Totalenergies EP Gabon (EC) AI Stock Analysis

• Market Cap: €821.25M
• Dividend Yield: 46.7%
• Average Volume (3M): 745.00
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.26
• Revenue Growth: -8.54%
• EPS Growth: 47.48%
• Country: FR
• Employees: 210
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 4.52
• Shares Outstanding: 4,500,000
• 10 Day Avg. Volume: 724
• 30 Day Avg. Volume: 745
• PEG Ratio: 0.04
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 2.03
• P/FCF Ratio: 3.74
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €199.00 ▲(5.29% Upside)

Totalenergies EP Gabon scores well due to its strong financial performance and attractive valuation. The company's profitability and cash flow metrics are robust, and the high dividend yield enhances its appeal. However, the technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

Positive Factors

Cash Flow Generation

Strong cash flow growth indicates effective cash management and operational efficiency, providing the company with financial flexibility and resilience.

Profitability

High profitability margins demonstrate the company's strong operational performance and ability to generate profits, which is crucial for long-term sustainability.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and lower risk, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Shrinking Equity Base

A shrinking equity base may limit the company's ability to raise capital and could impact its financial stability, requiring careful management to avoid potential risks.

Revenue Decline

Modest revenue growth suggests challenges in expanding market share or increasing sales, which could affect the company's competitive position and long-term growth prospects.

Market Dependency

Dependence on volatile global oil prices can lead to revenue fluctuations, impacting financial performance and planning, necessitating diversification strategies for stability.

Totalenergies EP Gabon Business Overview & Revenue Model

Company Description

TotalEnergies EP Gabon Société engages in the mining, exploration, and production of crude oil in Gabon. As of December 31, 2019, the company held mining exploration area that covers approximately 1,461 square kilometers. It also holds interests in operated and non-operated production fields. The company was formerly known as Total Gabon. The company was founded in 1949 and is headquartered in Port-Gentil, Gabon. TotalEnergies EP Gabon Société is a subsidiary of TotalEnergies SE.

How the Company Makes Money

TotalEnergies EP Gabon generates revenue primarily through the sale of crude oil and natural gas. The company operates on a production-sharing agreement model, where it shares a portion of the profits from oil extraction with the Gabonese government. Key revenue streams include the sale of crude oil to international markets, which is influenced by global oil prices, and the sale of natural gas, which may be utilized locally or exported. Additionally, the company may benefit from strategic partnerships with other energy firms, technological advancements in extraction processes, and adherence to sustainable practices that enhance its operational efficiency and market competitiveness.

Totalenergies EP Gabon Financial Statement Overview

Summary

Totalenergies EP Gabon demonstrates strong financial performance with robust profitability and cash flow metrics. The company has improved its EBIT and net profit margins significantly, showcasing enhanced operational efficiency. The balance sheet is healthy with low leverage, although the shrinking equity base requires careful management.

Income Statement

Totalenergies EP Gabon exhibited a strong recovery in profitability in 2024 with an impressive EBIT margin of 27.32% and a net profit margin of 19.62%, up from previous years. The revenue growth rate between 2023 and 2024 was modest at 4.69%, indicating stable growth. Despite past volatility, the company has improved its gross profit margin to 53.93% in 2024, showcasing enhanced operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.05 and a solid equity ratio of 46.45%. The return on equity improved significantly to 6.50%, reflecting better utilization of shareholder funds. While the improvement is notable, the equity base has shrunk over the years, which could pose risks if not managed carefully.

Cash Flow

Cash flow performance is strong, with a free cash flow growth rate of 78.46% from 2023 to 2024. The operating cash flow to net income ratio stands at 3.42, indicating robust cash generation compared to net earnings. Free cash flow to net income ratio of 2.76 further suggests efficient cash management. The company has demonstrated resilience in enhancing its cash flow capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	437.59M	464.72M	443.88M	521.36M	654.93M	434.93M
Gross Profit	361.40M	250.59M	148.33M	238.28M	306.74M	-62.03M
EBITDA	228.72M	342.92M	306.93M	322.66M	340.76M	134.24M
Net Income	60.45M	91.19M	26.36M	340.38M	33.04M	-87.47M
Balance Sheet
Total Assets	2.64B	3.02B	2.97B	3.12B	3.44B	3.82B
Cash, Cash Equivalents and Short-Term Investments	477.20M	815.94M	677.14M	683.99M	911.63M	450.05M
Total Debt	59.92M	64.50M	47.89M	40.81M	43.32M	23.05M
Total Liabilities	1.32B	1.62B	1.24B	1.31B	1.65B	2.04B
Stockholders Equity	1.32B	1.40B	1.73B	1.81B	1.79B	1.78B
Cash Flow
Free Cash Flow	-117.40M	251.34M	140.81M	124.07M	274.28M	51.88M
Operating Cash Flow	-55.36M	311.76M	226.20M	224.98M	339.39M	112.15M
Investing Cash Flow	-64.11M	-55.03M	-99.48M	-100.96M	147.85M	-61.14M
Financing Cash Flow	-140.17M	-117.94M	-133.56M	-351.66M	-25.66M	-301.61M

Totalenergies EP Gabon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 189.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:EC, the sentiment is Positive. The current price of 189 is above the 20-day moving average (MA) of 185.50, above the 50-day MA of 181.59, and above the 200-day MA of 177.52, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 72.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:EC.

Totalenergies EP Gabon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAU	78 Outperform	€952.83M	4.44	21.70%	6.94%	-14.28%	-9.30%
RUI	78 Outperform	€3.23B	8.61	14.24%	6.19%	-0.98%	20.09%
EC	75 Outperform	€821.25M	14.76	4.13%	46.70%	-8.54%	47.48%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ES	62 Neutral	€1.29B	-13.73	-5.01%	7.23%	-21.92%	-117.88%