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Sse Plc (UK) (GB:SSE)
:SSE
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SSE (SSE) AI Stock Analysis

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GB:SSE

SSE

(LSE:SSE)

Rating:71Outperform
Price Target:
2,048.00p
▲(10.40% Upside)
SSE's overall stock score reflects its robust strategic positioning in regulated networks and renewables, which are key growth drivers. However, financial performance shows some volatility, particularly in cash flow management, which is a concern. Valuation metrics are favorable, offering a stable income stream with a reasonable P/E ratio. The technical analysis supports a positive outlook, and recent corporate events bolster strategic alignment with shareholder interests.
Positive Factors
Growth Potential
SSE Plc is on the analyst's 'Buy' list, indicating confidence in its growth potential.
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 (formerly known as Scottish and Southern Energy) is a UK-based energy company primarily involved in the generation, transmission, distribution, and supply of electricity and gas. SSE operates across various sectors, including renewable energy, thermal generation, and energy services. The company is committed to driving the transition to a low-carbon economy through investments in renewable energy sources such as wind and hydroelectric power, while also maintaining a robust network infrastructure to ensure reliable energy delivery to customers.
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: 5.51%|
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 has demonstrated a mixed financial performance with fluctuating revenue and margins. The income statement shows strong profitability at times, but there are inconsistencies. The balance sheet is moderately leveraged, offering some stability, but the recent negative cash flows indicate potential cash management challenges.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
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 Price1855.00
Price Trends
50DMA
1796.45
Positive
100DMA
1692.69
Positive
200DMA
1639.51
Positive
Market Momentum
MACD
17.07
Positive
RSI
56.59
Neutral
STOCH
28.70
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 1855 is above the 20-day moving average (MA) of 1840.90, above the 50-day MA of 1796.45, and above the 200-day MA of 1639.51, indicating a bullish trend. The MACD of 17.07 indicates Positive momentum. The RSI at 56.59 is Neutral, neither overbought nor oversold. The STOCH value of 28.70 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
£20.40B17.1412.29%3.48%-3.11%-31.10%
71
Outperform
£53.78B17.588.35%4.31%-7.42%5.84%
70
Outperform
£7.80B6.18-5.95%2.49%-4.82%-123.58%
64
Neutral
£2.39B-4.44%6.74%15.42%-406.43%
64
Neutral
£7.88B29.7813.05%4.55%10.04%
63
Neutral
£8.09B35.0712.73%4.58%3.78%50.18%
62
Neutral
£7.46B0.9712.81%5.38%7.83%-87.16%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SSE
SSE
1,855.00
56.52
3.14%
GB:CNA
Centrica
164.60
43.53
35.95%
GB:PNN
Pennon Group plc
506.50
68.22
15.57%
GB:SVT
Severn Trent
2,686.00
278.90
11.59%
GB:UU
United Utilities
1,156.00
231.07
24.98%
GB:NG
National Grid
1,084.00
149.12
15.95%

SSE Corporate Events

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: Jul 31, 2025