SES S.A. (SESG) AI Stock Analysis

• Market Cap: €2.52B
• Dividend Yield: 8.33%
• Average Volume (3M): 479.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -0.99%
• EPS Growth: 93.75%
• Country: FR
• Employees: 2,118
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.17
• Shares Outstanding: 383,457,600
• 10 Day Avg. Volume: 444,357
• 30 Day Avg. Volume: 479,194
• PEG Ratio: -0.85
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 1.85
• 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: €6.23
• Price Target Upside: 2.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: €6.00 ▼(-1.64% Downside)

The overall stock score of 57 reflects solid financial performance with strong cash flow generation and operational efficiency. However, the bearish technical indicators and negative P/E ratio weigh down the score. The high dividend yield provides some support, but the lack of profitability and market momentum are significant concerns.

Positive Factors

Cash Generation

Strong cash generation capacity ensures SES can fund operations and investments, supporting long-term growth and financial stability.

Operational Efficiency

High gross profit margins indicate efficient cost management, allowing SES to maintain profitability despite revenue challenges.

Stable Equity Position

A stable equity position and moderate leverage provide SES with financial resilience and flexibility to navigate market changes.

Negative Factors

Declining Free Cash Flow

A significant decline in free cash flow may limit SES's ability to invest in growth opportunities and cover financial obligations.

Revenue Growth Challenges

Declining revenue growth can hinder SES's ability to expand its market presence and improve profitability over time.

Low Net Profit Margin

A low net profit margin indicates difficulties in translating sales into profit, potentially affecting SES's long-term financial health.

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 S.A. generates revenue primarily through its two business segments: SES Video and SES Networks. In the SES Video segment, revenue is derived from broadcasting services, including subscriptions from broadcasters and media companies for satellite capacity to deliver content to audiences. In the SES Networks segment, the company earns revenue by providing data connectivity and broadband services to telecommunications companies, government agencies, and enterprises, often through long-term contracts. Additional revenue streams include managed services, where SES collaborates with partners to provide integrated solutions. Key partnerships with major telecommunications firms and government contracts significantly enhance its earnings potential, along with the growing demand for satellite-based internet solutions, especially in remote and underserved areas.

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	2.00B	2.00B	2.03B	1.94B	1.75B	1.84B
Gross Profit	1.75B	1.35B	1.38B	1.59B	1.43B	1.54B
EBITDA	953.50M	1.00B	50.00M	881.00M	1.19B	771.00M
Net Income	-44.00M	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: 6.10
• 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:SESG, the sentiment is Positive. The current price of 6.1 is above the 20-day moving average (MA) of 5.52, above the 50-day MA of 5.55, and above the 200-day MA of 5.55, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 67.03 is Neutral, neither overbought nor oversold. The STOCH value of 98.03 is Negative, 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
NRG	75 Outperform	€617.42M	23.36	4.56%	3.59%	-9.30%	-47.10%
TEP	72 Outperform	€3.75B	7.71	11.73%	6.86%	9.08%	-22.55%
MMT	69 Neutral	€1.53B	10.34	11.94%	10.45%	-4.71%	-31.54%
TFI	68 Neutral	€1.75B	9.55	9.15%	7.35%	1.00%	-7.89%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SESG	57 Neutral	€2.52B	-45.87	-2.14%	8.33%	-0.99%	93.75%
VIV	54 Neutral	€2.39B	―	―	1.70%	―	―