Societe Generale (GLE) AI Stock Analysis

• Market Cap: €31.93B
• Dividend Yield: 1.95%
• Average Volume (3M): 3.68M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.40
• Revenue Growth: -6.46%
• EPS Growth: 117.00%
• Country: FR
• Employees: 111,754
• Sector: Financial
• Sector Strength: 87
• Industry: Banks - Regional
• EPS (TTM): 1.80
• Shares Outstanding: 800,316,800
• 10 Day Avg. Volume: 3,066,507
• 30 Day Avg. Volume: 3,676,129
• PEG Ratio: 0.28
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.11
• 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: €49.09
• Price Target Upside: 4.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Societe Generale's strong financial performance, characterized by robust revenue growth and solid profitability, is somewhat offset by significant cash flow management challenges. The positive technical indicators suggest upward price momentum, and the undervalued valuation based on P/E ratio and dividend yield enhances the stock's attractiveness. However, the lack of recent earnings call data limits insights into future guidance and sentiment.

Societe Generale Business Overview & Revenue Model

Company Description

Société Générale Société anonyme provides banking and financial services to individuals, businesses, and institutional investors in Europe and internationally. It operates through three segments: Retail Banking in France, International Retail Banking and Financial Services, and Global Banking and Investor Solutions. It offers retail banking services, such as consumer credit, vehicle leasing and fleet management, financing of professional equipment, and long-term leasing activities under the Societe Generale, Credit du Nord, and Boursorama brand names; and insurance products, including home, vehicle, family, health, and mortgage insurance. The company also provides corporate and investment banking, securities, market and investor, financing and consulting, and asset management and private banking services. In addition, it offers security brokerage, equipment finance, cash management, payment services, factoring, and supply chain financing services. The company serves through a network of 1849 branches. Société Générale Société anonyme was founded in 1864 and is based in Paris, France.

How the Company Makes Money

Société Générale makes money through various revenue streams primarily driven by its diverse range of banking and financial services. In the French Retail Banking sector, the company earns income through interest on loans and mortgages, fees from account maintenance, and transaction services. The International Retail Banking and Financial Services sector generates revenue from similar activities across its global network, including Eastern Europe, Africa, and the Mediterranean Basin. The Global Banking and Investor Solutions segment brings in significant earnings through investment banking services, trading activities, advisory services, and securities lending. Additionally, Société Générale benefits from strategic partnerships and joint ventures that expand its service offerings and market reach. The company's revenue is also supported by its asset management and insurance services, which provide fee-based income and premiums.

Societe Generale Financial Statement Overview

Summary

Societe Generale showcases strong revenue growth and profitability with an improving balance sheet characterized by no total debt and a stable equity position. However, cash flow management poses a significant challenge, with a negative free cash flow in 2024 indicating potential liquidity issues. Continued focus on operational efficiency and cash flow management will be crucial for sustaining financial strength.

Income Statement

Societe Generale has demonstrated a strong revenue trajectory with significant growth from €24.08 billion in 2023 to €52.51 billion in 2024. The net profit margin improved to 8.0% in 2024, indicating strengthened profitability. However, EBIT and EBITDA margins are not available for 2024, which limits a comprehensive profitability analysis. The bank's revenue and profit growth trajectory is promising, but the absence of EBIT indicates potential operational challenges.

Balance Sheet

The company's balance sheet is robust with a high equity ratio of 4.5% for 2024, showing a stable capital structure. The lack of total debt in 2024 suggests efficient debt management, contributing to financial stability. Return on Equity (ROE) improved to 6.0%, reflecting effective utilization of shareholder equity. The bank's high cash reserves further enhance its financial position, though a slightly low equity ratio compared to industry norms could pose a risk.

Cash Flow

Societe Generale experienced a decline in free cash flow from €25.56 billion in 2023 to a negative €21.53 billion in 2024, indicating cash flow management challenges. The operating cash flow to net income ratio is negative in 2024, further highlighting cash flow issues. Despite these challenges, the bank's historical ability to generate strong cash flows provides some assurance, though current cash flow management requires attention.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
52.51B	24.08B	38.65B	36.25B	31.82B
	Gross Profit
52.51B	44.34B	38.65B	36.25B	31.82B
	EBIT
8.24B	5.44B	-1.78B	7.34B	946.00M
	EBITDA
0.00	0.00	0.00	13.47B	6.66B
	Net Income Common Stockholders
4.20B	1.74B	2.95B	5.64B	196.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
589.61B	591.83B	207.01B	284.55B	245.79B
	Total Assets
1.57T	1.55T	1.49T	1.46T	1.46T
	Total Debt
181.49B	179.81B	155.43B	153.47B	155.33B
	Net Debt
-91.64B	-107.79B	-168.92B	-131.08B	-90.45B
	Total Liabilities
1.49T	1.48T	1.41T	1.39T	1.39T
	Stockholders Equity
70.26B	65.97B	66.45B	65.07B	61.68B
Cash Flow		Free Cash Flow
-21.53B	25.56B	29.50B	13.83B	75.20B
	Operating Cash Flow
-10.10B	37.42B	39.09B	20.29B	80.79B
	Investing Cash Flow
-13.74B	-12.07B	-9.01B	-10.12B	-6.86B
	Financing Cash Flow
-1.27B	-3.90B	-214.00M	-3.63B	2.13B

Societe Generale Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.80
• 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:GLE, the sentiment is Positive. The current price of 46.8 is above the 20-day moving average (MA) of 42.13, above the 50-day MA of 41.15, and above the 200-day MA of 29.70, indicating a bullish trend. The MACD of 1.93 indicates Negative momentum. The RSI at 70.05 is Negative, neither overbought nor oversold. The STOCH value of 90.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:GLE.

Societe Generale Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLE	73 Outperform	€31.93B	10.61	5.93%	1.95%	-6.46%	117.00%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.61%

Societe Generale Corporate Events

Société Générale Appoints Alexis Kohler as Deputy CEO

Société Générale has appointed Alexis Kohler as Deputy Chief Executive Officer, effective June 2025. Kohler will lead the investment banking division and assist in the company’s transformation programs, bringing his extensive experience and analytical skills to enhance the bank’s operations and global competitiveness.

Societe Generale Announces Board Member Renewals and Appointments

Societe Generale’s Board of Directors has approved a series of renewals and new appointments for its board members, which will be proposed at the upcoming General Meeting in May 2025. These changes aim to enhance the board’s expertise in digital transformation and retail banking, with the inclusion of new independent directors, Mrs. Ingrid-Helen Arnold and Mr. Olivier Klein. The board’s composition will reflect a commitment to diversity and independence, with 42% women and 92% independent directors, ensuring robust governance and strategic oversight.

Société Générale Appoints Lubomira Rochet as Deputy General Manager

Société Générale has appointed Lubomira Rochet as Deputy General Manager, responsible for overseeing Retail Banking, Private Banking, Insurance in France, and the Group’s Chief Operating Office functions. Rochet, an expert in business transformation and digital activities, is expected to enhance the Group’s retail operations and technological transformation, contributing to improved customer experience, growth, and operational efficiency. Her extensive experience in the technology and retail sectors, coupled with her strategic vision, positions her as an asset in driving the Group’s continued development.