SSE SSE.L
SSE is a British diversified energy company operating in electricity generation and networks, with a growing focus on renewables (offshore and onshore wind) and regulated networks. SSE presents solid financial health (7.95) and strong momentum (7.87), but its valuation is stretched (4.22) and its free cash flow conversion is very negative, which weighs on quality (4.06).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
SSE is a British diversified energy company operating in electricity generation and networks, with a growing focus on renewables (offshore and onshore wind) and regulated networks. SSE presents solid financial health (7.95) and strong momentum (7.87), but its valuation is stretched (4.22) and its free cash flow conversion is very negative, which weighs on quality (4.06).
Score by category
| Category | Score |
|---|---|
| Financial health | 7.7 |
| Quality / Moat | 4.1 |
| Valuation | 4.0 |
| Growth | 5.4 |
| Dividend | 4.1 |
| Momentum | 7.9 |
| Risk & Context | 7.8 |
OVERALL SCORE: 5.8/10
Context and risks
The rise in 10-year yields makes financing investment in networks and renewables, a long-duration business, more expensive. However, the impact is moderate given that SSE's debt is mostly fixed-rate and its interest coverage ratio is solid.
News considered in the analysis
- 3 UK Dividend Stocks With Defensive Cash Flows Worth A Closer Look — La mención de SSE como valor defensivo con flujos de caja estables refuerza la percepción de calidad del dividendo, aunque no aporta información nueva sobre el negocio.
- UK PM Burnham uses policy blitz to buy time for tougher decisions — Noticia política general sin impacto directo y demostrable en los fundamentales de SSE.
- SSE (LSE:SSE) Stock Fair Value Edges Lower After Mixed Analyst Target Changes — La rebaja de los precios objetivo por parte de los analistas refleja una ligera presión en la valoración, pero es un movimiento moderado y ya parcialmente descontado.
- UK, Japan to deepen ties with £18 billion investment agreement — Acuerdo macroeconómico entre países sin un vínculo directo y material con el negocio de SSE.
- Bears are Losing Control Over SSE (SSEZY), Here's Why It's a 'Buy' Now — La recomendación de compra de Zacks refleja un sentimiento positivo, pero es una opinión de analista sin impacto fundamental nuevo.
Verdict: Hold; the combination of a sound balance sheet and good momentum offsets the demanding valuation and weak cash generation.
Main risk: The main risk is the high net debt (ND/EBITDA of 3.17) in a rising interest rate environment, which could pressure financing costs and cash generation.
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