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Compagnie de Saint-Gobain SA (FR:SGO)
:SGO
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Compagnie de Saint Gobain
(SGO)
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Rating:66Neutral
Price Target:
€82.00
▼(-9.13% Downside)
Action:ReiteratedDate:03/06/26
The score is anchored by solid financial performance (improved margins and steady cash generation) and supportive earnings-call guidance on margins, cash conversion, and capital returns. These strengths are tempered by weak technicals (downtrend with negative momentum despite oversold signals) and moderate financial-risk watch items (higher 2025 debt and only moderate cash-to-debt coverage). Valuation is reasonable and helps offset some near-term operating headwinds.
Positive Factors
Improved margins
Sustained EBIT and EBITDA margins near the mid-teens indicate structural operational leverage and pricing power across portfolio segments. Margin expansion versus 2020 suggests the company can protect profitability through price/cost management and operational actions, supporting durable cash generation and reinvestment capacity.
Strong free cash flow
Consistently high FCF conversion provides long-term financial flexibility to fund capex, M&A and shareholder returns while keeping leverage moderate. A >50% conversion target reduces refinancing risk and supports disciplined capital allocation even through construction cycles and regional variability.
High‑margin growth platform
A growing, higher-margin Construction Chemicals platform diversifies revenue mix and lifts group profitability over time. Successful integrations and a clear roadmap to expand the segment to >€9bn by 2030 increase structural growth optionality and improve overall margin resiliency.
Negative Factors
Inconsistent top‑line growth
Reliance on a single-year revenue surge rather than steady multi-year compound growth raises execution and cyclicality risk. Without consistent organic momentum, earnings and cashflow upside are more sensitive to cyclical construction demand, regional swings and successful M&A integration over the medium term.
Leverage uptick
A rising leverage trend, if persistent, reduces financial flexibility to absorb downturns and raises interest expense exposure. Moderate cash-to-debt coverage and only partial operating cashflow coverage of total debt mean tighter capacity to accelerate buybacks or large bolt‑on M&A without extending maturities or increasing refinancing risk.
Cyclical/geographic exposure & FX
Significant exposure to cyclical end markets (roofing, renovation) and international FX swings creates persistent volatility in sales and margins. Structural sensitivity to weather, regional construction cycles and currency moves can depress near-to-medium term revenue and complicate consistent margin delivery.
Compagnie de Saint Gobain (SGO) vs. iShares MSCI France ETF (EWQ)
Market Cap
€37.17B
Dividend YieldN/A
Average Volume (3M)1.01M
Price to Earnings (P/E)14.9
Beta (1Y)1.52
Revenue GrowthN/A
EPS GrowthN/A
CountryFR
Employees161,482
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)3.07
Shares Outstanding494,825,320
10 Day Avg. Volume1,000,607
30 Day Avg. Volume1,010,284
Financial Highlights & Ratios
PEG Ratio6.06
Price to Book (P/B)1.75
Price to Sales (P/S)0.92
P/FCF Ratio12.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€103.38Price Target Upside14.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)6.49
Revenue Forecast (FY)€47.13B
Compagnie de Saint Gobain Business Overview & Revenue Model
Company DescriptionCompagnie 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 Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented a majority of positive operational and financial outcomes: sales and earnings growth, strong free cash flow (58% conversion), disciplined capital allocation, successful integrations (Construction Chemicals) and solid regional outperformance in Asia and Latin America. These positives were tempered by significant near‑term headwinds — FX, weather‑related volume losses (notably North American roofing and French flooding), elevated non‑operating costs in H2 and some regional softness (Germany, parts of Northern Europe, and modest weakness in China). Management expects H1 2026 to be weaker with normalization and recovery in H2, and reiterated strategic growth initiatives and portfolio rotation that support medium‑term confidence.Q4-2025 Updates
Positive Updates
Group revenue and profit growth
Sales +2.1% in local currencies (like‑for‑like virtually stable). Operating income +3.8% in local currencies and EBITDA +3.4% in local currencies with EBITDA margin stable at 15.5%.
Strong recurring earnings and shareholder returns
Recurring net income EUR 3.3 billion. Dividend proposed at EUR 2.30 per share (+4.5%). EUR 1.5 billion returned to shareholders in 2025 through dividends and buybacks; plan to return ~EUR 8 billion (2026–2030) including ~EUR 2 billion buybacks and ~EUR 6 billion dividends.
Robust cash generation and balance sheet
Free cash flow EUR 3.8 billion with a cash conversion ratio of 58% (above 50% target). Net debt-to-EBITDA stable at 1.4x, demonstrating balance‑sheet strength while funding M&A and returns.
Regional outperformance in Asia, Latin America and recovery in Europe
Asia Pacific delivered strong growth (management cited +17% in local currencies; earlier commentary noted Asia & emerging markets +12.6% LC). Latin America +13.5% LC and +6.9% like‑for‑like. Europe returned to growth in H2 with improvements in France, UK and Southern Europe.
Construction chemicals integration and momentum
Strategic acquisitions (Cemix, FOSROC) drove substantial growth in Construction Chemicals (~16% sales growth cited). Management also highlighted ~11% organic sales growth for the combined Construction Chemicals platform with ~20% combined EBITDA margin, and a roadmap to grow the segment to >EUR 9 billion sales by 2030 (from ~EUR 6.5 billion).
Operational discipline and margin protection actions
Positive price/cost spread maintained (prices +0.8%). Examples of margin protection included plant shutdowns/optimizations, cost actions and restructuring where needed; EBITDA margin held broadly stable despite mixed market conditions.
Pipeline and solution-led growth opportunities
Large solutions pipeline highlighted (over 600 data center projects across 26 countries) and stated ambition to significantly grow data‑center related sales (management referenced a potential to triple sales in that area to 'hundreds of millions').
Active portfolio rotation
EUR 1.2 billion of sales rotated in 2025; target to rotate >20% of sales by 2030. Continued disciplined M&A and divestment program focused on value creation and high‑growth geographies.
Negative Updates
Currency headwinds
FX was a headwind of -2.3% on sales for the year (worsening to about -3% in H2) and management expects ~-3% sales impact in Q1 2026 at current rates. FX impact on operating income was larger (close to -4%).
Volume pressure and weather disruption (North America & France)
Volumes down 1.3% for the year. North America sales down 4.2% for 2025 and -7.3% in H2 (Q4 -8.2%); U.S. roofing volumes were down ~17% in Q4 due to an unusually calm storm season. Management estimated Q1 2026 volume impact of low‑to‑mid single digits (approx. -3% to -5%) driven by extreme weather (floods in France, snow/storms in the U.S.).
Regional underperformance in Northern Europe and Germany
Northern Europe delivered mixed results with Germany remaining down and Nordics mixed. H2 EBITDA margins in Northern Europe were weighed by higher non‑operating/restructuring costs in H2.
Higher non‑operating costs and increased financial expense
Non‑operating costs were ~EUR 230 million for the year with more concentrated in H2 (higher than mid‑year guidance). Net financial expense increased due to higher gross debt and lower interest earned on cash placements.
Near‑term margin seasonality risk
Management flagged a weaker H1 2026 (margin and volumes) with recovery expected in H2; North America H1 margin expected below H1 2025 and some region/segment seasonality (roofing exposure material: roofing ~35% of U.S. exposure).
China and some developed markets soft spots
China was down slightly for the year (though improved in H2 with market share gains). Some mature markets (parts of Europe and certain U.S. product lines like insulation) faced continued softness.
Input‑cost pockets remain
Although overall raw‑material inflation expected stable to slight, management called out pockets of inflation (sand, packaging, transport) and noted energy/commodity volatility that could affect costs despite hedging.
Company Guidance
Saint‑Gobain guided to an EBITDA margin above 15% in 2026 (roughly >11% EBIT equivalent) while warning H1 will be weaker because of extreme weather (Q1 volumes expected to be down low‑to‑mid single digits, roughly −3% to −5%) and FX headwinds of about −3% on Q1 sales (H1 FX ≈ −2% at current spots); management expects to preserve a positive price/cost spread, keep CapEx around 4.5% of sales, sustain free‑cash‑flow conversion above 50% (2025 FCF €3.8bn, conversion 58%), maintain net debt/EBITDA near 1.4x, keep non‑operating costs around ~€250m p.a., a recurring tax rate ~24%, and active portfolio rotation (rotated €1.2bn of sales in 2025 and targeting >20% of sales by 2030) while growing construction chemicals from a €6.5bn platform (76 countries) toward >€9bn by 2030 and continuing shareholder returns (proposed dividend €2.30/share; €1.5bn returned in 2025; planned €2bn buybacks + ~€6bn dividends for 2026–2030).Compagnie de Saint Gobain Financial Statement Overview
Summary
Solid profitability with improved margins versus 2020 (EBIT ~10–11%, EBITDA ~15–16%) and consistently positive operating cash flow/FCF. Offsetting this, growth has been uneven outside the 2025 jump, leverage ticked up in 2025, and cash-to-debt repayment capacity is only moderate.Income Statement
Revenue has been broadly stable from 2021–2025, with a standout reported jump in 2025 (+32.7%) after modest declines in 2023–2024. Profitability is solid and improving versus earlier years: gross margin is steady in the mid‑20%s and net margin is ~6% in 2023–2025 (vs ~1.2% in 2020). Operating profitability also strengthened from 2020 levels, with EBIT margin now ~10–11% and EBITDA margin ~15–16%. Key weakness is limited multi-year top-line momentum outside the 2025 surge, suggesting growth is not consistently compounding year to year.78
Positive
Balance Sheet
Leverage is moderate: debt-to-equity generally sits around ~0.63–0.87, improving after 2020 but ticking up again in 2025 (~0.84) as total debt rose. Equity levels are sizable and relatively stable, supporting the capital structure. Returns on equity are healthy in most years (~11–13% in 2021–2025) but well below peak levels for higher-quality compounders, and the 2025 increase in debt is a notable watch item if it persists.70
Positive
Cash Flow
Cash generation is consistently positive, with operating cash flow around ~€5.6–6.0B in 2022–2025 and free cash flow ~€3.5–4.1B, indicating good cash profitability. Free cash flow has been volatile (down slightly in 2024, up in 2025), and free cash flow covers only about ~61–67% of net income in 2021–2025, which is decent but not exceptionally conservative. A key weakness is that operating cash flow covers only about one-third of total debt, implying repayment capacity is adequate but not particularly strong if conditions tighten.66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 46.48B | 46.57B | 47.94B | 51.20B | 44.16B |
| Gross Profit | 12.65B | 12.88B | 12.65B | 13.07B | 11.67B |
| EBITDA | 7.43B | 7.49B | 7.05B | 6.74B | 5.86B |
| Net Income | 2.88B | 2.84B | 2.67B | 3.00B | 2.52B |
Balance Sheet | |||||
| Total Assets | 60.84B | 61.72B | 57.30B | 55.38B | 51.58B |
| Cash, Cash Equivalents and Short-Term Investments | 7.73B | 8.46B | 8.60B | 6.13B | 6.94B |
| Total Debt | 20.58B | 17.84B | 15.55B | 14.37B | 14.13B |
| Total Liabilities | 35.73B | 36.07B | 33.54B | 32.22B | 30.46B |
| Stockholders Equity | 24.54B | 25.14B | 23.27B | 22.71B | 20.71B |
Cash Flow | |||||
| Free Cash Flow | 3.46B | 3.49B | 4.06B | 3.82B | 3.00B |
| Operating Cash Flow | 5.64B | 5.57B | 6.04B | 5.71B | 4.44B |
| Investing Cash Flow | -3.72B | -5.27B | -3.23B | -4.79B | -2.18B |
| Financing Cash Flow | -2.70B | -402.00M | -209.00M | -1.90B | -3.81B |
Compagnie de Saint Gobain Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
Compagnie de Saint Gobain Corporate Events
Saint-Gobain Updates Share Capital and Voting Rights for February 2026
Mar 5, 2026
Compagnie de Saint-Gobain reported that as of 28 February 2026 its share capital consisted of 494,825,319 shares. The group also disclosed a theoretical total of 545,664,149 voting rights and 543,785,184 exercisable voting rights, providing investors and regulators with updated transparency on its capital and governance structure.
These monthly disclosures, made in accordance with French commercial law and financial market regulations, support ongoing market transparency for shareholders. They allow investors to monitor changes in Saint-Gobain’s equity and voting power base, which can influence perceptions of corporate control, liquidity, and potential future shareholder actions.
The most recent analyst rating on (FR:SGO) stock is a Sell with a EUR78.00 price target. To see the full list of analyst forecasts on Compagnie de Saint Gobain stock, see the FR:SGO Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.