SES S.A. (SESG) AI Stock Analysis

• Market Cap: €2.46B
• Dividend Yield: 8.21%
• Average Volume (3M): 253.68K
• Price to Earnings (P/E): 244.3
• Beta (1Y): 0.40
• Revenue Growth: -0.99%
• EPS Growth: 93.75%
• Country: FR
• Employees: 2,118
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): 0.11
• Shares Outstanding: 383,457,600
• 10 Day Avg. Volume: 215,494
• 30 Day Avg. Volume: 253,678
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €7.69
• Price Target Upside: 26.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 58 Neutral
• Price Target: €6.00 ▼(-1.32% Downside)

The overall stock score reflects solid financial performance with strong cash flow generation and operational efficiency. However, technical indicators suggest limited momentum, and valuation concerns arise from a negative P/E ratio, despite an attractive dividend yield. The absence of earnings call data and corporate events limits further insights.

SES S.A. Business Overview & Revenue Model

Company Description

SES S.A. provides satellite and ground infrastructure solutions worldwide. The company offers data connectivity services through its MEO and GEO satellite communication systems for aviation, maritime, cruise, energy, government, and telco and MNO industries. It also provides video services, including direct to home broadcast, occasional use, IP delivery, cable distribution, channel management, over the top (OTT), satellite distribution, hybrid TV platform, online video platform, content aggregation, SES 360, audience measurement and ad insertion, subscriber management, content distribution, production, value added, and real time booking services for broadcasters, platform operators, and sports organizations. The company was formerly known as SES Global S.A. and changed its name to SES S.A. in 2006. SES S.A. was founded in 1985 and is headquartered in Betzdorf, Luxembourg.

How the Company Makes Money

SES generates revenue primarily through the leasing of satellite capacity to telecommunications providers, broadcasters, and government entities, which constitutes a significant portion of its income. The company also earns money from managed services and solutions tailored to specific customer needs, such as data connectivity for remote areas and maritime services. Key revenue streams include long-term contracts with major clients, which provide stable income, and one-time sales for specific projects. Additionally, partnerships with other technology and service providers enhance SES's offerings and expand its market reach, contributing to its overall earnings.

SES S.A. Financial Statement Overview

Summary

SES S.A. demonstrates solid gross profit margins and operational efficiency. Despite challenges in revenue growth and net profitability, the company maintains a stable equity position and generates strong cash flow, though recent declines in free cash flow warrant attention.

Income Statement

The income statement shows a modest gross profit margin of 76.9% for 2024, indicating efficiency in covering production costs. However, the net profit margin is only 0.75%, reflecting challenges in converting sales into actual profit. Revenue has decreased slightly by 1.43% from the previous year. The EBIT margin is 3.2%, and EBITDA margin is 49.6%, suggesting decent operational performance but limited bottom-line profitability.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 1.34, indicating a balanced capital structure with moderate leverage. The return on equity is 0.44%, low but improving from a negative ROE in previous years. The equity ratio stands at 33.1%, showing a stable equity position relative to total assets.

Cash Flow

The cash flow statement highlights strong cash generation with a free cash flow of €703 million for 2024. The operating cash flow to net income ratio is 67.07, suggesting robust cash flow relative to net income. However, free cash flow has decreased by 77% from the prior year, indicating potential challenges in maintaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.50B	2.00B	2.03B	1.94B	1.75B	1.84B
Gross Profit	1.50B	1.35B	1.38B	1.59B	1.43B	1.54B
EBITDA	745.25M	1.00B	70.00M	881.00M	1.19B	771.00M
Net Income	-48.00M	15.00M	-905.00M	-35.00M	453.00M	-95.00M
Balance Sheet
Total Assets	10.53B	10.33B	10.18B	12.61B	13.08B	12.39B
Cash, Cash Equivalents and Short-Term Investments	4.62B	3.22B	2.91B	1.05B	1.05B	1.16B
Total Debt	5.79B	4.57B	4.20B	4.39B	3.61B	3.97B
Total Liabilities	7.65B	6.83B	6.43B	6.95B	7.35B	6.95B
Stockholders Equity	2.81B	3.42B	3.08B	5.60B	5.67B	5.37B
Cash Flow
Free Cash Flow	937.00M	703.00M	3.07B	122.00M	1.01B	839.00M
Operating Cash Flow	1.32B	1.01B	3.48B	1.48B	1.29B	1.05B
Investing Cash Flow	-365.00M	-159.00M	-370.00M	-1.80B	-283.00M	-217.00M
Financing Cash Flow	1.85B	-375.00M	-1.02B	305.00M	-1.13B	-813.00M

SES S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SESG, the sentiment is Positive. The current price of 6.08 is above the 20-day moving average (MA) of 5.90, above the 50-day MA of 6.07, and above the 200-day MA of 4.74, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 56.98 is Neutral, neither overbought nor oversold. The STOCH value of 75.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:SESG.

SES S.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$47.40B	4.51	-11.27%	4.14%	2.83%	-41.62%
SESG	58 Neutral	€2.46B	244.29	-2.14%	8.21%	-0.99%	93.75%
0MGL	―	€1.64B	11.09	11.94%	―	―	―
0IXL	―	€566.35M	21.43	4.56%	―	―	―
0J6X	―	€3.81B	7.83	11.73%	―	―	―
0NQT	―	€1.85B	9.88	9.58%	―	―	―
0IIF	―	€3.03B	8.04	2.26%	―	―	―