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Pennon GroupPEGRF 75 Return-on-Tangible-Equity is 5.98% as of Mar. 2026, which is 46% below its 10-year median of 11.09. GuruFocus rates PEGRF with a GF Score™ of 75/100 and a GF Value™ of $6.24 (Fairly Valued). The stock has 9 warning signs investors should review. Among 497 Utilities - Regulated companies, Pennon Group ranks worse than 64.39% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Pennon Group's annualized net income for the quarter that ended in Mar. 2026 was $91 Mil. Pennon Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,530 Mil. Therefore, Pennon Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 5.98%.
The historical rank and industry rank for Pennon Group's Return-on-Tangible-Equity or its related term are showing as below:
PEGRF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -5.44 Med: 11.09 Max: 76.45
Current: 7.87
During the past 13 years, Pennon Group's highest Return-on-Tangible-Equity was 76.45%. The lowest was -5.44%. And the median was 11.09%.
PEGRF's Return-on-Tangible-Equity is ranked worse than 64.39% of 497
companies
in the Utilities - Regulated industry
Industry Median: 10.9
vs PEGRF: 7.87
Pennon Group (OTCPK:PEGRF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Pennon Group Return-on-Tangible-Equity Related Terms
Pennon Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Pennon Group's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Utilities - Regulated Water subindustry, Pennon Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pennon Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Pennon Group's Return-on-Tangible-Equity 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 the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 5.98% mean?
Pennon Group (PEGRF) has a Return-on-Tangible-Equity of 5.98% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Pennon Group and its competitors. This is 46% below median its historical median of 11.09. According to the industry distribution chart, Pennon Group ranks #320 out of 497 companies in the Utilities - Regulated industry, placing it in the top 64.4%.
Is Pennon Group's Return-on-Tangible-Equity too high?
Pennon Group's current Return-on-Tangible-Equity of 5.98% is 46% below median its 10-year median of 11.09. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.90. Pennon Group's value of 5.98% is 45.1% below this industry median. Based on the distribution chart, Pennon Group ranks #320 out of 497 companies in the Utilities - Regulated industry, which is below the industry midpoint. 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 Return-on-Tangible-Equity compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Pennon Group ranks #320 out of 497 companies for Return-on-Tangible-Equity. This places Pennon Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.90. Pennon Group's value of 5.98% is 45.1% below this benchmark. While the company's 10-year median is 11.09 vs. the industry median of 10.90, Pennon Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.90, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pennon Group's current Return-on-Tangible-Equity of 5.98% is 45.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Pennon Group and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pennon Group's current Return-on-Tangible-Equity is 5.98%, which is 46% below median its own 10-year median of 11.09. 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 $6.24, compared to a current price of $5.80 — trading 7.1% below its estimated fair value. The current Return-on-Tangible-Equity is 5.98%, which is 46% below median its 10-year median of 11.09 and 45.1% below the Utilities - Regulated industry median of 10.90. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Pennon Group (PEGRF), the current Return-on-Tangible-Equity is 5.98% 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 undervalued.
The current stock price of $5.80 is trading 7.1% below its estimated GF Value™ of $6.24.
GuruFocus considers Pennon Group to be Fairly Valued.
Key valuation signals for PEGRF:
Return-on-Tangible-Equity: 5.98% (46% below median its 10-year median of 11.09)
GF Value™: $6.24 vs. price of $5.80 (7.1% below fair value)
Industry Position: 45.1% below the Utilities - Regulated median (#320 of 497)
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.
75GF Score
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