SSECHIX:SSEL +2.04%76 Return-on-Tangible-Equity is 15.22% as of Mar. 2026, which is 19% below its 10-year median of 18.73. GuruFocus rates CHIX:SSEL with a GF Score™ of 76/100 and a GF Value™ of £16.40 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 496 Utilities - Regulated companies, SSE ranks worse than 51.01% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. SSE's annualized net income for the quarter that ended in Mar. 2026 was £1,833 Mil. SSE's average shareholder tangible equity for the quarter that ended in Mar. 2026 was £12,042 Mil. Therefore, SSE's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.22%.
The historical rank and industry rank for SSE's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:SSEl'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.49 Med: 18.73 Max: 47.13
Current: 10.67
During the past 13 years, SSE's highest Return-on-Tangible-Equity was 47.13%. The lowest was -1.49%. And the median was 18.73%.
CHIX:SSEl's Return-on-Tangible-Equity is ranked worse than 51.01% of 496
companies
in the Utilities - Regulated industry
Industry Median: 10.91
vs CHIX:SSEl: 10.67
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
SSE Return-on-Tangible-Equity Related Terms
SSE Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for SSE's Return-on-Tangible-Equity 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-Equity Comparison
For the Utilities - Diversified subindustry, SSE's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, SSE's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where SSE's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.22% mean?
SSE (CHIX:SSEL) has a Return-on-Tangible-Equity of 15.22% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on SSE and its competitors. This is 19% below median its historical median of 18.73. According to the industry distribution chart, SSE ranks #253 out of 496 companies in the Utilities - Regulated industry, placing it in the top 51%.
Is SSE's Return-on-Tangible-Equity too high?
SSE's current Return-on-Tangible-Equity of 15.22% is 19% below median its 10-year median of 18.73. The Utilities - Regulated industry median Return-on-Tangible-Equity is 10.91. SSE's value of 15.22% is 39.5% above this industry median. Based on the distribution chart, SSE ranks #253 out of 496 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, SSE has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SSE's Return-on-Tangible-Equity compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, SSE ranks #253 out of 496 companies for Return-on-Tangible-Equity. This places SSE in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.91. SSE's value of 15.22% is 39.5% above this benchmark. While the company's 10-year median is 18.73 vs. the industry median of 10.91, 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-Equity for an Utilities - Regulated company?
The median Return-on-Tangible-Equity among Utilities - Regulated companies is 10.91, based on 496 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SSE's current Return-on-Tangible-Equity of 15.22% is 39.5% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on SSE and its competitors. For the Utilities - Regulated industry, the median Return-on-Tangible-Equity is 10.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SSE's current Return-on-Tangible-Equity is 15.22%, which is 19% below median its own 10-year median of 18.73. 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 £16.40, compared to a current price of £25.00 — trading 52.4% above its estimated fair value. The current Return-on-Tangible-Equity is 15.22%, which is 19% below median its 10-year median of 18.73 and 39.5% above the Utilities - Regulated industry median of 10.91. SSE's overall GF Score™ is 76/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For SSE (CHIX:SSEL), the current Return-on-Tangible-Equity is 15.22% 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 £25.00 is trading 52.4% above its estimated GF Value™ of £16.40.
GuruFocus considers SSE to be Significantly Overvalued.
Key valuation signals for CHIX:SSEL:
Return-on-Tangible-Equity: 15.22% (19% below median its 10-year median of 18.73)
GF Value™: £16.40 vs. price of £25.00 (52.4% above fair value)
Industry Position: 39.5% above the Utilities - Regulated median (#253 of 496)
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.
76GF Score
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