Compagnie de Saint Gobain (SGO) AI Stock Analysis

• Market Cap: €48.54B
• Dividend Yield: 2.25%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.36
• Revenue Growth: -2.86%
• EPS Growth: 8.16%
• Country: FR
• Employees: 161,482
• Sector: Industrials
• Sector Strength: 82
• Industry: Construction
• EPS (TTM): 5.69
• Shares Outstanding: 499,054,080
• 10 Day Avg. Volume: 990,240
• 30 Day Avg. Volume: 1,278,936
• PEG Ratio: 2.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €109.00
• Price Target Upside: 10.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Compagnie de Saint Gobain is well-positioned financially, with strong cash generation and a balanced capital structure. The technical analysis suggests cautious optimism, with short-term momentum but potential medium-term challenges. Valuation metrics indicate a fair market price with a solid dividend yield. The absence of recent earnings call data and corporate events means these areas did not impact the score.

Positive Factors

Management

The introduction of Maude Thuaudet as the new group CFO is seen positively as she has already been instrumental behind the scenes.

Market Strategy

The group's focus on a light, sustainable construction strategy and a country-based strategy has been beneficial and should continue to drive outperformance.

Valuation

The stock trades at half the multiple of global peers, which is considered too cheap, indicating a significant upside potential.

Negative Factors

Housing Market Risks

Risks remain in French and North American housing, which may hold the stock back near term.

Interest Costs

Increased interest costs and PPA write-off assumed in 2024 to reflect the magnitude of deals in the period.

Sales Performance

4Q24 messages see little change from 3Q24 with JEFe forecasting a 4Q24 sales decline of -1.8% on a like-for-like basis.

Compagnie de Saint Gobain Business Overview & Revenue Model

Company Description

Compagnie de Saint-Gobain S.A. designs, manufactures, and distributes materials and solutions for wellbeing worldwide. It operates through five segments: High Performance Solutions; Northern Europe; Southern Europe - Middle East (ME) & Africa; Americas; and Asia-Pacific. The company offers glazing solutions for buildings and cars under the Saint-Gobain, GlassSolutions, Vetrotech, and SageGlass brands; plaster-based products for construction and renovation markets under the Placo, Rigips, and Gyproc brands; ceilings under the Ecophon, CertainTeed, Eurocoustic, Sonex, or Vinh Tuong brands; and insulation solutions for a range of applications, such as construction, engine compartments, vehicle interiors, household appliances, and photovoltaic panels under the Isover, CertainTeed, and Izocam brands. It also offers mortars and building chemicals under the Weber brand; exterior products comprising asphalt and composite shingles, roll roofing systems, and accessories; and pipes under the PAM brand, as well as designs, imports, and distributes instant adhesives, sealants, and silicones. In addition, the company provides interior systems, interior and exterior insulation, cladding, floor coverings, façades and lightweight structures, waterproofing, roofing solutions, pre-assembly, and prefabrication solutions; high performance materials; glass for buildings; plasterboard; and interior glass products. Further, it distributes heavy building materials; plumbing, heating, and sanitary products; timbers and panels; civil engineering products; ceramic tiles; and site equipment and tools. The company was founded in 1665 and is headquartered in Courbevoie, France.

How the Company Makes Money

Compagnie de Saint Gobain generates revenue through a diverse range of business segments, primarily focusing on the sale of construction products such as insulation, gypsum, exterior building solutions, and glass. The company earns significant income from its Innovative Materials segment, which includes flat glass and high-performance materials used in automotive and industrial applications. Saint Gobain also profits from its Building Distribution segment, which operates a vast network of retail stores and distribution centers, supplying construction materials to professionals and consumers. Strategic partnerships, acquisitions, and investments in research and development further bolster the company's earnings by enhancing its product offerings and expanding its market presence.

Compagnie de Saint Gobain Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
46.57B	47.94B	51.20B	44.16B	38.13B
	Gross Profit
12.88B	12.65B	13.07B	11.67B	9.45B
	EBIT
5.30B	4.99B	5.16B	4.40B	2.80B
	EBITDA
7.49B	7.05B	6.74B	5.86B	3.38B
	Net Income Common Stockholders
2.84B	2.67B	3.00B	2.52B	456.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.46B	8.60B	6.13B	6.94B	8.44B
	Total Assets
61.72B	57.30B	55.38B	51.58B	48.63B
	Total Debt
17.84B	15.55B	14.37B	14.13B	15.51B
	Net Debt
9.38B	6.95B	8.23B	7.18B	7.06B
	Total Liabilities
36.07B	33.54B	32.22B	30.46B	30.42B
	Stockholders Equity
25.14B	23.27B	22.71B	20.71B	17.89B
Cash Flow		Free Cash Flow
3.49B	4.06B	3.82B	3.00B	3.48B
	Operating Cash Flow
5.57B	6.04B	5.71B	4.44B	4.71B
	Investing Cash Flow
-5.27B	-3.23B	-4.79B	-2.18B	175.00M
	Financing Cash Flow
-402.00M	-209.00M	-1.90B	-3.81B	-1.28B

Compagnie de Saint Gobain Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.94
• 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:SGO, the sentiment is Positive. The current price of 98.94 is above the 20-day moving average (MA) of 90.54, above the 50-day MA of 94.31, and above the 200-day MA of 86.66, indicating a bullish trend. The MACD of 1.82 indicates Negative momentum. The RSI at 60.15 is Neutral, neither overbought nor oversold. The STOCH value of 84.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:SGO.

Compagnie de Saint Gobain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGO	74 Outperform	€48.54B	17.27	11.75%	2.25%	-2.86%	8.16%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.06%	-10.21%

Compagnie de Saint Gobain Corporate Events

Saint-Gobain Releases 2024 Government Payments Report

Compagnie de Saint-Gobain has published its report on payments made to governments for the fiscal year ending December 31, 2024, in compliance with French Commercial Code article L. 232-6-2. This publication is part of the company’s commitment to transparency and regulatory compliance, potentially impacting its reputation and stakeholder trust.

Saint-Gobain Launches Oversubscribed 1.2 Billion Euro Bond Issue

Saint-Gobain has successfully launched a bond issue worth 1.2 billion euros in two tranches, capitalizing on favorable market conditions to address future refinancing needs. The bond issue was significantly oversubscribed, reflecting strong investor confidence in the company’s credit quality, which is rated BBB+ by Standard & Poor’s and Baa1 by Moody’s.

Saint-Gobain Announces Employee-Focused Capital Increase

Compagnie de Saint-Gobain announced a capital increase reserved for members of its Group Savings Plan, allowing employees to purchase shares at a discounted rate. This initiative aims to enhance employee shareholding, fostering a stronger connection between the company and its employees, and is part of the company’s long-term strategy to involve employees in its growth and success.

Saint-Gobain Achieves Record Financial Performance in 2024

Saint-Gobain reported record operating margins and free cash flow for 2024, despite challenges in the European construction market. The company completed four strategic acquisitions in high-growth regions, contributing to a total shareholder return of 32% and a proposed dividend increase. Looking ahead, Saint-Gobain aims to maintain an operating margin above 11% in 2025, driven by its sustainable solutions and successful integration of recent acquisitions.