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SSE (SSE) AI Stock Analysis

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GB

SSE

(LSE:SSE)

Rating:75Outperform
Price Target:
2,073.00p
▲(12.11%Upside)
SSE's overall score is driven by strong earnings guidance and strategic investments in renewables, coupled with positive technical indicators. Financial performance shows areas for improvement, particularly in cash flow management. Recent corporate events reinforce strategic alignment with clean energy goals, although valuation suggests cautious optimism.
Positive Factors
Growth Potential
SSE’s next chapter is wired for growth with a pivot to networks driving strong EPS growth out until 2031.
Investment and Capex
SSE has a £17.5bn capex program fully financed to 2027, largely in networks & renewables.
Negative Factors
Gearing and Funding
Gearing may be on an upward trajectory, but SSE has mitigation levers to fund itself without needing an equity raise.
Investment Expectations
SSE announced that its 5-year investment expectations have been reduced by £3bn to around £17.5bn.

SSE (SSE) vs. iShares MSCI United Kingdom ETF (EWC)

SSE Business Overview & Revenue Model

Company DescriptionSSE plc engages in the generation, transmission, distribution, and supply of electricity. It generates electricity from water, gas, coal, oil, and multi fuel. The company distributes electricity to approximately 3.8 million homes and businesses across the north of the central belt of Scotland and central southern England; and owns, operates, and develops high voltage electricity transmission system in the north of Scotland and remote islands. It also produces, stores, distributes, and supplies gas. In addition, it engages in the electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provides maintenance services. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.
How the Company Makes MoneySSE makes money through several key revenue streams. Firstly, the company generates revenue from its electricity and gas supply business, where it provides energy to residential, commercial, and industrial customers. Secondly, SSE earns income from its renewable energy operations, which include wind farms and hydroelectric plants, by selling the generated electricity either directly to the wholesale market or through power purchase agreements. Additionally, SSE's regulated networks business, which involves the transmission and distribution of electricity, contributes significantly to its revenue, as these networks operate under regulated frameworks that provide stable returns. Partnerships with governments and other organizations in the development of large-scale renewable projects also play a role in enhancing SSE's earnings profile.

SSE Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q4-2025)
|
% Change Since: 2.81%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in safety performance, financial results, and strategic upgrades in growth expectations. However, these were balanced by notable challenges, including a substantial impairment and a reduction in capital investment plans due to external factors.
Q4-2025 Updates
Positive Updates
Record Safety Performance
The combined total recordable injury rate is at its lowest in 3 years, with over 8,500 employees and 1,000 contractors benefiting from the immersive training program.
Financial Achievement in Networks and Renewables
Networks and Renewables each contributed over GBP 1 billion in adjusted operating profit for the first time, with networks delivering a 53% increase in adjusted operating profit and renewables seeing a 25% increase.
Strong Earnings and Dividend Growth
Achieved 160.9p EPS, despite normalization in thermal portfolio profitability, and a full-year dividend increase of 7% to 64.2p.
Upgraded Growth Expectations
Upgraded expected network asset growth rate from 15% to 20% and maintained a 15% growth rate in renewables volumes.
Capacity Market Success
Secured GBP 150 million of additional capacity market payments in 2027 across flexible thermal and hydro renewables.
Negative Updates
GBP 250 Million Non-Cash Impairment
An exceptional impairment due to slower than anticipated build-out in Southern Europe, reflecting sector-wide delays in permitting and grid connections.
Reduction in Capital Investment Plan
Reduced overall size of capital investment plan to GBP 17.5 billion, reflecting changes in the macro environment and policy delays.
Challenges in Thermal Generation and Gas Storage
Lower profitability due to market normalization and distortions affecting gas storage, despite profitability in line with guidance.
Company Guidance
In the call, SSE provided comprehensive guidance on its financial and strategic outlook. The company highlighted strong earnings driven by a balanced business mix, with significant contributions from regulated networks and renewables, which now account for around 90% of earnings. SSE has upgraded its expected network asset growth rate from 15% to 20%, reflecting increased visibility of growth. The company's net zero acceleration investment plan has led to a 60% increase in regulated networks asset base and a 40% increase in renewables volumes over three years. SSE is working towards a revised GBP 17.5 billion investment plan, with about 60% focused on upgrading transmission and distribution grids. The company aims for a 175p to 200p EPS by 2027, buoyed by inflation-linked earnings expected to constitute 70% of group EBITDA by that year. Despite challenges, SSE has cut its capital investment plan by reflecting the macro environment, maintaining a strong balance sheet with a projected net debt-to-EBITDA ratio of around 4x in 2027. The company emphasizes capital discipline and operational efficiency, expecting GBP 100 million in annual recurring efficiencies, as it navigates market volatility and regulatory changes.

SSE Financial Statement Overview

Summary
SSE presents a mixed financial picture. While the income statement shows periods of strong profitability, there is inconsistency in revenue and margins. The balance sheet is moderately leveraged, offering stability but with room for improvement in equity levels. Cash flow management appears to be a concern with recent negative free cash flows, which could impact future liquidity if not addressed.
Income Statement
72
Positive
SSE has shown fluctuating revenue with a peak in 2023, followed by a decrease in 2024 and 2025. The gross profit margin has been inconsistent, but the net profit margin was notably strong in 2022 and 2021. The EBIT and EBITDA margins have also varied, indicating some volatility in operational efficiency.
Balance Sheet
68
Positive
The company's balance sheet reflects a moderate debt-to-equity ratio, indicating leverage but not excessively so. The return on equity showed strength in 2022 but declined in 2025. The equity ratio suggests a balanced capital structure but could benefit from higher equity levels.
Cash Flow
65
Positive
SSE's cash flow statement shows fluctuating free cash flow, which turned negative in 2025, indicating potential cash management challenges. The operating cash flow to net income ratio has been robust except for 2023, suggesting solid cash generation relative to net income.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue10.13B10.46B12.49B8.70B6.83B
Gross Profit3.86B4.35B1.93B1.74B2.10B
EBITDA3.23B3.67B189.10M4.32B3.30B
Net Income1.19B1.71B-158.00M3.03B2.28B
Balance Sheet
Total Assets30.36B28.27B27.14B25.76B21.59B
Cash, Cash Equivalents and Short-Term Investments1.09B1.04B1.21B1.13B1.60B
Total Debt10.60B9.13B10.94B10.12B10.88B
Total Liabilities17.67B16.47B17.91B17.64B16.38B
Stockholders Equity12.06B11.05B8.58B8.08B5.21B
Cash Flow
Free Cash Flow-654.20M1.35B-360.90M121.40M593.30M
Operating Cash Flow2.48B3.86B1.46B1.58B1.77B
Investing Cash Flow-3.32B-2.86B-2.96B-744.90M443.70M
Financing Cash Flow896.20M-784.50M1.35B-1.38B-778.70M

SSE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1849.00
Price Trends
50DMA
1792.68
Positive
100DMA
1679.04
Positive
200DMA
1673.38
Positive
Market Momentum
MACD
16.13
Positive
RSI
55.29
Neutral
STOCH
19.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SSE, the sentiment is Positive. The current price of 1849 is above the 20-day moving average (MA) of 1846.15, above the 50-day MA of 1792.68, and above the 200-day MA of 1673.38, indicating a bullish trend. The MACD of 16.13 indicates Positive momentum. The RSI at 55.29 is Neutral, neither overbought nor oversold. The STOCH value of 19.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SSE.

SSE Risk Analysis

SSE disclosed 12 risk factors in its most recent earnings report. SSE reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SSE Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBSSE
75
Outperform
£20.12B16.9012.29%2.30%-3.11%-31.10%
GBNG
71
Outperform
£51.22B16.958.35%5.91%-7.42%5.84%
GBCNA
70
Outperform
£7.40B6.0432.10%3.92%-24.74%-63.34%
GBSVT
62
Neutral
£8.02B34.4612.73%5.48%3.78%50.18%
61
Neutral
C$5.02B-18.31-18.56%4.32%11.65%-69.08%
GBUU
57
Neutral
£7.56B28.5413.05%6.24%10.04%
GBPNN
57
Neutral
£2.29B-4.44%6.01%15.42%-406.43%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SSE
SSE
1,849.00
73.09
4.12%
GB:CNA
Centrica
154.10
19.81
14.75%
GB:PNN
Pennon Group plc
493.80
16.13
3.38%
GB:SVT
Severn Trent
2,639.00
223.30
9.24%
GB:UU
United Utilities
1,098.50
129.42
13.35%
GB:NG
National Grid
1,050.00
156.97
17.58%

SSE Corporate Events

Business Operations and StrategyFinancial Disclosures
SSE Reports Strong Networks Performance and Strategic Progress Amidst Challenging Weather Conditions
Positive
Jul 17, 2025

SSE’s Q1 Trading Statement highlights strong operational performance in its Networks division, despite a decrease in renewables output due to unfavorable weather conditions. The company remains committed to its financial guidance and continues to advance its £17.5bn investment plan to 2027, with key regulatory and project milestones achieved. Notably, the UK Government’s decision to retain a national pricing system for electricity and Ofgem’s draft determination for transmission investments provide clarity and support for SSE’s growth strategy. SSE’s strategic initiatives, including the approval of the Skye Reinforcement project and the construction of the Platin power station, underscore its commitment to enhancing energy security and expanding renewable capacity.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and Strategy
SSE PLC Grants Share Options to Employees Under Savings Scheme
Neutral
Jul 11, 2025

SSE PLC announced the granting of options over 2,183,260 ordinary shares to employees under its UK all-employee savings-related share option scheme at an option price of £14.54 per share. This move includes options granted to Director Martin Pibworth and PDMR Elizabeth Tanner, reflecting the company’s efforts to incentivize its leadership and employees, potentially impacting its operational dynamics and stakeholder relations.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and Strategy
SSE PLC Aligns Managerial Interests with Shareholder Value
Positive
Jul 9, 2025

SSE PLC announced the acquisition of ordinary shares for Director Barry O’Regan under the Irish all-employee Share Incentive Plan. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing efforts to align managerial interests with shareholder value, potentially strengthening its market position and stakeholder confidence.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Executive/Board ChangesBusiness Operations and StrategyRegulatory Filings and Compliance
SSE PLC Aligns Leadership with Shareholder Interests Through Share Incentive Plan
Positive
Jul 8, 2025

SSE PLC announced the purchase and allocation of ordinary shares under its Share Incentive Plan for directors and persons discharging managerial responsibilities. This move, in compliance with the Market Abuse Regulation, involved acquiring shares on behalf of key company figures, potentially strengthening their alignment with shareholder interests and enhancing corporate governance. The transactions were conducted on the London Stock Exchange, reflecting SSE’s ongoing efforts to incentivize its leadership team.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Regulatory Filings and Compliance
SSE plc Updates on Voting Rights and Capital Structure
Neutral
Jul 1, 2025

SSE plc announced an update regarding its voting rights and capital structure as of July 1, 2025. The company reported an issued share capital of 1,111,159,424 ordinary shares, with 4,629,915 held in treasury, resulting in 1,106,529,509 voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s rules, potentially impacting their investment strategies and the company’s market perception.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
SSEN Transmission Critiques Ofgem’s RIIO-T3 Draft Determination
Negative
Jul 1, 2025

SSEN Transmission has responded to Ofgem’s Draft Determination for the RIIO-T3 price control period, emphasizing the critical role of investment in the electricity transmission network for achieving national energy objectives. While acknowledging some positive developments, SSEN Transmission expressed concerns that the draft does not provide an adequate framework to support the necessary investment levels for a clean power system by 2030. The company plans to work with Ofgem and stakeholders to ensure the final determination supports the required investment for a cleaner, more secure, and affordable energy system.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
SSE plc Releases 2025 Annual Reports and Announces Hybrid AGM
Neutral
Jun 13, 2025

SSE plc has published its Annual Report and Accounts for the year ending 31 March 2025, along with its Sustainability and Net Zero Transition Reports. The company will hold a hybrid Annual General Meeting on 17 July 2025. These publications and the AGM reflect SSE’s ongoing commitment to transparency and sustainability, impacting its operations and positioning in the energy sector.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
SSE plc Launches €1.3 Billion Hybrid Capital Securities to Boost Green Investment
Positive
Jun 12, 2025

SSE plc has successfully launched a dual tranche issue of hybrid capital securities, raising a total of €1.3 billion. This move is part of SSE’s strategy to replace its existing £600 million hybrid capital security and support its £17.5 billion investment plan aimed at advancing its clean energy transition. The issuance was well-received, being four times oversubscribed, indicating strong investor interest in SSE’s green infrastructure projects.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
SSE plc Announces Vesting of Share Awards for Leadership and Management
Positive
Jun 11, 2025

SSE plc announced the vesting of awards under its Deferred Bonus Scheme, Performance Share Plan, and Leadership Share Plan, granted on 22 July 2022. The vesting, which occurred on 6 June 2025, involved the transfer of ordinary shares to directors and persons discharging managerial responsibilities, reflecting their performance over a three-year period. The awards highlight SSE’s commitment to rewarding its leadership and managerial team, potentially impacting the company’s operational focus and stakeholder confidence.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
SSE PLC Awards Shares to Directors and Managers
Positive
Jun 9, 2025

SSE PLC announced the purchase of ordinary shares and the awarding of matching shares to several directors and persons discharging managerial responsibilities under its all-employee Share Incentive Plan. This transaction, conducted on 6 June 2025, reflects the company’s commitment to employee investment and engagement, potentially enhancing stakeholder confidence and aligning management interests with shareholder value.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Regulatory Filings and Compliance
SSE plc Updates on Voting Rights and Share Capital
Neutral
Jun 2, 2025

SSE plc has announced its total issued share capital as of June 2, 2025, which consists of 1,111,159,424 ordinary shares, including 4,826,198 held in treasury. The voting rights for these treasury shares are suspended, resulting in a total of 1,106,333,226 voting rights available. This information is crucial for shareholders to determine their notification requirements under the FCA’s rules.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
SSE Reports Strong Performance and Strategic Investment in Clean Energy Transition
Positive
May 21, 2025

SSE plc reported strong financial and strategic performance for the year ended 31 March 2025, with an adjusted earnings per share of 160.9p, aligning with expectations. The company achieved an 18% increase in renewable energy output, driven by new capacity additions, despite challenging weather conditions. SSE’s investment plan, which includes a record £2.9bn capital investment, primarily in networks and renewables, reflects its commitment to the clean energy transition. The company has adjusted its five-year investment expectations to £17.5bn, emphasizing financial discipline amid a changing macro environment. SSE is progressing on major projects like the Dogger Bank offshore wind farm and the Shetland HVDC link, reinforcing its position in the energy sector. The company remains confident in achieving its FY27 earnings per share target of 175-200p, supported by a strong balance sheet and strategic focus on sustainable growth.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1930.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and Strategy
SSE PLC Aligns Management Interests with Shareholders through Share Incentive Plan
Positive
May 2, 2025

SSE PLC announced that on May 1, 2025, it purchased ordinary shares and awarded matching shares to several directors and persons discharging managerial responsibilities (PDMRs) under its all-employee Share Incentive Plan. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning the interests of its management with those of its shareholders, potentially enhancing stakeholder confidence in its governance practices.

Regulatory Filings and Compliance
SSE plc Updates on Voting Rights and Share Capital
Neutral
May 1, 2025

SSE plc announced that as of 1 May 2025, its issued share capital consists of 1,111,159,424 ordinary shares, with 4,834,132 held in treasury, which do not carry voting rights. Consequently, the total number of voting rights in the company is 1,106,325,292. This information is crucial for shareholders to determine their reporting obligations under the FCA’s Disclosure Guidance and Transparency Rules.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025