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SSE

SSELSE:SSE Stock Report

Market Cap

UK£17.2b

7D

3.5%

1Y

21.7%

Updated

24 Oct, 2021

Data

Company Financials +
SSE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends5/6

SSE Overview

SSE plc engages in the generation, transmission, distribution, and supply of electricity.

SSE Competitors

Gazprom

MISX:GAZP

₽8.5t

Enel

BIT:ENEL

€72.4b

Iberdrola

BME:IBE

€60.0b

Ørsted

CPSE:ORSTED

kr.381.5b

Price History & Performance

Summary of all time highs, changes and price drops for SSE
Historical stock prices
Current Share PriceUK£16.28
52 Week HighUK£12.38
52 Week LowUK£16.88
Beta0.49
1 Month Change-0.061%
3 Month Change6.79%
1 Year Change21.73%
3 Year Change43.96%
5 Year Change2.55%
Change since IPO370.38%

Recent News & Updates

Sep 24
SSE (LON:SSE) Seems To Use Debt Quite Sensibly

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...

Shareholder Returns

SSEGB Electric UtilitiesGB Market
7D3.5%2.1%-0.2%
1Y21.7%11.9%23.2%

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.

Price Volatility

Is SSE's price volatile compared to industry and market?
SSE volatility
SSE Beta0.49
Industry Beta0.68
Market Beta1

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

FoundedEmployeesCEOWebsite
198911,865Alistair Phillips-Davieshttps://www.sse.com

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

How do SSE's earnings and revenue compare to its market cap?
SSE fundamental statistics
Market CapUK£17.22b
Earnings (TTM)UK£2.25b
Revenue (TTM)UK£6.83b

7.7x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SSE income statement (TTM)
RevenueUK£6.83b
Cost of RevenueUK£4.13b
Gross ProfitUK£2.69b
ExpensesUK£446.80m
EarningsUK£2.25b

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 17, 2021

Earnings per share (EPS)2.12
Gross Margin39.44%
Net Profit Margin32.89%
Debt/Equity Ratio142.2%

How did SSE perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

38%

Payout Ratio

Valuation

Is SSE undervalued compared to its fair value and its price relative to the market?

>50%

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).


Future Growth

How is SSE forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-10.7%

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%).


Past Performance

How has SSE performed over the past 5 years?

10.1%

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.


Financial Health

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).


Balance Sheet


Dividend

What is SSE current dividend yield, its reliability and sustainability?

4.98%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Alistair Phillips-Davies (54 yo)

8.25yrs

Tenure

UK£3,011,000

Compensation

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.


Leadership Team

Experienced Management: SSE's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: SSE's board of directors are considered experienced (3.1 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

SSE plc's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • SSE plc
  • Inveralmond House
  • 200 Dunkeld Road
  • Perth
  • Perthshire
  • PH1 3AQ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 17:57
End of Day Share Price2021/10/22 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.