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TotalEnergies SE (FR:TTE)
:TTE
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TotalEnergies SE
(LSE:TTE)
Rating:74Outperform
Price Target:
€59.00
▲(12.23% Upside)
Positive Factors
Company Strategy
Total has been ahead of the curve in diversifying its energy mix to adapt to energy needs of the future.
Shareholder Returns
The dividend remains a support for the stock with the yield at 6.6%; this remains secure as TTE needs $50 oil to cover it.
Valuation
Analyst reiterates a buy recommendation on TotalEnergies SE shares due to their mispricing compared to peers.
Negative Factors
Cash Flow
Lower CFFO has contributed to gearing above expectations.
Financial Performance
TTE underperformed off earnings with total investments running higher than expected, driving gearing levels higher.
Market Risks
Price fluctuations in oil and gas prices remain the biggest risk for Total's earnings performance and dividend payout.
TotalEnergies SE (TTE) vs. iShares MSCI France ETF (EWQ)
Market Cap
€117.32B
Dividend Yield6.13%
Average Volume (3M)3.34M
Price to Earnings (P/E)10.0
Beta (1Y)0.50
Revenue Growth-11.41%
EPS Growth-36.91%
CountryFR
Employees95,393
SectorEnergy
Sector Strength44
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)1.35
Shares Outstanding2,281,206,300
10 Day Avg. Volume3,041,171
30 Day Avg. Volume3,335,719
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€61.52Price Target Upside17.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
TotalEnergies SE Business Overview & Revenue Model
Company DescriptionTotalEnergies SE operates as an integrated oil and gas company worldwide. The company operates through four segments: Integrated Gas, Renewables & Power; Exploration & Production; Refining & Chemicals; and Marketing & Services. The Integrated Gas, Renewables & Power segment engages in the liquefied natural gas production, shipping, trading, and regasification activities; trading of liquefied petroleum gas (LPG), petcoke and sulfur, natural gas, and electricity; transportation of natural gas; electricity production from natural gas, wind, solar, hydroelectric, and biogas sources; energy storage activities; and development and operation of biomethane production units, as well as provides energy efficiency services. The Exploration & Production segment is involved in the oil and natural gas exploration and production activities. The Refining & Chemicals segment engages in refining petrochemicals, including olefins and aromatics; and polymer derivatives, such as polyethylene, polypropylene, polystyrene, and hydrocarbon resins, as well as biomass conversion and elastomer processing. This segment is also involved in trading and shipping crude oil and petroleum products. The Marketing & Services segment produces and sells lubricants; supplies and markets petroleum products, including bulk fuel, aviation and marine fuel, special fluids, compressed natural gas, LPG, and bitumen; and provides fuel payment solutions. It operates approximately 16,000 service stations and 25,000 EV charge points. As of December 31, 2021, the company had 12,062 Mboe of combined proved reserves of oil and gas. TotalEnergies SE has strategic partnerships with PureCycle Technologies, Plastic Energy, Freepoint Eco-Systems, and Plastic Omnium for various development projects. The company was formerly known as TOTAL SE and changed its name to TotalEnergies SE in June 2021. TotalEnergies SE was incorporated in 1924 and is headquartered in Courbevoie, France.
How the Company Makes MoneyTotalEnergies generates revenue through several key streams: the upstream segment, which involves the exploration and production of oil and natural gas, accounts for a significant portion of its earnings; the midstream segment, which includes transportation and storage of hydrocarbons, contributes to stable cash flows; and the downstream segment, encompassing refining and marketing of petroleum products, provides revenue through the sale of fuels, lubricants, and petrochemicals. The company also earns income from its growing investments in renewable energy projects. Strategic partnerships and joint ventures with other energy companies and governments further enhance its operational capabilities and market reach, contributing to overall revenue growth.
TotalEnergies SE Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q1-2025)
| % Change Since: -1.44%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
TotalEnergies demonstrated strong production growth and maintained attractive shareholder returns despite navigating a challenging geopolitical and macroeconomic environment. The company effectively controlled costs and delivered robust cash flow, although it faced difficulties in the downstream segment and gas trading due to market uncertainties.Q1-2025 Updates
Positive Updates
Strong Production Growth
TotalEnergies delivered a robust year-on-year production growth with nearly 4% in Oil & Gas and 18% in Electricity, representing a total production growth of close to 5%.
Attractive Shareholder Returns
The Board confirmed the first interim dividend at €0.85 per share, a 7.6% increase compared to 2024, and announced share buybacks of up to €2 billion for the second quarter.
Cost Control
Operating costs were kept low, with OpEx per barrel lower than $5, and CapEx secured with lump sum EPC contracts.
Strong Cash Flow
The company reported adjusted net income of $4.2 billion and FFO of $7 billion for the first quarter, 2025, with a robust return on capital employed at 13.2%.
Negative Updates
Geopolitical and Macro Uncertainty
The company is navigating a challenging environment with uncertainties due to geopolitical tensions, such as the Ukrainian Russian conflict, and macroeconomic factors like OPEC+ production cuts.
Downstream Challenges
Weak refining margins, along with declining petrochemicals and biofuel margins in Europe, led to lower cash flow by about $150 million. Operational issues at Donges refinery also negatively impacted cash flow by about $200 million.
Gas Trading Impact
Gas trading results were impacted by an unexpected downturn in European markets due to elevated uncertainty regarding the Russia-Ukraine conflict.
Seasonal Working Capital Build
A seasonal working capital build of $4.4 billion was recorded, influenced by various factors including advanced payments in European gas and power distribution activities.
Company Guidance
During the call, TotalEnergies provided detailed guidance on its financial and operational performance amidst a challenging global environment characterized by macroeconomic and geopolitical uncertainties. The company reported a robust year-on-year production growth of nearly 4% in oil and gas and 18% in electricity, resulting in an overall production growth of close to 5%. Despite a softening price environment, with oil prices dropping below $70 per barrel, TotalEnergies maintained its strong balance sheet with a gearing ratio of 14.3%, which would be 11% when normalized for seasonal variations. The company reiterated its commitment to shareholder returns, confirming an interim dividend of €0.85 per share, a 7.6% increase from 2024, and announced share buybacks of up to €2 billion for the second quarter, maintaining a payout of at least 40% of cash flow from operations through cycles. TotalEnergies is on track to achieve its 2025 growth objectives, with an annual production growth guidance of more than 3% and a focus on cost control, keeping operating expenses below $5 per barrel. The company also highlighted its strategic resilience through its diversified portfolio, including its strong presence in low-cost, low-emission oil and gas and its growing integrated power business.TotalEnergies SE Financial Statement Overview
Summary
TotalEnergies SE demonstrates strong operational efficiency and a stable financial position, although recent periods have shown some pressure on revenue growth and cash flow generation. The company maintains a solid balance sheet with manageable leverage, but needs to address declining cash flow to sustain long-term growth.Income Statement
TotalEnergies SE has shown strong profitability with a consistent gross profit margin around 34.7% in recent periods. However, the net profit margin has slightly decreased to 6.8% in the TTM, reflecting some pressure on net income. Revenue has declined by 2.35% in the TTM, indicating challenges in maintaining growth. Despite this, EBIT and EBITDA margins remain robust, suggesting efficient operations.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.53 in the TTM, indicating a stable leverage position. Return on equity has decreased to 10.9%, reflecting a decline in profitability. The equity ratio remains strong, suggesting a solid capital structure. Overall, the balance sheet reflects stability with manageable debt levels.70
Positive
Cash Flow
Free cash flow has decreased by 26.48% in the TTM, highlighting potential cash flow challenges. The operating cash flow to net income ratio is 0.31, indicating moderate cash flow generation relative to net income. The free cash flow to net income ratio has decreased, suggesting reduced cash conversion efficiency. Despite these challenges, the company maintains positive operating cash flow.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 187.12B | 195.61B | 218.94B | 263.31B | 184.63B | 119.70B |
| Gross Profit | 52.59B | 55.53B | 62.37B | 81.21B | 52.01B | 19.61B |
| EBITDA | 38.90B | 42.28B | 50.78B | 59.04B | 42.07B | 17.88B |
| Net Income | 12.79B | 15.76B | 21.38B | 20.53B | 16.03B | -7.24B |
Balance Sheet | ||||||
| Total Assets | 292.82B | 285.49B | 283.65B | 303.86B | 293.46B | 266.13B |
| Cash, Cash Equivalents and Short-Term Investments | 25.61B | 30.55B | 33.43B | 41.77B | 33.66B | 35.90B |
| Total Debt | 62.22B | 51.24B | 47.87B | 60.77B | 64.55B | 77.30B |
| Total Liabilities | 173.81B | 165.23B | 164.20B | 189.29B | 178.46B | 160.05B |
| Stockholders Equity | 116.64B | 117.86B | 116.75B | 111.72B | 111.74B | 103.70B |
Cash Flow | ||||||
| Free Cash Flow | 11.42B | 15.95B | 22.96B | 31.68B | 18.07B | 4.04B |
| Operating Cash Flow | 28.20B | 30.85B | 40.68B | 47.37B | 30.41B | 14.80B |
| Investing Cash Flow | -20.80B | -17.33B | -16.45B | -15.12B | -13.66B | -13.08B |
| Financing Cash Flow | -10.64B | -14.43B | -29.73B | -19.27B | -25.50B | 1.40B |
TotalEnergies SE Technical Analysis
Neutral
52.57
Price Trends
52.83
Negative
52.44
Positive
53.35
Negative
Market Momentum
-0.03
Negative
50.54
Neutral
79.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:TTE, the sentiment is Neutral. The current price of 52.57 is above the 20-day moving average (MA) of 52.35, below the 50-day MA of 52.83, and below the 200-day MA of 53.35, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.54 is Neutral, neither overbought nor oversold. The STOCH value of 79.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:TTE.
TotalEnergies SE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | €117.32B | 10.02 | 11.32% | 6.13% | -11.41% | -36.91% | |
56 Neutral | C$4.18B | 2.00 | 16.25% | 5.63% | 10.54% | -54.53% | |
| ― | €1.23B | 11.47 | 4.64% | 3.19% | ― | ― | |
| ― | €5.87B | 16.50 | 77.67% | ― | ― | ― | |
| ― | €1.02B | 4.74 | 21.70% | 5.62% | ― | ― | |
| ― | €837.00M | 9.93 | 5.77% | 45.73% | ― | ― | |
80 Outperform | €7.18B | 18.13 | 2.10% | 17.19% | 11.76% |
* Energy Sector Average
Performance Comparison
FR:TTE
TotalEnergies SE
53.47
-5.43
-9.21%
GB:0N9V
Esso Societe Anonyme Francaise
96.55
9.41
10.80%
GB:0QT5
Gaztransport et technigaz
159.30
29.57
22.79%
GB:0F6L
Etablissements Maurel & Prom
5.18
-0.34
-6.16%
GB:0IUV
Totalenergies EP Gabon
185.00
88.04
90.80%
FR:TE
Technip Energies NV
40.64
20.37
100.49%
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.