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SSE plc (SSEZY)
OTHER OTC:SSEZY
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SSE
(OTC:SSEZY)
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Rating:65Neutral
Price Target:
$24.50
▲(4.52% Upside)
SSE's overall stock score reflects a stable financial performance with strong operational efficiencies and a solid balance sheet. The positive outlook from the earnings call, particularly in networks and renewables, boosts confidence in future growth. However, technical indicators suggest caution, and cash flow challenges remain a concern.
SSE (SSEZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.43B
Dividend Yield3.53%
Average Volume (3M)4.38K
Price to Earnings (P/E)16.7
Beta (1Y)0.18
Revenue Growth-1.66%
EPS Growth-29.99%
CountryUS
Employees14,980
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.63
Shares Outstanding1,107,911,400
10 Day Avg. Volume8,237
30 Day Avg. Volume4,380
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 Cap1.50
Enterprise Value/Revenue3.77
Enterprise Value/Gross Profit9.88
Enterprise Value/Ebitda11.61
Forecast
1Y Price Target
$24.50Price Target Upside4.52% Upside
Rating ConsensusHold
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 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
Reveals the profitability of each business segment, highlighting which areas are driving earnings and where there might be challenges or opportunities for growth.
Reveals the profitability of each business segment, highlighting which areas are driving earnings and where there might be challenges or opportunities for growth.
Data provided by:
Main Street Data
Main Street DataSSE 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
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.62
Positive
Balance Sheet
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.68
Positive
Cash Flow
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.55
Neutral
| 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
Positive
23.44
Price Trends
23.63
Negative
23.64
Negative
21.63
Positive
Market Momentum
-0.12
Negative
50.73
Neutral
63.87
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 23.44 is above the 20-day moving average (MA) of 22.51, below the 50-day MA of 23.63, and above the 200-day MA of 21.63, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 63.87 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.68B | 5.25 | 26.00% | 14.99% | -3.27% | -3.44% | |
72 Outperform | $7.02B | 13.54 | 11.89% | 5.70% | -5.28% | 14.50% | |
71 Outperform | $58.53B | 21.72 | 8.56% | 2.84% | 0.46% | -11.77% | |
65 Neutral | $25.43B | 16.70 | 12.27% | 3.53% | -1.66% | -29.99% | |
64 Neutral | $21.60B | 1,706.70 | 4.04% | 5.15% | 8.86% | ― | |
58 Neutral | $9.37B | 9.29 | 46.27% | 5.32% | -3.19% | 30.48% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
SSEZY
SSE
23.44
-0.56
-2.33%
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SRE
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AES
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-29.93%
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.