Engie SA (ENGI) AI Stock Analysis

• Market Cap: €50.41B
• Dividend Yield: 6.74%
• Average Volume (3M): 3.83M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.31
• Revenue Growth: 1.77%
• EPS Growth: 1.62%
• Country: FR
• Employees: 97,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.27
• Shares Outstanding: 2,435,285,000
• 10 Day Avg. Volume: 4,169,406
• 30 Day Avg. Volume: 3,825,264
• PEG Ratio: 0.10
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 9.88
• 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: €24.00
• Price Target Upside: 9.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €19.50 ▼(-11.16% Downside)

Engie SA's overall score is driven by its solid financial performance and attractive valuation. The company's strong cash flow and profitability metrics, combined with a low P/E ratio and high dividend yield, are significant strengths. However, technical indicators suggest caution due to overbought conditions, which slightly offset the positive fundamentals.

Positive Factors

Cash Flow Management

Strong cash flow management indicates robust operational efficiency, supporting long-term financial stability and investment capacity.

Profitability

Rising profit margins reflect enhanced cost management and pricing power, contributing to sustained profitability and shareholder value.

Renewable Energy Focus

A strong focus on renewable energy positions Engie to benefit from structural shifts towards sustainability and government incentives.

Negative Factors

Revenue Growth Challenges

Declining revenue growth may limit future earnings potential and could signal challenges in market expansion or competitive pressures.

Equity Ratio Decline

A declining equity ratio suggests increased reliance on debt, which may impact financial flexibility and risk profile.

Free Cash Flow Decrease

Declining free cash flow could constrain future investments and shareholder returns, despite strong operational cash flow.

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 primarily through the production and sale of electricity and natural gas. The company operates a diverse portfolio of power generation assets, including renewable energy sources such as wind, solar, and hydroelectric power, which benefit from government incentives and long-term power purchase agreements. Additionally, Engie provides energy services and solutions to commercial and industrial clients, focusing on energy efficiency and sustainability initiatives. Revenue is also derived from the operation of gas infrastructure, including transportation and storage. Significant partnerships with governments and private sector entities for large-scale energy projects further enhance Engie's revenue potential, as does its commitment to innovative technologies that support the energy transition.

Engie SA Financial Statement Overview

Summary

Engie SA displays solid financial health with strong cash flow and profitability metrics. Despite challenges with revenue growth and equity ratio decline, the company maintains efficient operations and reasonable leverage, typical of a regulated utility.

Income Statement

Engie SA shows strong profitability with a consistent gross profit margin and improving net profit margin from 2.7% in 2023 to 5.6% in 2024. However, revenue has decreased from 2022 to 2024, indicating a declining revenue growth trend which impacts the overall score.

Balance Sheet

Engie SA maintains a moderate debt-to-equity ratio of 1.52 in 2024, which suggests balanced leverage for a regulated utility. However, the equity ratio has decreased over recent years, indicating a reduction in equity financing. The return on equity improved to 11.9% in 2024, signaling better efficiency in generating profits from shareholder equity.

Cash Flow

The company exhibits stable cash flow management with a consistent operating cash flow to net income ratio of 3.2 in 2024. Although free cash flow decreased in 2024, the operating cash flow remained strong, suggesting robust operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.32B	73.81B	82.56B	93.86B	57.87B	44.31B
Gross Profit	19.55B	24.35B	25.57B	6.06B	6.31B	3.73B
EBITDA	11.20B	13.52B	10.67B	3.91B	10.69B	5.48B
Net Income	3.63B	4.11B	2.21B	140.00M	3.66B	-1.72B
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	16.43B	14.39B	13.52B
Total Debt	52.70B	52.01B	47.29B	43.98B	44.81B	41.85B
Total Liabilities	126.41B	148.09B	158.92B	199.60B	187.12B	123.24B
Stockholders Equity	30.92B	34.56B	26.66B	30.86B	33.23B	25.03B
Cash Flow
Free Cash Flow	-4.64B	3.76B	5.79B	1.56B	744.00M	2.12B
Operating Cash Flow	2.43B	13.14B	13.12B	7.94B	6.73B	7.08B
Investing Cash Flow	-1.28B	-11.34B	-11.82B	-4.27B	-10.05B	-4.11B
Financing Cash Flow	-841.00M	-1.46B	-218.00M	-2.35B	4.43B	12.00M

Engie SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.95
• 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 FR:ENGI, the sentiment is Positive. The current price of 21.95 is above the 20-day moving average (MA) of 20.68, above the 50-day MA of 19.37, and above the 200-day MA of 18.21, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 82.16 is Negative, neither overbought nor oversold. The STOCH value of 91.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ENGI.

Engie SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELEC	81 Outperform	€1.24B	7.96	―	6.43%	-12.83%	10.40%
VIE	71 Outperform	€20.62B	18.97	15.69%	4.89%	-0.31%	1.28%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ENGI	64 Neutral	€50.41B	9.93	18.16%	6.74%	1.77%	1.62%
SCHP	62 Neutral	€504.69M	11.56	12.51%	1.85%	14.77%	33.13%
VLTSA	59 Neutral	€934.48M	-20.78	-3.36%	―	1.76%	-234.79%