Severn Trent PLC
LSE:SVT

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Severn Trent PLC Logo
Severn Trent PLC
LSE:SVT
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Price: 2 664 GBX -0.37%
Market Cap: 8B GBX

Operating Margin
Severn Trent PLC

23.1%
Current
24%
Average
14.2%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
23.1%
=
Operating Profit
552m
/
Revenue
2.4B

Operating Margin Across Competitors

Severn Trent PLC
Glance View

Market Cap
8B GBX
Industry
Utilities

Severn Trent PLC, a stalwart in the UK utilities sector, traces its origins to 1974 when water was first classified as an essential public service. The company has grown into one of the largest water and waste management entities in the United Kingdom, serving roughly 8 million people across the Midlands, a region rich in natural resources and industry. The company’s headquarters in Coventry are strategically situated within this heartland, enabling it to efficiently manage and maintain its extensive network of reservoirs, treatment facilities, and pipelines. Severn Trent PLC operates under the regulatory guidance of Ofwat, the Water Services Regulation Authority, which ensures that essential utilities are delivered in a sustainable and equitable manner. Despite its foundational ties to essential water services, Severn Trent’s profit model is multifaceted. The company’s revenue primarily flows from regulated water and wastewater operations, where it is responsible for overseeing the collection, treatment, and distribution of water, as well as the treatment and disposal of wastewater. While most of its business is governed by regulatory frameworks that delineate pricing and service quality, Severn Trent has also expanded into complementary ventures. Its non-regulated activities include renewable energy initiatives and municipal waste recycling, leveraging sustainable practices to supplement income and align with broader environmental goals. This dual approach not only instills resilience against regulatory constraints but also ensures the company's role in promoting sustainable resource management.

SVT Intrinsic Value
4 350.8 GBX
Undervaluation 39%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
23.1%
=
Operating Profit
552m
/
Revenue
2.4B
What is the Operating Margin of Severn Trent PLC?

Based on Severn Trent PLC's most recent financial statements, the company has Operating Margin of 23.1%.

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