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SSE
(LSE:SSE)
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Rating:60Neutral
Price Target:
2,779.00 p
▲(15.02% Upside)
Action:Reiterated
Date:08/24/26
The score is driven mainly by financial performance: profitability has improved, but rising debt and sustained negative free cash flow in 2025–2026 are key constraints. Technical signals are neutral with only modest positive momentum. Valuation is moderate-to-demanding (P/E ~23) with a mid-range dividend yield, while corporate events are positive due to continued execution on investment plans and strong capital-market access.
Positive Factors
Regulated and renewable mix
SSE combines regulated network earnings with renewable generation, giving it both relatively stable, long-duration cash flows and exposure to structural electrification and clean-energy investment. This diversified model can support resilience while expanding the asset base over the next several years.
Negative Factors
Higher leverage
The increase in debt adds financial risk as SSE funds its large investment program. Higher leverage can raise interest and refinancing burdens and leaves less flexibility if earnings or cash generation weaken, particularly because prior years also showed debt-to-equity above 1x.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated and renewable mix
SSE combines regulated network earnings with renewable generation, giving it both relatively stable, long-duration cash flows and exposure to structural electrification and clean-energy investment. This diversified model can support resilience while expanding the asset base over the next several years.
Read all positive factors
SSE (SSE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£32.14B
Dividend Yield2.6%
Average Volume (3M)2.65M
Price to Earnings (P/E)25.9
Beta (1Y)0.86
Revenue Growth0.54%
EPS Growth-2.65%
CountryUK
Employees15,197
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)1.02
Shares Outstanding1,220,198,000
10 Day Avg. Volume2,411,547
30 Day Avg. Volume2,650,728
Financial Highlights & Ratios
PEG Ratio-13.22
Price to Book (P/B)2.35
Price to Sales (P/S)2.92
P/FCF Ratio-41.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,807.14Price Target Upside16.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.86
Revenue Forecast (FY)£10.90B
SSE Business Overview & Revenue Model
Company Description
SSE plc, a diversified energy firm established in 1989 and based in Perth, United Kingdom, is deeply involved in all facets of the electricity sector. Its operations span from power generation, utilizing a mix of sources such as hydroelectric, nat...
How the Company Makes Money
SSE makes money through a mix of regulated and market-based revenue streams. (1) Regulated electricity networks: A significant portion of earnings comes from operating electricity transmission and distribution networks under UK regulation. These b...
SSE Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The earnings call highlighted a robust and transformative investment plan with significant growth potential, particularly in networks. Despite some challenges in renewables and other segments, the overall strategic direction and financial stability suggest a positive outlook.Positive Updates
Transformational Investment Plan
SSE announced a GBP 33 billion investment plan focused on networks, with a 25% CAGR in the regulatory asset base expected by 2030. This positions SSE as one of the fastest-growing electricity network companies globally.
Negative Updates
Renewables Challenges
A 20% decrease in hedge prices led to reduced adjusted operating profits for the period, and unfavorable weather conditions impacted capacity.
Read all updates
Q2-2026 Updates
Positive
Negative
Transformational Investment Plan
SSE announced a GBP 33 billion investment plan focused on networks, with a 25% CAGR in the regulatory asset base expected by 2030. This positions SSE as one of the fastest-growing electricity network companies globally.
Read all positive updates
Company Guidance
In a recent call, SSE outlined a significant investment plan focusing on growth in the U.K. energy sector. The company announced a GBP 33 billion investment, with 80% allocated to networks, aiming for a compound annual growth rate of 25% in the regulatory asset base by 2030. SSE expects earnings per share to reach between 225p to 250p by 2030. The plan is fully funded, with 90% of funding from operational cash flows and increased debt, while the remaining 10% will come from equity placing and asset disposals. The company also emphasized a 5% to 10% annual dividend growth, projecting a strong balance sheet with net debt to EBITDA below 4.5x. Additionally, SSE plans to achieve GBP 200 million in annual cost efficiencies by FY '28.SSE Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.19B | 10.13B | 10.46B | 12.49B | 8.70B |
| Gross Profit | 3.88B | 3.86B | 4.35B | 1.93B | 1.74B |
| EBITDA | 3.08B | 3.23B | 3.67B | 189.10M | 4.32B |
| Net Income | 1.21B | 1.19B | 1.71B | -158.00M | 3.03B |
Balance Sheet | |||||
| Total Assets | 35.35B | 30.36B | 28.27B | 27.14B | 25.76B |
| Cash, Cash Equivalents and Short-Term Investments | 1.54B | 1.09B | 1.04B | 1.21B | 1.13B |
| Total Debt | 13.11B | 10.60B | 9.13B | 10.94B | 10.19B |
| Total Liabilities | 21.94B | 17.67B | 16.47B | 17.91B | 17.64B |
| Stockholders Equity | 12.66B | 12.06B | 11.05B | 8.58B | 8.08B |
Cash Flow | |||||
| Free Cash Flow | -711.80M | -654.20M | 1.35B | -360.90M | 121.40M |
| Operating Cash Flow | 3.44B | 2.48B | 3.86B | 1.46B | 1.58B |
| Investing Cash Flow | -4.62B | -3.32B | -2.86B | -2.96B | -744.90M |
| Financing Cash Flow | 1.64B | 896.20M | -784.50M | 1.35B | -1.38B |
SSE Technical Analysis
Positive
2416.00
Price Trends
2454.18
Positive
2416.70
Positive
2451.59
Positive
Market Momentum
35.35
Negative
66.43
Neutral
71.45
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 2416 is below the 20-day moving average (MA) of 2514.70, below the 50-day MA of 2454.18, and below the 200-day MA of 2451.59, indicating a bullish trend. The MACD of 35.35 indicates Negative momentum. The RSI at 66.43 is Neutral, neither overbought nor oversold. The STOCH value of 71.45 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | £684.84M | 8.89 | 32.38% | 5.57% | 5.60% | 5.05% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
60 Neutral | £32.14B | 25.95 | 9.45% | 2.60% | 0.54% | -2.65% | |
59 Neutral | £2.77B | 54.87 | 1.10% | 5.80% | -7.78% | -91.96% | |
59 Neutral | £63.06B | 19.01 | 8.47% | 3.87% | -3.76% | 8.20% | |
57 Neutral | £7.05B | 9.76 | 21.92% | 3.64% | 0.27% | ― | |
38 Underperform | £12.29M | -0.99 | -65.86% | ― | 136.51% | 40.60% |
* Utilities Sector Average
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SSE Corporate Events
Stock BuybackRegulatory Filings and Compliance
SSE Advances £105m Share Buyback, Updates Voting Rights
Positive
Oct 19, 2026
SSE plc has begun executing its previously announced £105 million share buyback programme, purchasing 660,938 ordinary shares of 50 pence each through UBS AG’s London branch between 12 and 16 October 2026. The repurchased shares will be...
Business Operations and StrategyStock BuybackDividends
SSE Launches £105m Non-Discretionary Share Buyback Programme
Positive
Oct 9, 2026
SSE plc has launched a non-discretionary share buyback programme of up to £105 million, with a maximum of 4,246,975 ordinary shares to be repurchased. The move is designed to manage its share capital and support its dividend policy by capping...
Business Operations and StrategyRegulatory Filings and Compliance
SSE Discloses Director Share Purchase Under Employee Incentive Plan
Neutral
Oct 9, 2026
SSE has reported a routine share transaction involving director Barry O’Regan under its Irish all-employee Share Incentive Plan, in line with market abuse regulations. The shares, traded on the London Stock Exchange Main Market, form part of...
Executive/Board ChangesRegulatory Filings and Compliance
SSE discloses director and PDMR share awards under employee incentive plan
Positive
Oct 8, 2026
SSE has reported routine share dealings by senior executives under its all-employee Share Incentive Plan, with Computershare Investor Services purchasing ordinary shares and awarding matching shares on their behalf. The transactions, conducted on ...
Regulatory Filings and Compliance
SSE PDMR John Stewart Sells 15,000 Shares on London Market
Neutral
Oct 6, 2026
SSE plc has disclosed that John Stewart, a person discharging managerial responsibilities, sold 15,000 fully paid ordinary shares in the company on 6 October 2026. The transaction, executed on the London Stock Exchange’s Main Market at a pri...
Regulatory Filings and Compliance
SSE Discloses Share Sale by Senior Manager Samuel Peacock
Neutral
Oct 2, 2026
SSE plc has disclosed a transaction by person discharging managerial responsibilities Samuel Peacock, who sold 2,650 ordinary shares in the company. The sale was executed on 1 October 2026 on the London Stock Exchange Main Market at a price of ...
Business Operations and StrategyFinancial Disclosures
SSE lifts investment and renewables output while reaffirming earnings outlook
Positive
Oct 1, 2026
SSE reported continued strong performance in its regulated networks business, with adjusted investment up about 70% year-on-year, driven mainly by progress on 11 major transmission projects. Renewable generation output is expected to be roughly 20...
Business Operations and StrategyFinancial Disclosures
SSE lifts investment and renewables output while reaffirming earnings guidance
Positive
Oct 1, 2026
SSE reported continued strong performance in its regulated networks business, with adjusted investment rising about 70% year-on-year, largely driven by accelerated progress across 11 major transmission projects. Renewable generation output is expe...
Regulatory Filings and Compliance
SSE Updates Market on Share Capital and Voting Rights
Neutral
Sep 30, 2026
SSE plc has confirmed that, as of 30 September 2026, its issued share capital stands at 1,223,926,985 ordinary shares, of which 3,061,802 are held in treasury without voting rights. This leaves a total of 1,220,865,183 voting rights in the company...
Business Operations and StrategyDelistings and Listing ChangesDividendsPrivate Placements and FinancingRegulatory Filings and Compliance
SSE Admits Over 8.4 Million New Scrip Dividend Shares to London Market
Neutral
Sep 30, 2026
SSE plc has admitted 8,452,267 new fully paid ordinary shares of 50 pence each to trading on the London Stock Exchange’s Main Market, issued under its Scrip Dividend Scheme in respect of the final dividend for the year ended 31 March 2026. F...
DividendsRegulatory Filings and Compliance
SSE Chair boosts stake via scrip dividend participation
Positive
Sep 22, 2026
SSE has disclosed that Chair Sir John Manzoni has increased his shareholding through participation in the company’s Scrip Dividend alternative for the final dividend for the year ended 31 March 2026. The transaction was executed via a nomine...
Business Operations and StrategyDividendsRegulatory Filings and Compliance
SSE Directors Add Shares Through Routine Dividend Reinvestment Plans
Neutral
Sep 21, 2026
SSE plc has reported routine share purchases by directors and senior managers through its all-employee Share Incentive Plan, with cash dividends paid on 17 September 2026 reinvested to acquire dividend shares at £24.464716 each on the London ...
Delistings and Listing ChangesDividendsRegulatory Filings and Compliance
SSE Seeks Listing of New Shares Issued Under Scrip Dividend Scheme
Positive
Sep 10, 2026
SSE plc has applied to the London Stock Exchange for the admission of 8,452,267 new ordinary shares, to be issued under its Scrip Dividend Scheme. The shares relate to the final dividend for the financial year ended 31 March 2026 and will be alloc...
Regulatory Filings and Compliance
SSE Directors and Senior Managers Acquire Shares Under Incentive Plan
Positive
Sep 7, 2026
SSE plc has disclosed that several directors and persons discharging managerial responsibilities acquired ordinary shares through the company’s all-employee Share Incentive Plan. The plan, administered by Computershare Investor Services, pur...
Business Operations and StrategyFinancial Disclosures
SSE Showcases £29bn Grid Investment Plan at Aberdeen Investor Event
Positive
Sep 2, 2026
SSE plc is highlighting the strategic role of its SSEN Transmission business, which is responsible for major high-voltage electricity infrastructure that connects renewable generation to the grid. By advancing a £29bn RIIO-T3 investment plan,...
Regulatory Filings and Compliance
SSE Updates Market on Share Capital and Voting Rights
Neutral
Sep 1, 2026
SSE plc has updated the market on its share capital and voting rights position as of 1 September 2026, confirming an issued share capital of 1,215,474,718 ordinary shares, of which 3,070,916 are held in treasury without voting rights. This leaves ...
Delistings and Listing ChangesRegulatory Filings and Compliance
SSE Admits Additional Shares Following Irish Employee Options
Neutral
Sep 1, 2026
SSE plc has admitted 63 additional fully paid ordinary shares of 50p each to trading on the London Stock Exchange’s Main Market, following the exercise of options under its Irish SAYE Sharesave Scheme on 27 August 2026. Following this small ...
Business Operations and StrategyStock BuybackDividends
SSE Cuts Dividend Cash Outlay and Moves to Offset Scrip Dilution With Share Buyback
Positive
Aug 26, 2026
SSE plc has reported that 22,138 shareholders elected to receive the final dividend for the year to 31 March 2026, worth 47.3 pence per share on 425,880,846 shares, in the form of a scrip dividend. This election will reduce the cash funding requir...
Business Operations and StrategyRegulatory Filings and Compliance
SSE Discloses Director and PDMR Share Purchases Under Employee Incentive Plan
Neutral
Aug 7, 2026
SSE plc has disclosed routine dealings in its shares under its all-employee Share Incentive Plan, after Computershare Investor Services purchased ordinary shares on 6 August 2026 on behalf of several directors and other persons discharging manager...
Regulatory Filings and Compliance
SSE updates market on voting rights and share capital structure
Neutral
Aug 3, 2026
SSE plc has updated the market on its capital structure, confirming that as of 3 August 2026 it had 1,215,474,655 ordinary shares in issue, including 3,075,818 shares held in treasury, which carry no voting rights. This leaves a total of 1,212,398...
Business Operations and StrategyDelistings and Listing Changes
SSE Adds Shares from Employee Scheme to London Listing
Neutral
Aug 3, 2026
SSE plc has admitted 613 new ordinary shares of 50p each to trading on the London Stock Exchange’s Main Market, following the exercise of options under its Irish SAYE Sharesave Scheme on 30 July 2026. The newly issued shares are fully fungib...
Business Operations and StrategyDividends
SSE Sets Scrip Dividend Price and Outlines Share Issue for Final Payout
Neutral
Jul 30, 2026
SSE plc has set the scrip reference price at 2,383 pence per share for investors choosing to take the final dividend for the year to 31 March 2026 in new ordinary shares rather than cash. The price is based on the average mid-market closing price ...
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.