Societe Generale (GLE) AI Stock Analysis

• Market Cap: €50.16B
• Dividend Yield: 2.49%
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.37
• Revenue Growth: -14.11%
• EPS Growth: 180.83%
• Country: FR
• Employees: 111,754
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• 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): 0.86
• 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: €75.84
• Price Target Upside: 0.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: €82.00 ▲(8.32% Upside)

The score is primarily supported by strong technical strength (price above key moving averages and positive MACD) and solid reported revenue/profitability with a stable balance sheet profile. The main constraint is cash flow deterioration in 2024 (negative free cash flow), which reduces confidence in near-term financial quality despite improving profitability.

Positive Factors

Diversified banking franchise across business lines

Societe Generale operates across retail, corporate & investment banking, asset management, private banking and insurance. This business mix provides durable revenue diversification across economic cycles, supporting fee and interest income stability and enabling cross‑sell opportunities over the medium term.

Material revenue growth and improved net margin in 2024

The jump to €52.51B revenue and a stronger net margin (8.0%) indicate improved operating performance and scale benefits. Sustained top‑line strength and margin recovery support long‑term profitability if maintained through stable NII and recurring fees, bolstering core franchise profitability.

Solid reported balance sheet metrics and liquidity buffers

Reported high cash reserves, absence of total debt and an improving ROE to 6.0% provide financial flexibility. Strong liquidity and an ability to manage liabilities reduce solvency risk and support lending and client activities through stress periods, aiding strategic initiatives over months.

Negative Factors

Sharp deterioration in free cash flow

A swing from positive €25.56B to negative €21.53B signals meaningful cash generation weakness. Persistently negative FCF undermines capacity to fund investments, dividends or buybacks internally and may force higher external funding or capital measures, pressuring strategic flexibility over months.

Negative operating cash flow to net income ratio

A negative operating cash flow to net income ratio implies earnings are not converting into cash, raising earnings quality concerns. If structural, this can erode liquidity, complicate capital allocation and reduce resilience to rate or market shocks, weakening long‑term financial stability.

Relatively low equity ratio versus peers

An equity ratio of 4.5%—described as slightly low versus peers—means a thinner capital buffer. That increases sensitivity to credit or market stress and could require capital-raising or constrained growth under regulatory pressure, limiting strategic options in adverse scenarios.

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

Strong income statement and balance sheet signals (revenue growth to €52.51B in 2024, improved net margin to 8.0%, balance sheet score supported by improved ROE and no total debt), but materially offset by weak cash flow quality (free cash flow turning to -€21.53B in 2024 and negative operating cash flow to net income ratio).

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: 75.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 75.7 is above the 20-day moving average (MA) of 71.36, above the 50-day MA of 67.30, and above the 200-day MA of 55.68, indicating a bullish trend. The MACD of 2.20 indicates Negative momentum. The RSI at 69.83 is Neutral, neither overbought nor oversold. The STOCH value of 91.46 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	€100.45B	9.75	9.50%	9.16%	-6.55%	14.18%
GLE	76 Outperform	€50.16B	12.15	7.47%	2.49%	-14.11%	180.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ACA	65 Neutral	€54.98B	8.60	10.82%	6.26%	-3.99%	14.76%