SSE (SSEZY) AI Stock Analysis

Compare

61 Followers

Top Page

SSE

(OTC:SSEZY)

Rating:70Outperform

Price Target:

$28.00

▲(11.69%Upside)

SSE receives a strong score due to positive earnings call sentiment and robust technical analysis. While financial performance shows stability, cash flow challenges and reduced capital investments are concerns. The valuation is reasonable, offering a balanced growth and income opportunity.

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

Market Cap

$27.49B

Dividend Yield0.12%

Average Volume (3M)4.03K

Price to Earnings (P/E)18.8

Beta (1Y)0.20

Revenue Growth-1.66%

EPS Growth-29.99%

CountryUS

Employees14,980

SectorUtilities

Sector Strength76

IndustryDiversified Utilities

Share Statistics

EPS (TTM)1.63

Shares Outstanding1,106,529,500

10 Day Avg. Volume0

30 Day Avg. Volume4,026

Financial Highlights & Ratios

PEG Ratio-0.40

Price to Book (P/B)1.67

Price to Sales (P/S)0.00

P/FCF Ratio-94.69

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

SSE Business Overview & Revenue Model

Company DescriptionSSE 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 across the north of the central belt of Scotland and central southern England; and owns, operates, and develops high voltage electricity transmission system in the north of Scotland and remote islands. It also produces, stores, distributes, and supplies gas. In addition, it engages in the electricity and utility contracting, telecommunications, energy trading, insurance, and property holding businesses, as well as provides maintenance services. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.

How the Company Makes MoneySSE makes money primarily through its diverse operations in electricity generation, transmission, and distribution, as well as gas supply. The company earns revenue from selling electricity generated from its wind farms and other renewable energy sources to the market. Furthermore, SSE operates electricity networks, earning income from regulated tariffs for the distribution and transmission of electricity. Retail energy supply also contributes to SSE's earnings, where the company provides electricity and gas to residential and business customers. Additionally, SSE engages in energy trading, leveraging market fluctuations to optimize revenue. The company's focus on renewable energy and infrastructure investments are key factors enhancing its revenue streams and sustainability efforts.

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: 4.28%|

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Neutral

SSE reported strong financial performance with record earnings in key segments and maintained a robust balance sheet. However, the company faced challenges such as impairments in its Southern Europe pipeline and had to reduce its capital investment plan due to external factors. Despite these challenges, the strategic focus on Networks and Renewables positions the company for future growth.

Q4-2025 Updates

Positive Updates

Record Earnings from Networks and Renewables

Both the Networks and Renewables businesses contributed over GBP 1 billion in adjusted operating profit for the first time, with the Networks business delivering a 53% increase in adjusted operating profit and Renewables seeing a 25% increase.

Strong Balance Sheet and Investment Strategy

SSE has maintained a strong balance sheet with a net debt-to-EBITDA ratio expected to be around 4x in 2027, supported by disciplined investment strategies and potential levers such as additional hybrid funding and capital recycling.

Upgraded Asset Growth Expectations

The company upgraded its expected network asset growth rate from 15% to 20%, with a similar uplift in renewables volumes, driven by strong project performance and strategic investments.

Progress on Major Renewable Projects

Significant progress on key projects like Dogger Bank and Viking, with Dogger Bank A turbine installation passing the halfway mark and the project expected to complete in the second half of 2025.

Negative Updates

GBP 250 Million Non-Cash Impairment

SSE took an exceptional GBP 250 million non-cash impairment related to the slower than anticipated build-out of some parts of its Southern Europe pipeline due to sector-wide delays in permitting and grid connections.

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, with significant cuts in renewables and flexible thermal businesses.

Challenges in Conventional Thermal Generation

Lower profitability from conventional thermal generation and gas storage due to market normalization and low spark spread, amid a challenging market environment.

Company Guidance

In the recent call, SSE provided an optimistic outlook for its future financial performance, emphasizing strong earnings and dividend growth in line with guidance. The company highlighted a 53% increase in adjusted operating profit from its networks businesses, driven by significant investment in transmission and distribution networks, which have seen their asset base grow by around 60% over the past three years. SSE's renewables segment also reported a 25% increase in adjusted operating profit, with capacity additions contributing to a 40% increase in volumes. The company reaffirmed its commitment to a GBP 17.5 billion investment plan, with about 60% directed towards upgrading transmission and distribution grids. SSE expects inflation-linked earnings to make up around 70% of group EBITDA by 2027, supported by government-backed contracts. Despite revising down its capital investment plan due to external factors, SSE remains confident in achieving its 2027 target of 175p to 200p earnings per share.

SSE Financial Statement Overview

Summary

SSE's financial performance shows stability but faces challenges. Despite strong EBIT and EBITDA margins, revenue and profit margins have declined. The balance sheet is solid with reasonable leverage, but cash flow management is a concern due to negative free cash flow growth.

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

SSE Technical Analysis

Technical Analysis Sentiment

Positive

Last Price25.07

Price Trends

50DMA

23.97

Positive

100DMA

22.14

Positive

200DMA

21.34

Positive

Market Momentum

MACD

0.31

Positive

RSI

53.97

Neutral

STOCH

20.60

Neutral

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 25.07 is above the 20-day moving average (MA) of 24.71, above the 50-day MA of 23.97, and above the 200-day MA of 21.34, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 20.60 is Neutral, 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	80 Outperform	$6.25B	4.28	26.38%	8.97%	-4.14%	13.02%
ELP	74 Outperform	$6.24B	12.29	9.22%	0.84%	-7.02%	17.33%
SRE	74 Outperform	$51.77B	17.47	9.76%	3.14%	-0.39%	0.75%
SSEZY	70 Outperform	$27.49B	18.78	12.27%	0.12%	-1.66%	-29.99%
Sector *	67 Neutral	$16.88B	17.11	4.48%	3.27%	4.75%	6.12%
BIP	64 Neutral	$21.08B	2,867.59	0.47%	5.17%	12.40%	-108.27%
AES	61 Neutral	$9.82B	7.61	29.79%	5.05%	-3.22%	141.11%

* Utilities Sector Average

Performance Comparison

SSEZY

SSE

25.07

1.80

7.74%

BIP

Brookfield Infrastructure

31.96

2.15

7.21%

CIG

Companhia Energetica Minas Gerais

1.87

0.27

16.88%

ELP

Companhia Paranaense de Energia Pfd

8.47

1.73

25.67%

SRE

Sempra Energy

80.46

4.39

5.77%

AES

13.80

-3.10

-18.34%

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 08, 2025