# Sse (SSE.LSE)

Canonical: https://gigainvestors.com/s/SSE.LSE

Analysis as of: 2026-10-16T07:34:04.578Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 2,540.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 1

- Operating margin variation: 0.51×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: 0.04×

- FY2019: 0.07×

- FY2020: 0.11×

- FY2021: 0.13×

- FY2022: 0.14×

- FY2023: 0.09×

- FY2024: 0.25×

- FY2025: 0.19×

- FY2026: 0.21×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.3%

- ROIC, second-lowest year: 3.9%

- Typical minus recent gross margin: -14.7 pp

- Typical gross margin (annual median): 23.4%

- Recent gross margin (lower of latest and 3-year median): 38.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 17.0%

- ROIC including acquisitions, ten-year median: 0.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 11.7%

- FY2018: 7.1%

- FY2019: 3.1%

- FY2020: 3.9%

- FY2021: 5.8%

- FY2022: 5.5%

- FY2023: 5.0%

- FY2024: 10.8%

- FY2025: 6.8%

- FY2026: 6.9%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -0.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP -248M

- Net income, five-year total: GBP 7.0B

- Return on incremental invested capital: 1.6%

- Working capital / revenue, annual change: 1.1 pp

- Working capital / revenue, change between three-year averages: 9.4 pp

- Working capital / revenue, final three-year average: 14.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.97×

- FY2023: 1.51×

- FY2024: -0.01×

- FY2025: -0.82×

- FY2026: -1.62×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- ROIC first 3 years vs last 3 years: 7.1% vs 6.9%

- Per-share earnings: 0.61 to 1.07 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- material buybacks concentrated at lower earnings yields (Spearman rho below threshold)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.2%

- Ordinary dilution, 5-year annual growth: 2.7%

- Market cap gain: GBP 16B

- Cumulative retained earnings: GBP 6.3B

- Diluted shares, 10-year annual growth: 1.2%

- Diluted shares, 5-year annual growth: 2.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 7.3%

- Per-share value change: GBP 0.46

- Per-share value, starting three-year median: GBP 0.61

- Per-share value, ending three-year median: GBP 1.07

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 1.6%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 4.1B

- Cumulative net income, 10 years: GBP 13B

- ROIC, first three-year median: 7.1%

- ROIC, last three-year median: 6.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 1.50

- FY2018: GBP 0.61

- FY2019: GBP 1.17

- FY2020: GBP 0.16

- FY2021: GBP 2.15

- FY2022: GBP 2.86

- FY2023: GBP -0.14

- FY2024: GBP 1.56

- FY2025: GBP 1.07

- FY2026: GBP 1.00

### accounting: pass

- Sloan accruals: -6.3%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.84×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.24×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.2%

- FY2018: -4.6%

- FY2019: 1.0%

- FY2020: -5.4%

- FY2021: 2.1%

- FY2022: 5.4%

- FY2023: -6.1%

- FY2024: -7.6%

- FY2025: -4.2%

- FY2026: -6.3%

## Holders

## Price story

Up 56% since Oct 2023 · sales +0.5%

Story as of 2026-10-16T09:59:58.972Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +0.5%; source https://filings.xbrl.org/549300KI75VYLLMSK856/2026-03-31/ESEF/GB/0/549300KI75VYLLMSK856-2026-03-31/reports/549300KI75VYLLMSK856-2026-03-31-T01.xhtml; observed 2026-06-25.

- FY2017: GBP 29B 

- FY2018: GBP 27B 

- FY2019: GBP 7.3B 

- FY2020: GBP 6.8B 

- FY2021: GBP 6.8B 

- FY2022: GBP 8.7B 

- FY2023: GBP 12B 

- FY2024: GBP 10B 

- FY2025: GBP 10B 

- FY2026: GBP 10B 

### Gross margin · FY2026

gross margin 38.1%; source https://filings.xbrl.org/549300KI75VYLLMSK856/2026-03-31/ESEF/GB/0/549300KI75VYLLMSK856-2026-03-31/reports/549300KI75VYLLMSK856-2026-03-31-T01.xhtml; observed 2026-06-25.

- FY2017: 11.9% 

- FY2018: 8.4% 

- FY2019: 19.0% 

- FY2020: 26.8% 

- FY2021: 30.7% 

- FY2022: 20.0% 

- FY2023: 15.4% 

- FY2024: 41.6% 

- FY2025: 38.1% 

- FY2026: 38.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities diversified; annual sales are GBP 10.2 billion.

- Source: https://filings.xbrl.org/549300KI75VYLLMSK856/2026-03-31/ESEF/GB/0/549300KI75VYLLMSK856-2026-03-31/reports/549300KI75VYLLMSK856-2026-03-31-T01.xhtml (filed 2026-06-25); FY2026: revenue 10186500000; grossProfit 3881500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SSE.LSE: SSE plc engages in the generation, transmission, distribution, and supply of electricity. The company distributes electricity to approximately 4 million homes and businesses in southern central England and the north of Scotland; and owns, develops, and operates the high voltage electricity transmission system in the north of Scotland and other areas. Its diversified portfolio includes onshore and offshore wind farms, hydro-electric power, and batteries, flexible thermal generation, and electricity transmission and distribution networks. In addition, the company provides energy products and services; and invests in, develops, builds, and operates electricity infrastructure and businesses. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.

### Why customers stay

Margins ranged from 38.1% to 41.6% during 2024–26; it earns 6.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2024: grossProfit / revenue = 41.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2025: grossProfit / revenue = 38.1%.

- Source: https://filings.xbrl.org/549300KI75VYLLMSK856/2026-03-31/ESEF/GB/0/549300KI75VYLLMSK856-2026-03-31/reports/549300KI75VYLLMSK856-2026-03-31-T01.xhtml (filed 2026-06-25); FY2026: grossProfit / revenue = 38.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); 10-year return on capital observations [[2017,0.11682078341259684],[2018,0.07130939773013303],[2019,0.031036655138276397],[2020,0.03866847184224179],[2021,0.057557260615895084],[2022,0.0548702542274069],[2023,0.05033829670804412],[2024,0.10816042579850094],[2025,0.06777158749042672],[2026,0.06869277494070103]]; median 0.0626644240531609. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 25.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2017: growth capex 99406219.0389111; upkeep 1521693780.961089; owner earnings 843406219.0389111. Growth capex / owner earnings = 0.11786280062315373.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2018: growth capex 0; upkeep 1313600000; owner earnings 97100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2019: growth capex 0; upkeep 1226400000; owner earnings 648440000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2021: growth capex 33106139.787990093; upkeep 1144193860.21201; owner earnings 1607806139.78799. Growth capex / owner earnings = 0.0205908778233398.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2022: growth capex 859300000; upkeep 596500000; owner earnings 2948300000. Growth capex / owner earnings = 0.29145609334192585.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Dividend observations: [[2017,668700000],[2018,594500000],[2019,689900000],[2020,603000000],[2021,797400000],[2022,506600000],[2023,474300000],[2024,917800000],[2025,402100000],[2026,674000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/549300KI75VYLLMSK856/2026-03-31/ESEF/GB/0/549300KI75VYLLMSK856-2026-03-31/reports/549300KI75VYLLMSK856-2026-03-31-T01.xhtml (filed 2026-06-25); FY2026: cash repurchases 25400000 GBP.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SSE.LSE SharesStats.PercentInsiders = 0.105 percentage points; cache date 2026-10-16.

### What the price says

The price is 3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Closing price 2540 GBX; reporting-to-trading FX 100; FY2026 annual sales per share 8.446146230721205; price multiple 3.007288686005988. FY2026 cash earnings/share -1.6231372877578178. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 1,591.00 per share

- 2016-11: GBX 1,475.00 per share

- 2016-12: GBX 1,553.00 per share

- 2017-01: GBX 1,489.00 per share

- 2017-02: GBX 1,541.00 per share

- 2017-03: GBX 1,476.00 per share

- 2017-04: GBX 1,391.00 per share

- 2017-05: GBX 1,505.00 per share

- 2017-06: GBX 1,453.00 per share

- 2017-07: GBX 1,379.00 per share

- 2017-08: GBX 1,425.00 per share

- 2017-09: GBX 1,397.00 per share

- 2017-10: GBX 1,382.00 per share

- 2017-11: GBX 1,369.00 per share

- 2017-12: GBX 1,320.00 per share

- 2018-01: GBX 1,304.50 per share

- 2018-02: GBX 1,225.00 per share

- 2018-03: GBX 1,276.00 per share

- 2018-04: GBX 1,381.00 per share

- 2018-05: GBX 1,367.50 per share

- 2018-06: GBX 1,355.00 per share

- 2018-07: GBX 1,250.00 per share

- 2018-08: GBX 1,253.00 per share

- 2018-09: GBX 1,146.00 per share

- 2018-10: GBX 1,141.50 per share

- 2018-11: GBX 1,095.50 per share

- 2018-12: GBX 1,081.50 per share

- 2019-01: GBX 1,170.00 per share

- 2019-02: GBX 1,188.50 per share

- 2019-03: GBX 1,187.00 per share

- 2019-04: GBX 1,144.50 per share

- 2019-05: GBX 1,078.50 per share

- 2019-06: GBX 1,122.00 per share

- 2019-07: GBX 1,100.50 per share

- 2019-08: GBX 1,151.00 per share

- 2019-09: GBX 1,245.50 per share

- 2019-10: GBX 1,283.50 per share

- 2019-11: GBX 1,300.00 per share

- 2019-12: GBX 1,438.50 per share

- 2020-01: GBX 1,508.50 per share

- 2020-02: GBX 1,529.00 per share

- 2020-03: GBX 1,305.00 per share

- 2020-04: GBX 1,250.00 per share

- 2020-05: GBX 1,241.50 per share

- 2020-06: GBX 1,364.50 per share

- 2020-07: GBX 1,301.00 per share

- 2020-08: GBX 1,259.00 per share

- 2020-09: GBX 1,208.00 per share

- 2020-10: GBX 1,255.00 per share

- 2020-11: GBX 1,341.00 per share

- 2020-12: GBX 1,500.00 per share

- 2021-01: GBX 1,484.00 per share

- 2021-02: GBX 1,324.50 per share

- 2021-03: GBX 1,455.00 per share

- 2021-04: GBX 1,468.00 per share

- 2021-05: GBX 1,542.00 per share

- 2021-06: GBX 1,500.50 per share

- 2021-07: GBX 1,445.50 per share

- 2021-08: GBX 1,632.50 per share

- 2021-09: GBX 1,571.00 per share

- 2021-10: GBX 1,643.50 per share

- 2021-11: GBX 1,552.00 per share

- 2021-12: GBX 1,649.00 per share

- 2022-01: GBX 1,582.50 per share

- 2022-02: GBX 1,704.50 per share

- 2022-03: GBX 1,748.50 per share

- 2022-04: GBX 1,868.50 per share

- 2022-05: GBX 1,772.00 per share

- 2022-06: GBX 1,616.00 per share

- 2022-07: GBX 1,768.00 per share

- 2022-08: GBX 1,652.50 per share

- 2022-09: GBX 1,527.50 per share

- 2022-10: GBX 1,556.00 per share

- 2022-11: GBX 1,708.50 per share

- 2022-12: GBX 1,712.00 per share

- 2023-01: GBX 1,723.50 per share

- 2023-02: GBX 1,745.50 per share

- 2023-03: GBX 1,803.00 per share

- 2023-04: GBX 1,837.50 per share

- 2023-05: GBX 1,881.50 per share

- 2023-06: GBX 1,841.00 per share

- 2023-07: GBX 1,685.50 per share

- 2023-08: GBX 1,626.50 per share

- 2023-09: GBX 1,610.00 per share

- 2023-10: GBX 1,633.00 per share

- 2023-11: GBX 1,832.50 per share

- 2023-12: GBX 1,856.00 per share

- 2024-01: GBX 1,685.00 per share

- 2024-02: GBX 1,625.50 per share

- 2024-03: GBX 1,650.00 per share

- 2024-04: GBX 1,666.50 per share

- 2024-05: GBX 1,755.00 per share

- 2024-06: GBX 1,789.50 per share

- 2024-07: GBX 1,880.50 per share

- 2024-08: GBX 1,887.00 per share

- 2024-09: GBX 1,883.00 per share

- 2024-10: GBX 1,761.00 per share

- 2024-11: GBX 1,771.50 per share

- 2024-12: GBX 1,604.00 per share

- 2025-01: GBX 1,631.50 per share

- 2025-02: GBX 1,528.00 per share

- 2025-03: GBX 1,594.00 per share

- 2025-04: GBX 1,692.00 per share

- 2025-05: GBX 1,761.00 per share

- 2025-06: GBX 1,831.00 per share

- 2025-07: GBX 1,848.50 per share

- 2025-08: GBX 1,730.00 per share

- 2025-09: GBX 1,741.50 per share

- 2025-10: GBX 1,916.00 per share

- 2025-11: GBX 2,198.00 per share

- 2025-12: GBX 2,179.00 per share

- 2026-01: GBX 2,422.00 per share

- 2026-02: GBX 2,689.00 per share

- 2026-03: GBX 2,595.00 per share

- 2026-04: GBX 2,641.00 per share

- 2026-05: GBX 2,331.00 per share

- 2026-06: GBX 2,436.00 per share

- 2026-07: GBX 2,346.00 per share

- 2026-08: GBX 2,449.00 per share

- 2026-09: GBX 2,491.00 per share

- 2026-10: GBX 2,514.00 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 280.55 per share, central GBX 308.07 per share, high GBX 344.70 per share

- FY2018: low GBX 187.31 per share, central GBX 213.13 per share, high GBX 247.51 per share

- FY2019: low GBX 68.37 per share, central GBX 74.49 per share, high GBX 82.64 per share

- FY2020: low GBX 52.81 per share, central GBX 56.32 per share, high GBX 60.99 per share

- FY2021: low GBX 343.79 per share, central GBX 372.06 per share, high GBX 409.70 per share

- FY2022: low GBX 889.46 per share, central GBX 999.58 per share, high GBX 1,146.18 per share

- FY2023: low GBX 1,197.65 per share, central GBX 1,350.68 per share, high GBX 1,554.40 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/549300KI75VYLLMSK856/2026-03-31/ESEF/GB/0/549300KI75VYLLMSK856-2026-03-31/reports/549300KI75VYLLMSK856-2026-03-31-T01.xhtml); period 2026-03-31, filed 2026-06-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations