olivLaw · European equity research
SSE plc SSE.L
United Kingdom · London Stock Exchange · ISIN GB0007908733 · Vertical: Listed companies from United Kingdom
SSE plc is a British energy group that develops, builds and operates electricity infrastructure for the clean energy transition, with a focus on transmission and distribution networks in Great Britain and Ireland. In November 2025 it announced a five-year investment plan of £33bn that could reshape its earnings profile and put pressure on funding and delivery.
At the close of 05 Nov 2026, SSE plc (SSE.L) stock was 26.52 GBP (+1.22% on the day), with market capitalisation 35.5 bn GBP, P/E 25.2 on diluted EPS of 1.05 GBP over the last 12 months, dividend yield 0.81%, beta 0.32, 52-week range 18.69–27.58 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 63.6
- strong (55–70)
- Bollinger (20, 2)
- 24.41 – 26.69
- in the upper half of the band · %B 0.93 · band width 8.9%
- SMA 50 / 200
- 24.76 / 24.89
- mixed trend
- MACD (12, 26, 9)
- 0.43 / 0.36
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +7.3% | −0.6% | +7.9 pp | — |
| 3 months | +11.6% | −4.2% | +15.8 pp | — |
| 6 months | +7.0% | +4.3% | +2.7 pp | — |
| Year to date | +21.7% | +7.5% | +14.2 pp | — |
| 1 year | +40.5% | +9.9% | +30.6 pp | +5.8% |
| 3 years | +58.7% | +49.8% | +8.9 pp | +26.3% |
| 5 years | +60.8% | +42.8% | +18.0 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 3-quarter history (min 10.5, median 14.7, max 24.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 10.5 bn | 10.1 bn | 10.2 bn |
| Revenue YoY | unavailable | −3.1% | +0.5% |
| Net income | 1.9 bn | 1.3 bn | 1.4 bn |
| Net income YoY | unavailable | −29.3% | +5.9% |
| Diluted EPS | 1.57 | 1.08 | 1.05 |
| Diluted EPS YoY | unavailable | −30.9% | −2.5% |
| net % | 18.0% | 13.2% | 13.9% |
| Free cash flow | 1.9 bn | -212.4 m | -711.8 m |
Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 1.5 bn GBP
- Financial debt
- 8.9 bn GBP
- Net debt
- 7.4 bn GBP
- Equity
- 16.4 bn GBP
- Total assets
- 35.4 bn GBP
- Debt / equity
- 0.54x
- Current ratio
- 1.20x
- ROE
- 9.7%
- ROA
- 4.3%
- FCF margin
- -7.0%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 10.5 bn | 10.1 bn | 10.2 bn | esef· 25 Jun 2026verified |
| Cost of revenue | 6.1 bn | 6.3 bn | 6.4 bn | esef· 25 Jun 2026verified |
| Gross profit | 4.4 bn | 3.9 bn | 3.8 bn | esef· 25 Jun 2026verified |
| Operating income | 2.6 bn | 2.0 bn | 1.9 bn | esef· 25 Jun 2026verified |
| Interest expense | 318.3 m | 319.2 m | 310.4 m | esef· 25 Jun 2026verified |
| Pre-tax income | 2.5 bn | 1.9 bn | 1.8 bn | esef· 25 Jun 2026verified |
| Income tax | 610.7 m | 518.0 m | 425.7 m | esef· 25 Jun 2026verified |
| Net income | 1.9 bn | 1.3 bn | 1.4 bn | esef· 25 Jun 2026verified |
| Diluted EPS | 1.57 | 1.08 | 1.05 | esef· 25 Jun 2026verified |
| Dividend per share | — | 477,800,000.00 | 0.21 | esef· 25 Jun 2026verified |
Balance sheet · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Cash | 1.0 bn | 1.1 bn | 1.5 bn | esef· 25 Jun 2026verified |
| Receivables | 2.7 bn | 2.7 bn | 3.0 bn | esef· 25 Jun 2026verified |
| Inventories | 343.0 m | 462.9 m | 434.2 m | esef· 25 Jun 2026verified |
| Current assets | 5.4 bn | 4.8 bn | 6.3 bn | esef· 25 Jun 2026verified |
| Property, plant & equipment, net | 16.6 bn | 18.8 bn | 22.0 bn | esef· 25 Jun 2026verified |
| Total assets | 28.3 bn | 30.4 bn | 35.4 bn | esef· 25 Jun 2026verified |
| Accounts payable | 3.3 bn | 2.7 bn | 3.3 bn | esef· 25 Jun 2026verified |
| Long-term debt | 8.0 bn | 8.6 bn | 8.9 bn | esef· 25 Jun 2026verified |
| Current liabilities | 4.9 bn | 4.9 bn | 5.2 bn | esef· 25 Jun 2026verified |
| Total liabilities | 16.5 bn | 17.7 bn | 19.0 bn | esef· 25 Jun 2026verified |
| Equity | 11.8 bn | 12.7 bn | 16.4 bn | esef· 25 Jun 2026verified |
| Shares outstanding at year end | 1.2 bn | 1.2 bn | 1.3 bn | esef· 25 Jun 2026derived |
Cash flow · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 3.9 bn | 2.5 bn | 3.4 bn | esef· 25 Jun 2026verified |
| Capex | 2.0 bn | 2.7 bn | 4.1 bn | esef· 25 Jun 2026verified |
| Free cash flow | 1.9 bn ≈ | -212.4 m ≈ | -711.8 m ≈ | esef· 25 Jun 2026derived |
| Investing cash flow | -2.9 bn | -3.3 bn | -4.6 bn | esef· 25 Jun 2026verified |
| Financing cash flow | -857.6 m | 896.2 m | 1.6 bn | esef· 25 Jun 2026verified |
| Share repurchases | 0 | 71.7 m | 0 | esef· 25 Jun 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 58.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 35.5 bn GBP
Key indicators
Coverage and freshness
Score by group
58% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 58.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 6.6% | 25 (vs peers) | 18% |
| Net margin · Quality | 13.9% | 57 (vs peers) | 11% |
| FCF conversion · Quality | -50.4% | 0 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 6.1x | 71 (on a fixed band) | 11% |
| Current ratio · Balance sheet | 1.2x | 33 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 25.2x | 11 (vs peers) | 18% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -2.0% | 0 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 0.0% | 0 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet56/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality27/100 · 3/3 factors with a value
- Returns· partial0/100 · 1/2 factors with a value
- Valuation6/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
SSE PLC (SSE.L). Latest full fiscal year: 2026; data up to 2026-03-31.
Figures computed from the financial statements: revenue 10.2 bn GBP in 2026; YoY growth 0.5%; net margin 13.9%; ROE 9.7%.
The estimated value range is 11.90–18.35 GBP per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 15.20 GBP, the price of 26.52 GBP leaves a potential of -42.7% (value / price − 1) and a margin of safety of -74.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Interest coverage: 6.1x
What contradicts it
- ROIC: 6.6%
- FCF conversion: -50.4%
- P/E (TTM): 25.2x
- FCF yield: -2.0%
- Shareholder yield (distributions): 0.0%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| SSE.LSse PLC | 35.5 bn | 25.2 | 9.7% | 13.9% | +0.5% | +21% / +45% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for SSE.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 15.07 Total return -43% · Per year -43% | 26.69 Total return 1% · Per year 1% | 40.27 Total return 53% · Per year 53% |
| 3 years | 13.48 Total return -47% · Per year -19% | 26.98 Total return 4% · Per year 1% | 44.86 Total return 72% · Per year 20% |
| 5 years | 12.06 Total return -52% · Per year -14% | 27.27 Total return 7% · Per year 1% | 49.96 Total return 94% · Per year 14% |
- Exit P/E± 6.74
- Net margin± 4.72
- Annual revenue growth± 4.03
- Annual dilution± 0.40
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
SSE plc is a British energy group that develops, builds and operates electricity infrastructure for the clean energy transition, with a focus on transmission and distribution networks in Great Britain and Ireland. In November 2025 it announced a five-year investment plan of £33bn that could reshape its earnings profile and put pressure on funding and delivery.1
SWOT
Strengths
- A strong position in regulated UK electricity networks, with an asset base that could grow significantly over the medium-term plan.
- A clear, funded and structured investment plan with a high share of index-linked earnings, which could make revenue more predictable.
- Experience in large infrastructure projects, including offshore wind farms, suited to the complex delivery the transition requires.
Weaknesses
- High dependence on regulatory decisions and network remuneration conditions, which can directly affect results.
- Significant exceptional items in the current year, including restructuring costs and asset impairments.
- Indebtedness and the need for additional funding, placing pressure on the balance sheet during the intensive investment period.
Opportunities
- Rising demand for connecting renewable generation and modernising networks could support new long-term projects.
- Selective asset rotation could release capital for new investment if transactions are completed on favourable terms.
- Flexible capacity and system services could become more valuable if renewable integration accelerates.
Threats
- Fragmented political sentiment towards net zero could change government priorities and investment conditions.
- Pressure on energy affordability could limit tariff flexibility and attract regulatory intervention.
- Cyber attacks and extreme weather events could affect critical infrastructure and generate unexpected costs.
Risks
- Large project deliveryhigh
Delays or cost overruns in network and renewable projects could reduce the return on the investment plan.
- Political and regulatory changehigh
Changes in policy or regulation, including on network remuneration, could alter the economics of projects.
- Energy affordabilitymedium
Customer pressure could trigger interventions that affect the group's revenues and tariff flexibility.
- Cyber securitymedium
Increasingly sophisticated cyber threats could affect operational systems and cause financial and reputational losses.
- Indebtedness and fundingmedium
Rising debt and hybrid instruments used to fund the plan could limit financial flexibility if market conditions deteriorate.
Investment thesis
What would need to be true (bull case)
- If the investment plan is delivered on time, the regulated asset base could grow significantly, supporting more predictable earnings over the long term.
- A central role in connecting renewables and modernising networks could make the group a beneficiary of the UK energy transition.
- A revenue structure with a large index-linked share could reduce sensitivity to energy price fluctuations.
What would break the thesis
- If project delivery slips or costs rise, returns on investment could fall short of expectations and weigh on the balance sheet.
- Political change or tighter network regulation could reduce the attractiveness of the plan for investors.
- Exceptional items and the need for additional funding could deter investors focused on balance sheet discipline.
What to watch
- Delivery progress of the £33bn plan and the RIIO-T3 programme2027
- Evolution of installed renewable capacity against the 9 GW target2029/30
- Compliance with the net debt to EBITDA ceiling below 4.5xnext 10-K
- Timing and outcome of asset rotations and any further equity issuance2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The group defines its purpose as making electricity clean, affordable and available for all, and operates through several units: SSEN Transmission, SSEN Distribution, SSE Renewables, SSE Thermal and customer supply activities including SSE Airtricity. Its strategy aims to create value for shareholders and society by investing in the infrastructure the energy transition requires.1
Regulated network activity is the centre of gravity of the new plan, with about 80% of investment directed at UK electricity networks. This gives earnings linked to the regulated asset base, but makes the group dependent on the regulatory framework and on the delivery of large projects.1
During 2025/26 management carried out an Operating Model and Efficiency Review to align structures and resources with growth opportunities. The report also notes restructuring costs, which were included among the exceptional items for the year.1
Segments
SSEN Transmission
The largest recipient of investment, with about 67% of the £33bn plan, directed at the RIIO-T3 programme to connect renewables and relieve constraints on the transmission network. The gross regulated asset value is expected to grow substantially by the end of the plan.1
SSE Renewables
The renewables division targets about 9 GW of installed capacity by the end of 2029/30, with a stated emphasis on financial discipline and selective investment in growth options. It accounts for roughly 12% of the investment plan.1
Market context
The reference market is electricity in Great Britain and Ireland, where demand for larger networks and for connecting renewable generation is rising. The report links these opportunities to government energy transition policy and to the regulatory framework for networks.1
Political sentiment towards net zero is becoming more fragmented, and energy affordability remains a concern for governments and consumers. These factors could influence investment decisions and regulatory conditions over the medium term.1
Trends
- Rising network investmenttailwind
The move to clean energy requires expanding and modernising transmission and distribution networks, which supports growth in the group's regulated asset base.
- Energy affordability pressureheadwind
Pressure on consumer bills could limit policy flexibility and affect regulatory or supply conditions if tensions persist.
- Grid connection delaysheadwind
Delays in connecting onshore wind projects to the grid can affect project timing and value, as shown in the exceptional charges for the year.
- Climate and cyber resiliencemixed
More intense extreme weather could damage critical infrastructure, while stricter reporting and cyber security rules add costs but also drive resilience investment.
Competitive position
The group competes for network, renewable and flexible capacity projects, with rivals generally being other utilities and energy developers in Europe. The source document does not explicitly name competitors, so the competitive analysis remains limited to these broad categories.
Advantage depends on execution capability, cost of capital and the attractiveness of regulated returns, particularly as the group applies strict return criteria to new energy projects.
- Other British network operators
Compete for assets and regulatory allowances in electricity networks; not explicitly identified in the source.
- Offshore wind developers
Compete for large renewable projects and specialised supply chains; not explicitly identified in the source.
- Energy suppliers and flexibility providers
Compete in customer supply and flexible capacity, where the group plans selective additional investment.
- European network project developers
Compete for cross-border projects and infrastructure tenders depending on local regulation; not explicitly identified in the source.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202625 Jun 2026
- Annual report 202517 Jun 2025
Sources
- [1] Annual report, fiscal year ended 2026-03-31 (ESEF) · SEC / SSE plc · 31 Mar 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.