SSE (GB:SSE)
LSE:SSE
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SSE
(LSE:SSE)
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Rating:59Neutral
Price Target:
2,516.00 p
▲(1.88% Upside)
Action:Downgraded
Date:05/29/26
The score is driven primarily by mixed financial performance: a clear earnings recovery, but rising leverage and sustained negative free cash flow in 2025–2026 weigh on quality and flexibility. The earnings call guidance is a meaningful positive due to the funded long-term networks-led growth plan and dividend growth targets. Technicals and valuation are modest headwinds given weaker momentum (below key moving averages, negative MACD) and a relatively high P/E.
Positive Factors
Funded £33bn networks-led investment plan
A fully funded £33bn plan concentrated on regulated networks expands the regulatory asset base (RAB) at a targeted 25% CAGR to 2030. That growth in RAB underpins durable, regulated cash flows and predictable returns, strengthening long-term revenue visibility and earnings stability.
Negative Factors
Rising leverage and higher debt levels
Material increase in debt elevates financial risk and interest exposure, constraining balance sheet flexibility. Higher leverage reduces headroom for additional borrowing, increases sensitivity to cash-flow swings and could pressure credit metrics if operating performance or FCF deteriorates.
Read all positive and negative factors
Positive Factors
Negative Factors
Funded £33bn networks-led investment plan
A fully funded £33bn plan concentrated on regulated networks expands the regulatory asset base (RAB) at a targeted 25% CAGR to 2030. That growth in RAB underpins durable, regulated cash flows and predictable returns, strengthening long-term revenue visibility and earnings stability.
Read all positive factors
SSE (SSE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£28.78B
Dividend Yield2.98%
Average Volume (3M)2.93M
Price to Earnings (P/E)23.9
Beta (1Y)0.79
Revenue Growth0.54%
EPS Growth-5.54%
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-13.28
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
£2,757.56Price Target Upside11.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.84
Revenue Forecast (FY)£10.80B
SSE Business Overview & Revenue Model
Company Description
SSE 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 ac...
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 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.19B | 10.13B | 12.49B | 8.70B | 6.83B |
| Gross Profit | 3.88B | 3.86B | 1.93B | 1.74B | 2.10B |
| EBITDA | 3.11B | 3.23B | 189.10M | 4.32B | 3.30B |
| Net Income | 1.21B | 1.19B | -158.00M | 3.03B | 2.28B |
Balance Sheet | |||||
| Total Assets | 35.35B | 30.36B | 27.14B | 25.76B | 21.59B |
| Cash, Cash Equivalents and Short-Term Investments | 1.54B | 1.09B | 1.21B | 1.13B | 1.60B |
| Total Debt | 13.11B | 10.60B | 10.94B | 10.19B | 10.88B |
| Total Liabilities | 21.94B | 17.67B | 17.91B | 17.64B | 16.38B |
| Stockholders Equity | 12.66B | 12.06B | 8.58B | 8.08B | 5.21B |
Cash Flow | |||||
| Free Cash Flow | -711.80M | -654.20M | -360.90M | 121.40M | 593.30M |
| Operating Cash Flow | 3.44B | 2.48B | 1.46B | 1.58B | 1.77B |
| Investing Cash Flow | -4.62B | -3.32B | -2.96B | -744.90M | 443.70M |
| Financing Cash Flow | 1.64B | 896.20M | 1.35B | -1.38B | -778.70M |
SSE Technical Analysis
Positive
2469.50
Price Trends
2525.88
Negative
2531.47
Negative
2233.62
Positive
Market Momentum
-50.42
Negative
47.44
Neutral
57.05
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 2391.30, below the 50-day MA of 2525.88, and above the 200-day MA of 2233.62, indicating a neutral trend. The MACD of -50.42 indicates Negative momentum. The RSI at 47.44 is Neutral, neither overbought nor oversold. The STOCH value of 57.05 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 | £2.70B | 47.06 | 3.94% | 2.78% | -11.94% | -84.94% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | £783.68M | 11.86 | 27.40% | 7.01% | 1.71% | -12.49% | |
62 Neutral | £59.66B | 18.68 | 8.47% | 4.15% | -3.76% | 8.20% | |
59 Neutral | £28.78B | 23.95 | 9.45% | 2.98% | 0.54% | -5.54% | |
59 Neutral | £8.53B | 40.73 | 1.68% | 2.86% | -2.11% | -104.48% | |
58 Neutral | £19.15M | -0.99 | -68.06% | ― | -60.76% | -230.39% |
* Utilities Sector Average
GB:SSE
SSE
2,400.00
699.50
41.14%
GB:AMP
SIMEC Atlantis Energy
2.70
0.40
17.39%
GB:CNA
Centrica
189.05
32.82
21.01%
GB:DRX
Drax Group plc
795.00
162.00
25.59%
GB:TEP
Telecom Plus
986.00
-967.41
-49.52%
GB:NG
National Grid
1,217.50
220.56
22.12%
SSE Corporate Events
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...
Business Operations and StrategyDelistings and Listing ChangesDividends
SSE Admits Over 5 Million New Shares to London Stock Exchange
Neutral
Mar 20, 2026
SSE plc has admitted 5,017,734 new fully paid ordinary shares of 50 pence each to trading on the London Stock Exchange’s Main Market, expanding its listed share capital. The bulk of these shares were issued under the company’s Scrip Di...
Regulatory Filings and Compliance
SSE executives acquire shares under all-employee incentive plan
Neutral
Mar 9, 2026
SSE has disclosed that several directors and persons discharging managerial responsibilities acquired ordinary shares under the company’s all-employee Share Incentive Plan. Computershare Investor Services purchased partnership shares on thei...
Regulatory Filings and Compliance
SSE Updates Market on Total Voting Rights and Share Capital
Neutral
Mar 2, 2026
SSE plc has confirmed that, as of 2 March 2026, its issued share capital comprises 1,215,471,728 ordinary shares, including 3,303,821 shares held in treasury, which do not carry voting rights. This leaves a total of 1,212,167,907 voting rights, a ...
Business Operations and StrategyRegulatory Filings and Compliance
SSEN Transmission Backs Ofgem’s RIIO-T3 Deal to Drive Major Grid Upgrades
Positive
Mar 2, 2026
SSEN Transmission has accepted Ofgem’s Final Determination for the RIIO-T3 price control, covering April 2026 to March 2031, describing the package as both investable and deliverable. The settlement underpins the company’s ability to f...
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.