SSE Plc
SSE Plc Fundamental Analysis
SSE Plc (SCT.DE) shows weak financial fundamentals with a PE ratio of 27.85, profit margin of 9.55%, and ROE of 9.25%. The company generates $12.4B in annual revenue with weak year-over-year growth of -16.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 14.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SCT.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakSCT.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateSCT.DE shows balanced valuation metrics.
Growth Score
ModerateSCT.DE shows steady but slowing expansion.
Financial Health Score
ModerateSCT.DE shows balanced financial health with some risks.
Profitability Score
WeakSCT.DE struggles to sustain strong margins.
Key Financial Metrics
Is SCT.DE Expensive or Cheap?
P/E Ratio
SCT.DE trades at 27.85 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SCT.DE's PEG of -1.44 indicates potential undervaluation.
Price to Book
The market values SSE Plc at 2.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.77 times EBITDA. This is generally considered low.
How Well Does SCT.DE Make Money?
Net Profit Margin
For every $100 in sales, SSE Plc keeps $9.55 as profit after all expenses.
Operating Margin
Core operations generate 20.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.25 in profit for every $100 of shareholder equity.
ROA
SSE Plc generates $3.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SSE Plc generates strong operating cash flow of $3.16B, reflecting robust business health.
Free Cash Flow
SSE Plc generates weak or negative free cash flow of $-974.49M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.81 in free cash annually.
FCF Yield
SCT.DE converts -2.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SCT.DE Stacks Against Its Sector Peers
| Metric | SCT.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.85 | 20.58 | Worse (Expensive) |
| ROE | 9.25% | 892.00% | Weak |
| Net Margin | 9.55% | 796.00% | Weak |
| Debt/Equity | 0.92 | 1.53 | Strong (Low Leverage) |
| Current Ratio | 0.97 | 1.49 | Weak Liquidity |
| ROA | 3.53% | -6028.00% (disorted) | Weak |
SCT.DE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SSE Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.02%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
13.60%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
206.97%
Industry Style: Defensive, Dividend, Income
High Growth