SSE plc (SSEZY)
OTHER OTC:SSEZY
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SSE
(OTC:SSEZY)
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Rating:56Neutral
Price Target:
$34.00
▲(8.45% Upside)
Action:DowngradedDate:03/24/26
The score is primarily held back by weak and inconsistent cash generation (negative free cash flow in 2025) and soft near-term technical momentum (price below 20DMA/50DMA with low RSI/Stochastics). These are partly offset by a reasonable valuation (moderate P/E with a ~2.5% yield) and a generally positive earnings-call outlook with long-term investment-led growth targets and dividend growth guidance.
Positive Factors
Regulated investment plan
A GBP 33bn, networks-focused investment program that targets ~25% RAB CAGR is a durable growth driver. Expanding the regulatory asset base underpins predictable, inflation-linked returns and long-term earnings visibility, supporting sustained cash generation if executed.
Negative Factors
Weak cash generation
A material FCF reversal increases funding and execution risk for an aggressive capex plan. Persistently negative free cash flow would force greater reliance on debt, asset disposals or equity issuance, raising financing costs and potentially diluting returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated investment plan
A GBP 33bn, networks-focused investment program that targets ~25% RAB CAGR is a durable growth driver. Expanding the regulatory asset base underpins predictable, inflation-linked returns and long-term earnings visibility, supporting sustained cash generation if executed.
Read all positive factors
SSE (SSEZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.72B
Dividend Yield2.86%
Average Volume (3M)506.25K
Price to Earnings (P/E)16.6
Beta (1Y)0.21
Revenue Growth4.75%
EPS Growth-49.51%
CountryUS
Employees14,980
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.47
Shares Outstanding1,212,180,000
10 Day Avg. Volume0
30 Day Avg. Volume506,255
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 Cap0.96
Enterprise Value/Revenue4.18
Enterprise Value/Gross Profit11.75
Enterprise Value/Ebitda13.57
Forecast
1Y Price Target
$37.60Price Target Upside19.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.45
Revenue Forecast (FY)$13.61B
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...
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:
The Fly
The FlySSE 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.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.
Negative Updates
Decline in Adjusted Operating Profits
Adjusted operating profits in combined networks businesses fell by GBP 84 million over the first 6 months.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
62
Positive
Balance Sheet
60
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.30B | 10.13B | 10.46B | 12.49B | 8.70B | 6.83B |
| Gross Profit | 3.67B | 3.86B | 4.35B | 1.93B | 1.74B | 2.10B |
| EBITDA | 3.17B | 3.23B | 3.67B | 831.80M | 4.14B | 1.46B |
| Net Income | 885.01M | 1.19B | 1.71B | -158.00M | 3.03B | 2.28B |
Balance Sheet | ||||||
| Total Assets | 30.85B | 30.36B | 28.27B | 27.14B | 25.76B | 21.59B |
| Cash, Cash Equivalents and Short-Term Investments | 433.30M | 1.09B | 1.04B | 1.21B | 1.13B | 1.60B |
| Total Debt | 10.47B | 10.60B | 9.13B | 10.94B | 10.12B | 10.88B |
| Total Liabilities | 17.23B | 17.67B | 16.47B | 17.91B | 17.64B | 16.38B |
| Stockholders Equity | 13.38B | 12.06B | 11.05B | 8.58B | 8.08B | 5.21B |
Cash Flow | ||||||
| Free Cash Flow | -869.30M | -654.20M | 1.35B | -360.90M | 121.40M | 593.30M |
| Operating Cash Flow | 2.64B | 2.48B | 3.86B | 1.46B | 1.58B | 1.77B |
| Investing Cash Flow | -4.00B | -3.32B | -2.86B | -2.96B | -744.90M | 443.70M |
| Financing Cash Flow | 905.44M | 896.20M | -857.60M | 1.35B | -1.38B | -778.70M |
SSE Technical Analysis
Positive
31.35
Price Trends
35.08
Positive
32.37
Positive
28.19
Positive
Market Momentum
0.47
Negative
62.85
Neutral
100.00
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 31.35 is below the 20-day moving average (MA) of 35.24, below the 50-day MA of 35.08, and above the 200-day MA of 28.19, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $9.00B | 6.53 | 17.23% | 12.98% | -0.38% | -53.94% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $64.56B | 31.37 | 5.82% | 2.91% | 9.07% | -28.58% | |
59 Neutral | $16.89B | 35.60 | 9.74% | 4.92% | 8.14% | ― | |
56 Neutral | $44.72B | 16.58 | 7.09% | 2.86% | 4.75% | -49.51% | |
55 Neutral | $10.26B | 10.76 | 20.40% | 5.06% | -1.55% | 12.83% |
* Utilities Sector Average
SSEZY
SSE
37.06
17.00
84.74%
BIP
Brookfield Infrastructure
36.56
8.95
32.41%
CIG
Companhia Energetica Minas Gerais
2.73
1.24
83.34%
SRE
Sempra Energy
98.82
31.15
46.04%
AES
AES
14.39
4.48
45.16%
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.