Top 15 Fastest-Growing Profitable Utilities Stocks
These 15 profitable Utilities companies had the fastest revenue growth in their last fiscal year, led by DTE Energy and NiSource. Each also clears Marvin's minimum Overall score, and growth is only one part of the picture.
Utilities usually have steady, regulated businesses, so fast revenue growth is less common in this sector. This list shows the 15 profitable Utilities companies that grew sales fastest in their latest fiscal year, from regulated electric, gas and water providers to power producers.
Revenue growth is not the whole story. Sales can rise for several reasons, not only because a business is expanding. It also says nothing about how much debt a company carries or how much cash it keeps. That is why each pick below also shows margins, return on equity and debt where available.
Three entries (DTE, DTG and DTB) are listed under DTE Energy Company's name and share the same company-level figures, so they overlap rather than give three separate businesses. Marvin's scores only describe how a company compares with others in its industry today. They are not a forecast.
The list
How Marvin ranked these stocks
Marvin started with Utilities companies above a minimum size and kept only profitable ones that meet a minimum Overall score. It allowed a limited number of stocks per industry, then ranked the rest by revenue growth in the last fiscal year, fastest first. Marvin's scores are relative to each company's own industry, so a high score means a company looks strong next to its industry peers, not next to every stock.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Utilities sector, fastest last-fiscal-year revenue growth first, among profitable companies with an Overall score of at least 55; at most 4 per industry.
The stocks, one by one
DTE Energy Company DTE
DTE Energy Company, a regulated electric utility, grew revenue 26.9% last fiscal year with an operating margin of 13.1%. Its Overall score is 77. Caution: debt-to-equity of 2.07 is higher than most others on this list, and free cash flow margin is not available.
DTE Energy Company 2021 Series DTG
The DTE Energy Company 2021 Series listing shares DTE's company figures: revenue growth of 26.9% and return on equity of 10.3%, a moderate profit on shareholder money. Overall score is 71. Caution: debt-to-equity of 2.07 is relatively high, and it overlaps with DTE.
DTE Energy Company 2020 Series DTB
The DTE Energy Company 2020 Series listing also carries DTE's figures, including revenue growth of 26.9% and an operating margin of 13.1%. Its Overall score is 68, the lowest of the three DTE listings. Caution: debt-to-equity of 2.07 is high, and cash flow data is missing.
NiSource Inc NI
NiSource, a regulated gas utility, grew revenue 23.5% and kept a strong operating margin of 27.6%. Its Overall score is 67. Caution: free cash flow margin is -16.1%, meaning it spent more cash than it brought in, and its opportunity score of 54 is middling.
Essential Utilities, Inc. WTRG
Essential Utilities, a regulated water company, combines revenue growth of 18.6% with a high operating margin of 35.1% and a top-tier Overall score of 92. Caution: return on equity is a modest 7.9%, and free cash flow margin is not available.
Public Service Enterprise Group Incorporated PEG
Public Service Enterprise Group, a regulated electric utility, grew revenue 18.3% and earns an operating margin of 23.1%. Its Overall and Quality scores are 90 and 90. Caution: free cash flow margin is only 2.2%, so little cash is left after investment.
New Jersey Resources Corporation NJR
New Jersey Resources, a regulated gas utility, grew revenue 13.4% with a solid operating margin of 24.8% and return on equity of 13.9%, the best on the list among regulated utilities. Overall score is 87. Caution: free cash flow margin is not available.
Northwest Natural Holding Company NWN
Northwest Natural, a regulated gas utility, grew revenue 11.8% with an operating margin of 22.8%. Its Overall score is 61. Caution: its Quality score of 41 is weak, and free cash flow margin is -20.6%, meaning cash spending exceeded cash generated.
American States Water Company AWR
American States Water, a regulated water company, has the highest Overall score here at 95, with a Quality score of 96 and low debt-to-equity of 0.65. Revenue grew 10.5%. Caution: free cash flow margin is only 3.0%, so cash left over is thin.
American Water Works Company, Inc. AWK
American Water Works, a regulated water company, grew revenue 10.1% and posts the widest operating margin on the list at 37.1%. Its Overall score is 74. Caution: free cash flow margin is -19.6%, so it spent more cash than it generated.
NRG Energy, Inc. NRG
NRG Energy, an independent power producer, grew revenue 9.2% and has a return on equity of 17.5%. Caution: its operating margin is only 6.1%, debt-to-equity is a heavy 4.87, and its Overall score of 56 sits near the bottom of the list.
Constellation Energy Corporation CEG
Constellation Energy, an independent power producer, has a Quality score of 90 and low debt-to-equity of 0.77, with revenue growth of 8.3%. Caution: its opportunity score is just 22, and free cash flow margin is a thin 1.0%.
Unitil Corporation UTL
Unitil, a diversified utility, has an Overall score of 90 and a Quality score of 82, with revenue growth of 8.3% and an operating margin of 18.9%. Caution: free cash flow margin is -7.6%, so it spent more cash than it generated.
H2O America HTO
H2O America, a regulated water company, grew revenue 7.0% and keeps an operating margin of 21.9%. Caution: return on equity is a low 5.7%, its Quality score is only 46, and Overall is 59. Free cash flow margin is not available.
Avista Corporation AVA
Avista, a diversified utility, has an Overall score of 72 and an operating margin of 18.8%. Caution: revenue growth of 1.3% is the slowest here, free cash flow margin is -5.4%, and debt-to-equity data is not available.
Common questions
Why is fast revenue growth less common among utilities?
Many utilities are regulated and serve fixed areas, so customer numbers and prices change slowly. Revenue can also move because of other factors, so growth alone does not show a stronger business.
Why do three DTE Energy listings appear on this list?
DTE, DTG and DTB are all listed under DTE Energy Company's name and share the same company-level figures. They differ in Marvin's scores, but they overlap and are not three separate companies.
Why do so many of these utilities show negative free cash flow margins?
Utilities often spend heavily on infrastructure such as power lines, pipes and plants. When that spending exceeds the cash from operations, free cash flow turns negative. It is worth checking alongside debt.
Keep reading
- Top 15 Utilities Stocks by Marvin's Opportunity Score
- Top 15 Utilities Stocks by Marvin Scores
- Top 15 Utilities Stocks With the Strongest Businesses
- Top 15 Regulated Electric Stocks
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.