TotalEnergies SE (TTE) AI Stock Analysis

• Market Cap: €119.13B
• Dividend Yield: 6.37%
• Average Volume (3M): 5.33M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.48
• Revenue Growth: -8.95%
• EPS Growth: -31.72%
• Country: FR
• Employees: 95,393
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Integrated
• EPS (TTM): 1.55
• Shares Outstanding: 2,281,206,300
• 10 Day Avg. Volume: 5,670,543
• 30 Day Avg. Volume: 5,331,836
• PEG Ratio: -0.87
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.34
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 0.97
• 1Y Price Target: €62.32
• Price Target Upside: 16.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 74 Outperform
• Price Target: €60.00 ▲(12.42%Upside)

TotalEnergies SE has a robust overall score driven by its solid financial performance, strong valuation metrics, and positive earnings call highlights. Although there are challenges due to geopolitical uncertainties and downstream segment difficulties, the company's stable financial foundation and attractive valuation provide significant support to its stock rating.

Positive Factors

Energy Diversification

Total has been ahead of the curve in diversifying its energy mix to adapt to energy needs of the future.

Financial Performance

Upstream production growth of 4% drove strong cash flow, offsetting weaker Downstream.

Shareholder Returns

Dividend yield is healthy at over 6% as management remains committed to shareholder returns in excess of 40% of Operating Cash Flows.

Negative Factors

Cash Flow Challenges

Weak cash conversion in the first quarter was compounded by net working capital outflows.

Free Cash Flow

Investors will have to weigh the prospect of constructive long-term growth against near-term free cash flow compression.

Price Volatility

Price fluctuations in oil and gas prices remain the biggest risk for Total's earnings performance and dividend payout.

TotalEnergies SE Business Overview & Revenue Model

Company Description

TotalEnergies 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 Money

TotalEnergies SE generates revenue through a diversified portfolio of energy-related activities. The company earns money from its upstream operations, which involve the exploration and production of oil and natural gas. This segment is a significant revenue driver for the company. In the downstream sector, TotalEnergies refines crude oil into various petroleum products, which are then distributed and marketed globally. Additionally, the company is heavily invested in renewable energy sources such as solar and wind power, which are becoming increasingly significant as the world shifts toward greener energy solutions. TotalEnergies' integrated gas, renewable, and power segment also contributes to its revenue by focusing on the production and marketing of liquefied natural gas (LNG) and electricity. The company has strategic partnerships and joint ventures with other energy companies, enhancing its capabilities and market reach. Furthermore, TotalEnergies invests in technology and innovation to improve its efficiency and expand its sustainable energy offerings, which is crucial for its long-term growth and profitability.

TotalEnergies SE Financial Statement Overview

Summary

TotalEnergies SE exhibits strong profitability with healthy margins and efficient operations. However, a decline in revenue and free cash flow presents potential growth challenges. The company's robust balance sheet with moderate leverage and solid cash flow ensures financial stability.

Income Statement

TotalEnergies SE shows strong profitability with a stable gross profit margin of approximately 28.6% in TTM, indicating efficient cost management. The net profit margin is substantial at 7.2%, reflecting effective income retention. However, revenue has decreased by 3.0% from 2024 to TTM, which may affect future growth prospects. EBIT and EBITDA margins are healthy at 12.4% and 20.3% respectively, demonstrating strong core operational efficiency.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of 0.50, signaling moderate leverage and a strong equity position. The return on equity (ROE) stands at 11.8%, highlighting good profitability from shareholders' perspective. The equity ratio is 40.5%, indicating a stable capital structure with a significant proportion of assets financed by equity.

Cash Flow

TotalEnergies SE has a substantial operating cash flow to net income ratio of 2.25, ensuring liquidity and operational health. However, free cash flow declined by 2.6% from 2024 to TTM, which might indicate pressures on cash generation. The free cash flow to net income ratio is 1.12, reflecting a solid conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	191.63B	195.61B	218.94B	263.31B	184.63B	119.70B
Gross Profit	54.81B	55.53B	75.90B	81.64B	52.46B	19.95B
EBITDA	38.97B	36.89B	50.78B	59.04B	42.07B	17.88B
Net Income	13.89B	15.76B	21.38B	20.53B	16.03B	-7.34B
Balance Sheet
Total Assets	291.06B	285.49B	283.65B	303.86B	293.46B	266.13B
Cash, Cash Equivalents and Short-Term Investments	29.07B	30.55B	33.43B	41.77B	33.66B	35.90B
Total Debt	58.99B	51.24B	47.87B	60.77B	64.55B	77.30B
Total Liabilities	170.64B	165.23B	164.20B	189.29B	178.46B	160.05B
Stockholders Equity	117.96B	117.86B	116.75B	111.72B	111.74B	103.70B
Cash Flow
Free Cash Flow	15.54B	15.95B	22.96B	31.68B	18.07B	4.04B
Operating Cash Flow	31.25B	30.85B	40.68B	47.37B	30.41B	14.80B
Investing Cash Flow	-18.67B	-17.33B	-16.45B	-15.12B	-13.66B	-13.08B
Financing Cash Flow	-15.31B	-14.43B	-29.73B	-19.27B	-25.50B	1.40B

TotalEnergies SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.37
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:TTE, the sentiment is Positive. The current price of 53.37 is above the 20-day moving average (MA) of 53.16, above the 50-day MA of 52.01, and below the 200-day MA of 54.17, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 45.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:TTE.

TotalEnergies SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTE	74 Outperform	€119.13B	9.37	11.86%	6.37%	-8.95%	-31.72%
Sector *	68 Neutral	$15.14B	9.91	6.38%	5.21%	4.16%	-67.19%
0N9V		€1.99B	18.68	4.64%	9.69%	―	―
0QT5		€6.04B	17.45	87.21%	4.67%	―	―
0F6L		€965.02M	4.52	21.03%	6.12%	―	―
0IUV		€846.00M	10.12	5.77%	17.57%	―	―
TE	78 Outperform	€6.32B	16.18		2.05%	11.91%	31.36%