SSE plc engages in the generation, transmission, distribution, and supply of electricity.
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Price History & Performance
|Historical stock prices|
|Current Share Price||UK£16.28|
|52 Week High||UK£12.38|
|52 Week Low||UK£16.88|
|1 Month Change||-0.061%|
|3 Month Change||6.79%|
|1 Year Change||21.73%|
|3 Year Change||43.96%|
|5 Year Change||2.55%|
|Change since IPO||370.38%|
Recent News & Updates
SSE (LON:SSE) Seems To Use Debt Quite Sensibly
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
|SSE||GB Electric Utilities||GB Market|
Return vs Industry: SSE exceeded the UK Electric Utilities industry which returned 11.9% over the past year.
Return vs Market: SSE underperformed the UK Market which returned 23.2% over the past year.
Stable Share Price: SSE is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SSE's weekly volatility (3%) has been stable over the past year.
About the Company
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.
SSE Fundamentals Summary
|SSE fundamental statistics|
Is SSE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SSE income statement (TTM)|
|Cost of Revenue||UK£4.13b|
Last Reported Earnings
Mar 31, 2021
Next Earnings Date
Nov 17, 2021
|Earnings per share (EPS)||2.12|
|Net Profit Margin||32.89%|
How did SSE perform over the long term?See historical performance and comparison
5.0%Current Dividend Yield
Is SSE undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SSE (£16.28) is trading below our estimate of fair value (£35.46)
Significantly Below Fair Value: SSE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SSE is good value based on its PE Ratio (7.7x) compared to the European Electric Utilities industry average (14.2x).
PE vs Market: SSE is good value based on its PE Ratio (7.7x) compared to the UK market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: SSE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SSE is overvalued based on its PB Ratio (2.6x) compared to the XE Electric Utilities industry average (1.1x).
How is SSE forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SSE's earnings are forecast to decline over the next 3 years (-10.7% per year).
Earnings vs Market: SSE's earnings are forecast to decline over the next 3 years (-10.7% per year).
High Growth Earnings: SSE's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SSE's revenue (3.2% per year) is forecast to grow slower than the UK market (5% per year).
High Growth Revenue: SSE's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SSE's Return on Equity is forecast to be low in 3 years time (13.7%).
How has SSE performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SSE has a large one-off gain of £851.7M impacting its March 31 2021 financial results.
Growing Profit Margin: SSE's current net profit margins (32.9%) are higher than last year (6.2%).
Past Earnings Growth Analysis
Earnings Trend: SSE's earnings have grown by 10.1% per year over the past 5 years.
Accelerating Growth: SSE's earnings growth over the past year (435.2%) exceeds its 5-year average (10.1% per year).
Earnings vs Industry: SSE earnings growth over the past year (435.2%) exceeded the Electric Utilities industry 22.6%.
Return on Equity
High ROE: Whilst SSE's Return on Equity (34.31%) is high, this metric is skewed due to their high level of debt.
How is SSE's financial position?
Financial Position Analysis
Short Term Liabilities: SSE's short term assets (£4.5B) exceed its short term liabilities (£3.5B).
Long Term Liabilities: SSE's short term assets (£4.5B) do not cover its long term liabilities (£11.4B).
Debt to Equity History and Analysis
Debt Level: SSE's debt to equity ratio (142.2%) is considered high.
Reducing Debt: SSE's debt to equity ratio has increased from 139.8% to 142.2% over the past 5 years.
Debt Coverage: SSE's debt is not well covered by operating cash flow (19.1%).
Interest Coverage: SSE's interest payments on its debt are well covered by EBIT (6x coverage).
What is SSE current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SSE's dividend (4.98%) is higher than the bottom 25% of dividend payers in the UK market (1.4%).
High Dividend: SSE's dividend (4.98%) is in the top 25% of dividend payers in the UK market (4.06%)
Stability and Growth of Payments
Stable Dividend: SSE's dividend payments have been volatile in the past 10 years.
Growing Dividend: SSE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (37.5%), SSE's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SSE's dividends in 3 years are forecast to be covered by earnings (88.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Alistair Phillips-Davies (54 yo)
Mr. Alistair Phillips-Davies has been the Chief Executive Officer of SSE plc since July 1, 2013. Mr. Phillips-Davies served as Vice President of Eurelectric Aisbl since June 2015 until May 2019. He leads t...
CEO Compensation Analysis
Compensation vs Market: Alistair's total compensation ($USD4.14M) is about average for companies of similar size in the UK market ($USD3.89M).
Compensation vs Earnings: Alistair's compensation has increased by more than 20% in the past year.
Experienced Management: SSE's management team is considered experienced (4.8 years average tenure).
Experienced Board: SSE's board of directors are considered experienced (3.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.
SSE plc's employee growth, exchange listings and data sources
- Name: SSE plc
- Ticker: SSE
- Exchange: LSE
- Founded: 1989
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: UK£17.216b
- Shares outstanding: 1.06b
- Website: https://www.sse.com
Number of Employees
- SSE plc
- Inveralmond House
- 200 Dunkeld Road
- PH1 3AQ
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/24 17:57|
|End of Day Share Price||2021/10/22 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.