ENGIE SA (ENGIY) AI Stock Analysis

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ENGIE SA

(OTC:ENGIY)

72Outperform

ENGIE SA's stock score is buoyed by strong financial performance, especially in profitability and equity management, and a favorable valuation with a high dividend yield. The positive sentiment from the latest earnings call, with strategic growth in renewables, also supports the score. However, technical indicators suggest caution due to potential short-term overbought conditions, and cash flow challenges need attention.

ENGIE SA (ENGIY) vs. S&P 500 (SPY)

Market Cap

$48.98B

Dividend Yield6.26%

Average Volume (3M)3.03K

Price to Earnings (P/E)11.3

Beta (1Y)-0.06

Revenue Growth-10.55%

EPS Growth85.74%

CountryUS

Employees97,000

SectorUtilities

Sector Strength92

IndustryDiversified Utilities

Share Statistics

EPS (TTM)1.83

Shares Outstanding2,435,285,000

10 Day Avg. Volume0

30 Day Avg. Volume3,034

Financial Highlights & Ratios

PEG Ratio0.13

Price to Book (P/B)N/A

Price to Sales (P/S)0.39

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

ENGIE SA Business Overview & Revenue Model

Company DescriptionENGIE SA engages in the power, natural gas, and energy services businesses. It operates through Renewables, Networks, Energy Solutions, Thermal, Supply, Nuclear, and Others segments. The Renewables segment comprises renewable energy generation activities, including financing, construction, operation, and maintenance of renewable energy facilities using various energy sources, such as hydroelectric, onshore wind, photovoltaic solar, biomass, offshore wind, and geothermal. The Networks segment comprises the electricity and gas infrastructure activities and projects, including the management and development of gas and electricity transportation networks and natural gas distribution networks in and outside of Europe, natural gas underground storage in Europe, and regasification infrastructure in France and Chile. The Energy Solutions encompasses the construction and management of decentralized energy networks to produce low-carbon energy and related services. The Thermal segment encompasses power generation activities using thermal assets; operation of power plants fueled mainly by gas or coal, as well as pump -operated storage plants; and financing, construction, and operation of desalination plants, as well as the development of hydrogen production. The Supply segment engages in the sale of gas and electricity to professional, individual, and residential clients. The Nuclear segment engages in the nuclear power generation activities. The company was formerly known as GDF SUEZ S.A. and changed its name to ENGIE SA in April 2015. The company was founded in 1880 and is headquartered in Courbevoie, France.

How the Company Makes MoneyENGIE SA generates revenue through several key streams. Primarily, it earns from the generation and sale of electricity and natural gas to residential, commercial, and industrial customers. The company is a leading producer of low-carbon energy and invests significantly in renewable energy projects such as wind, solar, and hydroelectric power. ENGIE also provides energy efficiency and management services to clients, helping them reduce energy consumption and carbon emissions. Additionally, ENGIE engages in energy trading and risk management services. Strategic partnerships and joint ventures in emerging markets further contribute to its earnings, alongside government contracts and concessions for infrastructure projects.

ENGIE SA Financial Statement Overview

Summary

ENGIE SA demonstrates strong profitability and operational efficiency with improved net income and solid margins. While the company has managed to enhance its cash flow position significantly, the decline in revenue and high leverage require careful management. The balance sheet remains stable, but maintaining revenue growth is critical for future success.

Income Statement

Positive

ENGIE SA shows a solid gross profit margin with an increase in gross profit compared to the previous year. However, revenue has decreased by 12% from 2022 to 2023, indicating a challenge in maintaining growth. Net profit margin is positive in 2023 after a negative margin in 2022, reflecting improved profitability. EBIT and EBITDA margins remain strong, showing operational efficiency, but the decline in revenue growth is a concern.

Balance Sheet

Positive

The balance sheet indicates a stable equity position with an equity ratio of 15.4% and a decrease in total liabilities. The debt-to-equity ratio slightly increased, showing a moderate leverage level. ROE improved significantly from a negative value in 2022 to positive, indicating better return to shareholders. The company maintains a healthy asset base, but the leverage warrants caution.

Cash Flow

Positive

The cash flow statement shows robust free cash flow growth of 162% from the previous year, driven by strong operating cash flow. The operating cash flow to net income ratio is stable, indicating efficient cash generation relative to profitability. However, capital expenditures remain substantial, which could impact future cash reserves.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
73.06B	82.56B	93.86B	57.87B	55.75B	60.06B
	Gross Profit
15.87B	25.65B	19.33B	19.00B	20.78B	20.11B
	EBIT
9.26B	6.10B	6.16B	6.72B	2.28B	5.11B
	EBITDA
13.95B	17.44B	7.96B	12.46B	9.87B	10.32B
	Net Income Common Stockholders
5.00B	2.21B	-1.79B	3.66B	-891.00M	1.65B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.77B	17.35B	16.42B	14.22B	13.52B	10.99B
	Total Assets
153.70B	194.64B	235.49B	225.33B	153.18B	159.79B
	Total Debt
31.20B	47.29B	40.59B	41.05B	37.94B	38.54B
	Net Debt
22.50B	30.71B	25.03B	27.33B	24.96B	28.02B
	Total Liabilities
112.76B	158.92B	196.21B	183.35B	119.33B	121.76B
	Stockholders Equity
35.55B	30.06B	34.25B	36.99B	28.95B	33.09B
Cash Flow		Free Cash Flow
4.12B	5.79B	2.21B	1.32B	2.47B	1.65B
	Operating Cash Flow
12.40B	13.12B	8.59B	7.31B	7.59B	8.18B
	Investing Cash Flow
-13.22B	-11.82B	-4.29B	-11.04B	-4.05B	-7.19B
	Financing Cash Flow
2.52B	-218.00M	-2.98B	4.85B	-562.00M	212.00M

ENGIE SA Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price20.27

Price Trends

50DMA

17.89

Positive

100DMA

16.94

Positive

200DMA

16.75

Positive

Market Momentum

MACD

0.55

Negative

RSI

81.96

Negative

STOCH

97.10

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENGIY, the sentiment is Neutral. The current price of 20.27 is above the 20-day moving average (MA) of 19.25, above the 50-day MA of 17.89, and above the 200-day MA of 16.75, indicating a neutral trend. The MACD of 0.55 indicates Negative momentum. The RSI at 81.96 is Negative, neither overbought nor oversold. The STOCH value of 97.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ENGIY.

ENGIE SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	80 Outperform	$5.59B	3.66	28.91%	11.33%	3.39%	46.79%
ELP	77 Outperform	$5.18B	2.28	9.47%	3.03%	-4.45%	―
ENGIY	72 Outperform	$48.98B	11.28	14.55%	6.26%	-10.55%	85.74%
Sector *	65 Neutral	$11.66B	15.54	6.23%	4.52%	5.50%	-9.06%
SRE	64 Neutral	$42.95B	14.92	9.55%	3.80%	-18.00%	-7.54%
AES	59 Neutral	$7.67B	4.56	39.65%	6.43%	-3.14%	563.59%
BIP	55 Neutral	$18.01B	2,558.33	0.96%	5.95%	17.33%	-92.62%

* Utilities Sector Average

Performance Comparison

ENGIY

ENGIE SA

19.08

2.80

17.20%

BIP

Brookfield Infrastructure

27.06

-0.72

-2.59%

CIG

Companhia Energetica Minas Gerais

1.65

-0.09

-5.17%

ELP

Companhia Paranaense de Energia Pfd

7.16

-0.37

-4.91%

SRE

Sempra Energy

63.91

-4.66

-6.80%

AES

10.69

-6.79

-38.84%

ENGIE SA Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: 16.76% | Next Earnings Date: May 15, 2025

Earnings Call Sentiment Positive

Engie's earnings call reflected a positive outlook with record net income, significant growth in renewables and battery storage, and a successful nuclear deal. However, challenges related to EBIT declines, market normalization, and energy management were noted. The overall sentiment leans towards optimism with strategic growth plans in place.

Highlights

Record Net Income Achieved

Engie reported a third consecutive year of net income above €5 billion, achieving record net income for 2024, at the upper end of the guidance range.

Significant Growth in Renewables

Engie commissioned 4.2 gigawatts of new renewable capacity in 2024, reaching a total of 46 gigawatts, with a target of 95 gigawatts by 2030.

Expansion in Battery Storage

Engie doubled its battery capacity to 2.6 gigawatts in operation, with an additional 2.6 gigawatts under construction, following the acquisition of Broad Reach Power.

Approval of Belgian Nuclear Deal

The EU Commission approved the Belgian nuclear agreement, reducing nuclear waste storage liability, with the transaction expected to close by March 14.

Strong Performance in GEMS

GEMS achieved an EBIT of €2.4 billion, supported by the non-recurring reversal of market reserves for €1 billion.

Improved Dividend and Cash Flow

Proposed a dividend of €1.48 per share, up from €1.43, supported by cash flow from operations matching 2023 record figures at €13.1 billion.

Significant EBIT Contribution from New Segments

Batteries, power networks, solar, and B2B contributed €1.7 billion to EBIT in 2024, with expectations to increase to €2.2-€2.8 billion by 2027.

Lowlights

Decline in EBIT Excluding Nuclear

EBIT excluding nuclear was €8.9 billion, down 6% year-on-year, mainly due to decreased market volatility impacting GEMS.

Challenges in Energy Management

Energy management earnings were affected by price normalization and volatility, with a future EBIT range expected between €500 million to €900 million, depending on market conditions.

Hydro Volumes and Price Volatility

Hydro volumes significantly above average in 2024 are expected to decline, impacting future EBIT by €300 million to €500 million.

Exposure to Market Conditions

EBIT exposure to outright power prices in Europe expected to decrease from 20% to less than 5% by 2027, with earnings reliant on market volatility.

Normalization of Energy Markets

Supply and energy management EBIT is expected to decline by 2027 due to normalization of energy markets and phase-out of high-margin contracts.

Company Guidance

During the call, Engie provided guidance on several key financial metrics for the fiscal year 2024. The company reported a record net income exceeding €5 billion, maintaining this figure for the third consecutive year, despite a 6% year-on-year decline in EBIT excluding nuclear, which stood at €8.9 billion. Engie's net recurring income group share grew by 3% to €5.5 billion, and cash flow from operations matched 2023's record of €13.1 billion. The proposed dividend is €1.48 per share, an increase from €1.43 the previous year. Additionally, greenhouse gas emissions from energy production decreased to 48 million tonnes, surpassing their 2030 target ahead of schedule. The share of renewables in total power generation capacity rose to 43% by year-end, supported by the commissioning of 4.2 gigawatts of new renewable capacity. Engie's capital allocation strategy and financial outlook for 2025-2027 were also discussed, emphasizing continued growth and investment in renewables and power networks.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.