ENGIE SA (ENGIY) AI Stock Analysis

• Market Cap: $82.78B
• Dividend Yield: 6.37%
• Average Volume (3M): 22.50K
• Price to Earnings (P/E): 19.9
• Beta (1Y): -0.21
• Revenue Growth: 2.35%
• EPS Growth: 2.25%
• Country: US
• Employees: 97,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.62
• Shares Outstanding: 2,435,285,000
• 10 Day Avg. Volume: 19,847
• 30 Day Avg. Volume: 22,496
• PEG Ratio: -1.27
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -6.19
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 4.14
• Enterprise Value/Ebitda: 4.87
• 1Y Price Target: $28.58
• Price Target Upside: 12.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.18
• Revenue Forecast (FY): $81.20B

• Rating: 59 Neutral
• Price Target: $36.00 ▲(42.29% Upside)
• Action: Downgraded Date: 02/28/26
• Date: Action: Downgraded 02/28/26

The score is held back primarily by weakened financial quality—multi-year revenue contraction, elevated leverage, and a sharp 2025 drop into negative operating/free cash flow. Technicals are supportive due to a strong uptrend, but overbought signals add risk. Valuation is balanced with a solid dividend yield, and the latest earnings call was generally positive on guidance and renewables/network execution despite pressure in gas and energy management.

Positive Factors

Renewables capacity additions

Sustained additions to wind, solar and BESS increase recurring cash flows via long-term contracts and PPAs, deepen technical expertise, and expand generation scale. Over multi-year horizons this strengthens ENGIE's renewable earnings base and reduces exposure to commodity-driven volatility.

Regulated networks growth

Network businesses with tariff mechanisms deliver predictable, regulated-like cash flows and higher margin stability versus merchant generation. Material EBIT growth from networks supports durable earnings resilience and provides predictable cash to fund renewables and infrastructure investments.

Management performance program

A defined, measurable performance program that already delivered sizeable EBIT gains indicates disciplined operational execution. If sustained, it can improve margins, fund investments and partially offset cyclical headwinds, strengthening medium-term profitability and cash conversion.

Negative Factors

Multi-year revenue decline

Sustained revenue contraction reduces scale benefits and weakens the company's ability to absorb fixed costs, pressuring margins and free cash flow. Over 2–6 months this trend constrains reinvestment capacity and makes execution of growth plans and dividend sustainability more challenging.

Rising leverage

An elevated and rising leverage profile limits financial flexibility for large capital projects typical in utilities, increases refinancing and interest risks, and reduces resilience to cash-flow shocks. High leverage can force prioritization of debt reduction over growth investments.

Cash generation deterioration

A sudden shift to negative operating and free cash flow signals structural pressure from working capital, capex or margin erosion. Persisting weak cash conversion forces external financing, risks dividend or capex cuts, and undermines the sustainability of the business model over the medium term.

ENGIE SA Business Overview & Revenue Model

Company Description

ENGIE 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 Money

ENGIE generates revenue through multiple streams, primarily from electricity generation, natural gas distribution, and energy services. The company earns significant income from its renewable energy projects, which include wind, solar, and hydropower facilities, capitalizing on the global shift towards sustainable energy. Additionally, ENGIE provides energy efficiency solutions and consulting services, which contribute to its revenue by helping clients reduce their energy consumption and costs. Partnerships with various stakeholders, including governments and private enterprises, enhance its market reach and project funding. Furthermore, the company's investments in infrastructure and energy management systems create recurring revenue opportunities and long-term contracts, solidifying its financial footing in the evolving energy landscape.

ENGIE SA Financial Statement Overview

Summary

Profitability has recovered versus prior lows (2025 net margin ~5.3%, EBIT margin ~11.8%), but the profile is pressured by three straight years of revenue decline (including ~-7.1% in 2025), rising leverage (debt-to-equity ~1.66 in 2025), and a sharp 2025 deterioration in operating and free cash flow (both turning negative).

Income Statement

Profitability has improved meaningfully versus the 2022 trough and the 2020 loss, with net margin rising from ~0.2% (2022) to ~5.3% (2025) and operating profitability remaining solid (2025 EBIT margin ~11.8%, EBITDA margin ~19.3%). However, revenue momentum is a clear weak spot: growth has been negative for three consecutive years (2023–2025), including a ~7.1% decline in 2025. In addition, 2025 gross margin (~12.3%) is sharply lower than prior years, suggesting either higher costs or a less favorable mix.

Balance Sheet

The balance sheet reflects a leveraged utility profile, with debt consistently exceeding equity and debt-to-equity rising to ~1.66 in 2025 (vs. ~1.11 in 2021). Equity has trended down since 2021, while total debt has moved higher overall, increasing balance-sheet risk if cash generation is pressured. A positive offset is that profitability on equity has been reasonable in the mid-cycle (e.g., ~11.9% in 2024), but leverage remains the primary constraint on the score.

Cash Flow

Cash generation is the main concern: operating cash flow swung from strongly positive in 2023–2024 (~€13.1B each year) to negative in 2025 (~-€2.1B), and free cash flow also turned sharply negative in 2025 (~-€9.1B). While free cash flow growth is shown as positive in 2025 and free cash flow relative to net income appears unusually high, the absolute shift into negative operating and free cash flow indicates significant pressure from working capital, capital spending, or other cash demands. The 2025 cash conversion profile is therefore materially weaker and more volatile than prior years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.10B	73.81B	82.56B	93.86B	57.87B
Gross Profit	8.51B	24.35B	25.65B	19.33B	19.00B
EBITDA	13.34B	16.14B	17.44B	8.79B	10.42B
Net Income	3.68B	4.11B	2.21B	216.00M	3.66B
Balance Sheet
Total Assets	169.18B	189.54B	194.64B	235.49B	225.33B
Cash, Cash Equivalents and Short-Term Investments	17.08B	17.74B	17.35B	16.42B	14.22B
Total Debt	54.54B	52.01B	47.29B	40.59B	41.05B
Total Liabilities	128.37B	148.09B	158.92B	196.21B	183.35B
Stockholders Equity	32.94B	34.56B	30.06B	34.25B	36.99B
Cash Flow
Free Cash Flow	-9.10B	3.76B	5.79B	2.21B	1.32B
Operating Cash Flow	-2.12B	13.14B	13.12B	8.59B	7.31B
Investing Cash Flow	143.12M	-11.34B	-11.82B	-4.29B	-11.04B
Financing Cash Flow	158.49M	-1.46B	-218.00M	-2.98B	4.85B

ENGIE SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENGIY, the sentiment is Positive. The current price of 25.3 is below the 20-day moving average (MA) of 31.33, below the 50-day MA of 28.90, and above the 200-day MA of 24.19, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 73.92 is Negative, neither overbought nor oversold. The STOCH value of 94.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENGIY.

ENGIE SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	70 Outperform	$7.39B	9.63	13.35%	12.98%	-0.38%	-53.94%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	65 Neutral	$12.31B	10.52	23.02%	5.06%	-1.55%	12.83%
SRE	63 Neutral	$62.89B	35.01	7.10%	2.91%	9.07%	-28.58%
ENGIY	59 Neutral	$82.78B	19.93	12.08%	6.37%	2.35%	2.25%
BIP	59 Neutral	$18.04B	40.00	7.99%	4.92%	8.14%	―