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SSECHIX:SSEL +1.00%75 Return-on-Tangible-Asset is 5.94% as of Mar. 2026, which is 7% above its 10-year median of 5.54. GuruFocus rates CHIX:SSEL with a GF Score™ of 75/100 and a GF Value™ of £16.61 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 510 Utilities - Regulated companies, SSE ranks better than 57.45% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. SSE's annualizedNet Income for the quarter that ended in Mar. 2026 was £1,833 Mil. SSE's average total tangible assets for the quarter that ended in Mar. 2026 was £30,857 Mil. Therefore, SSE's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 5.94%.
The historical rank and industry rank for SSE's Return-on-Tangible-Asset or its related term are showing as below:
CHIX:SSEl'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -0.49 Med: 5.54 Max: 13.34
Current: 4.03
During the past 13 years, SSE's highest Return-on-Tangible-Asset was 13.34%. The lowest was -0.49%. And the median was 5.54%.
CHIX:SSEl's Return-on-Tangible-Asset is ranked better than 57.45% of 510
companies
in the Utilities - Regulated industry
Industry Median: 3.305
vs CHIX:SSEl: 4.03
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
SSE Return-on-Tangible-Asset Related Terms
SSE Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for SSE's Return-on-Tangible-Asset 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.
CHIX:SSEL vs SRE, AES: Return-on-Tangible-Asset Comparison
For the Utilities - Diversified subindustry, SSE's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, SSE's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where SSE's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 5.94% mean?
SSE (CHIX:SSEL) has a Return-on-Tangible-Asset of 5.94% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on SSE and its competitors. This is near median its historical median of 5.54. According to the industry distribution chart, SSE ranks #217 out of 510 companies in the Utilities - Regulated industry, placing it in the top 42.5%.
Is SSE's Return-on-Tangible-Asset too high?
SSE's current Return-on-Tangible-Asset of 5.94% is near median its 10-year median of 5.54. The Utilities - Regulated industry median Return-on-Tangible-Asset is 3.31. SSE's value of 5.94% is 79.7% above this industry median. Based on the distribution chart, SSE ranks #217 out of 510 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 Return-on-Tangible-Asset compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, SSE ranks #217 out of 510 companies for Return-on-Tangible-Asset. This puts SSE in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.31. SSE's value of 5.94% is 79.7% above this benchmark. While the company's 10-year median is 5.54 vs. the industry median of 3.31, 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 Return-on-Tangible-Asset for an Utilities - Regulated company?
The median Return-on-Tangible-Asset among Utilities - Regulated companies is 3.31, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SSE's current Return-on-Tangible-Asset of 5.94% is 79.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on SSE and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Asset is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SSE's current Return-on-Tangible-Asset is 5.94%, which is near median its own 10-year median of 5.54. 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 £16.61, compared to a current price of £24.69 — trading 48.6% above its estimated fair value. The current Return-on-Tangible-Asset is 5.94%, which is near median its 10-year median of 5.54 and 79.7% above the Utilities - Regulated industry median of 3.31. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For SSE (CHIX:SSEL), the current Return-on-Tangible-Asset is 5.94% 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 £24.69 is trading 48.6% above its estimated GF Value™ of £16.61.
GuruFocus considers SSE to be Significantly Overvalued.
Key valuation signals for CHIX:SSEL:
Return-on-Tangible-Asset: 5.94% (near median its 10-year median of 5.54)
GF Value™: £16.61 vs. price of £24.69 (48.6% above fair value)
Industry Position: 79.7% above the Utilities - Regulated median (#217 of 510)
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
Get the complete analysis for CHIX:SSEL
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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