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SVT

Severn Trent PLC

Utilities First-pass screen £9.8bn
490/1000 Overall fit
AI beneficiary 35% 18
Operating leverage 25% 75
Valuation 25% 55
Downside protection 15% 68

First-pass take

Regulated water utility with strong operating leverage (PBIT +15% on revenue +3.8%) but zero AI/enterprise spending exposure. Capital-intensive model (£1.7bn capex) generating negative FCF. Gearing rising to 62.7%; EPS growth guidance (double by 2027/28) driven by regulatory RCV expansion, not operational efficiency gains.

Flags

no-ai-exposureregulated-utilitycapex-intensivenegative-fcfrising-gearingdividend-not-covered-by-earningsno-valuation-dataregulatory-dependent