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Titel |
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| 11.09.25 12:55:53 |
Die miserablen Aktienperformance von SSE plc (LON:SSE) spiegelt schwache Fundamentaldaten wider. |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Okay, here’s a 600-word summary of the text, followed by a German translation:
**Summary (600 Words)**
This article assesses SSE (London Stock Exchange: SSE), which has experienced a 9.7% stock price decline over the last three months. The core of the analysis focuses on Return on Equity (ROE) as a key indicator of the company’s financial health and future growth potential.
The article begins by explaining ROE – the measure of how effectively a company utilizes shareholder capital to generate profit. It calculates SSE’s ROE at 11%, meaning the company earns £0.11 for every £1 of shareholder equity.
Despite a relatively average ROE (9.9% compared to the industry average), the analysis reveals significant concerning trends. Over the past five years, SSE has experienced a 2.2% decline in net income. Furthermore, SSE’s earnings growth lags significantly behind the industry’s 13% growth rate over the same period. This gap is largely attributed to the company’s low reinvestment of profits.
A critical point is SSE’s high dividend payout ratio – currently 52%. This means the company is distributing a large portion of its profits as dividends, leaving minimal capital for reinvestment and expansion. This high payout ratio is a key factor contributing to the company’s stagnant earnings.
The article highlights the importance of ROE in relation to earnings growth. Companies with higher ROE and greater profit retention typically exhibit stronger growth rates.
Looking ahead, analysts predict a shift. The expected payout ratio is anticipated to decrease to 38% over the next three years, while the ROE is projected to increase to 16% during the same period. This expected shift is seen as a positive development, suggesting that the company is becoming more efficient with its retained earnings.
The analysis emphasizes the significant role of earnings growth in stock valuation. Investors must determine whether the expected growth (or decline) is already reflected in the stock’s price. The research reports that the company’s performance is a significant let down.
Ultimately, the article presents a mixed picture. While the projected changes in the payout ratio and ROE offer a glimmer of hope, the company’s historical underperformance and current financial situation remain concerning. Readers are encouraged to consult the free research report to visualize the intrinsic value of the stock and consider analyst forecasts.
The article concludes by acknowledging its general nature, emphasizing that it’s based on historical data and analyst forecasts and not intended as financial advice. Simply Wall St holds no position in any of the stocks discussed.
**German Translation (approx. 600 words)**
**Zusammenfassung: Analyse von SSE (London Stock Exchange: SSE)**
Mit einem Kursrückgang von 9,7 % in den letzten drei Monaten ist eine einfache Bewertung von SSE (London Stock Exchange: SSE) schwierig. Da Aktienkurse normalerweise über die langfristige Effizienz eines Unternehmens bestimmt werden, was in diesem Fall jedoch sehr schwach ist, haben wir uns entschieden, die wichtigsten Finanzkennzahlen des Unternehmens zu untersuchen. In diesem Artikel konzentrieren wir uns auf das Return on Equity (ROE) von SSE.
Return on Equity (ROE) ist ein wichtiger Indikator zur Beurteilung, wie effizient ein Unternehmen das Kapital seiner Aktionäre einsetzt. Einfach ausgedrückt, es misst die Rentabilität eines Unternehmens im Verhältnis zu seinem Eigenkapital.
Wir haben 21 US-Aktien identifiziert, für die ein Dividendenertrag von über 6 % im nächsten Jahr prognostiziert wird. Die vollständige Liste steht Ihnen kostenlos zur Verfügung.
**Wie wird ROE berechnet?**
Die Formel für ROE lautet:
Return on Equity = Nettogewinn (aus laufender Geschäftstätigkeit) / Eigenkapital
Basierend auf dieser Formel beträgt das ROE von SSE:
11 % = 1,3 Mrd. GBP / 13 Mrd. GBP (basierend auf den zwölf Monaten bis März 2025)
“Der “Return” ist der Einkommen, das das Unternehmen im letzten Jahr erzielt hat. Eine Möglichkeit, dies zu konzeptualisieren, ist, dass das Unternehmen für jede 1 £ an Aktionärskapital 0,11 £ Gewinn erzielt.
Ergänzende Informationen finden Sie in unserer neuesten Analyse für SSE
**Warum ist ROE wichtig für das Wachstum der Erträge?**
Bisher haben wir gelernt, dass ROE ein Maß für die Rentabilität eines Unternehmens ist. Basierend auf dem Anteil der Gewinne, den das Unternehmen wählend reinvestiert oder “behält”, können wir die zukünftige Fähigkeit eines Unternehmens bewerten, Gewinne zu erzielen. Unter der Annahme, dass alle anderen Faktoren gleich sind, sind Unternehmen, die sowohl einen höheren Return on Equity als auch eine höhere Gewinnrückhaltung aufweisen, in der Regel diejenigen, die ein höheres Wachstum in ihrem Vergleich zu Unternehmen mit ähnlichen Merkmalen haben.
**Eine Seite-an-Seite-Vergleich der SSE-Gewinnwachstum und 11 % ROE**
Auf den ersten Blick sieht das ROE von SSE nicht vielversprechend aus. Doch eine genauere Untersuchung zeigt, dass das ROE des Unternehmens ähnlich zum Branchendurchschnitt von 9,9 % ist. SSE hat jedoch in den letzten fünf Jahren einen Nettogewinnrückgang von 2,2 % verzeichnet. Es ist wichtig zu beachten, dass das Unternehmen ein leichtes ROE aufweist. Daher könnte der Rückgang der Erträge auch auf diesen Aspekt zurückzuführen sein.
Daher haben wir SSEs Leistung mit der der Branche verglichen und festgestellt, dass das Unternehmen zwar seine Erträge schrumpft, die Branche aber ihre Erträge in den letzten Jahren um 13 % gesteigert hat. LSE:SSE Früheres Gewinnwachstum am 11. September 2025
Das Gewinnwachstum ist ein entscheidender Faktor bei der Aktienbewertung. Der Anleger sollte versuchen, festzustellen, ob das erwartete Wachstum oder Rückgang, je nachdem welcher der Fall ist, bereits im Preis der Aktie enthalten ist. Dies hilft, festzustellen, ob die Zukunft der Aktie vielversprechend oder düster ist. Wie viel ist SSE heute wert? Der Infografik-Wertgutachten in unserem kostenlosen Forschungsbericht hilft, zu visualisieren, ob SSE derzeit vom Markt falsch bewertet wird.
Die Geschichte geht weiter
Nutzt SSE seine gebundenen Erträge effektiv?
SSE weist ein mittleres Drei-Jahres-Payout-Verhältnis von 52 % (d. h. es zahlt 48 % seiner Gewinne als Dividende an seine Aktionäre) auf. Dies deutet darauf hin, dass das Unternehmen den Großteil seiner Gewinne als Dividenden an seine Aktionäre zahlt. Dies trägt auf jeden Fall zu den schrumpfenden Erträgen bei. Mit nur sehr wenig verbleibt für die Wiederinvestition in das Geschäft ist ein Gewinnwachstum nicht wahrscheinlich. Sie können die 2 Risiken, die wir für SSE identifiziert haben, mit unserem kostenlosen Dashboard sehen.
Darüber hinaus zahlt SSE seit mindestens zehn Jahren Dividenden, was darauf hindeutet, dass das Aufrechterhalten von Dividendenzahlungen sogar gegenüber dem Geschäftswachstum wichtiger ist. Bei der Analyse der jüngsten Konsensdaten der Analysten haben wir festgestellt, dass das zukünftige Payout-Verhältnis für die nächsten drei Jahre auf 38 % sinken soll. Die Tatsache, dass das ROE für die nächsten drei Jahre voraussichtlich auf 16 % steigen wird, wird durch den Rückgang des Payout-Verhältnisses erklärt.
**Zusammenfassung**
Insgesamt ist die Leistung von SSE eine größere Enttäuschung. Da das Unternehmen nicht viel in das Geschäft reinvestiert und das ROE niedrig ist, ist es nicht überraschend, dass das Ertragswachstum fehlt. Mitdenken Sie, dass die Erträge aufgrund des niedrigen ROE im Rückgang sind. Wir haben jedoch festgestellt, dass die erwarteten Änderungen des Payout-Verhältnisses und des ROE vielversprechend sind. Um mehr über die zukünftigen Gewinnwachstums-Prognosen des Unternehmens zu erfahren, schauen Sie sich diesen kostenlosen Bericht zu Analystenprognosen an, um mehr zu erfahren.
Haben Sie Feedback zu diesem Artikel? Sind Sie besorgt über den Inhalt? Bitte kontaktieren Sie uns direkt. Alternativ können Sie uns eine E-Mail an editorial-team (at) simplywallst.com senden.
Dieser Artikel von Simply Wall St ist von Natur aus allgemein. Wir geben Kommentare auf der Grundlage historischer Daten und Analystenprognosen mit einer unvoreingenommenen Methodik ab und unsere Artikel sind nicht dazu gedacht, Finanzberatung zu bieten. Es handelt sich nicht um eine Empfehlung zum Kauf oder Verkauf einer Aktie und berücksichtigt nicht Ihre Ziele oder Ihre finanzielle Situation. Wir haben das Ziel, Ihnen langfristige Analysen zu bieten, die auf fundamentalen Daten basieren. Möglicherweise berücksichtigen unsere Analysen nicht die neuesten preissensiblen Unternehmensankündigungen oder qualitative Materialien. Simply Wall St hat keine Position in den genannten Aktien. |
| 26.08.25 07:25:59 |
Die SSE (LON:SSE) erzielt Wachstum im Kapitalertrag. |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Zusammenfassung**
Dieser Artikel untersucht, wie man Aktien als "Multi-Bagger" – also solche mit großem Wachstumspotenzial – identifizieren kann. Der Schlüssel liegt in Unternehmen mit einer steigenden Return on Capital Employed (ROCE). ROCE misst, wie effektiv ein Unternehmen Kapital einsetzt, um Gewinne zu erwirtschaften.
Der Artikel hebt SSE (London Stock Exchange: SSE) als vielversprechendes Kandidaten hervor. SSE weist derzeit einen ROCE von 8,9% auf, was über dem Durchschnitt von 7,1% für die Elektroenergiebranche liegt. Dies ist auf die Fähigkeit des Unternehmens zurückzuführen, seine Erträge kontinuierlich zu reinvestieren und seine Kapitalbasis um 60 % in den letzten fünf Jahren zu erweitern.
Die Analyse zeigt, dass SSE Renditen effektiv verstärkt – das heißt, es erwirtschaftet höhere Gewinne aus derselben Kapitalmenge im Laufe der Zeit. Dies ist ein entscheidender Faktor bei der Identifizierung potenzieller Multi-Bagger.
Der Artikel betont die Bedeutung des Beitrags der ROCE-Trends und ermutigt Investoren, das zukünftige Potenzial des Unternehmens zu berücksichtigen. Er verweist auf Analystenprognosen und fordert eine weitere Prüfung, auch wenn die derzeitige Leistung vielversprechend ist.
Schließlich erinnert der Artikel daran, dass eine hohe ROCE, kombiniert mit einer steigenden Kapitalbasis, ein charakteristisches Merkmal erfolgreicher, schnell wachsender Unternehmen ist. SSE's 82% Rendite in den letzten fünf Jahren spiegelt das Vertrauen der Anleger in diese Strategie wider. Mit allem daran, wird jedoch empfohlen, das Risiko weiter zu prüfen und weitere Untersuchungen zu führen.
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Would you like me to translate anything else or perhaps focus on a specific aspect of this text? |
| 08.08.25 05:20:18 |
Die Anleger von SSE (LON:SSE) haben in den letzten fünf Jahren eine respektable Rendite von 73% gesehen. |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
**Zusammenfassung des Textes**
Dieser Artikel analysiert SSE plc (LON:SSE), ein britisches Energieunternehmen, und bewertet sein langfristiges Investitionspotenzial. Der Hauptgedanke ist, dass SSE zwar einen respektablen Anstieg des Aktienkurses von 38 % in den letzten fünf Jahren erzielt hat, aber nicht den Gesamtmarktrend erreicht hat. Kürzlich ist der Aktienkurs um 2,3 % in den letzten zwölf Monaten gesunken, was zu einer eingehenderen Betrachtung der Unternehmensgrundlagen führt.
Der Bericht konzentriert sich auf das Wachstum des Gewinns pro Aktie (EPS) als wichtiger Indikator. Über die letzten fünf Jahre hat SSE ein starkes EPS-Wachstum von 22 % pro Jahr gezeigt – deutlich höher als der 7%ige jährliche Aktienkursanstieg. Dies deutet auf eine Verschiebung der Marktstimmung hin, wobei Investoren scheinbar weniger Begeisterung für den Aktienkurs zeigen.
Über das EPS hinaus untersucht der Bericht die Gesamtrendite für Aktionäre (TSR). Trotz des jüngsten Kursrückgangs beträgt die TSR von SSE über die letzten fünf Jahre 73 %, hauptsächlich aufgrund von großzügigen Dividendenzahlungen. Dies verdeutlicht die Bedeutung von Dividenden für die Gesamtrendite der Anleger.
Der Autor betont das „Wahlscheiben/Waagen“-Analogie – der Markt reagiert auf kurzfristige Stimmung, aber letztendlich belohnt Unternehmen mit konsequent starkem Wachstum.
Darüber hinaus legt der Bericht Wert auf die Berücksichtigung von Faktoren, die über den Aktienkurs hinausgehen. Er rät Investoren, die Leistung des Unternehmens, insbesondere seine Fähigkeit, ein hohes EPS-Wachstum aufrechtzuerhalten, genauer zu prüfen, bevor sie Anlageentscheidungen treffen.
Schließlich gibt der Bericht klar an, dass es sich um allgemeine Kommentare auf der Grundlage historischer Daten und Analystenprognosen handelt, und *nicht* um Finanzberatung. Er weist ausdrücklich darauf hin, dass Simply Wall St keine Position in Aktien hält, die im Text erwähnt werden.
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| 28.03.25 09:11:17 |
Energy giant SSE names new chief executive from inside firm |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
SSE has appointed a new chief executive after current boss Alistair Phillips-Davies announced his retirement last year.
Martin Pibworth, who is currently the firm’s chief commercial officer, will take over the top job in July, with a nearly £1 million a year starting salary.
It comes after Mr Phillips-Davies oversaw SSE’s exit from the retail energy market in 2019, selling that part of its business to Ovo.
The outgoing chief was also made a Commander of the Order of the British Empire (CBE) for services to the energy industry last year.
Mr Pibworth takes the hotseat as SSE is partway through a £20.5 billion investment plan, which involves connecting an onshore wind farm in Shetland to the UK power grid and building a £4.3 billion sub-sea transmission cable between Peterhead in Scotland to a site in Yorkshire.
Both projects contribute to plans from the Government to ramp up massively clean energy generation on UK soil and in its waters to virtually cut out carbon emissions from the grid by 2030.
SSE is also working on the world’s largest offshore wind farm, the 3.6 gigawatt Dogger Bank scheme, and said it expects to complete the first part of that by the second half of 2025.
Chairman Sir John Manzoni said the new boss is a “proven industry leader, with deep sector experience and a highly strategic outlook”.
“Alistair has been an exceptional chief executive, leading the company’s transition into being the UK and Ireland’s clean energy champion, whilst delivering true and lasting value for all of our stakeholders.”
SSE said the new chief will get a base salary of £970,000 per annum, which will rise to £1.05 million from April next year, while bonuses and share-based incentive payments could see that rise significantly further.
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| 28.03.25 08:38:17 |
Are SSE plc's (LON:SSE) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
It is hard to get excited after looking at SSE's (LON:SSE) recent performance, when its stock has declined 3.8% over the past three months. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Specifically, we decided to study SSE's ROE in this article.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
How To Calculate Return On Equity?
Return on equity can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for SSE is:
17% = UK£2.1b ÷ UK£12b (Based on the trailing twelve months to September 2024).
The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each £1 of shareholders' capital it has, the company made £0.17 in profit.
See our latest analysis for SSE
What Has ROE Got To Do With Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.
SSE's Earnings Growth And 17% ROE
To start with, SSE's ROE looks acceptable. Especially when compared to the industry average of 10% the company's ROE looks pretty impressive. Despite this, SSE's five year net income growth was quite flat over the past five years. Based on this, we feel that there might be other reasons which haven't been discussed so far in this article that could be hampering the company's growth. For example, it could be that the company has a high payout ratio or the business has allocated capital poorly, for instance.
Next, on comparing with the industry net income growth, we found that the industry grew its earnings by 14% over the last few years.LSE:SSE Past Earnings Growth March 28th 2025
Earnings growth is a huge factor in stock valuation. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is SSE fairly valued? This infographic on the company's intrinsic value has everything you need to know.
Story Continues
Is SSE Efficiently Re-investing Its Profits?
Despite having a moderate three-year median payout ratio of 38% (meaning the company retains62% of profits) in the last three-year period, SSE's earnings growth was more or les flat. Therefore, there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
In addition, SSE has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 39%. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 15%.
Conclusion
On the whole, we do feel that SSE has some positive attributes. However, given the high ROE and high profit retention, we would expect the company to be delivering strong earnings growth, but that isn't the case here. This suggests that there might be some external threat to the business, that's hampering its growth. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 11.03.25 09:37:48 |
SSE (LON:SSE) Might Have The Makings Of A Multi-Bagger |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So when we looked at SSE (LON:SSE) and its trend of ROCE, we really liked what we saw.
Return On Capital Employed (ROCE): What Is It?
Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for SSE:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.13 = UK£3.0b ÷ (UK£29b - UK£5.1b) (Based on the trailing twelve months to September 2024).
Therefore, SSE has an ROCE of 13%. In absolute terms, that's a satisfactory return, but compared to the Electric Utilities industry average of 8.1% it's much better.
Check out our latest analysis for SSE LSE:SSE Return on Capital Employed March 11th 2025
In the above chart we have measured SSE's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for SSE .
What The Trend Of ROCE Can Tell Us
Investors would be pleased with what's happening at SSE. The data shows that returns on capital have increased substantially over the last five years to 13%. The amount of capital employed has increased too, by 47%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers.
The Key Takeaway
A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what SSE has. And with a respectable 51% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence.
On a final note, we've found 2 warning signs for SSE that we think you should be aware of.
While SSE may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this freelist here.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 13.02.25 05:48:42 |
SSE's (LON:SSE) five-year total shareholder returns outpace the underlying earnings growth |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
For many, the main point of investing is to generate higher returns than the overall market. But every investor is virtually certain to have both over-performing and under-performing stocks. At this point some shareholders may be questioning their investment in SSE plc (LON:SSE), since the last five years saw the share price fall 11%. It's down 12% in about a quarter.
Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.
Check out our latest analysis for SSE
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
While the share price declined over five years, SSE actually managed to increase EPS by an average of 2.2% per year. Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain). Or possibly, the market was previously very optimistic, so the stock has disappointed, despite improving EPS.
Given that EPS has increased, but the share price has fallen, it's fair to say that market sentiment around the stock has become more negative. Generally speaking, though, if the company can keep growing EPS then the share price will eventually follow.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).LSE:SSE Earnings Per Share Growth February 13th 2025
We know that SSE has improved its bottom line lately, but is it going to grow revenue? This freereport showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of SSE, it has a TSR of 13% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
SSE shareholders are down 1.2% for the year (even including dividends), but the market itself is up 18%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 3%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand SSE better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for SSE you should know about.
Story Continues
We will like SSE better if we see some big insider buys. While we wait, check out this freelist of undervalued stocks (mostly small caps) with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 06.01.25 06:42:40 |
With 81% ownership, SSE plc (LON:SSE) boasts of strong institutional backing |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Key Insights
Given the large stake in the stock by institutions, SSE's stock price might be vulnerable to their trading decisions The top 25 shareholders own 50% of the company Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
If you want to know who really controls SSE plc (LON:SSE), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 81% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
Let's delve deeper into each type of owner of SSE, beginning with the chart below.
See our latest analysis for SSE LSE:SSE Ownership Breakdown January 6th 2025
What Does The Institutional Ownership Tell Us About SSE?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in SSE. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see SSE's historic earnings and revenue below, but keep in mind there's always more to the story.LSE:SSE Earnings and Revenue Growth January 6th 2025
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in SSE. The company's largest shareholder is JPMorgan Chase & Co, Brokerage and Securities Investments, with ownership of 5.0%. For context, the second largest shareholder holds about 4.9% of the shares outstanding, followed by an ownership of 4.3% by the third-largest shareholder.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of SSE
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that SSE plc insiders own under 1% of the company. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own UK£11m worth of shares. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over SSE. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for SSE you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 11.12.24 09:26:25 |
Energy firm promises £22 billion investment in ‘critical grid infrastructure’ |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Bosses at electricity firm SSEN Transmission have set out a £22 billion, five-year plan that they say will help the UK towards its clean energy targets as well as supporting tens of thousands of jobs.
The company, a subsidiary of energy giant SSE, is submitting plans to the energy regulator Ofgem in which it pledges to spend at least £22 billion on its business plan for the period April 2026 to March 2031.
That includes £16 billion for “strategic investments” already approved by Ofgem as part of work to improve the UK’s transmission network.
But SSEN Transmission says the potential for an additional £9.4 billion of investment could take overall spending over the five-year period to £31.7 billion.
The company insisted its plans could help the UK towards its net-zero targets, and also assist with the UK government’s clean energy target, which sets the goal of having at least 95% of electricity coming from low-carbon sources, such as renewable power, by 2030.
And if the additional spending goes ahead, it said investment of £31.7 billion would help support up to 37,000 jobs across the UK, including 17,500 in Scotland and 8,400 in the north of Scotland.
According to SSEN Transmission, its plans would contribute £15 billion to the UK economy, with £7 billion of this in Scotland, including £3 billion in the north of Scotland
Managing director Rob McDonald said the business plan “sets out an ambitious, deliverable blueprint, to unlock the unprecedented levels of investment required to deliver UK and Scottish net zero and energy security targets, including the clean power by 2030 mission”.
He added: “In what is one of the largest investment programmes of all time in Scotland, this plan will also support tens of thousands of jobs across the country, turbo-charging the economy and delivering a transformational and lasting legacy for communities, the economy and nature.”
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However, the power firm stressed that the success of its plan would depend on having a “financial framework commensurate with the scale of the task and capable of attracting the unprecedented levels of investment needed to deliver the clean energy transition and protect future energy consumers”.
Alistair Phillips Davies, the chief executive of SSE plc, stressed the need to “deliver a cleaner, more secure and affordable electricity system for current and future generations”.
He stated: “With a new national mission to deliver clean power by 2030 in order to boost energy security and protect future consumers, unlocking the right level of investment during the next price control will be key.
“We’re setting out today the extent of our ambition and commitment; it is now crucial that Ofgem backs that ambition with an investable and financeable framework, setting an appropriate cost of equity that recognises the unprecedented levels of investment required to decarbonise the economy and deliver a clean power system.”
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| 07.12.24 09:02:40 |
A Look At The Fair Value Of SSE plc (LON:SSE) |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Key Insights
The projected fair value for SSE is UK£18.32 based on Dividend Discount Model SSE's UK£17.00 share price indicates it is trading at similar levels as its fair value estimate Our fair value estimate is 16% lower than SSE's analyst price target of UK£21.75
In this article we are going to estimate the intrinsic value of SSE plc (LON:SSE) by taking the expected future cash flows and discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.
See our latest analysis for SSE
Step By Step Through The Calculation
We have to calculate the value of SSE slightly differently to other stocks because it is a electric utilities company. In this approach dividends per share (DPS) are used, as free cash flow is difficult to estimate and often not reported by analysts. This often underestimates the value of a stock, but it can still be good as a comparison to competitors. We use the Gordon Growth Model, which assumes dividend will grow into perpetuity at a rate that can be sustained. For a number of reasons a very conservative growth rate is used that cannot exceed that of a company's Gross Domestic Product (GDP). In this case we used the 5-year average of the 10-year government bond yield (2.1%). The expected dividend per share is then discounted to today's value at a cost of equity of 6.0%. Compared to the current share price of UK£17.0, the company appears about fair value at a 7.2% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
Value Per Share = Expected Dividend Per Share / (Discount Rate - Perpetual Growth Rate)
= UK£0.7 / (6.0% – 2.1%)
= UK£18.3LSE:SSE Discounted Cash Flow December 7th 2024
Important Assumptions
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at SSE as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.0%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
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SWOT Analysis for SSE
Strength
Earnings growth over the past year exceeded the industry.
Debt is well covered by earnings and cashflows.
Weakness
Dividend is low compared to the top 25% of dividend payers in the Electric Utilities market.
Opportunity
Annual earnings are forecast to grow for the next 3 years.
Good value based on P/E ratio and estimated fair value.
Threat
Dividends are not covered by cash flow.
Annual earnings are forecast to grow slower than the British market.
Looking Ahead:
Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For SSE, we've put together three additional elements you should assess:
Risks: We feel that you should assess the 2 warning signs for SSE we've flagged before making an investment in the company. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for SSE's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LSE every day. If you want to find the calculation for other stocks just search here.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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