Societe Generale (GLE) AI Stock Analysis

• Market Cap: €45.16B
• Dividend Yield: 2.51%
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.36
• Revenue Growth: -14.11%
• EPS Growth: 180.83%
• Country: FR
• Employees: 111,754
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.73
• Shares Outstanding: 766,894,800
• 10 Day Avg. Volume: 2,432,343
• 30 Day Avg. Volume: 2,044,050
• PEG Ratio: 0.05
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -1.00
• 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: €69.18
• Price Target Upside: 1.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €60.00 ▼(-11.56% Downside)

Societe Generale's strong financial performance, particularly in revenue growth and balance sheet stability, is a key strength. However, challenges in cash flow management and neutral technical indicators slightly offset these positives. The stock's attractive valuation further supports its investment appeal.

Positive Factors

Revenue Growth

The significant increase in revenue indicates strong market demand and effective business strategies, positioning the company for sustained growth.

Balance Sheet Health

A robust balance sheet with no total debt enhances financial stability, allowing for strategic investments and resilience against economic downturns.

Profitability

Improved net profit margins reflect efficient operations and cost management, supporting long-term profitability and shareholder value.

Negative Factors

Cash Flow Management

Negative free cash flow indicates potential liquidity issues, which could constrain the company's ability to invest in growth opportunities.

Equity Ratio Concerns

A lower equity ratio compared to industry norms may indicate potential vulnerability in capital structure, affecting long-term financial health.

Operational Challenges

The absence of key profitability metrics like EBIT and EBITDA suggests potential operational inefficiencies that could impact future performance.

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

Societe Generale demonstrates strong revenue growth and profitability with a robust 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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.89B	25.26B	24.08B	25.51B	25.72B	18.83B
Gross Profit	25.89B	25.26B	24.08B	25.51B	25.72B	18.83B
EBITDA	0.00	0.00	0.00	0.00	0.00	0.00
Net Income	5.47B	4.20B	2.49B	1.82B	5.64B	-258.00M
Balance Sheet
Total Assets	1.55T	1.57T	1.55T	1.48T	1.46T	1.44T
Cash, Cash Equivalents and Short-Term Investments	212.56B	589.61B	591.83B	540.84B	411.60B	498.12B
Total Debt	172.72B	181.49B	179.81B	154.80B	151.28B	154.66B
Total Liabilities	1.47T	1.49T	1.48T	1.41T	1.39T	1.38T
Stockholders Equity	68.29B	70.26B	65.97B	66.97B	65.10B	61.71B
Cash Flow
Free Cash Flow	-54.08B	-21.53B	25.56B	29.50B	13.83B	75.20B
Operating Cash Flow	-44.00B	-10.10B	37.42B	39.09B	20.29B	80.79B
Investing Cash Flow	-20.35B	-13.74B	-12.07B	-9.01B	-10.12B	-6.86B
Financing Cash Flow	-5.31B	-1.27B	-3.90B	-214.00M	-3.63B	2.13B

Societe Generale Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.84
• 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 67.84 is above the 20-day moving average (MA) of 62.96, above the 50-day MA of 58.46, and above the 200-day MA of 51.06, indicating a bullish trend. The MACD of 2.63 indicates Negative momentum. The RSI at 76.14 is Negative, neither overbought nor oversold. The STOCH value of 93.07 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
BNP	77 Outperform	€89.03B	8.55	9.50%	9.16%	-6.55%	14.18%
GLE	72 Outperform	€45.16B	10.81	7.47%	2.51%	-14.11%	180.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ACA	65 Neutral	€53.24B	7.56	10.82%	6.27%	-3.99%	14.76%