# SSE plc (SSE.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Utilities / Multi-Utilities. Price 2381p, market value 28.7 billionp.

## Valuation
- **P/E (trailing): 22.7×** (5-yr avg 1437.1×, 3-yr avg 1665.4×). SSE plc trades at 22.7× trailing earnings, well below its own five-year average of 1437.1×: cheap by its own standards. The Utilities median in the September 2026 study was 21.2×. Forward P/E is 11.4×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.4×**. Each dollar of revenue is priced at 1.4×.
- **Price / book: 2.3×**. The shares trade at 2.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.1×**. Enterprise value is 6.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -3.2%** (5-yr avg 0.0%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 4.4%**. The inverse of the P/E: 4.4% of the price is earned each year.

## Profitability
- **Gross margin: 38.1%**. SSE plc keeps 38.1% of revenue after the direct cost of what it sells.
- **Operating margin: 20.0%**. 20.0% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 11.9%**. 11.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.5%**. 9.5% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 12.5%**. Return on all capital, debt included, is 12.5%.
- **Return on assets: 6.8%**. Each dollar of assets produces 6.8% of profit.

## Growth
- **Revenue growth (1 yr): 0.5%** (3-yr -6.6%/yr, 5-yr 8.3%/yr). Revenue grew 0.5% over the last year, against 8.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -2.8%** (5-yr -13.6%/yr). Earnings per share fell 2.8%, roughly in step with revenue.

## Financial health
- **Debt to equity: 1.03**. Debt is 1.03 times equity, a leveraged balance sheet, which is normal for utilities.
- **Net debt / EBITDA: 1.8×**. It would take 1.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 7.2×**. Operating profit covers interest 7.2× over, a safe margin.
- **Current ratio: 1.20** (quick 1.12). Current assets cover the next year's liabilities 1.20 times.
- **Altman Z-score: 1.81**. A Z-score of 1.81 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.86%** (1p per share, trailing). SSE plc yields 2.86%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 56%**. 56% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): 1.4%/yr** (1-yr 42.7%). The dividend has grown 1.4% a year over five years.
- **Shareholder yield: -3.8%**. Dividends plus net buybacks return -3.8% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (16 analysts). 16 analysts cover SSE plc; the consensus is buy, with an average price target of 2741p (+15% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 46.4%** (YTD 10.9%, 3-mo 1.5%). The shares are up 46.4% over twelve months including dividends.
- **From 52-week high: -14.0%** (46.4% above the low). Trading 14% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 52**. An RSI of 52 is neutral.
- **Beta (1 yr): 0.98** (volatility 30%). Beta of 0.98 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SSE.L · Page: https://foliofundamentals.com/stocks/sse.l

Not investment advice.