Severn Trent PLC
LSE:SVT

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Severn Trent PLC
LSE:SVT
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Price: 2 722 GBX -0.55% Market Closed
Market Cap: 8.2B GBX

ROCE
Return on Capital Employed

4.2%
Current
5%
Average
6%
Industry

ROCE, or Return on Capital Employed, is a financial ratio that measures a company’s profitability in relation to the capital it employs.

ROCE
4.2%
=
EBIT
590.2m
/
Capital Employed
13.9B

ROCE Across Competitors

Severn Trent PLC
Glance View

Market Cap
8.2B 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
4 537.59 GBX
Undervaluation 40%
Intrinsic Value
Price
What is Return on Capital Employed?

ROCE, or Return on Capital Employed, is a financial ratio that measures a company’s profitability in relation to the capital it employs.

ROCE
4.2%
=
EBIT
590.2m
/
Capital Employed
13.9B
What is the ROCE of Severn Trent PLC?

Based on Severn Trent PLC's most recent financial statements, the company has ROCE of 4.2%.

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