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Pennon GroupPEGRF +12.07%76 Net-Net Working Capital is $-15.49 as of Mar. 2026. GuruFocus rates PEGRF with a GF Score™ of 76/100 and a GF Value™ of $6.25 (Fairly Valued). The stock has 9 warning signs investors should review. Among 63 Utilities - Regulated companies, Pennon Group ranks worse than 1587300% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Pennon Group's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $-15.49.
The industry rank for Pennon Group's Net-Net Working Capital or its related term are showing as below:
PEGRF's Price-to-Net-Net-Working-Capital is not ranked *
in the Utilities - Regulated industry.
Industry Median: 5.1 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Pennon Group (OTCPK:PEGRF) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Pennon Group Net-Net Working Capital Related Terms
Pennon Group Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Pennon Group's Net-Net Working Capital can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PEGRF vs AWK, WTRG, AWR: Net-Net Working Capital Comparison
For the Utilities - Regulated Water subindustry, Pennon Group's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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 Price-to-Net-Net-Working-Capital vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pennon Group's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Pennon Group's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-15.49 mean?
Pennon Group (PEGRF) has a Net-Net Working Capital of $-15.49 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Pennon Group According to the industry distribution chart, Pennon Group ranks #999999 out of 63 companies in the Utilities - Regulated industry.
Is Pennon Group's Net-Net Working Capital too high?
Pennon Group's current Net-Net Working Capital is $-15.49. Based on the distribution chart, Pennon Group ranks #999999 out of 63 companies in the Utilities - Regulated industry, which is in the bottom quartile relative to peers. Overall, Pennon Group has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pennon Group's Net-Net Working Capital compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Pennon Group ranks #999999 out of 63 companies for Net-Net Working Capital. This places Pennon Group in the lower half of its industry. The industry median Net-Net Working Capital is 5.10. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Utilities - Regulated company?
The median Net-Net Working Capital among Utilities - Regulated companies is 5.10, based on 63 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Pennon Group For the Utilities - Regulated industry, the median Net-Net Working Capital is 5.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pennon Group's current Net-Net Working Capital is $-15.49. 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 (PEGRF) is currently considered Fairly Valued. The stock's GF Value™ is $6.25, compared to a current price of $6.50 — trading 4% above its estimated fair value. The current Net-Net Working Capital is $-15.49. Pennon Group's overall GF Score™ is 76/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Pennon Group (PEGRF), the current Net-Net Working Capital is $-15.49 as of Mar. 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 (PEGRF) Overvalued in 2026?
Based on GuruFocus' analysis, Pennon Group stock appears to be overvalued.
The current stock price of $6.50 is trading 4% above its estimated GF Value™ of $6.25.
GuruFocus considers Pennon Group to be Fairly Valued.
Key valuation signals for PEGRF:
Net-Net Working Capital: $-15.49
GF Value™: $6.25 vs. price of $6.50 (4% above fair value)
No single metric tells the full story. See the PEGRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
76GF Score
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