SSE (SSEZY) AI Stock Analysis

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SSE

(OTC:SSEZY)

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Neutral 69 (OpenAI - 4o)

Rating:69Neutral

Price Target:

$28.00

▲(11.51% Upside)

SSEZY's overall stock score reflects a stable financial performance with strong operational efficiency, despite revenue and margin pressures. The technical analysis indicates bullish momentum, and the earnings call highlights confidence in future growth, particularly in networks and renewables. Valuation is fair with a decent dividend yield, supporting a positive investment outlook.

SSE (SSEZY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$27.57B

Dividend Yield3.27%

Average Volume (3M)12.35K

Price to Earnings (P/E)18.2

Beta (1Y)0.16

Revenue Growth-1.66%

EPS Growth-29.99%

CountryUS

Employees14,980

SectorUtilities

Sector Strength65

IndustryDiversified Utilities

Share Statistics

EPS (TTM)1.63

Shares Outstanding1,107,947,400

10 Day Avg. Volume22,894

30 Day Avg. Volume12,351

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.38

Enterprise Value/Revenue3.77

Enterprise Value/Gross Profit9.88

Enterprise Value/Ebitda11.61

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

SSE Business Overview & Revenue Model

Company DescriptionSSE (SSEZY) is a diversified energy company based in the United Kingdom, primarily engaged in the generation and distribution of electricity and natural gas. The company operates across several sectors, including renewable energy, conventional power generation, and utility services. SSE is committed to a sustainable energy future, focusing on the development of wind, hydro, and other renewable sources, while also providing essential energy solutions to residential and business customers.

How the Company Makes MoneySSE generates revenue through multiple streams, including the sale of electricity and gas to residential and commercial customers, revenue from its renewable energy projects, and regulated utility services. A significant portion of its income comes from long-term contracts for energy supply, as well as from its investments in renewable energy infrastructure, which benefit from government incentives and subsidies. Additionally, SSE engages in partnerships with other energy providers and technology firms to enhance its service offerings and expand its market reach, contributing to its overall earnings.

SSE Key Performance Indicators (KPIs)

Any

Operating Profit by Segment

Operating Profit by Segment
Reveals the profitability of each business segment, highlighting which areas are driving earnings and where there might be challenges or opportunities for growth.

Chart InsightsSSE's operating profit from Networks and Renewables segments has surged, reflecting strategic investments and capacity additions. Despite a dip in Thermal and Gas Storage profits due to market normalization, the company's focus on upgrading transmission and distribution networks is paying off, with a 53% profit increase in Networks. Renewables also saw a 25% profit rise, driven by expanded capacity. SSE's commitment to a GBP 17.5 billion investment plan, despite external challenges, underscores its strategic pivot towards sustainable growth, aiming for inflation-linked earnings to dominate EBITDA by 2027.

Data provided by:

Main Street Data

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 generally positive outlook with strong earnings and growth in key business areas such as networks and renewables. Despite some challenges and reductions in CapEx, the company maintains confidence in its strategic focus and financial targets. The sentiment leans towards confidence in future growth and stability.

Q4-2025 Updates

Positive Updates

Strong Earnings and Dividend Growth

SSE reported strong earnings and dividend growth in line with guidance, driven by high-quality earnings from regulated networks and renewables. The company achieved 160.9p EPS and recommended a final dividend of 43p, a 7% increase from the prior year.

Record Operating Profit in Networks and Renewables

The networks and renewables businesses each contributed over GBP 1 billion in adjusted operating profit for the first time, with Networks showing a 53% increase and Renewables a 25% increase year-over-year.

Upgraded Asset Growth Expectations

SSE upgraded its expected network asset growth rate from 15% to 20%, slightly ahead of the 15% growth rate in renewables volumes, indicating strong future growth prospects.

Record CapEx and Strategic Investments

SSE invested around GBP 2.9 billion in capital investments for the year and has a revised GBP 17.5 billion plan with 60% weighted towards transmission and distribution grid upgrades.

Negative Updates

GBP 250 Million Noncash Impairment

An exceptional GBP 250 million noncash impairment was taken due to the slower than anticipated build-out of parts of SSE's Southern Europe pipeline, reflecting sector-wide delays in permitting and grid connections.

Challenges in Thermal Generation

Lower profitability from conventional thermal generation and gas storage businesses was noted, attributed to normalized spark spreads and market distortions affecting gas storage.

GBP 3 Billion CapEx Reduction

SSE reduced its overall capital investment plan by GBP 3 billion, reflecting a changed macro environment and policy and planning delays, with significant reductions in renewables and thermal investments.

Company Guidance

During the call, SSE presented its full-year results and provided guidance for the upcoming years, emphasizing the strong financial performance driven by its Networks and Renewables businesses. The company reported a 53% increase in adjusted operating profit from its transmission and distribution businesses and a 25% increase in renewables, reaching over GBP 1 billion for the first time. SSE outlined its revised GBP 17.5 billion investment plan, focusing 60% on upgrading transmission and distribution grids. The company expects to achieve an adjusted EPS between 175p and 200p by 2027, driven by a 70% contribution to group EBITDA from inflation-linked earnings. Despite a GBP 3 billion reduction in capital expenditure due to policy and planning delays, SSE remains confident in its growth prospects, particularly in regulated networks, where it foresees a 20% annual asset growth rate. The presentation also highlighted SSE's commitment to sustainable growth, maintaining a strong balance sheet with a net debt-to-EBITDA ratio expected to be around 4x in 2027.

SSE Financial Statement Overview

Summary

SSE's financial performance is stable but faces challenges. Revenue and profit margins have declined, yet operational efficiencies remain robust. The balance sheet is solid with manageable leverage, but cash flow management is a concern due to significant capital investments.

Income Statement

Positive

The income statement reveals moderate performance, with a decline in total revenue over the past year, indicating a challenging market environment. Gross profit margin has decreased from 41.6% to 38.1%, and net profit margin fell significantly, reflecting heightened cost pressures. However, the company's EBIT and EBITDA margins remain strong, suggesting operational efficiency.

Balance Sheet

Positive

The balance sheet shows a balanced financial structure with a debt-to-equity ratio of 0.88, indicating a reasonable level of leverage. The return on equity has improved to 9.86%, showcasing effective use of shareholder funds. However, the equity ratio of 39.7% suggests a moderate reliance on debt financing.

Cash Flow

Neutral

Cash flow analysis indicates a challenging period with negative free cash flow growth, primarily due to increased capital expenditures. The operating cash flow to net income ratio is strong at 2.08, demonstrating effective cash generation relative to earnings. However, free cash flow to net income is negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.13B	10.13B	10.46B	12.49B	8.70B	6.83B
Gross Profit	3.86B	3.86B	4.35B	1.93B	1.74B	2.10B
EBITDA	3.29B	3.23B	3.67B	831.80M	4.14B	1.46B
Net Income	1.19B	1.19B	1.71B	-158.00M	3.03B	2.28B
Balance Sheet
Total Assets	30.36B	30.36B	28.27B	27.14B	25.76B	21.59B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.09B	1.04B	1.21B	1.13B	1.60B
Total Debt	10.60B	10.60B	9.13B	10.94B	10.12B	10.88B
Total Liabilities	17.67B	17.67B	16.47B	17.91B	17.64B	16.38B
Stockholders Equity	12.06B	12.06B	11.05B	8.58B	8.08B	5.21B
Cash Flow
Free Cash Flow	-212.40M	-654.20M	1.35B	-360.90M	121.40M	593.30M
Operating Cash Flow	2.48B	2.48B	3.86B	1.46B	1.58B	1.77B
Investing Cash Flow	-3.32B	-3.32B	-2.86B	-2.96B	-744.90M	443.70M
Financing Cash Flow	896.20M	896.20M	-857.60M	1.35B	-1.38B	-778.70M

SSE Technical Analysis

Technical Analysis Sentiment

Positive

Last Price25.11

Price Trends

50DMA

23.51

Positive

100DMA

23.92

Positive

200DMA

22.01

Positive

Market Momentum

MACD

0.55

Negative

RSI

72.78

Negative

STOCH

98.62

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSEZY, the sentiment is Positive. The current price of 25.11 is above the 20-day moving average (MA) of 24.10, above the 50-day MA of 23.51, and above the 200-day MA of 22.01, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 72.78 is Negative, neither overbought nor oversold. The STOCH value of 98.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSEZY.

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
CIG	75 Outperform	$6.23B	4.90	22.94%	13.28%	-3.27%	-3.44%
SRE	75 Outperform	$60.50B	22.45	8.87%	2.78%	0.46%	-11.77%
ELP	74 Outperform	$7.15B	13.43	9.81%	5.60%	-5.28%	14.50%
SSEZY	69 Neutral	$27.57B	18.19	12.27%	3.27%	-1.66%	-29.99%
BIP	69 Neutral	$22.62B	1,787.11	1.06%	4.95%	8.86%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	65 Neutral	$10.20B	10.11	21.17%	4.90%	-3.19%	30.48%

* Utilities Sector Average

Performance Comparison

SSEZY

SSE

25.43

2.30

9.94%

BIP

Brookfield Infrastructure

34.26

0.70

2.09%

CIG

Companhia Energetica Minas Gerais

1.98

0.25

14.45%

ELP

Companhia Paranaense de Energia Pfd

9.97

3.38

51.29%

SRE

Sempra Energy

92.06

8.97

10.80%

AES

14.29

-1.74

-10.85%

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