Engie SA (ENGI) AI Stock Analysis

• Market Cap: €47.16B
• Dividend Yield: 7.52%
• Average Volume (3M): 4.41M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.27
• Revenue Growth: -10.60%
• EPS Growth: 85.80%
• Country: FR
• Employees: 97,000
• Sector: Utilities
• Sector Strength: 70
• Industry: Diversified Utilities
• EPS (TTM): 0.77
• Shares Outstanding: 2,435,285,000
• 10 Day Avg. Volume: 3,914,034
• 30 Day Avg. Volume: 4,410,850
• PEG Ratio: 0.01
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.66
• 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: €21.43
• Price Target Upside: 8.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: €21.00 ▲(6.76%Upside)

Engie SA demonstrates strong technical performance and attractive valuation metrics, with solid profitability and cash flow management. However, challenges such as declining revenue growth and equity ratio decrease present risks. Overall, the stock is well-positioned within the diversified utilities sector, offering both growth and income potential.

Positive Factors

Dividends

Engie is seen as a compelling defensive play with an attractive dividend profile, underpinned by visible earnings and typical utility growth, expected to help gain valuation closer to long-term sector averages.

Earnings

Engie's impressive update shows a more convincing equity story with visible earnings and manageable overhangs, which can drive further investor interest and re-rating to peers.

Management

The company's management is best-in-class and is delivering on a remarkable turnaround story, which supports the achievement of Engie's 2027 guidance.

Negative Factors

Political Risks

Key risks include French politics, weak hydro volumes, US supply chain risk from tariffs, and lower-than-expected contracting of group earnings.

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 SA makes money through a diversified revenue model that includes the generation and sale of electricity and natural gas, energy infrastructure management, and energy services. The company operates power plants, including renewable energy sources such as wind, solar, and hydroelectric, and sells electricity to both wholesale and retail customers. Engie also earns revenue from natural gas distribution and sales, and it invests in and manages energy infrastructure such as gas pipelines and storage facilities. Additionally, Engie provides energy efficiency and management services to businesses and municipalities, helping them optimize energy usage and reduce costs. Significant partnerships with governments, industrial clients, and other energy providers contribute to its earnings by enhancing its market reach and operational capabilities.

Engie SA Financial Statement Overview

Summary

Engie SA shows strong profitability with improving net profit margins and stable cash flow management. However, the declining revenue growth trend and decrease in the equity ratio impact the overall score.

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

Engie SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.67
• 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 19.67 is below the 20-day moving average (MA) of 19.72, above the 50-day MA of 19.13, and above the 200-day MA of 15.99, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 53.90 is Neutral, neither overbought nor oversold. The STOCH value of 31.74 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
ENGI	74 Outperform	€47.16B	11.72	14.36%	7.52%	-10.60%	85.80%
Sector *	67 Neutral	$16.55B	16.99	4.47%	3.56%	4.76%	6.17%
0OG6		€814.37M	22.96	10.11%	1.14%	―	―
0NY8		€22.40B	20.12	13.14%	3.91%	―	―
0QW7		€1.09B	28.54	-1.80%	―	―	―
9PS		€4.33M	―	-41.62%	―	―	―
ELEC	79 Outperform	€1.00B	6.65		7.86%	-15.22%	61.11%

Engie SA Corporate Events

ENGIE Finalizes Nuclear Agreement with Belgian Government

ENGIE has finalized an agreement with the Belgian government to extend the operation of the Tihange 3 and Doel 4 nuclear reactors for 10 years and transfer nuclear waste responsibilities to the government. This agreement, approved by the European Commission, includes a joint venture ownership of the reactors and a contract for difference mechanism, reducing ENGIE’s exposure to future waste treatment costs.