SSE Plc (SSE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Drax Group Plc

Telecom Plus Plc

National Grid Plc

Jersey Electricity Plc

SSE Plc

EQTEC Plc

Mast Energy Developments PLC

SIMEC Atlantis Energy Ltd.

Powerhouse Energy Group Plc

Rurelec Plc

Why is SSE Plc ?

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)

Flat results in Sep 25

CASH AND EQV(HY) Lowest at GBP 433.3 MM
DEBT-EQUITY RATIO (HY) Highest at 131.02 %
PRE-TAX PROFIT(Q) Lowest at GBP 485.1 MM

With ROE of 12.47%, it has a very expensive valuation with a 3.21 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 73.91%, its profits have fallen by -45.2%

Real-Time Research Report

Verdict Report

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

68.67%

2.13

27.67%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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

Institutional Holding

0.13%

ROCE (avg)

11.13%

ROE (avg)

22.42%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.21

EV to EBIT

21.55

EV to EBITDA

15.28

EV to Capital Employed

1.97

EV to Sales

4.32

PEG Ratio

Dividend Yield

220.43%

ROCE (Latest)

9.15%

ROE (Latest)

12.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 5,475.6 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 81.06%

RAW MATERIAL COST(Y)

Fallen by -12.17% (YoY

-10What is not working for the Company

CASH AND EQV(HY)

Lowest at GBP 433.3 MM

DEBT-EQUITY RATIO (HY)

Highest at 131.02 %

PRE-TAX PROFIT(Q)

Lowest at GBP 485.1 MM

NET PROFIT(Q)

Lowest at GBP 186.21 MM

EPS(Q)

Lowest at GBP 0.26

Here's what is working for SSE Plc

Operating Cash Flow

Highest at GBP 5,475.6 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Dividend Payout Ratio

Highest at 81.06%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -12.17% (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

Depreciation

Highest at GBP 465 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for SSE Plc

Net Profit

At GBP 186.21 MM has Fallen at -57.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Pre-Tax Profit

At GBP 485.1 MM has Fallen at -36.12%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Pre-Tax Profit

Lowest at GBP 485.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 186.21 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.26

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Cash and Eqv

Lowest at GBP 433.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 131.02 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio