Societe Generale (GLE) AI Stock Analysis

• Market Cap: €45.56B
• Dividend Yield: 2.49%
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.40
• Revenue Growth: -14.11%
• EPS Growth: 180.83%
• Country: FR
• Employees: 111,754
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.61
• Shares Outstanding: 751,724,000
• 10 Day Avg. Volume: 2,432,343
• 30 Day Avg. Volume: 2,044,050
• PEG Ratio: 0.16
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -1.79
• 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: €80.56
• Price Target Upside: 18.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 7.67
• Revenue Forecast (FY): €28.01B

• Rating: 54 Neutral
• Price Target: €68.00 ▲(0.32% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is held back primarily by weak cash-flow quality and rising leverage despite improved profitability. Technicals show near-term weakness (below key moving averages) even with oversold signals, while valuation is a key offset with a low P/E and a moderate dividend yield.

Positive Factors

Diversified business model

Société Générale's multi‑pillar franchise (retail, global banking & investor solutions, asset management, private banking, insurance) spreads revenue risk across cycles. This structural diversification supports more stable fee and interest income and enables cross‑sell and client stickiness over months.

Improved profitability and margins

Reported net income and margin expansion indicate stronger earnings power and operational leverage. Sustained margin levels support internal capital generation and resilience to revenue cycles, enhancing the bank's ability to fund lending, absorb shocks, and pursue strategic initiatives over the medium term.

Improving returns on equity

ROE improvement reflects better capital efficiency and profitability per unit of equity, demonstrating management's ability to deploy capital more effectively. Higher ROE supports sustainable shareholder returns and validates execution, though it should be weighed against changes in leverage.

Negative Factors

Sharp cash flow deterioration

Operating and free cash flows turned sharply negative across 2024–2025, undermining earnings quality. Persistent negative cash conversion raises concerns about working capital movements or non‑cash earnings items, constraining liquidity, dividend capacity, and the bank's flexibility to strengthen capital without external funding.

Rising leverage and falling equity

Material increase in leverage and a lower equity base reduce the loss‑absorption buffer and heighten sensitivity to credit or market stress. Elevated leverage can increase regulatory capital scrutiny and funding costs, limiting strategic flexibility and raising the probability of discretionary capital constraints over months.

Volatile, potentially non-repeatable revenue

Inconsistent top‑line trends increase uncertainty about sustainable revenue drivers. A large 2025 revenue increase flagged as potentially non‑repeatable complicates forecasting and capital allocation, making medium‑term earnings and dividend planning less predictable and increasing execution risk.

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

Societe Generale generates revenue through several key streams. Retail Banking contributes significantly through fees and interest from personal loans, mortgages, and transaction services. Corporate and Investment Banking generates income from advisory services, capital markets activities, and trading operations, including equities and fixed income. Additionally, the Insurance sector provides revenue through premium collections and investment income from various insurance products. The company also benefits from strategic partnerships and collaborations with fintech firms and other financial institutions, enhancing its service offerings and market reach.

Societe Generale Financial Statement Overview

Summary

Profitability improved with higher net income and solid net margins, but financial quality is pressured by sharply negative operating/free cash flow in 2024–2025 and higher leverage with declining equity, increasing sensitivity to adverse conditions.

Income Statement

Profitability improved meaningfully versus 2022–2023, with net income rising to 4.2B (2024) and 5.3B (2025) and net margins holding at solid levels (~16.6% in 2024 and ~19.4% in 2025). However, revenue trends are inconsistent: 2023 declined vs. 2022, 2024 showed only modest growth, and 2025 revenue appears to jump sharply versus 2024—suggesting potential volatility/non-repeatability in the top line. Overall, earnings power looks good, but revenue stability is a key watch item.

Balance Sheet

The balance sheet reflects high leverage typical of banking, but leverage has increased materially: debt-to-equity rose from ~2.6x (2024) to ~4.8x (2025), while equity fell from ~70.3B to ~60.4B. Returns on equity improved (to ~8.7% in 2025 from ~6.0% in 2024), which is a positive signal, but the combination of higher leverage and lower equity increases sensitivity to adverse credit/market conditions.

Cash Flow

Cash generation has been volatile, with strong positive operating and free cash flow in 2022–2023, followed by sharply negative operating cash flow in 2024 (-10.1B) and 2025 (-19.6B) and negative free cash flow in both years (2024: -21.5B; 2025: -29.0B). This divergence—profits remaining positive while operating and free cash flow turn negative—raises questions around working-capital/other balance sheet movements and the sustainability/quality of earnings in the most recent periods.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.89B	86.16B	25.26B	24.08B	25.51B	25.72B
Gross Profit	25.89B	52.60B	25.26B	24.08B	25.51B	25.72B
EBITDA	2.87B	8.44B	6.79B	5.55B	7.51B	7.51B
Net Income	5.47B	5.28B	4.20B	2.49B	1.82B	5.64B
Balance Sheet
Total Assets	1.55T	1.55T	1.57T	1.55T	1.48T	1.46T
Cash, Cash Equivalents and Short-Term Investments	212.56B	369.17B	589.61B	591.83B	540.84B	411.60B
Total Debt	172.72B	167.07B	181.49B	179.81B	154.80B	151.28B
Total Liabilities	1.47T	1.47T	1.49T	1.48T	1.41T	1.39T
Stockholders Equity	68.29B	70.14B	70.26B	65.97B	66.97B	65.10B
Cash Flow
Free Cash Flow	-54.08B	-29.01B	-21.53B	25.56B	29.50B	13.83B
Operating Cash Flow	-44.00B	-19.65B	-10.10B	37.42B	39.09B	20.29B
Investing Cash Flow	-20.35B	-28.44B	-13.74B	-12.07B	-9.01B	-10.12B
Financing Cash Flow	-5.31B	-8.56B	-1.27B	-3.90B	-214.00M	-3.63B

Societe Generale Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 67.78
• 50DMA: Negative
• 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:GLE, the sentiment is Neutral. The current price of 67.78 is below the 20-day moving average (MA) of 72.54, below the 50-day MA of 71.20, and above the 200-day MA of 58.26, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 38.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:GLE.

Societe Generale Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BNP	68 Neutral	€97.55B	7.40	9.50%	9.16%	-6.55%	14.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ACA	60 Neutral	€53.18B	4.65	10.82%	6.26%	-3.99%	14.76%
GLE	54 Neutral	€45.56B	9.82	7.47%	2.49%	-14.11%	180.83%