SES S.A. (SESG) AI Stock Analysis

• Market Cap: €2.58B
• Dividend Yield: 8%
• Average Volume (3M): 490.94K
• Price to Earnings (P/E): 255.3
• Beta (1Y): 0.33
• Revenue Growth: -1.43%
• EPS Growth: N/A
• Country: FR
• Employees: 2,118
• Sector: Communication Services
• Sector Strength: 84
• Industry: Broadcasting
• EPS (TTM): 0.09
• Shares Outstanding: 383,457,600
• 10 Day Avg. Volume: 492,713
• 30 Day Avg. Volume: 490,936
• PEG Ratio: 1.54
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.69
• 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: €7.46
• Price Target Upside: 19.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 59 Neutral
• Price Target: €6.00 ▼(-4.15%Downside)

The overall stock score reflects strong technical performance and healthy cash flow generation, offset by a high P/E ratio suggesting potential overvaluation. The lack of earnings call and notable corporate events limited additional insights into the company's near-term outlook.

SES S.A. Business Overview & Revenue Model

Company Description

SES S.A. (SESG) is a global satellite operator headquartered in Luxembourg. The company provides reliable and secure satellite communications solutions, delivering video and data connectivity worldwide. SES operates a constellation of geostationary and medium Earth orbit satellites that support services in sectors such as television broadcasting, telecommunications, corporate networks, and government operations. Its core services include delivering high-definition and ultra-high-definition TV channels, broadband connectivity, and data solutions across various industries.

How the Company Makes Money

SES S.A. generates revenue primarily through leasing satellite capacity and providing related services to broadcasters, content and internet service providers, mobile and fixed network operators, governments, and institutions. The company earns money by offering satellite bandwidth for video distribution and broadband services, enabling its clients to deliver content and connectivity solutions. SES also derives income from managed services, which include end-to-end video and data transmission solutions. Significant partnerships with media companies, telecom operators, and government agencies enhance its market reach and contribute to its revenue streams. Additionally, SES's focus on expanding its satellite fleet and improving its technological capabilities plays a crucial role in maintaining competitive offerings and sustaining its financial performance.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.00B	2.03B	1.94B	1.75B	1.84B
Gross Profit	1.54B	1.38B	1.59B	1.43B	1.54B
EBITDA	1.03B	70.00M	881.00M	1.19B	771.00M
Net Income	15.00M	-905.00M	-35.00M	453.00M	-95.00M
Balance Sheet
Total Assets	10.33B	10.18B	12.61B	13.08B	12.39B
Cash, Cash Equivalents and Short-Term Investments	3.22B	2.91B	1.05B	1.05B	1.16B
Total Debt	4.57B	4.20B	4.39B	3.61B	3.97B
Total Liabilities	6.83B	6.43B	6.95B	7.35B	6.95B
Stockholders Equity	3.42B	3.08B	5.60B	5.67B	5.37B
Cash Flow
Free Cash Flow	703.00M	3.07B	122.00M	1.01B	839.00M
Operating Cash Flow	1.01B	3.48B	1.48B	1.29B	1.05B
Investing Cash Flow	-159.00M	-370.00M	-1.80B	-283.00M	-217.00M
Financing Cash Flow	-375.00M	-1.02B	305.00M	-1.13B	-813.00M

SES S.A. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.26
• 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:SESG, the sentiment is Positive. The current price of 6.26 is above the 20-day moving average (MA) of 5.76, above the 50-day MA of 5.25, and above the 200-day MA of 4.14, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 70.00 is Negative, neither overbought nor oversold. The STOCH value of 88.89 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
MMT	74 Outperform	€1.61B	9.27	13.16%	8.43%	-0.33%	-26.15%
MMT	74 Outperform	€1.61B	9.27	13.16%	8.43%	-0.33%	-26.15%
TFI	74 Outperform	€1.82B	9.54	9.43%	6.07%	1.53%	-1.60%
TFI	74 Outperform	€1.82B	9.54	9.43%	6.07%	1.53%	-1.60%
NRG	72 Outperform	€567.90M	13.54	5.90%	3.95%	1.14%	-7.09%
NRG	72 Outperform	€567.90M	13.54	5.90%	3.95%	1.14%	-7.09%
VIV	67 Neutral	€2.82B	7.46	2.26%	1.40%	―	―
VIV	67 Neutral	€2.82B	7.46	2.26%	1.40%	―	―
TEP	66 Neutral	€5.06B	9.65	11.90%	4.97%	23.19%	-14.73%
TEP	66 Neutral	€5.06B	9.65	11.90%	4.97%	23.19%	-14.73%
SESG	59 Neutral	€2.58B	255.31	0.00%	8.00%	-1.43%	―
Sector *	58 Neutral	C$3.35B	8.07	-7.37%	5.78%	-2.71%	-16.54%