ENGIE SA (ENGIY) AI Stock Analysis

• Market Cap: $59.81B
• Dividend Yield: 6.81%
• Average Volume (3M): 15.95K
• Price to Earnings (P/E): 10.8
• Beta (1Y): -0.22
• Revenue Growth: 2.35%
• EPS Growth: 2.25%
• Country: US
• Employees: 97,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.31
• Shares Outstanding: 2,435,285,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 15,950
• PEG Ratio: 0.10
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 10.13
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.27
• Revenue Forecast (FY): $83.87B

• Rating: 74 Outperform
• Price Target: $27.00 ▲(17.75% Upside)

ENGIE SA's overall stock score is driven by strong earnings call performance and favorable valuation. The company's focus on renewables and network growth, along with a solid balance sheet, are significant strengths. However, technical indicators suggest caution due to overbought conditions, and challenges in cash flow generation need to be addressed.

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 the sale of electricity and natural gas to residential, commercial, and industrial customers. The company also earns significant income from its renewable energy projects, which include solar, wind, and hydroelectric power generation. Additionally, ENGIE provides energy efficiency solutions and services, which contribute to its revenue by helping clients reduce energy consumption and costs. Strategic partnerships with governments, businesses, and other stakeholders in energy transition initiatives enhance its growth prospects. Furthermore, ENGIE's investment in infrastructure and technology, such as smart grids and energy storage, positions it to capitalize on the evolving energy landscape, thereby driving future earnings.

ENGIE SA Financial Statement Overview

Summary

ENGIE SA demonstrates a solid financial performance with strengths in profitability and equity management. Despite revenue declines, profitability improved, and the balance sheet shows stable leverage. However, challenges in cash flow generation and declining free cash flow warrant attention.

Income Statement

ENGIE SA has shown a mixed performance in its income statement. The company experienced a revenue decline in 2024 compared to 2023, with total revenue dropping from €82.57 billion to €73.81 billion, marking a significant decrease. Despite this, the net profit margin improved, rising to 5.56% in 2024 from 2.67% in 2023, indicating improved profitability. The EBIT and EBITDA margins are also strong at 12.15% and 21.87%, respectively, reflecting efficient cost management. However, the gross profit margin slightly decreased to 32.98%, which indicates some pressure on the cost of goods sold.

Balance Sheet

The balance sheet of ENGIE SA reflects a stable financial position. The debt-to-equity ratio is 1.51, which indicates a moderate level of leverage. The company's return on equity (ROE) is strong at 11.88%, suggesting effective use of shareholder funds to generate profits. The equity ratio of 18.23% shows a solid equity base compared to total assets. Overall, the balance sheet reveals a balanced approach to funding, with a healthy equity position relative to debt.

Cash Flow

ENGIE SA's cash flow statement indicates some challenges in cash management. The free cash flow decreased from €5.79 billion in 2023 to €3.76 billion in 2024. The operating cash flow to net income ratio is strong at 3.20, suggesting good cash conversion from earnings. However, the free cash flow to net income ratio dropped to 0.91, implying some difficulties in maintaining free cash flow levels relative to net income. The decline in free cash flow growth rate reflects potential constraints in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.35B	73.81B	82.56B	93.86B	57.87B	44.30B
Gross Profit	25.69B	24.35B	25.65B	19.33B	19.00B	16.22B
EBITDA	17.51B	16.14B	17.44B	8.79B	10.42B	8.28B
Net Income	5.09B	4.11B	2.21B	216.00M	3.66B	-1.54B
Balance Sheet
Total Assets	164.73B	189.54B	194.64B	235.49B	225.33B	153.18B
Cash, Cash Equivalents and Short-Term Investments	15.93B	17.74B	17.35B	16.42B	14.22B	13.52B
Total Debt	52.20B	52.01B	47.29B	40.59B	41.05B	37.94B
Total Liabilities	126.41B	148.09B	158.92B	196.21B	183.35B	119.33B
Stockholders Equity	30.92B	34.56B	30.06B	34.25B	36.99B	28.95B
Cash Flow
Free Cash Flow	-8.09B	3.76B	5.79B	2.21B	1.32B	2.47B
Operating Cash Flow	695.00M	13.14B	13.12B	8.59B	7.31B	7.59B
Investing Cash Flow	-827.00M	-11.34B	-11.82B	-4.29B	-11.04B	-4.05B
Financing Cash Flow	-1.77B	-1.46B	-218.00M	-2.98B	4.85B	-562.00M

ENGIE SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.93
• 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 22.93 is below the 20-day moving average (MA) of 23.19, above the 50-day MA of 22.03, and above the 200-day MA of 20.49, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 77.61 is Negative, neither overbought nor oversold. The STOCH value of 97.16 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	76 Outperform	$6.75B	5.43	22.94%	12.12%	-3.27%	-3.44%
ENGIY	74 Outperform	$59.81B	10.80	17.61%	6.81%	2.35%	2.25%
ELP	74 Outperform	$7.64B	14.57	9.81%	5.22%	-5.28%	14.50%
SRE	74 Outperform	$60.28B	28.45	7.10%	2.73%	9.07%	-28.58%
BIP	69 Neutral	$16.00B	1,784.54	1.06%	4.81%	8.86%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	59 Neutral	$10.13B	8.66	23.02%	4.98%	-1.55%	12.83%