SSECHIX:SSEL -0.37%75 Gross Margin % is 38.43% as of Mar. 2026, which is 15% above its 10-year median of 33.35. GuruFocus rates CHIX:SSEL with a GF Score™ of 75/100 and a GF Value™ of £16.32 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 489 Utilities - Regulated companies, SSE ranks better than 61.76% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SSE's Gross Profit for the
six
months ended in Mar. 2026 was £2,134 Mil. SSE's Revenue for the
six
months ended in Mar. 2026 was £5,553 Mil. Therefore, SSE's Gross Margin % for the quarter that ended in Mar. 2026 was 38.43%.
The historical rank and industry rank for SSE's Gross Margin % or its related term are showing as below:
CHIX:SSEl'
s Gross Margin % Range Over the Past 10 Years
Min: -1.28 Med: 33.35 Max: 50.47
Current: 37.05
During the past 13 years, the highestGross Margin % of SSE was 50.47%. The lowest was -1.28%. And the median was 33.35%.
CHIX:SSEl's Gross Margin % is ranked better than 61.76% of 489
companies
in the Utilities - Regulated industry
Industry Median: 30.88
vs CHIX:SSEl: 37.05
SSE had a gross margin of 38.43% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for SSE was 0.00% per year.
SSE (CHIX:SSEl) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
SSE had a gross margin of 38.43% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
SSE Gross Margin % Related Terms
SSE Gross Margin % Historical Data
* Premium members only.
The historical data trend for SSE's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Diversified subindustry, SSE's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SSE Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, SSE's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SSE's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
SSE (CHIX:SSEL) has a Gross Margin % of 38.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SSE and its competitors. This is 15% above median its historical median of 33.35. According to the industry distribution chart, SSE ranks #187 out of 489 companies in the Utilities - Regulated industry, placing it in the top 38.2%.
Is SSE's Gross Margin % too high?
SSE's current Gross Margin % of 38.43% is 15% above median its 10-year median of 33.35. The Utilities - Regulated industry median Gross Margin % is 30.88. SSE's value of 38.43% is 24.4% above this industry median. Based on the distribution chart, SSE ranks #187 out of 489 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, SSE has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SSE's Gross Margin % compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, SSE ranks #187 out of 489 companies for Gross Margin %. This puts SSE in the upper half of its industry. The industry median Gross Margin % is 30.88. SSE's value of 38.43% is 24.4% above this benchmark. While the company's 10-year median is 33.35 vs. the industry median of 30.88, SSE has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.88, based on 489 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SSE's current Gross Margin % of 38.43% is 24.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on SSE and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SSE's current Gross Margin % is 38.43%, which is 15% above median its own 10-year median of 33.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SSE stock overvalued right now?
Based on GuruFocus' analysis, SSE (CHIX:SSEL) is currently considered Significantly Overvalued. The stock's GF Value™ is £16.32, compared to a current price of £24.05 — trading 47.4% above its estimated fair value. The current Gross Margin % is 38.43%, which is 15% above median its 10-year median of 33.35 and 24.4% above the Utilities - Regulated industry median of 30.88. SSE's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For SSE (CHIX:SSEL), the current Gross Margin % is 38.43% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SSE (CHIX:SSEL) Overvalued in 2026?
Based on GuruFocus' analysis, SSE stock appears to be overvalued.
The current stock price of £24.05 is trading 47.4% above its estimated GF Value™ of £16.32.
GuruFocus considers SSE to be Significantly Overvalued.
Key valuation signals for CHIX:SSEL:
Gross Margin %: 38.43% (15% above median its 10-year median of 33.35)
GF Value™: £16.32 vs. price of £24.05 (47.4% above fair value)
Industry Position: 24.4% above the Utilities - Regulated median (#187 of 489)
No single metric tells the full story. See the CHIX:SSEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SSE is an integrated utility based in the United Kingdom owning and operating renewables and gas-fired power plants and electricity transmission and distribution networks. The firm is also involved in smaller related businesses such as gas storage and energy services.
75GF Score
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