Pennon GroupPEGRF +4.51%77 ROE % is 4.92% as of Mar. 2026, which is 47% below its 10-year median of 9.23. GuruFocus rates PEGRF with a GF Score™ of 77/100 and a GF Value™ of $6.24 (Fairly Valued). The stock has 9 warning signs investors should review. Among 503 Utilities - Regulated companies, Pennon Group ranks worse than 63.42% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Pennon Group's annualized net income for the quarter that ended in Mar. 2026 was $91 Mil. Pennon Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $1,859 Mil. Therefore, Pennon Group's annualized ROE % for the quarter that ended in Mar. 2026 was 4.92%.
The historical rank and industry rank for Pennon Group's ROE % or its related term are showing as below:
PEGRF'
s ROE % Range Over the Past 10 Years
Min: -4.44 Med: 9.23 Max: 75.04
Current: 6.51
During the past 13 years, Pennon Group's highest ROE % was 75.04%. The lowest was -4.44%. And the median was 9.23%.
PEGRF's ROE % is ranked worse than 63.42% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.62
vs PEGRF: 6.51
Pennon Group (OTCPK:PEGRF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Pennon Group ROE % Related Terms
Pennon Group ROE % Historical Data
* Premium members only.
The historical data trend for Pennon Group's ROE % 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.
For the Utilities - Regulated Water subindustry, Pennon Group's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Pennon Group's ROE % distribution charts can be found below:
* The bar in red indicates where Pennon Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Pennon Group (PEGRF) has a ROE % of 4.92% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Pennon Group and its competitors. This is 47% below median its historical median of 9.23. According to the industry distribution chart, Pennon Group ranks #319 out of 503 companies in the Utilities - Regulated industry, placing it in the top 63.4%.
Is Pennon Group's ROE % too high?
Pennon Group's current ROE % of 4.92% is 47% below median its 10-year median of 9.23. The Utilities - Regulated industry median ROE % is 8.62. Pennon Group's value of 4.92% is 42.9% below this industry median. Based on the distribution chart, Pennon Group ranks #319 out of 503 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Pennon Group has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pennon Group's ROE % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Pennon Group ranks #319 out of 503 companies for ROE %. This places Pennon Group in the lower half of its industry. The industry median ROE % is 8.62. Pennon Group's value of 4.92% is 42.9% below this benchmark. While the company's 10-year median is 9.23 vs. the industry median of 8.62, 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 ROE % for an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.62, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pennon Group's current ROE % of 4.92% is 42.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Pennon Group and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pennon Group's current ROE % is 4.92%, which is 47% below median its own 10-year median of 9.23. 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 $6.38 — trading 2.2% above its estimated fair value. The current ROE % is 4.92%, which is 47% below median its 10-year median of 9.23 and 42.9% below the Utilities - Regulated industry median of 8.62. Pennon Group's overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Pennon Group (PEGRF), the current ROE % is 4.92% 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 $6.38 is trading 2.2% above its estimated GF Value™ of $6.24.
GuruFocus considers Pennon Group to be Fairly Valued.
Key valuation signals for PEGRF:
ROE %: 4.92% (47% below median its 10-year median of 9.23)
GF Value™: $6.24 vs. price of $6.38 (2.2% above fair value)
Industry Position: 42.9% below the Utilities - Regulated median (#319 of 503)
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.
77GF Score
Get the complete analysis for PEGRF
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PEGRF has been successfully added to your 
