

- FY2021: 60.2% 

- FY2022: 60.3% 

- FY2023: 58.6% 

- FY2024: 22.9% 

- FY2025: 92.0% 

- FY2026: 60.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated water; annual sales are GBP 2.8 billion.

- Source: https://filings.xbrl.org/213800RPBXRETY4A4C59/2026-03-31/ESEF/GB/0/213800RPBXRETY4A4C59-2026-03-31/reports/213800RPBXRETY4A4C59-2026-03-31-T01.xhtml (filed 2026-07-21); FY2026: revenue 2831000000; grossProfit 1712000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SVT.LSE: Severn Trent PLC provides water and wastewater services in the United Kingdom. It operates in two segments, Regulated Water and Wastewater, and Infrastructure Services. It offers water and wastewater services. The company also generates renewable energy through solar, wind, hydro, and crop digestion, as well as through anaerobic digestion of sewage sludge and food waste. In addition, it engages in property development and the management of the sale of surplus land. The company was founded in 1974 and is headquartered in Coventry, the United Kingdom.

### Why customers stay

Margins ranged from 22.9% to 92% during 2024–26; it earns 5.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-21); FY2024: grossProfit / revenue = 22.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-21); FY2025: grossProfit / revenue = 92%.

- Source: https://filings.xbrl.org/213800RPBXRETY4A4C59/2026-03-31/ESEF/GB/0/213800RPBXRETY4A4C59-2026-03-31/reports/213800RPBXRETY4A4C59-2026-03-31-T01.xhtml (filed 2026-07-21); FY2026: grossProfit / revenue = 60.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-21); 10-year return on capital observations [[2017,0.08073157386049151],[2018,0.06464839302512387],[2019,0.06466445382693162],[2020,0.05050419276085341],[2021,0.05575020572454571],[2022,0.04640353355075627],[2023,0.05547265383511444],[2024,0.03644111069642992],[2025,0.0415971788859357],[2026,0.056631683406314214]]; median 0.05561142977983008. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 60% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/213800RPBXRETY4A4C59/2026-03-31/ESEF/GB/0/213800RPBXRETY4A4C59-2026-03-31/reports/213800RPBXRETY4A4C59-2026-03-31-T01.xhtml (filed 2026-07-21); Gross margin observations: [[2021,0.6024518388791593],[2022,0.6027376112797818],[2023,0.5863008637014456]]; range within 2 percentage points.

### Where the cash goes

Earns 3.6% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-21); FY2017: growth capex 0; upkeep 519200000; owner earnings 147300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-21); FY2018: growth capex 278559637.63972217; upkeep 329940362.36027783; owner earnings 252459637.63972217. Growth capex / owner earnings = 1.1033828624805624.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-21); FY2019: growth capex 407884042.72049814; upkeep 374215957.27950186; owner earnings 264544042.72049814. Growth capex / owner earnings = 1.5418379432246172.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-21); FY2023: growth capex 322400000; upkeep 417300000; owner earnings 110020000. Growth capex / owner earnings = 2.9303762952190513.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-21); FY2024: growth capex 741400000; upkeep 428300000; owner earnings 116200000. Growth capex / owner earnings = 6.380378657487091.

- Source: https://filings.xbrl.org/213800RPBXRETY4A4C59/2026-03-31/ESEF/GB/0/213800RPBXRETY4A4C59-2026-03-31/reports/213800RPBXRETY4A4C59-2026-03-31-T01.xhtml (filed 2026-07-21); FY2026: growth capex 1398000000; upkeep 498000000; owner earnings 371000000. Growth capex / owner earnings = 3.7681940700808627.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-21); Incremental return on capital 0.03551587298675112, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-21); Dividend observations: [[2017,190400000],[2018,197000000],[2019,211900000],[2020,228400000],[2021,240200000],[2022,254500000],[2023,261300000],[2024,301400000],[2025,356000000],[2026,371000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SVT.LSE SharesStats.PercentInsiders = 0.22399999999999998 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 21.8% yearly over ten years; actual growth was 3.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-21); Ten-year compound average after fade. Initial solved rate 0.3050541765374467. Price 3216; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.9041789784719291 → FY2026 1.227968556061233. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 2,328.00 per share

- 2016-11: GBX 2,187.00 per share

- 2016-12: GBX 2,222.00 per share

- 2017-01: GBX 2,270.00 per share

- 2017-02: GBX 2,338.00 per share

- 2017-03: GBX 2,382.00 per share

- 2017-04: GBX 2,325.00 per share

- 2017-05: GBX 2,500.00 per share

- 2017-06: GBX 2,182.00 per share

- 2017-07: GBX 2,240.00 per share

- 2017-08: GBX 2,269.00 per share

- 2017-09: GBX 2,173.00 per share

- 2017-10: GBX 2,111.00 per share

- 2017-11: GBX 2,099.00 per share

- 2017-12: GBX 2,162.00 per share

- 2018-01: GBX 1,953.50 per share

- 2018-02: GBX 1,707.50 per share

- 2018-03: GBX 1,844.00 per share

- 2018-04: GBX 1,940.00 per share

- 2018-05: GBX 1,989.00 per share

- 2018-06: GBX 1,979.50 per share

- 2018-07: GBX 1,934.50 per share

- 2018-08: GBX 2,001.00 per share

- 2018-09: GBX 1,849.00 per share

- 2018-10: GBX 1,863.00 per share

- 2018-11: GBX 1,830.00 per share

- 2018-12: GBX 1,815.50 per share

- 2019-01: GBX 1,998.50 per share

- 2019-02: GBX 2,019.00 per share

- 2019-03: GBX 1,976.00 per share

- 2019-04: GBX 2,036.00 per share

- 2019-05: GBX 1,990.00 per share

- 2019-06: GBX 2,048.00 per share

- 2019-07: GBX 2,015.00 per share

- 2019-08: GBX 2,071.00 per share

- 2019-09: GBX 2,165.00 per share

- 2019-10: GBX 2,255.00 per share

- 2019-11: GBX 2,243.00 per share

- 2019-12: GBX 2,515.00 per share

- 2020-01: GBX 2,579.00 per share

- 2020-02: GBX 2,465.00 per share

- 2020-03: GBX 2,280.00 per share

- 2020-04: GBX 2,390.00 per share

- 2020-05: GBX 2,441.00 per share

- 2020-06: GBX 2,479.00 per share

- 2020-07: GBX 2,450.00 per share

- 2020-08: GBX 2,332.00 per share

- 2020-09: GBX 2,439.00 per share

- 2020-10: GBX 2,430.00 per share

- 2020-11: GBX 2,389.00 per share

- 2020-12: GBX 2,289.00 per share

- 2021-01: GBX 2,312.00 per share

- 2021-02: GBX 2,190.00 per share

- 2021-03: GBX 2,306.00 per share

- 2021-04: GBX 2,477.00 per share

- 2021-05: GBX 2,453.00 per share

- 2021-06: GBX 2,501.00 per share

- 2021-07: GBX 2,800.00 per share

- 2021-08: GBX 2,762.00 per share

- 2021-09: GBX 2,604.00 per share

- 2021-10: GBX 2,738.00 per share

- 2021-11: GBX 2,886.00 per share

- 2021-12: GBX 2,947.00 per share

- 2022-01: GBX 2,873.00 per share

- 2022-02: GBX 2,876.00 per share

- 2022-03: GBX 3,078.00 per share

- 2022-04: GBX 3,146.00 per share

- 2022-05: GBX 2,915.00 per share

- 2022-06: GBX 2,719.00 per share

- 2022-07: GBX 2,950.00 per share

- 2022-08: GBX 2,787.00 per share

- 2022-09: GBX 2,355.00 per share

- 2022-10: GBX 2,503.00 per share

- 2022-11: GBX 2,712.00 per share

- 2022-12: GBX 2,651.00 per share

- 2023-01: GBX 2,816.00 per share

- 2023-02: GBX 2,751.00 per share

- 2023-03: GBX 2,879.00 per share

- 2023-04: GBX 2,932.00 per share

- 2023-05: GBX 2,773.00 per share

- 2023-06: GBX 2,566.00 per share

- 2023-07: GBX 2,554.00 per share

- 2023-08: GBX 2,400.00 per share

- 2023-09: GBX 2,365.00 per share

- 2023-10: GBX 2,656.00 per share

- 2023-11: GBX 2,601.00 per share

- 2023-12: GBX 2,579.00 per share

- 2024-01: GBX 2,598.00 per share

- 2024-02: GBX 2,500.00 per share

- 2024-03: GBX 2,470.00 per share

- 2024-04: GBX 2,467.00 per share

- 2024-05: GBX 2,386.00 per share

- 2024-06: GBX 2,380.00 per share

- 2024-07: GBX 2,571.00 per share

- 2024-08: GBX 2,571.00 per share

- 2024-09: GBX 2,642.00 per share

- 2024-10: GBX 2,568.00 per share

- 2024-11: GBX 2,697.00 per share

- 2024-12: GBX 2,508.00 per share

- 2025-01: GBX 2,527.00 per share

- 2025-02: GBX 2,503.00 per share

- 2025-03: GBX 2,531.00 per share

- 2025-04: GBX 2,790.00 per share

- 2025-05: GBX 2,703.00 per share

- 2025-06: GBX 2,734.00 per share

- 2025-07: GBX 2,649.00 per share

- 2025-08: GBX 2,586.00 per share

- 2025-09: GBX 2,588.00 per share

- 2025-10: GBX 2,781.00 per share

- 2025-11: GBX 2,818.00 per share

- 2025-12: GBX 2,789.00 per share

- 2026-01: GBX 2,928.00 per share

- 2026-02: GBX 3,280.00 per share

- 2026-03: GBX 3,090.00 per share

- 2026-04: GBX 3,269.00 per share

- 2026-05: GBX 2,970.00 per share

- 2026-06: GBX 2,956.00 per share

- 2026-07: GBX 3,018.00 per share

- 2026-08: GBX 3,146.00 per share

- 2026-09: GBX 3,096.00 per share

- 2026-10: GBX 3,134.00 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 929.26 per share, central GBX 1,056.70 per share, high GBX 1,226.34 per share

- FY2018: low GBX 965.82 per share, central GBX 1,097.99 per share, high GBX 1,273.94 per share

- FY2019: low GBX 1,022.35 per share, central GBX 1,187.10 per share, high GBX 1,379.79 per share

- FY2020: low GBX 1,033.81 per share, central GBX 1,175.67 per share, high GBX 1,364.53 per share

- FY2021: low GBX 736.57 per share, central GBX 837.03 per share, high GBX 970.76 per share

- FY2026: low GBX 786.55 per share, central GBX 903.17 per share, high GBX 1,012.10 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:12.271Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800RPBXRETY4A4C59/2026-03-31/ESEF/GB/0/213800RPBXRETY4A4C59-2026-03-31/reports/213800RPBXRETY4A4C59-2026-03-31-T01.xhtml); period 2026-03-31, filed 2026-07-21.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations