SSE plc (SSE.L) stock analysis

In our weekly check, SSE plc is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 4.

About SSE plc

SSE plc is an Utilities company (Diversified Utilities) based in the United Kingdom, listed on LSE as SSE.L.

What our checks show for SSE.L

Red flags

• The net margin fell by 22.9 points over 5 years, to 11.9%: the company keeps less of each sale as profit.
• Revenue fell 6.6% a year over the last 3 years.
• Free cash flow is negative (-7% of revenue): the business spends more cash than it brings in.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Net debt is 3.8x a year of EBITDA (debt/equity 1.03). That limits room in a downturn and raises refinancing risk.
• The stock has fallen as much as 41% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 2.8 years.
• Return on capital (ROCE) is only 7%.

Strengths

• Operating profit covers interest 10.3 times over.
• The gross margin is 38.1% and has risen by 18.1 points: pricing power is holding.
• Operating cash flow is 2.84x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 30.9% a year over the next years.
• Analysts expect the net margin to improve by 11.6 points from today's 11.9%.
• Earnings per share grew 91.9% a year over the last 3 years.

Next earnings report: 2026-11-18

Similar companies

RWE.DE · ORG.AX · EDP.LS · EOAN.DE · SRE · BIP

Questions

What grade does SSE plc (SSE.L) have?

In our weekly check, SSE plc is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SSE.L stock?

This week's biggest flags for SSE plc: Margins falling, Weak revenue growth, Weak free cash flow. In total 8 of 24 checks show a warning or a red flag.

What does SSE plc do?

SSE plc is an Utilities company (Diversified Utilities) based in the United Kingdom, listed on LSE as SSE.L.

When does SSE plc report earnings next?

The next earnings report is expected on 2026-11-18. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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