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SSE (GB:SSE)
LSE:SSE

SSE (SSE) AI Stock Analysis

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GB

SSE

(LSE:SSE)

71Outperform
SSE's overall score reflects its robust financial position, strategic corporate actions, and attractive valuation. The company's efforts in clean energy and governance are notable strengths. However, technical indicators suggest caution due to current pricing trends and negative revenue growth remains a key challenge.
Positive Factors
Earnings Growth
SSE shows solid, defensive earnings growth from rising capex allocation to Networks.
Renewables Projects
Renewables is also attractive, with significant valuable projects in the pipeline and a solid track record of executing major projects.
Negative Factors
Gas Fleet Earnings
The stable market environment in 1H25 has limited earnings potential for SSE's gas fleet, and low earnings are expected from this division.
Project Delays
Potential risk around the delay of Dogger B and C whereby SSE may have to procure an additional vessel at incremental cost.

SSE (SSE) vs. S&P 500 (SPY)

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 a diversified model that includes several key streams. The company earns money by generating electricity from its power stations, including renewable sources like wind farms and hydroelectric plants. SSE also operates electricity and gas networks, earning regulated income through the transmission and distribution of energy to homes and businesses. Additionally, the company supplies electricity and gas to a wide customer base, which includes residential, commercial, and industrial clients. SSE's ventures into renewable energy projects and partnerships contribute significantly to its revenue, aligning with global sustainability trends and regulatory incentives for clean energy production.

SSE Financial Statement Overview

Summary
SSE's financial performance is strong with improvements in profitability and balance sheet strength. While revenue growth is weak, cost management and leverage are well-handled, boosting financial resilience.
Income Statement
67
Positive
The income statement shows a mixed performance. The gross profit margin has improved significantly from the previous year, indicating better cost management or pricing strategies. The net profit margin turned positive, signaling a strong recovery from a loss position. Revenue growth was negative compared to the previous year, suggesting challenges in top-line expansion. The EBIT and EBITDA margins improved, reflecting enhanced operational efficiency.
Balance Sheet
72
Positive
The balance sheet analysis highlights a strong equity position with a substantial increase in stockholders' equity. The debt-to-equity ratio has improved, indicating better leverage management, though the company still carries a significant amount of debt. The equity ratio is strengthening, showing a growing proportion of assets financed by equity, which is positive for stability.
Cash Flow
70
Positive
Cash flow metrics reveal a robust turnaround with positive free cash flow growth, suggesting improved cash generation capabilities. Operating cash flow to net income ratio is favorable, demonstrating effective cash conversion. The free cash flow to net income ratio indicates efficient financial management, but there remains room for improvement in capital efficiency.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
10.46B12.49B8.70B6.83B6.80B
Gross Profit
4.35B1.93B1.74B2.10B1.82B
EBIT
2.61B1.11B1.24B900.00M769.80M
EBITDA
3.67B189.10M4.32B3.30B1.33B
Net Income Common Stockholders
1.71B-158.00M3.03B2.28B167.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.04B1.21B1.13B1.60B421.00M
Total Assets
28.27B27.14B25.76B21.59B21.03B
Total Debt
9.13B10.94B10.12B10.88B11.34B
Net Debt
8.10B9.73B8.98B9.28B10.92B
Total Liabilities
16.47B17.91B17.64B16.38B17.28B
Stockholders Equity
11.05B8.58B8.08B5.21B3.75B
Cash FlowFree Cash Flow
1.35B-360.90M121.40M593.30M42.80M
Operating Cash Flow
3.86B1.46B1.58B1.77B1.25B
Investing Cash Flow
-2.86B-2.96B-744.90M443.70M-1.01B
Financing Cash Flow
-784.50M1.35B-1.38B-778.70M-603.70M

SSE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1605.50
Price Trends
50DMA
1529.75
Positive
100DMA
1577.34
Positive
200DMA
1703.38
Negative
Market Momentum
MACD
9.34
Negative
RSI
57.06
Neutral
STOCH
43.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SSE, the sentiment is Positive. The current price of 1605.5 is above the 20-day moving average (MA) of 1560.95, above the 50-day MA of 1529.75, and below the 200-day MA of 1703.38, indicating a neutral trend. The MACD of 9.34 indicates Negative momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 43.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SSE.

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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBSSE
71
Outperform
£17.25B8.8821.94%3.90%-13.09%231.40%
GBDRX
71
Outperform
£1.99B4.0526.02%4.37%-22.46%-3.74%
GBSVT
71
Outperform
£7.87B33.7317.17%4.53%5.38%86.34%
GBNG
67
Neutral
£50.76B24.025.28%5.30%-6.68%-77.57%
GBUU
64
Neutral
£7.34B64.825.50%4.69%8.61%
63
Neutral
$9.19B11.976.86%4.40%4.23%-11.24%
GBPNN
53
Neutral
£2.23B-4.09%7.47%20.25%-128.71%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SSE
SSE
1,605.50
38.12
2.43%
GB:DRX
Drax Group plc
564.00
91.17
19.28%
GB:PNN
Pennon Group plc
482.80
18.61
4.01%
GB:SVT
Severn Trent
2,699.00
455.62
20.31%
GB:UU
United Utilities
1,102.00
148.63
15.59%
GB:NG
National Grid
1,054.50
183.82
21.11%

SSE Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
SSE PLC Announces Director Share Acquisition Under Incentive Plan
Positive
Apr 9, 2025

SSE PLC announced a transaction involving the purchase of ordinary shares and the awarding of matching shares to Director Barry O’Regan under the company’s Irish all-employee Share Incentive Plan. This transaction, conducted on the London Stock Exchange, highlights SSE’s ongoing efforts to align management interests with shareholder value, potentially strengthening stakeholder confidence in the company’s governance and operational transparency.

Spark’s Take on GB:SSE Stock

According to Spark, TipRanks’ AI Analyst, GB:SSE is a Outperform.

SSE’s overall score reflects a robust financial position with improved profitability and strategic initiatives in clean energy. The attractive valuation and strategic corporate events bolster its outlook, despite technical indicators suggesting caution in the short term.

To see Spark’s full report on GB:SSE stock, click here.

Business Operations and Strategy
SSE plc Enhances Employee Investment with Share Incentive Plan
Positive
Apr 9, 2025

SSE plc announced that it has executed transactions involving the purchase and awarding of ordinary shares under its all-employee Share Incentive Plan. This move, involving several directors and persons discharging managerial responsibilities, reflects the company’s ongoing commitment to employee investment and engagement. The transactions were conducted on the London Stock Exchange, with shares purchased at a price of GBP £16.63701. This initiative is likely to strengthen internal stakeholder alignment and potentially enhance the company’s market position by fostering a sense of ownership among key personnel.

Spark’s Take on GB:SSE Stock

According to Spark, TipRanks’ AI Analyst, GB:SSE is a Outperform.

SSE’s overall score reflects a robust financial position with improved profitability, a promising technical outlook, and attractive valuation metrics. The company’s focus on renewable energy expansion and strategic investments enhances its future growth prospects. However, revenue growth challenges and high debt levels are notable risks.

To see Spark’s full report on GB:SSE stock, click here.

Business Operations and StrategyFinancial Disclosures
SSE Projects Strong Earnings and Investment Growth for 2024/25
Positive
Apr 2, 2025

SSE plc has announced an expected increase in adjusted earnings per share for the fiscal year 2024/25, driven by a 17% rise in renewables output due to capacity additions and favorable weather conditions. The company plans to invest around £3 billion this year as part of its NZAP Plus investment program, maintaining a strong balance sheet with an expected net debt of £10 billion. SSE remains focused on delivering its investment plan and has set a target of 175 – 200 pence adjusted earnings per share for fiscal year 2026/27.

Regulatory Filings and Compliance
SSE plc Updates on Share Capital and Voting Rights
Neutral
Apr 1, 2025

SSE plc has announced its issued share capital as of 1 April 2025, which consists of 1,111,159,424 ordinary shares, including 4,857,828 treasury shares with suspended voting rights. The total number of voting rights available to shareholders is 1,106,301,596, which is crucial for determining shareholder interests under the FCA’s Disclosure Guidance and Transparency Rules.

Executive/Board ChangesBusiness Operations and Strategy
SSE Appoints Martin Pibworth as New Chief Executive
Positive
Mar 28, 2025

SSE plc has announced the appointment of Martin Pibworth as its new Chief Executive, succeeding Alistair Phillips-Davies, who will retire in November 2025. Martin, who has been with SSE since 1998, brings extensive experience in energy markets and strategic leadership, having held various key roles within the company. His appointment is expected to drive SSE’s growth and evolution as a leader in the energy transition, leveraging its established positions in networks and renewables. The transition is part of a well-planned succession process, ensuring continuity and strategic focus for the company’s future.

Private Placements and FinancingBusiness Operations and Strategy
SSE PLC Issues €600m Green Bond to Boost Renewable Energy Projects
Positive
Mar 11, 2025

SSE PLC has issued a new €600 million green bond with a 3.5% coupon, maturing in 2032, marking its ninth green bond issuance in eight years. The funds will support the financing and refinancing of SSE Renewables projects, including major wind farms like Yellow River, Viking, Seagreen, and Dogger Bank. This move underscores SSE’s pivotal role in the clean energy transition and its contribution to UK climate targets, with the bond being three times oversubscribed, highlighting strong investor interest in green infrastructure.

DividendsBusiness Operations and Strategy
SSE Chair Participates in Scrip Dividend Alternative
Neutral
Mar 5, 2025

SSE PLC announced the participation of its Chair, Sir John Manzoni, in the Scrip Dividend alternative for the interim dividend, as per a standing order instruction. This transaction, involving the acquisition of 36 ordinary shares at a price of GBP £16.11 each, was conducted on the London Stock Exchange. The move reflects the company’s ongoing commitment to shareholder value and financial strategies, potentially impacting its market positioning and stakeholder interests.

Regulatory Filings and Compliance
SSE plc Updates on Voting Rights and Share Capital
Neutral
Mar 3, 2025

SSE plc announced that as of 3 March 2025, its issued share capital comprised 1,111,159,424 ordinary shares, including 4,875,326 shares held in treasury with suspended voting rights. Consequently, the total number of voting rights available in the company is 1,106,284,098, which shareholders can use to determine their notification requirements under the FCA’s rules. This update is crucial for stakeholders to understand their shareholding positions and any necessary disclosures.

DividendsBusiness Operations and Strategy
SSE plc Reinforces Stakeholder Alignment with Dividend Reinvestment
Positive
Feb 28, 2025

SSE plc announced the reinvestment of cash dividends into shares for its directors and persons discharging managerial responsibilities (PDMRs) through its all-employee Share Incentive Plan and Share Plan Account. This transaction, conducted by Computershare Investor Services plc, involved the purchase of ordinary shares on behalf of several directors and PDMRs at a price of GBP £15.0772 per share. The reinvestment reflects the company’s commitment to aligning the interests of its management with those of its shareholders, potentially enhancing stakeholder confidence and supporting SSE’s market position.

Delistings and Listing ChangesDividends
SSE PLC Advances with Additional Share Listing
Neutral
Feb 20, 2025

SSE PLC has announced the application for the listing and admission of 2,696,801 ordinary shares on the Financial Conduct Authority and the London Stock Exchange. These shares, issued under the Company’s Scrip Dividend Scheme for the interim dividend ending March 31, 2025, will align with existing shares and are expected to be admitted on February 27, 2025.

Business Operations and Strategy
SSE plc Announces Share Transactions for Directors and PDMRs
Positive
Feb 7, 2025

SSE plc announced on February 7, 2025, that it has executed transactions involving the purchase and awarding of shares for its Directors and Persons Discharging Managerial Responsibilities (PDMRs) under the all-employee Share Incentive Plan. This move includes the purchase of ordinary shares at a specified price and the awarding of matching shares, reflecting SSE’s commitment to aligning employee interests with company performance. Such initiatives are likely to bolster employee engagement and could positively impact SSE’s operational strategies and stakeholder relations.

DividendsBusiness Operations and Strategy
SSE PLC Announces Scrip Dividend Election Reducing Cash Funding
Neutral
Feb 6, 2025

SSE PLC announced that 23,582 shareholders have opted to receive their interim dividend for the year ending 31 March 2025 in the form of a Scrip dividend, translating to 21.2 pence per ordinary share. This decision will reduce the company’s interim dividend cash funding by £43.4 million and result in the issuance of 2,696,801 new ordinary shares, marking a slight increase in the company’s share capital. This move reflects SSE’s strategic approach to managing cash flow while modestly diluting existing shares, potentially impacting shareholder value and market perception.

Business Operations and StrategyFinancial Disclosures
SSE PLC Reports Strong Renewables Growth and Strategic Advancements
Positive
Feb 5, 2025

SSE PLC has reported a strong operational performance for the first three quarters of the 2024/25 financial year, driven by a 26% increase in renewables output due to capacity additions and favorable weather conditions. Despite variable weather and market conditions, the company projects its full-year adjusted earnings per share to range between 154-163 pence. SSE is also making significant strategic progress, with substantial investments planned in grid infrastructure and renewable energy projects, such as the Dogger Bank offshore wind farm and the Tarbert Next Generation power station. These efforts are part of SSE’s commitment to the UK’s Clean Power Action Plan, positioning the company as a key player in the transition to a low-carbon future.

Business Operations and StrategyFinancial Disclosures
SSE PLC Reports Strong Renewables Growth and Strategic Progress in Clean Energy Initiatives
Positive
Feb 5, 2025

SSE PLC’s recent trading statement highlights a strong operational performance with an expected adjusted earnings per share for 2024/25 between 154 – 163 pence. The company reported a 26% increase in renewables output due to capacity additions and variable weather conditions, alongside strategic developments in grid infrastructure and wind power projects. SSE’s strategic focus includes the publication of SSEN Transmission’s RIIO-T3 Business Plan, which outlines significant investments in grid infrastructure to support energy security and transition to net-zero. Key projects include advancements in onshore and offshore wind farms and the construction of a sustainable biofuel plant in Ireland, reflecting SSE’s commitment to clean power and strategic delivery.

Regulatory Filings and Compliance
SSE plc Updates on Voting Rights and Capital Structure
Neutral
Feb 3, 2025

SSE plc has announced that as of February 3, 2025, its issued share capital comprises 1,108,461,807 ordinary shares, including 4,900,878 held in treasury which do not carry voting rights. Consequently, the total number of voting rights in the company is 1,103,560,929. This information is significant for shareholders as it determines the denominator for calculating their interests in compliance with the FCA’s Disclosure Guidance and Transparency Rules.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.