SSE (GB:SSE)
LSE:SSE
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SSE
(LSE:SSE)
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Rating:56Neutral
Price Target:
2,492.00 p
▲(0.91% Upside)
Action:Reiterated
Date:06/27/26
The score is primarily driven by financial performance that shows a clear earnings recovery but is constrained by rising debt and persistently negative free cash flow in 2025–2026. Technical indicators are mixed without strong momentum confirmation, and valuation is moderate-to-stretched (P/E ~23.7) with only a modest dividend yield (~2.66%).
Positive Factors
Earnings recovery & improved profitability
SSE's return from a 2023 loss to consistent net profits in 2024–2026 demonstrates recovery in core operations and earnings power. Durable profitability strengthens the firm's ability to fund operations, service debt, and support capital programs across regulatory cycles, improving resilience.
Negative Factors
Increased leverage
Rising gross debt materially increases financial leverage and interest exposure, reducing flexibility for strategic moves. In a capital‑intensive utility, higher debt combined with volatile earnings makes deleveraging and covenant management more challenging over the medium term, raising solvency risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings recovery & improved profitability
SSE's return from a 2023 loss to consistent net profits in 2024–2026 demonstrates recovery in core operations and earnings power. Durable profitability strengthens the firm's ability to fund operations, service debt, and support capital programs across regulatory cycles, improving resilience.
Read all positive factors
SSE (SSE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£29.18B
Dividend Yield2.98%
Average Volume (3M)2.93M
Price to Earnings (P/E)23.7
Beta (1Y)0.81
Revenue Growth0.54%
EPS Growth-2.65%
CountryUK
Employees14,980
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.02
Shares Outstanding1,212,193,800
10 Day Avg. Volume3,812,065
30 Day Avg. Volume2,930,135
Financial Highlights & Ratios
PEG Ratio-13.22
Price to Book (P/B)2.35
Price to Sales (P/S)2.92
P/FCF Ratio-41.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,713.25Price Target Upside9.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.85
Revenue Forecast (FY)£11.23B
SSE Business Overview & Revenue Model
Company Description
SSE plc, a diversified energy firm established in 1989 and based in Perth, United Kingdom, is deeply involved in all facets of the electricity sector. Its operations span from power generation, utilizing a mix of sources such as hydroelectric, nat...
How the Company Makes Money
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SSE Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The earnings call highlighted a robust and transformative investment plan with significant growth potential, particularly in networks. Despite some challenges in renewables and other segments, the overall strategic direction and financial stability suggest a positive outlook.Positive Updates
Transformational Investment Plan
SSE announced a GBP 33 billion investment plan focused on networks, with a 25% CAGR in the regulatory asset base expected by 2030. This positions SSE as one of the fastest-growing electricity network companies globally.
Negative Updates
Renewables Challenges
A 20% decrease in hedge prices led to reduced adjusted operating profits for the period, and unfavorable weather conditions impacted capacity.
Read all updates
Q2-2026 Updates
Positive
Negative
Transformational Investment Plan
SSE announced a GBP 33 billion investment plan focused on networks, with a 25% CAGR in the regulatory asset base expected by 2030. This positions SSE as one of the fastest-growing electricity network companies globally.
Read all positive updates
Company Guidance
In a recent call, SSE outlined a significant investment plan focusing on growth in the U.K. energy sector. The company announced a GBP 33 billion investment, with 80% allocated to networks, aiming for a compound annual growth rate of 25% in the regulatory asset base by 2030. SSE expects earnings per share to reach between 225p to 250p by 2030. The plan is fully funded, with 90% of funding from operational cash flows and increased debt, while the remaining 10% will come from equity placing and asset disposals. The company also emphasized a 5% to 10% annual dividend growth, projecting a strong balance sheet with net debt to EBITDA below 4.5x. Additionally, SSE plans to achieve GBP 200 million in annual cost efficiencies by FY '28.SSE Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.19B | 10.13B | 10.46B | 12.49B | 8.70B |
| Gross Profit | 3.88B | 3.86B | 4.35B | 1.93B | 1.74B |
| EBITDA | 3.11B | 3.23B | 3.67B | 189.10M | 4.32B |
| Net Income | 1.21B | 1.19B | 1.71B | -158.00M | 3.03B |
Balance Sheet | |||||
| Total Assets | 35.35B | 30.36B | 28.27B | 27.14B | 25.76B |
| Cash, Cash Equivalents and Short-Term Investments | 1.54B | 1.09B | 1.04B | 1.21B | 1.13B |
| Total Debt | 13.11B | 10.60B | 9.13B | 10.94B | 10.19B |
| Total Liabilities | 21.94B | 17.67B | 16.47B | 17.91B | 17.64B |
| Stockholders Equity | 12.66B | 12.06B | 11.05B | 8.58B | 8.08B |
Cash Flow | |||||
| Free Cash Flow | -711.80M | -654.20M | 1.35B | -360.90M | 121.40M |
| Operating Cash Flow | 3.44B | 2.48B | 3.86B | 1.46B | 1.58B |
| Investing Cash Flow | -4.62B | -3.32B | -2.86B | -2.96B | -744.90M |
| Financing Cash Flow | 1.64B | 896.20M | -784.50M | 1.35B | -1.38B |
SSE Technical Analysis
Positive
2469.50
Price Trends
2441.55
Negative
2533.48
Negative
2284.71
Positive
Market Momentum
-14.40
Negative
54.54
Neutral
78.25
Neutral
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 2469.5 is above the 20-day moving average (MA) of 2359.20, above the 50-day MA of 2441.55, and above the 200-day MA of 2284.71, indicating a neutral trend. The MACD of -14.40 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 78.25 is Neutral, 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | £2.54B | 28.00 | 3.94% | 2.78% | -11.94% | -84.94% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | £614.15M | 7.60 | 27.40% | 7.01% | 5.60% | 4.97% | |
60 Neutral | £61.97B | 18.87 | 8.47% | 4.15% | -3.76% | 8.20% | |
59 Neutral | £7.93B | 13.02 | 1.68% | 2.86% | -2.11% | -104.48% | |
58 Neutral | £20.60M | -0.99 | -68.06% | ― | 4.66% | 40.29% | |
56 Neutral | £29.18B | 23.74 | 9.45% | 2.98% | 0.54% | -2.65% |
* Utilities Sector Average
GB:SSE
SSE
2,421.00
648.38
36.58%
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SSE Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
SSE Directors Receive Vested Share Awards Under Long-Term Incentive Plans
Neutral
Jun 17, 2026
SSE has disclosed multiple share transactions involving its directors and senior managers following the vesting of long-term incentive awards. Ordinary shares were transferred under the Deferred Bonus Scheme, Performance Share Plan and Leadership ...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
SSE publishes 2026 annual report and sets date for hybrid AGM
Neutral
Jun 12, 2026
SSE plc has published its Annual Report and Accounts, Notice of Annual General Meeting and Sustainability Report for the year ended 31 March 2026, following its recently announced full-year results. The documents are available on the company’...
Regulatory Filings and Compliance
SSE Discloses Executive Share Purchases Under Employee Incentive Plan
Neutral
Jun 9, 2026
SSE has disclosed routine share transactions involving its directors and persons discharging managerial responsibilities under its all-employee Share Incentive Plan. On 5 June 2026, Computershare Investor Services purchased ordinary shares on the ...
Delistings and Listing ChangesPrivate Placements and Financing
SSE Lists €1.3 Billion Perpetual Notes on London Stock Exchange
Positive
Jun 9, 2026
SSE plc has secured admission to trading on the London Stock Exchange’s main market for two new tranches of subordinated perpetual notes issued under its €20 billion Euro Medium Term Note Programme. The company has listed €650 mi...
Executive/Board Changes
SSE Grants Senior Executives New Deferred Bonus and Performance Share Awards
Positive
Jun 5, 2026
SSE has granted conditional share awards to directors and senior managers under its Deferred Bonus Scheme, converting part of their 2025/26 cash bonuses into shares priced at £23.00, which will vest after three years subject to continued empl...
Business Operations and StrategyPrivate Placements and Financing
SSE Raises €1.3bn in Oversubscribed Hybrid Issue to Back £33bn Investment Plan
Positive
Jun 2, 2026
SSE plc has issued a dual-tranche hybrid capital transaction totalling €1.3bn, comprising a perpetual non-call 5.25-year €650m note yielding 4.375% and a perpetual non-call 8-year €650m note yielding 4.80%. The instruments are su...
Delistings and Listing ChangesRegulatory Filings and Compliance
SSE Adds Shares from Employee Scheme to London Listing
Neutral
Jun 1, 2026
SSE plc has admitted 2,314 new fully paid ordinary shares of 50 pence each to trading on the London Stock Exchange’s Main Market, following the exercise of options under its Irish SAYE Sharesave Scheme on 30 April 2026. The new shares are fu...
Regulatory Filings and Compliance
SSE Updates Market on Total Voting Rights and Share Capital
Neutral
Jun 1, 2026
SSE plc has reported that, as of 1 June 2026, its issued share capital stands at 1,215,474,042 ordinary shares, including 3,280,249 shares held in treasury that carry no voting rights. This leaves a total of 1,212,193,793 voting rights, which shar...
Business Operations and StrategyDividendsFinancial Disclosures
SSE Ramps Up Record Investment as Regulated Networks and Renewables Drive Long-Term Growth
Positive
May 28, 2026
SSE reported a record year of capital investment, deploying £3.6bn largely into its regulated networks and renewables portfolio, while adjusted earnings per share of 153.5p came in toward the upper end of guidance despite a modest year-on-yea...
Regulatory Filings and Compliance
SSE Discloses Routine Director Dealings Under All-Employee Share Plan
Positive
May 7, 2026
SSE plc has disclosed routine share transactions involving its all-employee Share Incentive Plan, under which Computershare Investor Services purchased ordinary shares on 6 May 2026 on behalf of several directors and persons discharging managerial...
Regulatory Filings and Compliance
SSE Updates Market on Share Capital and Voting Rights
Neutral
May 1, 2026
SSE plc has confirmed that, as of 1 May 2026, its issued share capital comprises 1,215,474,042 ordinary shares, of which 3,282,272 are held in treasury without voting rights. This leaves a total of 1,212,191,770 voting rights in the company, a key...
Regulatory Filings and Compliance
SSE Discloses Director Share Purchase Under Employee Incentive Plan
Neutral
Apr 9, 2026
SSE plc has disclosed a routine director share transaction under its Irish all-employee Share Incentive Plan, in line with market abuse and regulatory reporting requirements. Computershare Investor Services purchased and allocated a total of 18 SS...
Regulatory Filings and Compliance
SSE Discloses Routine Executive Share Incentive Plan Purchases
Neutral
Apr 7, 2026
SSE has disclosed routine share transactions involving its directors and persons discharging managerial responsibilities under its all-employee Share Incentive Plan. On 2 April 2026, Computershare Investor Services purchased ordinary shares on beh...
Business Operations and StrategyFinancial Disclosures
SSE lifts networks investment as earnings track within guidance
Positive
Apr 2, 2026
SSE expects adjusted earnings per share for 2025/26 in the range of 147 to 152 pence, underpinned by strong operational performance as it advances its £33bn five-year investment programme. The company’s regulated networks arm is set to ...
Regulatory Filings and Compliance
SSE Updates Market on Total Voting Rights and Share Capital
Neutral
Apr 1, 2026
SSE plc has confirmed that, as of 1 April 2026, its issued share capital stands at 1,215,471,728 ordinary shares, including 3,291,658 shares held in treasury that carry no voting rights. This leaves a total of 1,212,180,070 voting rights in the co...
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.