SES S.A. (SESG) AI Stock Analysis

• Market Cap: €2.57B
• Dividend Yield: 8.33%
• Average Volume (3M): 479.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: -0.99%
• EPS Growth: 93.75%
• Country: FR
• Employees: 2,118
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.12
• Shares Outstanding: 370,559,360
• 10 Day Avg. Volume: 444,357
• 30 Day Avg. Volume: 479,194
• PEG Ratio: 0.03
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 8.82
• 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: €7.61
• Price Target Upside: 12.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): €3.49B

• Rating: 49 Neutral
• Price Target: €6.00 ▼(-11.24% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is primarily held back by financial performance concerns—especially elevated leverage and inconsistent profitability—despite strong revenue growth and positive (but recently weaker) free cash flow. Technical indicators are neutral overall, and valuation is supported by a high dividend yield but offset by loss-making results (negative P/E).

Positive Factors

Diversified recurring revenue

SES’s business is structurally diversified across broadcast (SES Video) and data/broadband (SES Networks), with long-term contracts, government customers and telco partnerships. This recurring contract mix and global satellite reach supports predictable revenue streams and customer stickiness over the medium term.

High EBITDA margins and revenue rebound

A 31% revenue rebound combined with sustained 39% EBITDA margins indicates resilient unit economics in SES’s core services. Strong EBITDA suggests pricing power and operating leverage in satellite capacity sales and managed services, underpinning mid‑term cash generation even if net income fluctuates.

Positive operating and free cash flow

SES continues to generate positive operating cash flow and ended 2025 with positive free cash flow, demonstrating the business can convert revenues into cash. This cash generation supports capex for satellites, service delivery and debt servicing and provides a durable funding base despite year-to-year variability.

Negative Factors

Elevated leverage

Leverage rose materially to a 2.65x debt/equity profile as debt climbed and equity fell, increasing financial risk in a capital-intensive industry. Higher leverage reduces financial flexibility, raises interest and refinancing exposure, and limits the company’s ability to fund new satellites or absorb demand shocks over the medium term.

Inconsistent profitability

SES shows volatile net results with a return to loss in 2025 and historically large negative margins in prior years. Persistent swings and negative returns on equity indicate earnings are sensitive to large non-cash charges, project timing or one-offs, undermining predictability of shareholder returns and dividend sustainability.

Sharp FCF deterioration and volatility

A 75.6% drop in free cash flow year-over-year highlights volatile cash conversion, likely from higher capex, working-capital swings or project timing. In the context of high debt, such FCF volatility heightens refinancing and liquidity risk and constrains investment capacity for crucial satellite launches and upgrades.

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

Despite strong 2025 revenue growth (+31.4% YoY) and high EBITDA margins (39%), profitability is inconsistent with a return to a net loss in 2025 (net margin -3.6%) and historically high volatility. Balance-sheet risk increased materially as leverage rose (debt-to-equity 2.65x) and equity declined, while cash flow stayed positive but weakened sharply with free cash flow down 75.6% YoY.

Income Statement

Revenue rebounded strongly in 2025 (up 31.4% YoY), but profitability remains inconsistent. Net results swung back to a loss in 2025 (net margin -3.6%) after a near-breakeven 2024, and the last few years show high volatility including a very large loss in 2023 (net margin -44.6%). EBITDA margins are consistently strong (39% in 2025; 50% in 2024), but low EBIT margins (2.1% in 2025) suggest heavy depreciation/amortization and/or recurring costs that limit bottom-line conversion.

Balance Sheet

Leverage increased materially in 2025, with debt-to-equity rising to 2.65x (from 1.34x in 2024) as total debt climbed to 6.94B while equity declined to 2.62B. Returns on equity are weak/negative in most years (negative again in 2025), reflecting uneven earnings power. The balance sheet is still supported by a sizeable asset base (13.37B in 2025), but the higher leverage profile raises financial risk and reduces flexibility.

Cash Flow

Cash generation remains a relative bright spot: operating cash flow was positive in 2025 (751M) and free cash flow stayed positive (229M). However, free cash flow fell sharply in 2025 (down 75.6% YoY) versus 2024’s stronger level (703M), indicating weaker cash conversion and/or higher investment or working-capital drag. Overall cash flow performance is positive across the period, but it is clearly volatile year to year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.63B	2.00B	2.03B	1.94B	1.75B
Gross Profit	1.87B	1.35B	1.38B	1.59B	1.43B
EBITDA	1.03B	1.00B	50.00M	881.00M	1.19B
Net Income	-95.00M	15.00M	-905.00M	-35.00M	453.00M
Balance Sheet
Total Assets	13.37B	10.33B	10.18B	12.61B	13.08B
Cash, Cash Equivalents and Short-Term Investments	1.07B	3.22B	2.91B	1.05B	1.05B
Total Debt	6.94B	4.57B	4.20B	4.39B	3.61B
Total Liabilities	10.66B	6.83B	6.43B	6.95B	7.35B
Stockholders Equity	2.62B	3.42B	3.08B	5.60B	5.67B
Cash Flow
Free Cash Flow	229.00M	703.00M	3.07B	122.00M	1.01B
Operating Cash Flow	751.00M	1.01B	3.48B	1.48B	1.29B
Investing Cash Flow	-1.79B	-159.00M	-370.00M	-1.80B	-283.00M
Financing Cash Flow	-1.08B	-375.00M	-1.02B	305.00M	-1.13B

SES S.A. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 6.76 is above the 20-day moving average (MA) of 6.38, above the 50-day MA of 6.45, and above the 200-day MA of 5.95, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 37.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€529.22M	14.20	3.72%	3.59%	-9.30%	-47.10%
MMT	69 Neutral	€1.46B	11.49	11.94%	10.45%	-4.71%	-31.54%
TFI	63 Neutral	€1.50B	11.51	7.52%	7.35%	1.00%	-7.89%
TEP	62 Neutral	€3.05B	7.30	11.73%	6.86%	9.08%	-22.55%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SESG	49 Neutral	€2.57B	-21.27	-2.14%	8.33%	-0.99%	93.75%
VIV	46 Neutral	€1.92B	117.72	―	1.70%	―	―