1.46%
0.18%
-8.21%
-13.08%
-2.33%
2.67%
5.94%
AI Spotlight on SSE
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 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.
Market Data
| Last Price | 1631.5 |
| Change Percentage | 1.46% |
| Open | 1608 |
| Previous Close | 1608 |
| Market Cap ( Millions) | 17733 |
| Volume | 4110500 |
| Year High | 2019 |
| Year Low | 1534.5 |
| M A 50 | 1635.9 |
| M A 200 | 1783.09 |
Financial Ratios
| FCF Yield | 8.95% |
| Dividend Yield | 3.75% |
| ROE | 17.83% |
| Debt / Equity | 82.62% |
| Net Debt / EBIDTA | 238.75% |
| Price To Book | 1.61 |
| Price Earnings Ratio | 10.43 |
| Price To FCF | 11.17 |
| Price To sales | 1.7 |
| EV / EBITDA | 7.62 |
News
- Jan -06 - With 81% ownership, SSE plc (LON:SSE) boasts of strong institutional backing
- Dec -10 - Energy firm promises £22 billion investment in ‘critical grid infrastructure’
- Dec -07 - A Look At The Fair Value Of SSE plc (LON:SSE)
- Nov -29 - SSE upgraded to Buy from Hold at Deutsche Bank
- Nov -18 - SSE (LSE:SSE) reports strong earnings growth amid CEO transition and explores emerging markets.
- Nov -18 - With 81% ownership of the shares, SSE plc (LON:SSE) is heavily dominated by institutional owners
- Nov -14 - SSE PLC (SSEZF) (Q2 2025) Earnings Call Highlights: Strong Profit Growth Amidst Market Challenges
- Oct -25 - Meet the content creators shaping the finfluencer space in 2024
- Oct -19 - Should Weakness in SSE plc's (LON:SSE) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?
- Oct -17 - The best stocks to buy in the UK, according to Barclays
- Sep -26 - Deutsche Bank ADR Virtual Investor Conference: Presentations Now Available for Online Viewing
- Sep -19 - SSE plc to present at the dbVIC - Deutsche Bank ADR Virtual Investor Conference on September 24 2024
- Sep -19 - International companies to host live webcasts at Deutsche Bank’s Depositary Receipts Virtual Investor Conference on September 24th and 25th, 2024
- Sep -17 - International companies to host live webcasts at Deutsche Bank’s Depositary Receipts Virtual Investor Conference on September 24th and 25th, 2024
- Jul -11 - Shareholders May Not Be So Generous With SSE plc's (LON:SSE) CEO Compensation And Here's Why
- Jun -30 - A Look At The Intrinsic Value Of SSE plc (LON:SSE)
- May -12 - SSE plc's (LON:SSE) Has Been On A Rise But Financial Prospects Look Weak: Is The Stock Overpriced?
- May -10 - Stocks to watch this week: Burberry, Vodafone, BT and Walmart
- Apr -26 - Stocks to watch this week: Amazon, Apple, Anglo American and Novo Nordisk
- Apr -25 - E.ON (ETR:EOAN) shareholders have earned a 10% CAGR over the last five years
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Energy Portfolio Management
Expected Growth : 2 %
What the company do ?
Energy Portfolio Management from SSE plc optimizes energy generation, transmission, and distribution, ensuring a balanced and efficient energy supply to meet customer demands.
Why we expect these perspectives ?
SSE plc's Energy Portfolio Management growth is driven by increasing demand for renewable energy, government incentives for low-carbon infrastructure, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost savings, and investment in digital technologies have contributed to its growth. Furthermore, the rising importance of energy storage and electric vehicle infrastructure has created new opportunities for SSE plc to expand its services.
Segment n°2 -> Energy Customer Solutions - Business Energy
Expected Growth : 3 %
What the company do ?
Energy Customer Solutions - Business Energy from SSE plc provides tailored energy solutions to businesses, helping them manage energy costs and reduce carbon footprint.
Why we expect these perspectives ?
SSE plc's Business Energy segment growth is driven by increasing demand for renewable energy solutions, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital infrastructure and data analytics enables it to provide tailored energy management solutions, enhancing customer experience and driving growth.
Segment n°3 -> Energy Customer Solutions - SSE Airtricity
Expected Growth : 4 %
What the company do ?
Energy Customer Solutions - SSE Airtricity is a leading provider of renewable energy and energy-related services in Ireland and the UK, offering innovative solutions to residential and business customers.
Why we expect these perspectives ?
SSE Airtricity's 4% growth in Energy Customer Solutions is driven by increasing demand for renewable energy, government incentives for sustainable solutions, and strategic partnerships to expand customer base. Additionally, investments in digital infrastructure and customer experience enhancements have improved customer retention and acquisition rates, further contributing to growth.
Segment n°4 -> SSEN Distribution
Expected Growth : 1 %
What the company do ?
SSEN Distribution, part of SSE plc, is a UK-based Distribution Network Operator, responsible for delivering electricity to over 3.8 million homes and businesses across Scotland and southern England.
Why we expect these perspectives ?
SSEN Distribution's growth is driven by increasing demand for electricity, investments in grid resilience and decarbonization, and regulatory support for network upgrades. Additionally, the UK's transition to electric vehicles and heat pumps will boost electricity consumption, further supporting growth.
Segment n°5 -> SSE Thermal
Expected Growth : -1 %
What the company do ?
SSE Thermal is a thermal energy business from SSE plc, generating electricity from gas and oil-fired power stations, and providing heating and cooling solutions.
Why we expect these perspectives ?
SSE Thermal's -1% growth is driven by declining wholesale gas prices, reduced thermal generation output, and increasing competition from renewable energy sources. Additionally, the UK's transition to a low-carbon economy and decreasing demand for fossil fuels also contribute to the decline.
Segment n°6 -> SSEN Transmission
Expected Growth : 2 %
What the company do ?
SSEN Transmission is a subsidiary of SSE plc, operating and maintaining the high-voltage electricity transmission network in the north of Scotland.
Why we expect these perspectives ?
SSEN Transmission's 2% growth is driven by increasing demand for renewable energy, government support for low-carbon infrastructure, and investments in grid resilience and expansion. Additionally, the UK's goal to reach net-zero emissions by 2050 and the growing need for electricity transmission to support electrification of transportation and heating also contribute to this growth.
Segment n°7 -> SSE Renewables
Expected Growth : 5 %
What the company do ?
SSE Renewables is a leading developer, constructor, and operator of renewable energy assets, part of SSE plc, a UK-based energy company.
Why we expect these perspectives ?
SSE Renewables' 5% growth driven by increasing demand for renewable energy, UK government's commitment to net-zero emissions, and SSE's strategic investments in offshore wind farms, such as the Dogger Bank project. Additionally, the acquisition of Seagreen offshore wind farm and the development of new projects in Ireland and Scotland contribute to the growth.
Segment n°8 -> Distributed Energy
Expected Growth : 3 %
What the company do ?
Distributed Energy from SSE plc is a business that provides decentralized energy solutions, including renewable energy, energy storage, and grid services to commercial and industrial customers.
Why we expect these perspectives ?
SSE plc's Distributed Energy segment growth is driven by increasing demand for decentralized energy solutions, government incentives for renewable energy adoption, and declining costs of solar and wind power. Additionally, the UK's goal to reach net-zero emissions by 2050 and the need for energy storage and grid resilience also contribute to this growth.
Segment n°9 -> Corporate
Expected Growth : 0 %
What the company do ?
SSE plc's Corporate segment includes the company's central functions, including strategy, finance, and human resources, which support the group's operations.
Why we expect these perspectives ?
SSE plc's corporate segment growth is stagnant due to declining energy demand, increasing competition, and regulatory pressures. The UK's energy market reform and Brexit uncertainty also contribute to the lack of growth. Additionally, SSE's focus on renewable energy and grid investments may not yield immediate returns, further contributing to the flat growth.
Segment n°10 -> Gas Storage
Expected Growth : -2 %
What the company do ?
Gas Storage from SSE plc is a facility that stores natural gas in depleted oil and gas fields, helping to balance UK energy supply and demand.
Why we expect these perspectives ?
Decline in gas storage demand from SSE plc is driven by increasing competition from renewable energy sources, warmer winters, and energy efficiency measures. Additionally, high operational costs, regulatory pressures, and declining wholesale gas prices are contributing to the -2% growth rate.
Sse Plc Products
| Product Range | What is it ? |
|---|---|
| Electricity | SSE plc provides electricity to homes and businesses across the UK and Ireland. |
| Gas | SSE plc supplies gas to homes and businesses across the UK and Ireland. |
| Renewable Energy | SSE plc generates renewable energy from wind, hydro, and biomass sources. |
| Energy Storage | SSE plc offers energy storage solutions for homes and businesses. |
| Smart Meters | SSE plc installs and manages smart meters for homes and businesses. |
| Energy Services | SSE plc offers energy services, including energy audits, energy efficiency solutions, and energy management. |
| Telecoms | SSE plc provides telecoms services, including fibre broadband and phone services. |
SSE plc's Porter Forces
Threat Of Substitutes
SSE plc operates in the energy sector, which has few substitutes. However, there is a growing trend towards renewable energy sources, which could pose a threat to SSE's traditional business model.
Bargaining Power Of Customers
SSE plc has a large customer base, but individual customers have limited bargaining power. However, large commercial customers may have more negotiating power.
Bargaining Power Of Suppliers
SSE plc relies on a diverse range of suppliers for fuel, equipment, and services. While some suppliers may have bargaining power, SSE's scale and diversification mitigate this risk.
Threat Of New Entrants
The energy sector has high barriers to entry, including significant capital requirements and regulatory hurdles. New entrants are unlikely to pose a significant threat to SSE plc.
Intensity Of Rivalry
The energy sector is highly competitive, with several established players competing for market share. SSE plc faces intense rivalry from companies such as British Gas, EDF Energy, and npower.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 53.83% |
| Debt Cost | 4.61% |
| Equity Weight | 46.17% |
| Equity Cost | 6.77% |
| WACC | 5.61% |
| Leverage | 116.59% |
SSE plc : Quality Control
SSE plc passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| ENEL.MI | Enel SpA operates as an integrated electricity and gas operator worldwide. The company generates, transmits, distributes, purchases, transports, and sells electricity; transports and markets natural gas; supplies LNG; designs, develops, … |
| ENGI.PA | ENGIE SA engages in the power, natural gas, and energy services businesses. It operates through Renewables, Networks, Energy Solutions, Thermal, Supply, Nuclear, and Others segments. The Renewables segment comprises renewable … |
| EOAN.DE | E.ON SE operates as an energy company in Germany, the United Kingdom, Sweden, the Netherlands, Belgium, rest of Europe, and internationally. It operates through two segments, Energy Networks and Customer … |
| IBE.MC | Iberdrola, S.A. engages in the generation, transmission, distribution, and supply of electricity in Spain and internationally. It generates and markets electrical power using renewable sources, such as onshore and offshore … |
| RWE.DE | RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources primarily in Europe and the United States. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Iberdrola
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1-Year Total Return ->
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Enel
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1-Year Total Return ->
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ENGIE
A-Score
1-Year Total Return ->
4
E.ON
A-Score
1-Year Total Return ->
5
RWE
A-Score
1-Year Total Return ->
6
