SSE (SSEZY) AI Stock Analysis

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SSE

(OTC:SSEZY)

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Outperform 70 (OpenAI - 4o)

Rating:70Outperform

Price Target:

$29.00

▲(0.00% Upside)

SSEZY's overall stock score is driven by a strong strategic focus on network and renewable investments, as highlighted in the earnings call. Technical indicators show positive momentum, though caution is advised due to near overbought conditions. Financial performance is stable but challenged by declining margins and cash flow issues. Valuation is fair with an attractive dividend yield, supporting the stock's appeal to income investors.

Positive Factors

Strategic Investments

The significant investment in networks positions SSE for long-term growth by expanding its regulatory asset base, enhancing its competitive edge in the energy sector.

Renewable Energy Expansion

Advancements in renewable projects like Dogger Bank and Yellow River bolster SSE's commitment to sustainable energy, aligning with global trends and regulatory incentives.

Earnings Growth Projection

Projected EPS growth indicates strong future profitability, driven by strategic investments and operational efficiencies, enhancing shareholder value.

Negative Factors

Declining Revenue

A decline in revenue suggests market challenges and potential pressure on margins, requiring strategic adjustments to sustain growth.

Cash Flow Challenges

Negative free cash flow due to high capital expenditures could strain liquidity, impacting the company's ability to fund future projects without increasing debt.

Decline in Operating Profits

Decreased operating profits in key segments may affect overall profitability, necessitating cost management and efficiency improvements.

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

Market Cap

$34.27B

Dividend Yield2.99%

Average Volume (3M)529.43K

Price to Earnings (P/E)25.4

Beta (1Y)0.09

Revenue Growth4.75%

EPS Growth-49.51%

CountryUS

Employees14,980

SectorUtilities

Sector Strength65

IndustryDiversified Utilities

Share Statistics

EPS (TTM)0.47

Shares Outstanding1,207,054,700

10 Day Avg. Volume959,283

30 Day Avg. Volume529,434

Financial Highlights & Ratios

PEG Ratio-0.48

Price to Book (P/B)1.47

Price to Sales (P/S)1.76

P/FCF Ratio-27.20

Enterprise Value/Market Cap1.30

Enterprise Value/Revenue4.39

Enterprise Value/Gross Profit11.50

Enterprise Value/Ebitda13.53

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

EPS Forecast (FY)1.97

Revenue Forecast (FY)$13.30B

SSE Business Overview & Revenue Model

Company DescriptionSSE (SSEZY) is a leading energy company based in the UK, primarily engaged in the generation and supply of electricity and gas. The company operates across various sectors, including renewable energy, traditional power generation, and utilities. SSE is committed to advancing the transition to a low-carbon economy by investing in renewable energy projects such as wind and hydroelectric power, while also maintaining a portfolio of gas-fired power stations. Additionally, SSE provides energy solutions to residential and business customers, focusing on sustainable and efficient energy use.

How the Company Makes MoneySSE generates revenue through multiple streams, primarily from the sale of electricity and gas to consumers and businesses. The company earns money through its regulated electricity distribution and transmission networks, which provide a stable income base. SSE also generates significant revenue from its renewable energy projects, benefiting from government incentives and subsidies for green energy production. Furthermore, the company has established partnerships with various stakeholders in the energy sector, enhancing its market reach and operational efficiency. Additionally, SSE's focus on energy services, including efficiency solutions and demand response programs, contributes to its earnings by providing added value to its customers.

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:

The Fly

SSE Earnings Call Summary

Earnings Call Date:Nov 12, 2025

(Q2-2026)

% Change Since: |

Next Earnings Date:May 27, 2026

Earnings Call Sentiment Positive

The earnings call presented a clear strategic focus on massive investments in networks and renewable energy, projecting significant earnings and capital growth. While there were some declines in operating profits in specific segments, the overall outlook remains positive with high confidence in future growth and safety performance.

Q2-2026 Updates

Positive Updates

Major Investment in Networks

SSE plans to invest GBP 33 billion by 2030, with 80% allocated to networks, driving a compound annual growth rate of 25% in the regulatory asset base.

Earnings Growth Projection

SSE projects earnings per share to reach between 225p and 250p by 2030, with a compound annual growth rate of 7% to 9%.

Strong Financial Performance

The group delivered a GBP 655 million adjusted operating profit over the past 6 months, in line with seasonal averages, and adjusted EPS of 36.1p.

Progress in Renewables

Significant progress in Dogger Bank construction and full completion of Yellow River project.

Safety Performance

Continued strength in safety performance through a period of increased construction activity over the past 6 months.

Negative Updates

Decline in Adjusted Operating Profits

Adjusted operating profits in combined networks businesses fell by GBP 84 million over the first 6 months.

Challenges in Flexibility Segment

Adjusted operating profits have fallen due to a bad debt release in the previous period and lower volumes in the first half.

Company Guidance

During the call, SSE provided comprehensive guidance for its ambitious investment plan, which involves a GBP 33 billion investment strategy aimed at transforming its business by 2030. This plan focuses 80% of investments on networks, aiming to grow the regulatory asset base at a compound annual growth rate of around 25%, positioning SSE as one of the fastest-growing electricity network companies globally. The company projects an increase in earnings per share to between 225p and 250p by 2030, supported by strong operational cash flows and a combination of net debt, hybrid capital, and a GBP 2 billion equity placing. Additionally, SSE plans to maintain a progressive dividend policy, targeting 5% to 10% annual growth. The investment will be funded primarily through operational cash flows (around GBP 21 billion) and debt (GBP 14 billion), with some asset disposals contributing GBP 2 billion. The plan also involves extending SSE's sustainable dividend policy while ensuring a strong balance sheet, keeping the net debt to EBITDA ratio below 4.5x. Overall, the strategy outlines a significant pivot toward network investments, supported by the confidence in regulatory frameworks and robust financial planning.

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, and cash flow management remains a concern due to significant capital investments. The company should focus on improving revenue growth and cash flow generation to enhance financial health.

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

Neutral

Last Price29.00

Price Trends

50DMA

26.12

Positive

100DMA

24.77

Positive

200DMA

23.19

Positive

Market Momentum

MACD

0.80

Positive

RSI

57.50

Neutral

STOCH

24.08

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSEZY, the sentiment is Neutral. The current price of 29 is above the 20-day moving average (MA) of 28.68, above the 50-day MA of 26.12, and above the 200-day MA of 23.19, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 57.50 is Neutral, neither overbought nor oversold. The STOCH value of 24.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
ELP	75 Outperform	$7.64B	14.57	8.00%	5.47%	1.96%	-35.00%
SSEZY	70 Outperform	$34.27B	25.40	9.54%	2.99%	4.75%	-49.51%
CIG	70 Outperform	$6.38B	8.25	13.35%	12.98%	-0.38%	-53.94%
BIP	69 Neutral	$16.27B	55.26	6.28%	4.92%	8.14%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	65 Neutral	$9.91B	8.48	23.02%	5.06%	-1.55%	12.83%
SRE	61 Neutral	$57.54B	27.15	7.10%	2.90%	9.07%	-28.58%

* Utilities Sector Average

Performance Comparison

SSEZY

SSE

27.87

7.61

37.59%

BIP

Brookfield Infrastructure

35.29

3.17

9.87%

CIG

Companhia Energetica Minas Gerais

1.98

0.23

13.14%

ELP

Companhia Paranaense de Energia Pfd

10.17

3.91

62.46%

SRE

Sempra Energy

89.07

3.81

4.47%

AES

13.80

1.00

7.81%

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: Nov 12, 2025