Pennon Group (FRA:3PN) Moat Score: 5/10 (As of Jul. 11, 2026)


FRA:3PN Pennon Group PLC FRA:3PN
75 GF Score
Price €5.56
GF Value €5.93
Valuation Fairly Valued
! 9 Warning Signs
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What is Pennon Group Moat Score?

Pennon Group FRA:3PN -0.18% 75 Moat Score is 5 as of Jul. 11, 2026. GuruFocus rates FRA:3PN with a GF Score™ of 75/100 and a GF Value™ of €5.93 (Fairly Valued). The stock has 9 warning signs investors should review. Among 544 Utilities - Regulated companies, Pennon Group ranks better than 83.27% on this metric.

Pennon Group has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Pennon Group has Narrow Moat: Pennon Group has a solid narrow moat due to its strong market position in the UK water industry, benefiting from regulatory barriers and economies of scale. However, it lacks significant customer switching costs and brand strength to warrant a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Pennon Group might have Narrow Moat - Solid narrow moat.

Pennon Group  (FRA:3PN) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Pennon Group Moat Score Related Terms

FRA:3PN vs AWK, WTRG, AWR: Moat Score Comparison

For the Utilities - Regulated Water subindustry, Pennon Group's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Pennon Group Moat Score vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Pennon Group's Moat Score distribution charts can be found below:

* The bar in red indicates where Pennon Group's Moat Score falls into.


FRA:3PN
75GF Score
Pennon Group PLC FRA:3PN
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Pennon Group (FRA:3PN) has a Moat Score of 5 as of Jul. 11, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Pennon Group ranks #91 out of 544 companies in the Utilities - Regulated industry, placing it in the top 16.7%.
Is Pennon Group's Moat Score too high?
Pennon Group's current Moat Score is 5. Based on the distribution chart, Pennon Group ranks #91 out of 544 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Pennon Group has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pennon Group's Moat Score compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Pennon Group ranks #91 out of 544 companies for Moat Score. This places Pennon Group in the top 17% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Utilities - Regulated company?
A good Moat Score depends on the Utilities - Regulated industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Pennon Group's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pennon Group stock overvalued right now?
Based on GuruFocus' analysis, Pennon Group (FRA:3PN) is currently considered Fairly Valued. The stock's GF Value™ is €5.93, compared to a current price of €5.56 — trading 6.3% below its estimated fair value. The current Moat Score is 5. Pennon Group's overall GF Score™ is 75/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Pennon Group (FRA:3PN), the current Moat Score is 5 as of Jul. 11, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Pennon Group (FRA:3PN) Overvalued in 2026?

Based on GuruFocus' analysis, Pennon Group stock appears to be undervalued. The current stock price of €5.56 is trading 6.3% below its estimated GF Value™ of €5.93. GuruFocus considers Pennon Group to be Fairly Valued.

Key valuation signals for FRA:3PN:

  • Moat Score: 5
  • GF Value™: €5.93 vs. price of €5.56 (6.3% below fair value)
  • GF Score™: 75/100 with 9 warning signs

No single metric tells the full story. See the FRA:3PN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Pennon Group Business Description

Address Rydon Lane, Peninsula House, Exeter, Devon, GBR, EX2 7HR
Pennon Group PLC is a British water and environmental utility infrastructure company that operates mainly in the United Kingdom. It has smaller operations in the European Union, China, and other countries. The company operates through Water, Non-household retail, and other segments. The water business comprises the regulated water and wastewater services undertaken by South West Water. The non-household retail business comprises the services provided by Pennon Water Services in the non-household water and wastewater retail market. The majority of revenue is derived from the water division.
75GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€5.56
Price
€5.93
GF Value