Attractive stocks have exceptional fundamentals. In the case of SSE plc (LON:SSE), there's is a well-regarded dividend payer with a strong track record of performance, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on SSE here.
6 star dividend payer and good value
In the past couple of years, SSE has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did SSE outperformed its past performance, its growth also surpassed the Electric Utilities industry expansion, which generated a -8.2% earnings growth. This is an optimistic signal for the future. SSE's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, SSE's share price is trading below the group's average. This further reaffirms that SSE is potentially undervalued.
Income investors would also be happy to know that SSE is one of the highest dividend payers in the market, with current dividend yield standing at 8.9%. SSE has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For SSE, there are three relevant aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for SSE’s future growth? Take a look at our free research report of analyst consensus for SSE’s outlook.
- Financial Health: Are SSE’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SSE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.