Why is SSE Plc ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 9.44% and Operating profit at 21.73% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Capital Employed (avg) of 11.13% signifying low profitability per unit of total capital (equity and debt)
2
Flat results in Mar 25
- PRE-TAX PROFIT(Q) At GBP 1,210.3 MM has Fallen at -44.12%
- NET PROFIT(Q) At GBP 877.89 MM has Fallen at -47.17%
- INVENTORY TURNOVER RATIO(HY) Lowest at 15.48%
3
With ROE of 14.33%, it has a expensive valuation with a 1.92 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 25.23%, its profits have fallen by -37.3%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is SSE Plc for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
SSE Plc
-100.0%
1.14
27.25%
FTSE 100
15.94%
1.23
12.99%
Quality key factors
Factor
Value
Sales Growth (5y)
9.44%
EBIT Growth (5y)
21.73%
EBIT to Interest (avg)
6.02
Debt to EBITDA (avg)
3.85
Net Debt to Equity (avg)
1.08
Sales to Capital Employed (avg)
0.52
Tax Ratio
29.42%
Dividend Payout Ratio
59.33%
Pledged Shares
0
Institutional Holding
0.13%
ROCE (avg)
11.13%
ROE (avg)
22.42%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.92
EV to EBIT
13.51
EV to EBITDA
10.04
EV to Capital Employed
1.44
EV to Sales
3.01
PEG Ratio
NA
Dividend Yield
358.20%
ROCE (Latest)
10.67%
ROE (Latest)
14.33%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 6,190 MM
RAW MATERIAL COST(Y)
Fallen by -52.35% (YoY
-8What is not working for the Company
PRE-TAX PROFIT(Q)
At GBP 1,210.3 MM has Fallen at -44.12%
NET PROFIT(Q)
At GBP 877.89 MM has Fallen at -47.17%
INVENTORY TURNOVER RATIO(HY)
Lowest at 15.48%
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.6%
Here's what is working for SSE Plc
Operating Cash Flow
Highest at GBP 6,190 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Raw Material Cost
Fallen by -52.35% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for SSE Plc
Pre-Tax Profit
At GBP 1,210.3 MM has Fallen at -44.12%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (GBP MM)
Net Profit
At GBP 877.89 MM has Fallen at -47.17%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (GBP MM)
Inventory Turnover Ratio
Lowest at 15.48%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.6%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






