Utilities — Sector Analysis

Macro regime signal · XLU

Current: Inflationary BoomUnderweight★★★★★

Rising rates compete with utility yields. Rate sensitivity.

Signal across all regimes

Goldilocks

Underweight

★★★★★

Inflationary Boom ←

Underweight

★★★★★

Stagflation

Neutral

★★★★★

Deflationary Bust

Overweight

★★★★★

Liquidity Boom

Neutral

★★★★★

Rate Hike Cycle

Avoid

★★★★★

Rate Cut Anticipation

Strong buy

★★★★★

Volatility Shock

Overweight

★★★★★

Companies

Total mkt cap

$1.70T

Sector P/E (ETF)

21.0×

Avg gross margin

45.7%

Strong / Positive

Caution / At Risk

Metrics comparison

Company	Mkt Cap (USD)↓	P/E (vs sector)	Gross Margin	Net Margin	D/E Ratio	Risks
NEENEXTERA ENERGY INC	$163.3B	17.7×	—	26.5%	1.64	1
IBE.MCIberdrola, S.A.	$158.1B	27.8×	54.6%	14.3%	0.85	1
SOSOUTHERN CO	$99.1B	20.8×	—	14.7%	—	2
ENEL.MIEnel SpA	$97.5B	20.9×	46.8%	6.3%	1.70	4
DUKDuke Energy CORP	$91.1B	17.6×	—	15.7%	1.68	1
NG.LNational Grid plc	$77.6B	17.7×	79.8%	18.3%	1.07	2
AEPAmerican Electric Power Company, Inc.	$66.6B	21.2×	—	16.9%	1.52	1
ENGI.PAEngie SA	$64.8B	13.9×	31.8%	5.3%	1.21	4
DDOMINION ENERGY, INC	$54.3B	21.4×	—	18.2%	1.59	1
RWE.DERWE Aktiengesellschaft	$50.1B	12.7×	32.8%	17.8%	0.34	2
EOAN.DEE.ON SE	$49.8B	13.2×	27.3%	2.2%	—	4
ETRENTERGY CORP /DE/	$49.0B	26.3×	—	13.7%	1.79	1
XELXcel Energy Inc.	$45.8B	20.1×	—	—	1.35	1
EXCEXELON CORPORATION	$43.0B	15.2×	—	11.4%	1.72	2
SSE.LSSE plc	$39.7B	23.2×	37.1%	11.9%	0.55	1
PCGPG&E CORP	$38.0B	9.2×	—	10.8%	1.76	2
NTPC.NSNTPC Limited	$32.1B	11.0×	41.9%	14.7%	1.02	2
NTGY.MCNaturgy Energy Group, S.A.	$31.1B	13.8×	37.4%	10.4%	1.38	3
FTS.TOFortis Inc.	$27.7B	22.3×	72.3%	14.8%	1.29	1
0002.HKCLP Holdings Limited	$24.8B	18.0×	33.5%	12.1%	0.47	1
POWERGRID.NSPower Grid Corporation of India Limited	$24.5B	14.6×	96.1%	35.6%	1.24	2
SBSP3.SACompanhia de Saneamento Básico do Estado de São Paulo - SABESP	$23.3B	14.2×	37.0%	22.2%	0.82	2
ADANIGREEN.NSAdani Green Energy Limited	$22.1B	132.1×	89.9%	13.4%	4.40	3
H.TOHydro One Limited	$21.8B	21.6×	37.0%	14.8%	1.43	1
1038.HKCK Infrastructure Holdings Limited	$21.2B	6.6×	53.6%	187.1%	0.13	3
SRG.MISnam S.p.A.	$21.1B	17.0×	—	33.0%	1.56	2
5347.KLTenaga Nasional Berhad	$18.5B	16.6×	24.0%	7.0%	0.93	2
0003.HKThe Hong Kong and China Gas Company Limited	$17.0B	21.0×	38.7%	10.5%	0.73	2
0006.HKPower Assets Holdings Limited	$16.4B	7.2×	95.5%	90.2%	0.02	1
EMA.TOEmera Incorporated	$14.3B	20.6×	43.6%	12.4%	1.38	2
UU.LUnited Utilities Group PLC	$14.1B	16.5×	93.9%	22.4%	5.01	1
ORG.AXOrigin Energy Limited	$13.7B	12.5×	21.5%	10.2%	0.38	2
0836.HKChina Resources Power Holdings Company Limited	$13.2B	7.8×	51.8%	14.5%	1.22	2
SVT.LSevern Trent PLC	$12.5B	25.2×	92.0%	9.5%	5.12	1
9531.TTokyo Gas Co.,Ltd.	$12.3B	9.5×	17.9%	8.0%	0.66	—
6742.KLYTL Power International Berhad	$12.0B	29.6×	21.7%	7.7%	1.59	1
GAIL.NSGAIL (India) Limited	$11.6B	11.4×	17.1%	5.4%	0.15	1
TATAPOWER.NSThe Tata Power Company Limited	$11.4B	28.8×	32.5%	6.1%	1.56	3
APA.AXAPA Group	$10.3B	68.6×	100.0%	6.9%	6.31	3
CU.TOCanadian Utilities Limited	$9.6B	308.8×	70.4%	3.2%	1.87	4
TAEE11.SATransmissora Aliança de Energia Elétrica S.A.	$9.4B	41.9×	55.1%	34.2%	1.27	1
U96.SISembcorp Industries Ltd	$8.2B	17.8×	22.4%	17.0%	1.43	3
NHPC.NSNHPC Limited	$7.7B	19.3×	87.2%	33.9%	1.16	1
2688.HKENN Energy Holdings Limited	$7.0B	8.1×	11.9%	5.3%	0.22	2
TORNTPOWER.NSTorrent Power Limited	$6.4B	26.5×	24.2%	8.4%	0.62	2
4677.KLYTL Corporation Berhad	$6.2B	17.9×	27.9%	4.5%	2.55	—
0916.HKChina Longyuan Power Group Corporation Limited	$5.7B	11.2×	34.8%	15.0%	1.23	4
9501.TTokyo Electric Power Company Holdings, Incorporated	$5.3B	—	5.3%	-7.2%	1.01	6
ENG.MCEnagás, S.A.	$4.8B	13.5×	93.8%	35.3%	0.97	1
AGL.AXAGL Energy Limited	$4.0B	7.5×	26.5%	5.6%	0.55	1
AQN.TOAlgonquin Power & Utilities Corp.	$4.0B	21.9×	73.7%	7.4%	1.33	3
8174.TNippon Gas Co., Ltd.	$1.9B	20.3×	36.8%	7.1%	0.42	1
CESC.NSCESC Limited	$1.8B	11.4×	34.5%	8.3%	1.22	2
GNE.AXGenesis Energy Limited	$1.8B	32.9×	37.4%	3.0%	0.28	3
5209.KLGas Malaysia Berhad	$1.6B	19.3×	9.0%	5.2%	0.34	3
5272.KLRanhill Utilities Berhad	$1.0B	21.6×	27.4%	7.9%	0.56	1
5264.KLMalakoff Corporation Berhad	$928M	—	9.7%	1.3%	1.28	4
EWC.AXEnergy World Corporation Ltd	$189M	—	88.7%	-3235.7%	—	6
5184.KLCypark Resources Berhad	$175M	—	3.2%	-37.9%	1.86	1