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SSE (SSE) AI Stock Analysis

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GB:SSE

SSE

(LSE:SSE)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
2,152.00p
▲(13.89% Upside)
SSE's overall stock score is driven by strong technical indicators and positive earnings call highlights, including record earnings and growth in key sectors. The financial performance shows some volatility, particularly in cash flow management, but the valuation remains fair. The positive sentiment from the earnings call offsets some of the financial concerns, leading to a favorable overall score.
Positive Factors
Renewable Energy Growth
SSE's focus on renewable energy aligns with global sustainability trends, positioning it for long-term growth as demand for clean energy increases.
Network Asset Expansion
Significant growth in network assets enhances SSE's infrastructure capabilities, supporting future revenue and operational efficiency improvements.
Cost-Efficiency Measures
Implementing cost-efficiency measures strengthens SSE's financial health, potentially improving margins and profitability over the long term.
Negative Factors
Cash Flow Challenges
Negative cash flow poses risks to SSE's financial stability, potentially limiting its ability to invest in growth initiatives and manage debt.
Reduced Capital Investment
A reduced investment plan may slow down future growth and expansion, impacting SSE's ability to capitalize on new opportunities in the energy sector.
Revenue Decline
Declining revenue trends could indicate challenges in maintaining market position and competitiveness, affecting long-term growth prospects.

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
Positive
Last Price1889.50
Price Trends
50DMA
1755.20
Positive
100DMA
1783.27
Positive
200DMA
1675.15
Positive
Market Momentum
MACD
43.77
Negative
RSI
70.40
Negative
STOCH
67.81
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 1889.5 is above the 20-day moving average (MA) of 1840.48, above the 50-day MA of 1755.20, and above the 200-day MA of 1675.15, indicating a bullish trend. The MACD of 43.77 indicates Negative momentum. The RSI at 70.40 is Negative, neither overbought nor oversold. The STOCH value of 67.81 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
£20.92B17.4612.29%3.38%-3.11%-31.10%
£57.13B18.688.35%4.08%-7.42%5.84%
£2.51B-37.48-4.44%6.42%15.42%-406.43%
$17.65B18.105.60%3.62%6.62%11.55%
£8.15B-35.66-5.95%2.74%-4.82%-123.58%
£8.28B31.2913.05%4.30%10.04%108.60%
£8.42B36.6912.73%4.35%3.78%50.18%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SSE
SSE
1,900.00
151.20
8.65%
GB:CNA
Centrica
176.50
60.56
52.23%
GB:PNN
Pennon Group plc
531.50
124.92
30.72%
GB:SVT
Severn Trent
2,797.00
297.18
11.89%
GB:UU
United Utilities
1,206.00
209.68
21.05%
GB:NG
National Grid
1,146.50
202.82
21.49%

SSE Corporate Events

Business Operations and Strategy
SSE PLC Announces Director Share Acquisition Under Employee Incentive Plan
Neutral
Oct 9, 2025

SSE PLC announced a transaction involving the purchase and awarding of ordinary shares under its Irish all-employee Share Incentive Plan. This transaction, conducted on behalf of Director Barry O’Regan, involved the acquisition of 18 shares, comprising both partnership and matching shares, at a price of €20.775639 per share. The move is part of the company’s regular quarterly share purchase initiative, demonstrating SSE’s ongoing commitment to employee investment and engagement.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £21.00 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 Aligns Leadership Interests with Shareholders through Share Incentive Plan
Positive
Oct 7, 2025

SSE plc announced the purchase of ordinary shares and the awarding of matching shares to its directors and persons discharging managerial responsibilities (PDMRs) as part of its all-employee Share Incentive Plan. This transaction, conducted on the London Stock Exchange, reflects the company’s commitment to aligning the interests of its leadership with its shareholders, potentially impacting the company’s governance and stakeholder engagement positively.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £21.00 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 plc Reports Steady Half-Year Earnings and Strategic Progress
Neutral
Oct 2, 2025

SSE plc announced its expectation to report a half-year adjusted Earnings Per Share between 33 and 37 pence, consistent with seasonal averages, while maintaining its full-year performance outlook. The company is accelerating its network business delivery, with a significant increase in investments, despite facing unfavorable weather conditions impacting renewable energy output. SSE is progressing with its NZAP Plus investment program and has secured major consents for key projects, positioning itself strongly for future growth. Total capital expenditure is expected to reach £1.5bn, with adjusted net debt and hybrid capital around £11.5bn.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £21.00 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 Announces Total Voting Rights and Capital Update
Neutral
Oct 1, 2025

SSE plc has announced its total voting rights and capital as of September 30, 2025. The company has issued 1,112,528,692 ordinary shares, with 4,581,343 held in treasury, resulting in 1,107,947,349 voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £21.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyDividendsRegulatory Filings and Compliance
SSE plc Reinvests Dividends into Shares for Directors and PDMRs
Positive
Sep 22, 2025

SSE plc announced the reinvestment of cash dividends into shares for directors and persons discharging managerial responsibilities (PDMRs) under its all-employee Share Incentive Plan. This move, conducted through Computershare Investor Services, aligns with the Market Abuse Regulation and reflects SSE’s ongoing commitment to employee investment in the company. The transactions, executed on the London Stock Exchange, highlight SSE’s focus on aligning the interests of its management with those of its shareholders, potentially impacting the company’s market positioning and stakeholder relations positively.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2175.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Delistings and Listing ChangesDividends
SSE PLC Announces Additional Share Listing on London Stock Exchange
Neutral
Sep 16, 2025

SSE PLC has announced an application for the listing and admission of 1,369,268 ordinary shares on the London Stock Exchange. These shares are part of the Company’s Scrip Dividend Scheme related to the final dividend for the year ending 31 March 2025. The new shares will hold the same status as existing shares and are expected to be admitted on 18 September 2025, potentially impacting shareholder value and market perception.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2175.00 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
SSE PLC Aligns Management Interests with Shareholders through Share Incentive Plan
Positive
Sep 9, 2025

SSE PLC announced that it has executed a transaction involving the purchase and awarding of ordinary shares to its directors and persons discharging managerial responsibilities (PDMRs) under its all-employee Share Incentive Plan. This move, compliant with the Market Abuse Regulation, signifies the company’s commitment to aligning the interests of its management with those of its shareholders, potentially enhancing stakeholder confidence and reinforcing its market position.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £2175.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyDividends
SSE plc Announces Scrip Dividend Election for 2025
Neutral
Aug 28, 2025

SSE plc announced that 23,080 shareholders have opted to receive their final dividend for the year ending 31 March 2025 in the form of a Scrip dividend, covering 58,951,063 ordinary shares. This decision reduces the company’s cash dividend funding by £25,348,957. The Scrip dividend uptake was 9.7%, below the 25% cap, so no share buy-back will occur. Consequently, 1,369,268 new ordinary shares will be issued, increasing the issued share capital by 0.12%. This move reflects SSE’s strategic approach to managing its financial resources and shareholder value.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1973.00 price target. To see the full list of analyst forecasts on SSE stock, see the GB:SSE Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
SSEN Transmission Issues €750m Green Bond to Boost Scotland’s Energy Network
Positive
Aug 26, 2025

SSEN Transmission, a subsidiary of SSE plc, has successfully issued a €750 million green bond in the Euro bond market, marking its second issuance. This bond, maturing in 2033, will finance critical infrastructure as part of a £22 billion investment program aimed at upgrading the transmission network in Scotland, supporting the UK’s 2030 net zero targets. The issuance strengthens SSE’s position as a leader in green finance, with a total of £5.5 billion in outstanding green bonds, and highlights its commitment to financial discipline and sustainable energy infrastructure.

The most recent analyst rating on (GB:SSE) stock is a Buy with a £1973.00 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
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.

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: Oct 23, 2025