Credit Agricole (ACA) AI Stock Analysis

• Market Cap: €48.32B
• Dividend Yield: 6.26%
• Average Volume (3M): 4.12M
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.99
• Revenue Growth: -3.99%
• EPS Growth: 14.76%
• Country: FR
• Employees: 80,518
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.30
• Shares Outstanding: 3,025,902,300
• 10 Day Avg. Volume: 4,992,432
• 30 Day Avg. Volume: 4,119,195
• PEG Ratio: 2.26
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 2.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €19.77
• Price Target Upside: 23.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.32
• Revenue Forecast (FY): €28.34B

• Rating: 60 Neutral
• Price Target: €17.00 ▲(6.38% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back primarily by higher leverage and cash-flow volatility, despite continued profitability and strong revenue growth. Technicals are moderately supportive with a positive longer-term trend but neutral near-term momentum. Valuation is a key positive, with a low P/E and high dividend yield.

Positive Factors

Sustained revenue growth

A clear multi-year revenue expansion culminating in a sharp 2025 jump indicates improving core franchise traction and loan/fee growth. Durable top-line expansion supports revenue diversification, funding for strategic initiatives, and provides a structural tailwind for medium-term earnings resilience.

Consistent return on equity

A steady ~9–10% ROE demonstrates persistent ability to generate returns from shareholders' equity. This level supports ongoing dividend capacity and signals operational effectiveness across business lines, helping sustain investor confidence and capital allocation over the medium term.

Business diversification

A broad product mix across retail banking, insurance, asset management and CIB reduces single-segment cyclicality and creates multiple fee and premium income streams. Diversification aids resilience to shocks in any one market and supports cross-sell economics and stable long-term revenue generation.

Negative Factors

Rising leverage

Material increase in leverage to ~7.47x substantially raises sensitivity to rising funding costs and asset-quality shocks. Higher leverage constrains strategic flexibility, increases regulatory and refinancing risk, and amplifies earnings volatility during adverse macro or credit cycles over the medium term.

Volatile cash generation

Large swings from deep negative cash flow to a strong 2025 rebound indicate inconsistent cash conversion and working-capital sensitivity. Such volatility complicates capital planning, reduces predictability for dividends and buybacks, and raises concerns about durability of free cash flow in stressed conditions.

Margin compression and earnings mix

Net margin compression to ~6.6% and a YoY net income decline despite higher revenue imply adverse mix, higher costs, or elevated credit/charges. Persistent margin pressure undermines long-term profitability and ROE uplift potential unless structural cost or mix improvements are implemented.

Credit Agricole Business Overview & Revenue Model

Company Description

Crédit Agricole S.A. provides retail, corporate, insurance, and investment banking products and services worldwide. It operates through Asset Gathering; Large Customers; Specialised Financial Services; French Retail Banking - LCL; and International Retail Banking. The company offers banking products and services, including savings and current accounts and deposits, finance, payments, and flow management services; consumer finance products; and banking and specialized financial services. It also provides wealth management services that allow individual customers to manage, protect, and transfer their assets, as well as other asset management services; and savings/retirement, death and disability/creditor/group, and property and casualty insurance products. In addition, the company offers financing solutions for property and equipment investment and renewal requirements; trade receivable financing and management solutions for corporates; and financing services for renewable energy and public infrastructure projects, as well as leasing services. Further, it provides investment banking, structured finance, international trade finance, commercial banking, capital market, and syndication services; and asset servicing solutions for investment products, as well as various asset classes, such as execution, clearing, forex, security lending and borrowing, custody, depositary bank, fund administration, middle-office outsourcing solutions, and fund distribution support and issuer services. The company serves retail customers, corporates, banks and financial institutions, government agencies, and local authorities. Crédit Agricole S.A. was founded in 1894 and is headquartered in Montrouge, France. Crédit Agricole S.A. operates as a subsidiary of SAS Rue La Boétie.

How the Company Makes Money

Crédit Agricole makes money primarily by earning interest income, collecting fees and commissions for financial services, and generating income from insurance, asset management, and corporate/investment banking activities. In retail banking, it earns net interest income from the spread between interest received on loans (e.g., mortgages, consumer loans, business lending) and interest paid on customer deposits and wholesale funding, and it supplements this with service fees (e.g., account services, payment-related fees, card services) and commissions on distributed products. In insurance, it earns premiums from policyholders and investment income on the invested float, while recognizing underwriting results after claims and operating costs. In asset management, it earns management fees based on assets under management and, where applicable, performance-related fees. In corporate and investment banking and market activities, it earns revenues from advisory and financing services (e.g., debt and equity financing, syndicated loans), transaction banking, trading and market-making, and related client services; these revenues can be sensitive to market conditions. Across the group, additional earnings can come from specialized financial services (e.g., leasing, factoring, consumer finance) through interest margins and fees. Key factors influencing earnings include loan growth and credit quality (provisions for expected credit losses), interest rate levels and yield curve dynamics (which affect margins), market volatility and client activity (which affect capital markets revenues), asset values and net inflows (which affect asset management fees), and claim experience and investment returns (which affect insurance profitability). Significant partnerships or specific revenue-sharing arrangements: null.

Credit Agricole Financial Statement Overview

Summary

Profitability remains positive with steady ~9–10% ROE and strong revenue growth into 2025, but net margin compressed to ~6.6% and net income declined year over year in 2025. Balance-sheet risk increased materially as leverage rose (debt-to-equity ~7.47x in 2025), and cash flows have been highly volatile despite a strong 2025 rebound.

Income Statement

Revenue expanded strongly over the period, culminating in a sharp jump in 2025 (annual report), while profitability remained positive throughout. That said, profit margins have generally compressed versus 2021–2022 levels (net margin down to ~6.6% in 2025 from mid-teens earlier), and net income declined year over year in 2025 despite higher revenue—suggesting a less favorable mix and/or higher costs/credit charges. Operating profitability in 2025 is still healthy (EBIT margin ~10.7%), but below prior years’ peaks.

Balance Sheet

The balance sheet shows rising leverage: total debt increased materially and the debt-to-equity ratio moved higher over time, reaching ~7.47x in 2025 versus ~2.9–4.2x in 2020–2024. Equity is broadly stable and returns on equity are steady around ~9–10%, which supports the earnings quality. However, the higher leverage level increases sensitivity to funding costs and asset-quality volatility, tempering the overall balance-sheet score.

Cash Flow

Cash flow is volatile. Operating and free cash flow were deeply negative in 2023–2024, then rebounded strongly positive in 2025, indicating meaningful swings in working-capital and/or balance-sheet movements typical for banks. While 2025 free cash flow is substantial and roughly in line with net income (~0.98x), the inconsistent pattern across years reduces confidence in cash generation stability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	112.32B	104.97B	97.73B	45.58B	63.21B
Gross Profit	70.33B	54.25B	51.26B	26.71B	49.91B
EBITDA	11.68B	11.15B	10.05B	8.22B	8.42B
Net Income	7.07B	7.09B	6.35B	5.31B	5.84B
Balance Sheet
Total Assets	2.37T	2.31T	2.19T	2.14T	2.07T
Cash, Cash Equivalents and Short-Term Investments	563.87B	560.73B	499.82B	480.82B	487.28B
Total Debt	519.23B	644.05B	606.71B	615.40B	562.55B
Total Liabilities	2.30T	2.23T	2.12T	2.07T	2.00T
Stockholders Equity	69.52B	67.49B	63.87B	60.53B	63.33B
Cash Flow
Free Cash Flow	17.90B	-28.99B	-56.56B	421.00M	10.05B
Operating Cash Flow	19.01B	-27.15B	-54.83B	1.46B	10.93B
Investing Cash Flow	-4.40B	-2.76B	8.66B	-5.04B	-838.00M
Financing Cash Flow	-4.49B	11.62B	17.19B	598.00M	-1.70B

Credit Agricole Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ACA, the sentiment is Negative. The current price of 15.98 is below the 20-day moving average (MA) of 17.33, below the 50-day MA of 17.68, and below the 200-day MA of 16.74, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 31.21 is Neutral, neither overbought nor oversold. The STOCH value of 18.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ACA.

Credit Agricole Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BNP	68 Neutral	€90.72B	7.40	9.43%	9.16%	-6.55%	14.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ACA	60 Neutral	€48.32B	4.65	10.82%	6.26%	-3.99%	14.76%
GLE	54 Neutral	€39.48B	9.82	9.61%	2.49%	-14.11%	180.83%