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SSE PLC SSE

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Stock XLON Rating as of
GBX 1,912.00 −33.00 (1.70%)
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As of Delayed Price Closed

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European Utilities Rallied in Q3 on Falling Interest Rates; We See Further Upside Potential

Tancrede Fulop

While wholesale power prices stabilized, government bonds’ yields fell on weak economic indicators and lower inflation in the US and Europe. Second-quarter results were boosted by very favorable hydro conditions that led to some guidance upgrades. This goldilocks scenario bolstered a rally in European utilities, enabling them to massively outperform the market and recover much of their earlier underperformance.

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Price vs Fair Value

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SSE is trading at a 856% premium.
Price
GBX 1,912.00
Fair Value
GBX 5,455.00
Uncertainty
Medium
1-Star Price
GBX 8,434.70
5-Star Price
GBX 9,269.00
Economic Moat
Wmlt
Capital Allocation
Fhvffwyr

Bulls Say, Bears Say

Bulls

Thanks to its strong footprint in renewables and electricity networks, SSE is well-positioned to benefit from the acceleration of the energy transition aimed by the Labour government issued from the July 2024 general election.

Bears

The dividend rebase does not solve the investment funding problem given the different investment profiles of networks and renewables assets.

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News

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Trading Information

Previous Close Price
GBX 1,945.00
Day Range
GBX 1,912.00–1,951.00
52-Week Range
GBX 1,485.00–2,019.00
Bid/Ask
GBX 1,900.00 / GBX 1,965.00
Market Cap
GBX 2.10 Tril
Volume/Avg
3.1 Mil / 2.2 Mil

Key Statistics

Price/Earnings (Normalized)
11.65
Price/Sales
2.00
Dividend Yield (Trailing)
3.14%
Dividend Yield (Forward)
3.14%
Total Yield
3.20%

Company Profile

SSE is an integrated utility based in the United Kingdom. The bulk of SSE's profit comes from the company's power generation businesses and its electricity transmission and distribution networks. The firm is also involved in smaller related businesses such as gas storage and energy services.
Sector
Utilities
Industry
Utilities - Diversified
Stock Style Box
Large Core
Total Number of Employees
14,980
Website
https://www.sse.com

Competitors

Valuation

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Metric
SSE
ORSTED
IBE
Price/Earnings (Normalized)
 11.658.5414.74
Price/Book Value
 2.273.351.62
Price/Sales
 2.003.711.90
Price/Cash Flow
 7.3412.268.64
Price/Earnings
SSE
ORSTED
IBE

Financial Strength

Metric
SSE
ORSTED
IBE
Quick Ratio
 0.761.080.60
Current Ratio
 1.101.480.77
Interest Coverage
 8.21−3.354.98
Quick Ratio
SSE
ORSTED
IBE

Profitability

Metric
SSE
ORSTED
IBE
Return on Assets (Normalized)
 6.37%−1.56%4.79%
Return on Equity (Normalized)
 20.08%−7.23%14.40%
Return on Invested Capital (Normalized)
 9.01%−1.32%7.51%
Return on Assets
SSE
ORSTED
IBE

Utilities - Diversified Industry Comparables

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1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Iberdrola SA
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—Yfpkpy$97.5 Bil
 Iberdrola SA ADR
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FTPXzlmn$97.5 Bil
 Enel SpA
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KrbtzsxzKfmbx$81.9 Bil
 Enel SpA ADR
ENLAY
QptqpfyfDzjd$81.9 Bil
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SRE
JnckmchndZlssh$52.7 Bil
 Engie SA ADR
ENGIY
—Fgkkh$42.4 Bil
 Engie SA
ENGQF
—Cspc$42.4 Bil
 E.ON SE ADR
EONGY
WspclgvyBygww$39.3 Bil
 E.ON SE
ENAKF
—Kzhy$39.3 Bil
 The AES Corp
AES
CkdcxkcljPhy$14.3 Bil

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