SSE (SSEZY) AI Stock Analysis

• Market Cap: $23.93B
• Dividend Yield: 3.35%
• Average Volume (3M): 6.40K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.24
• Revenue Growth: -9.86%
• EPS Growth: 240.30%
• Country: US
• Employees: 14,980
• Sector: Utilities
• Sector Strength: 84
• Industry: Diversified Utilities
• EPS (TTM): 2.23
• Shares Outstanding: 1,106,301,600
• 10 Day Avg. Volume: 19,192
• 30 Day Avg. Volume: 6,397
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.70
• Price to Cash Flow (P/CF): 8.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

SSEZY's strong financial performance and attractive valuation are significant strengths. However, technical indicators suggest short-term bearish momentum, which could present risks. The absence of concerning highlights from the earnings call provides a stable outlook. Overall, the stock is positioned well financially but faces some market momentum challenges.

SSE Business Overview & Revenue Model

Company Description

SSE (SSEZY) is a leading energy company based in the United Kingdom, focusing on the generation, transmission, distribution, and supply of electricity and gas. The company operates through several segments, including Renewable Energy, Networks, and Thermal Generation, aiming to deliver sustainable energy solutions and reduce carbon emissions. SSE is committed to advancing the transition to a low-carbon future while providing reliable energy services to millions of customers.

How the Company Makes Money

SSE makes money through various revenue streams primarily centered around its core operations in energy generation and distribution. The company generates income by producing electricity from its diverse portfolio of renewable and thermal power assets, which it then transmits and distributes through its extensive network infrastructure. SSE's retail division supplies energy directly to consumers and businesses, securing a steady revenue stream through electricity and gas sales. Additionally, the company benefits from government incentives and subsidies aimed at promoting renewable energy projects. Partnerships and joint ventures further enhance SSE's earnings by expanding its market reach and operational capabilities, particularly in the renewable energy sector.

SSE Financial Statement Overview

Summary

SSE has shown strong revenue and profit growth, with significant improvements in gross profit margin and a positive net profit margin. Operational profitability is robust, though past fluctuations in net income suggest some earnings volatility. Despite a high debt-to-equity ratio, improved return on equity and strong cash flow management are positive signs.

Income Statement

SSE has shown strong revenue growth over the years, with a significant increase from 2023 to 2024. The gross profit margin improved to 41.6% in 2024, reflecting efficient management of cost of goods sold. The net profit margin turned positive in 2024 at 16.4%, indicating a recovery from a net loss in 2023. EBIT and EBITDA margins are robust at 24.9% and 35.1%, respectively, showcasing strong operational profitability. However, past fluctuations in net income suggest some volatility in earnings.

Balance Sheet

The debt-to-equity ratio remains high at approximately 0.83, indicating a reliance on debt financing. However, the return on equity improved significantly to 15.5% in 2024, driven by higher net income. The equity ratio stands at 39.1%, suggesting a stable proportion of equity financing compared to total assets. The company's leverage remains a risk, but improved profitability and equity growth are positive signs.

Cash Flow

Operating cash flow increased significantly, which is a positive indicator of the company's ability to generate cash from operations. The free cash flow turned positive in 2024, indicating improved cash generation after capital expenditures. Operating cash flow to net income ratio is 2.26, suggesting strong cash generation relative to net income. The company has demonstrated an ability to manage capital expenditures effectively, enhancing free cash flow.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
10.46B	12.49B	8.70B	6.83B	6.80B
	Gross Profit
4.35B	1.93B	1.74B	2.10B	1.82B
	EBIT
2.61B	1.11B	1.24B	900.00M	769.80M
	EBITDA
3.67B	831.80M	4.14B	1.46B	1.91B
	Net Income Common Stockholders
1.71B	-158.00M	3.03B	2.28B	167.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04B	1.21B	1.13B	1.60B	421.00M
	Total Assets
28.27B	27.14B	25.76B	21.59B	21.03B
	Total Debt
9.13B	10.94B	10.12B	10.88B	11.34B
	Net Debt
8.10B	9.73B	8.98B	9.28B	10.92B
	Total Liabilities
16.47B	17.91B	17.64B	16.38B	17.28B
	Stockholders Equity
11.05B	8.58B	8.08B	5.21B	3.75B
Cash Flow		Free Cash Flow
1.35B	-360.90M	121.40M	593.30M	42.80M
	Operating Cash Flow
3.86B	1.46B	1.58B	1.77B	1.25B
	Investing Cash Flow
-2.86B	-2.96B	-744.90M	443.70M	-1.01B
	Financing Cash Flow
-857.60M	1.35B	-1.38B	-778.70M	-603.70M

SSE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 21.88 is above the 20-day moving average (MA) of 20.49, above the 50-day MA of 19.71, and below the 200-day MA of 21.90, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 64.31 is Neutral, neither overbought nor oversold. The STOCH value of 99.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSEZY.

SSE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	80 Outperform	$5.84B	3.84	28.91%	11.07%	3.39%	46.79%
ELP	77 Outperform	$5.58B	2.46	9.47%	2.89%	-4.45%	―
SSEZY	72 Outperform	$23.93B	9.82	21.53%	3.35%	-9.86%	240.30%
SRE	68 Neutral	$45.93B	15.96	9.55%	3.55%	-18.00%	-7.54%
Sector *	62 Neutral	$8.60B	12.04	6.29%	4.50%	3.04%	-9.39%
BIP	56 Neutral	$18.78B	2,667.59	0.96%	5.87%	17.33%	-92.62%
AES	52 Neutral	$7.10B	4.22	39.65%	7.08%	-3.14%	563.59%