Engie SA (ENGI) AI Stock Analysis

• Market Cap: €68.93B
• Dividend Yield: 6.65%
• Average Volume (3M): 3.83M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.38
• Revenue Growth: 1.77%
• EPS Growth: 1.62%
• Country: FR
• Employees: 97,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.53
• Shares Outstanding: 2,542,428,000
• 10 Day Avg. Volume: 4,169,406
• 30 Day Avg. Volume: 3,825,264
• PEG Ratio: -1.75
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -5.96
• 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: €26.14
• Price Target Upside: -4.11% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.87
• Revenue Forecast (FY): €69.37B

• Rating: 66 Neutral
• Price Target: €32.00 ▲(17.39% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is primarily held back by financial performance, driven by a sharp 2025 cash flow reversal (negative operating and deeply negative free cash flow) despite improved profitability and lower leverage. Technicals are supportive with a strong uptrend, though overbought signals add near-term risk. Valuation is a positive, with a reasonable P/E and a high dividend yield.

Positive Factors

Improved Profitability

Profitability recovering to mid-single-digit margins and low-double-digit ROE indicates the business has stabilized after prior losses. This stronger earnings base supports sustainable operating cash generation in normal years, underpins dividend capacity and funds strategic investments over the medium term.

Lower Leverage

A materially reduced debt-to-equity ratio meaningfully lowers refinancing and solvency risk, increasing financial flexibility. Lower leverage improves ability to fund renewables and grid investments, absorb cyclical cash swings, and reduces interest burden over multiple reporting periods.

Diversified, Transition-Aligned Business

A diversified mix across generation, services and renewables aligns Engie with structural decarbonization trends. Multiple revenue streams (PPAs, services, infrastructure) reduce single-market exposure and support long-term demand for energy transition solutions and recurring contracted cash flows.

Negative Factors

Weak Cash Generation

A sharp cash-flow reversal to negative operating and free cash flow erodes internal funding for capex, dividends and debt service. Sustained or recurring cash deficits force reliance on external financing or asset sales, raising execution risk and constraining long-term capital allocation choices.

Revenue & Margin Volatility

Large year-to-year swings in revenue and uneven margins reduce predictability of earnings and complicate investment planning. For a capital-intensive utility, this volatility can pressure returns and increase the probability of corrective actions (asset sales, restructuring) over a multi-quarter horizon.

Balance-Sheet Variability & Capital Intensity

Frequent large swings in reported debt and assets suggest reliance on portfolio changes or refinancing. Combined with high capital intensity, this raises recurring execution and financing risk, potentially forcing suboptimal disposals or costly refinancing under adverse market conditions.

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

Profitability has improved versus the weak 2022 period (net margin ~5% in 2024–2025 and ROE ~11–12%), and leverage looks much more conservative in 2025 (debt-to-equity ~0.34x). However, 2025 cash flow deterioration is a major concern (operating cash flow negative and free cash flow deeply negative), alongside margin volatility and a history of earnings variability.

Income Statement

Revenue has been volatile, with declines in 2022–2024 followed by a strong rebound in 2025 (+30.1% year over year). Profitability improved meaningfully from the very weak 2022 result to healthier 2023–2025 earnings, with net margin holding around ~5% in 2024–2025 and returns on equity around ~11–12%. Offsetting this, margins are inconsistent (notably a sharp drop in gross margin in 2025 versus 2023–2024), and the business has a history of earnings volatility (including a loss in 2020 and near-breakeven profitability in 2022).

Balance Sheet

Leverage appears to have improved sharply in 2025, with total debt down materially versus 2024 and debt-to-equity moving from elevated levels (~1.5–1.8x in 2023–2024) to a much more conservative position (~0.34x in 2025). Equity remains sizable (~€33B) supporting a large asset base, and returns on equity have normalized back to low-double-digits in recent years. The main risk is the year-to-year balance-sheet variability (large swings in reported debt and assets), which can indicate refinancing, portfolio moves, or structurally high capital intensity typical for utilities.

Cash Flow

Cash generation weakened significantly in 2025, with operating cash flow turning negative (about -€2.2B) and free cash flow deeply negative (about -€9.5B), which is a clear near-term red flag for funding needs and capital allocation flexibility. This contrasts with 2022–2024 where operating cash flow was consistently positive (~€7.9B–€13.1B) and free cash flow was positive. Overall cash flow is therefore unstable across the period, increasing reliance on financing or asset actions in weaker years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	71.94B	73.81B	82.56B	93.86B	57.87B
Gross Profit	8.86B	24.35B	25.57B	6.06B	6.31B
EBITDA	8.49B	13.52B	10.67B	3.91B	10.69B
Net Income	3.83B	4.11B	2.21B	140.00M	3.66B
Balance Sheet
Total Assets	169.25B	189.54B	194.64B	235.49B	225.33B
Cash, Cash Equivalents and Short-Term Investments	17.09B	17.74B	17.35B	16.43B	14.39B
Total Debt	57.78B	52.01B	47.29B	43.98B	44.81B
Total Liabilities	128.42B	148.09B	158.92B	199.60B	187.12B
Stockholders Equity	32.95B	34.56B	26.66B	30.86B	33.23B
Cash Flow
Free Cash Flow	-9.47B	3.76B	5.79B	1.56B	744.00M
Operating Cash Flow	-2.20B	13.14B	13.12B	7.94B	6.73B
Investing Cash Flow	149.00M	-11.34B	-11.82B	-4.27B	-10.05B
Financing Cash Flow	165.00M	-1.46B	-218.00M	-2.35B	4.43B

Engie SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 27.26 is above the 20-day moving average (MA) of 26.87, above the 50-day MA of 25.00, and above the 200-day MA of 20.96, indicating a bullish trend. The MACD of 0.86 indicates Positive momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 41.43 is Neutral, 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	€1.56B	8.39	―	6.15%	-12.83%	10.40%
ENGI	66 Neutral	€68.93B	14.74	18.16%	6.65%	1.77%	1.62%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
SCHP	63 Neutral	€507.03M	12.27	12.51%	1.69%	14.77%	33.13%
VIE	61 Neutral	€24.31B	18.11	15.69%	4.77%	-0.31%	1.28%
VLTSA	60 Neutral	€898.41M	-7.05	-3.36%	―	1.76%	-234.79%