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SSE (SSE) AI Stock Analysis

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GB:SSE

SSE

(LSE:SSE)

Rating:71Outperform
Price Target:
1,973.00p
▲(10.78% Upside)
SSE's overall stock score reflects a combination of strong earnings growth and positive future guidance from the earnings call, balanced by mixed financial performance and neutral technical indicators. The valuation is fair, supported by a solid dividend yield. The most significant factors are the positive earnings call and fair valuation, while financial performance and technical analysis present areas for caution.
Positive Factors
Growth Potential
SSE's next chapter is wired for growth with a pivot to networks driving strong EPS growth out until 2031.
Valuation
The attractive valuation setup for the sector is supported by expectations for ROTE to remain above 13%, which suggests continued shareholder distribution.
Negative Factors
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 (SSE plc) is a leading energy company based in the UK, primarily involved in the generation and supply of electricity and gas. The company operates across several sectors, including renewable energy, conventional power generation, and energy services. SSE is known for its commitment to sustainability, focusing on renewable energy sources such as wind and hydroelectric power, alongside its operations in gas and electricity distribution and retail services.
How the Company Makes MoneySSE generates revenue through multiple streams, including electricity and gas sales to residential, commercial, and industrial customers. The company earns income from its renewable energy generation, particularly from wind farms and hydroelectric plants, which are increasingly pivotal in the UK's transition to a low-carbon economy. Additionally, SSE provides energy services, including maintenance and installation of energy infrastructure, which further contributes to its revenue. Significant partnerships with local and national governments, as well as collaborations with other energy firms, enhance SSE's operational capabilities and market reach, allowing for more efficient energy production and distribution. The company's diversified portfolio and focus on renewable energy align with growing market demands, positioning it well for future earnings growth.

SSE Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive picture with strong earnings and growth in the networks and renewables sectors, along with increased asset bases and efficiency measures. However, challenges remain with slower progress in Southern Europe and a reduced capital investment plan.
Q4-2025 Updates
Positive Updates
Record Earnings from Networks and Renewables
Both the networks and renewables businesses reported over GBP 1 billion in adjusted operating profit for the first time, with a 53% increase in profit from the networks and a 25% increase from renewables.
Increased Asset Base and Growth Projections
The regulated networks asset base increased by around 60% over the past 3 years, with an upgrade in expected network asset growth rate from 15% to 20%.
Upgrade in RAV Growth Expectations
Annual asset growth expectations for SSEN Transmission were upgraded from 20% to 25% over the plan, making it potentially the fastest-growing regulated network in the world.
Introduction of Cost-Efficiency Measures
An organizational review is expected to deliver around GBP 100 million per annum of recurring efficiencies.
Strong Balance Sheet and Funding Strategy
The company maintains a strong balance sheet with leverage ratios expected to be around 4x in 2027, well within investment-grade credit ratings.
Negative Updates
Slower Progress in Southern Europe
The company took an exceptional GBP 250 million noncash impairment due to slower-than-anticipated build-out of some parts of its Southern Europe pipeline.
Reduced Capital Investment Plan
The overall size of the capital investment plan was reduced to GBP 17.5 billion, reflecting a changed macro environment and policy and planning delays.
Lower Profitability in Thermal and Gas Storage
Profitability in conventional thermal generation and gas storage was lower due to market normalization and distortion, though in line with guidance.
Company Guidance
The recent call provided comprehensive guidance on SSE's financial and operational performance, emphasizing several key metrics. SSE reported robust earnings growth, with adjusted operating profits from Networks and Renewables each surpassing GBP 1 billion for the first time. The company achieved an EPS of 160.9p, aligning with their guidance, and proposed a final dividend of 43p, totaling a 7% increase over the previous year. SSE's five-year Net Zero Acceleration Program Plus investment plan has led to significant growth, with the regulated networks asset base increasing by around 60% and renewables volumes by approximately 40% over the past three years. The company has revised its capital investment plan to GBP 17.5 billion, with 60% earmarked for upgrading the transmission and distribution grids. Despite a GBP 3 billion reduction in planned capital expenditure, SSE maintains confidence in its 2027 EPS target of 175p to 200p, supported by anticipated network asset growth and secure, inflation-linked revenues. The company also highlighted its strong balance sheet, with a net debt-to-EBITDA ratio expected to be around 4x by 2027, and emphasized its commitment to disciplined capital allocation and shareholder value.

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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.13B10.13B10.46B12.49B8.70B6.83B
Gross Profit3.86B3.86B4.35B1.93B1.74B2.10B
EBITDA3.29B3.23B3.67B189.10M4.32B3.30B
Net Income1.19B1.19B1.71B-158.00M3.03B2.28B
Balance Sheet
Total Assets30.36B30.36B28.27B27.14B25.76B21.59B
Cash, Cash Equivalents and Short-Term Investments1.09B1.09B1.04B1.21B1.13B1.60B
Total Debt10.60B10.60B9.13B10.94B10.12B10.88B
Total Liabilities17.67B17.67B16.47B17.91B17.64B16.38B
Stockholders Equity12.06B12.06B11.05B8.58B8.08B5.21B
Cash Flow
Free Cash Flow-212.40M-654.20M1.35B-360.90M121.40M593.30M
Operating Cash Flow2.48B2.48B3.86B1.46B1.58B1.77B
Investing Cash Flow-3.32B-3.32B-2.86B-2.96B-744.90M443.70M
Financing Cash Flow896.20M896.20M-784.50M1.35B-1.38B-778.70M

SSE Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1781.00
Price Trends
50DMA
1812.35
Negative
100DMA
1735.21
Positive
200DMA
1643.71
Positive
Market Momentum
MACD
-12.41
Positive
RSI
37.66
Neutral
STOCH
36.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SSE, the sentiment is Negative. The current price of 1781 is below the 20-day moving average (MA) of 1798.70, below the 50-day MA of 1812.35, and above the 200-day MA of 1643.71, indicating a neutral trend. The MACD of -12.41 indicates Positive momentum. The RSI at 37.66 is Neutral, neither overbought nor oversold. The STOCH value of 36.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£51.94B16.988.35%4.46%-7.42%5.84%
71
Outperform
£19.64B16.5012.29%3.66%-3.11%-31.10%
71
Outperform
£7.78B6.18-5.95%2.55%-4.82%-123.58%
67
Neutral
$17.59B18.195.33%3.63%7.33%12.21%
67
Neutral
£7.96B30.0713.05%4.50%10.04%
60
Neutral
£7.80B34.2112.73%4.70%3.78%50.18%
58
Neutral
£2.28B-4.44%7.08%15.42%-406.43%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SSE
SSE
1,754.50
-53.14
-2.94%
GB:CNA
Centrica
161.30
37.18
29.95%
GB:PNN
Pennon Group plc
476.40
41.07
9.43%
GB:SVT
Severn Trent
2,590.00
169.52
7.00%
GB:UU
United Utilities
1,152.00
183.40
18.93%
GB:NG
National Grid
1,048.00
100.50
10.61%

SSE Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
SSE Aligns Leadership Incentives with Shareholder Interests
Positive
Aug 8, 2025

SSE plc has announced the acquisition of ordinary shares for its directors and persons discharging managerial responsibilities (PDMRs) under its Share Incentive Plan. This move, in compliance with the Market Abuse Regulation, involves the purchase and award of matching shares, reflecting the company’s commitment to aligning the interests of its management with those of its shareholders. The transactions, conducted on the London Stock Exchange, are part of SSE’s strategy to incentivize its leadership and enhance shareholder value.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £22.80 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Dividends
SSE Announces Scrip Dividend Scheme Details for 2025
Positive
Jul 31, 2025

SSE plc has announced the Scrip reference price for its Scrip Dividend Scheme, set at 1,849 pence per share, for shareholders opting to receive shares instead of cash for the final dividend of the year ending March 31, 2025. This initiative allows shareholders to increase their holdings, potentially enhancing shareholder value and maintaining capital within the company, which could strengthen SSE’s financial position and market standing.

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
JPMorgan Increases Stake in SSE PLC, Crossing Key Voting Rights Threshold
Neutral
Jul 23, 2025

SSE PLC, a UK-based company, has announced a change in its voting rights structure following an acquisition by JPMorgan Chase & Co. As of July 18, 2025, JPMorgan Chase & Co. has increased its voting rights in SSE PLC to a total of 5.310412%, crossing a significant threshold. This change in holdings may impact SSE’s governance and influence its strategic decisions, reflecting JPMorgan’s increased stake in the company’s future direction.

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 Announces Share Awards Under Incentive Schemes
Neutral
Jul 21, 2025

SSE plc has announced the grant of awards under its Deferred Bonus Scheme (DBS), Performance Share Plan (PSP), and Leadership Share Plan (LSP) to its directors and persons discharging managerial responsibilities (PDMRs). These awards are part of the company’s incentive programs, which convert a portion of cash bonuses into shares and are contingent upon continued employment and performance conditions over a three-year period. The announcement reflects SSE’s strategic focus on aligning management incentives with shareholder interests, potentially impacting the company’s operational focus and stakeholder engagement.

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
BlackRock Reduces Stake in SSE PLC
Neutral
Jul 21, 2025

SSE PLC, a UK-based company, has been notified of a change in major holdings by BlackRock, Inc., a US-based investment management corporation. BlackRock’s voting rights in SSE have decreased from 8.35% to 7.96%, following a disposal of shares. This adjustment in holdings could impact SSE’s shareholder dynamics and influence its corporate governance.

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 ChangesShareholder Meetings
SSE PLC Announces Key Board Changes and AGM Results
Neutral
Jul 17, 2025

SSE PLC’s Annual General Meeting in 2025 resulted in the approval of all 24 resolutions, including the re-election of several board members and the appointment of new roles. Notably, Hixonia Nyasulu and Martin Pibworth have taken on significant leadership positions as Senior Independent Director and Chief Executive, respectively. These changes are expected to influence the company’s strategic direction and governance structure, potentially impacting its market positioning 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 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.

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: Aug 22, 2025