ENGIE SA (ENGIY) AI Stock Analysis

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ENGIE SA

(OTC:ENGIY)

Rating:77Outperform

Price Target:

$26.00

▲(19.60% Upside)

ENGIE SA's overall stock score is driven by strong earnings call results and positive technical indicators. Despite some challenges in financial performance and cash flow generation, the company's strategic expansions in renewables and attractive valuation contribute significantly to the score.

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

Market Cap

$52.60B

Dividend Yield7.67%

Average Volume (3M)115.52K

Price to Earnings (P/E)9.5

Beta (1Y)-0.15

Revenue Growth2.35%

EPS Growth2.25%

CountryUS

Employees97,000

SectorUtilities

Sector Strength86

IndustryDiversified Utilities

Share Statistics

EPS (TTM)0.35

Shares Outstanding2,435,285,000

10 Day Avg. Volume0

30 Day Avg. Volume115,523

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.13

Enterprise Value/Revenue1.52

Enterprise Value/Gross Profit4.60

Enterprise Value/Ebitda6.94

Forecast

1Y Price Target

$26.00

Price Target Upside19.60% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

ENGIE SA Business Overview & Revenue Model

Company DescriptionENGIE SA is a global energy company based in France, specializing in electricity, natural gas, and energy services. The company operates across multiple sectors including low-carbon power generation, global energy infrastructure, and integrated customer solutions. ENGIE aims to lead the energy transition towards a carbon-neutral future by focusing on renewable energy sources and energy efficiency services.

How the Company Makes MoneyENGIE SA makes money through a diversified revenue model primarily based on its operations in power generation, energy infrastructure, and energy services. A significant portion of its revenue comes from the generation and sale of electricity, particularly from renewable sources such as wind, solar, and hydroelectric power. Additionally, ENGIE earns income through its natural gas supply and distribution networks. The company also provides energy efficiency and facility management services to industrial, commercial, and residential clients. Strategic partnerships and long-term contracts, often with government entities and large corporations, also play a crucial role in securing stable revenue streams.

ENGIE SA Earnings Call Summary

Earnings Call Date:Aug 01, 2025

(Q1-2025)

% Change Since: -3.21%|

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

Engie's Q1 2025 performance demonstrates strong financial and operational results, driven by strategic expansions in renewables and successful de-risking of nuclear liabilities. However, challenges remain in energy management and geopolitical uncertainties in the U.S. Overall, the positive aspects of the results outweigh the lowlights.

Q1-2025 Updates

Positive Updates

Strong Q1 2025 Financial Performance

EBIT excluding nuclear increased by 2% to EUR 3.7 billion compared to Q1 2024. Cash flow from operations stood at EUR 4 billion, and economic net debt decreased by 4% to EUR 46 billion.

Resilient Renewable Energy Expansion

Engie added over 0.6 gigawatts of renewables capacity, mainly in LatAm and Egypt, taking the total renewables capacity to 51.6 gigawatts. The company has 8.5 gigawatts under construction with 101 ongoing projects.

Nuclear Deal Milestone

Closure of the nuclear transaction in Belgium, eliminating EUR 12 billion of nuclear waste storage provisions from the balance sheet.

Strategic Acquisitions in Renewables

Engie announced acquisitions in renewables, including two hydro plants in Brazil with a capacity of 612 megawatts and an operating portfolio of 157 megawatts of onshore and solar capacity in the U.K.

Negative Updates

Challenges in Energy Management

Energy management EBIT decreased by EUR 219 million organically due to lower reserve reversals and increased costs.

Impact from Decreased Gas Generation Spreads

Gas generation EBIT decreased organically by EUR 100 million due to reduced spreads compared to the crisis period.

Geopolitical and Regulatory Uncertainties

Engie faces uncertainties in the U.S. regarding tariffs and the future of the IRA, which could affect future renewable projects.

Company Guidance

During Engie's Q1 2025 conference call, the company confirmed its strong start to the year, with EBIT excluding nuclear up 2% to EUR 3.7 billion compared to Q1 2024. Cash flow from operations was reported at EUR 4 billion, and economic net debt decreased by 4% to EUR 46 billion, maintaining a leverage ratio of 3x EBITDA, below the 4x ceiling. The company reaffirmed its guidance for the full year, anticipating net recurring income group share between EUR 4.4 billion and EUR 5 billion. Additionally, Engie highlighted its successful expansion in renewables, adding over 0.6 gigawatts of capacity, bringing total renewables and battery capacity to 51.6 gigawatts. The company also discussed its strategic flexibility in capital allocation, given its pipeline of 115 gigawatts of projects, with 80 gigawatts located outside North America. Engie noted that it could redirect investment initially intended for the U.S. into other markets, such as Brazil, the GCC, Australia, and India, where it has long-standing operations.

ENGIE SA Financial Statement Overview

Summary

ENGIE SA demonstrates solid financial performance with strong profitability and equity management, despite revenue declines and challenges in cash flow generation.

Income Statement

Positive

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

Positive

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

Positive

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.81B	82.56B	93.86B	57.87B	55.75B
Gross Profit	24.35B	25.65B	19.33B	19.00B	20.78B
EBITDA	16.14B	17.44B	7.96B	12.46B	9.87B
Net Income	4.11B	2.21B	-1.79B	3.66B	-891.00M
Balance Sheet
Total Assets	189.54B	194.64B	235.49B	225.33B	153.18B
Cash, Cash Equivalents and Short-Term Investments	17.74B	17.35B	16.42B	14.22B	13.52B
Total Debt	52.01B	47.29B	40.59B	41.05B	37.94B
Total Liabilities	148.09B	158.92B	196.21B	183.35B	119.33B
Stockholders Equity	34.56B	30.06B	34.25B	36.99B	28.95B
Cash Flow
Free Cash Flow	3.76B	5.79B	2.21B	1.32B	2.47B
Operating Cash Flow	13.14B	13.12B	8.59B	7.31B	7.59B
Investing Cash Flow	-11.34B	-11.82B	-4.29B	-11.04B	-4.05B
Financing Cash Flow	-1.46B	-218.00M	-2.98B	4.85B	-562.00M

ENGIE SA Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price21.74

Price Trends

50DMA

22.58

Negative

100DMA

21.11

Positive

200DMA

18.34

Positive

Market Momentum

MACD

-0.19

Positive

RSI

36.64

Neutral

STOCH

8.44

Positive

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 21.74 is below the 20-day moving average (MA) of 22.57, below the 50-day MA of 22.58, and above the 200-day MA of 18.34, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 36.64 is Neutral, neither overbought nor oversold. The STOCH value of 8.44 is Positive, 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENGIY	77 Outperform	$52.60B	9.53	17.61%	7.67%	2.35%	2.25%
CIG	75 Outperform	$6.35B	4.37	26.38%	4.38%	-4.14%	13.02%
ELP	74 Outperform	$6.56B	12.76	9.81%	6.09%	-7.02%	17.33%
SRE	74 Outperform	$52.92B	19.65	8.87%	3.10%	-0.39%	0.75%
Sector *	67 Neutral	$17.68B	17.88	6.87%	3.50%	6.30%	4.49%
AES	64 Neutral	$9.34B	9.26	21.17%	5.34%	-3.19%	30.48%
BIP	63 Neutral	$20.16B	680.84	1.06%	5.55%	8.86%	―

* Utilities Sector Average

Performance Comparison

ENGIY

ENGIE SA

21.74

5.96

37.77%

BIP

Brookfield Infrastructure

30.10

1.60

5.61%

CIG

Companhia Energetica Minas Gerais

1.93

0.26

15.57%

ELP

Companhia Paranaense de Energia Pfd

9.17

2.06

28.97%

SRE

Sempra Energy

81.71

5.21

6.81%

AES

13.12

-2.66

-16.86%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 13, 2025