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TotalEnergies SE (FR:TTE)
:TTE
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TotalEnergies SE
(LSE:TTE)
Rating:72Outperform
Price Target:―
Positive Factors
Cash Flow and Shareholder Returns
Cash flow generation remained robust, on track to delivering over 10% shareholder return yield split equally between dividends and share buybacks.
Clean Energy Transformation
Leading the pack in clean energy transformation, Total has significantly reduced the share of petroleum products in its sales and is investing heavily in renewable energy.
LNG and Oil Prices
Total is well-positioned to benefit from its spot LNG exposure, as well as oil-indexed contracts that benefit from elevated oil prices.
Negative Factors
Cash Flow Compression
Investors will have to weigh the prospect of constructive long-term growth against near-term free cash flow compression.
Oil and Gas Price Volatility
Price fluctuations in oil and gas prices remain the biggest risk for Total's earnings performance and dividend payout.
Stock Performance
The stock has underperformed due to French government uncertainty and Adani investigation.
TotalEnergies SE (TTE) vs. iShares MSCI France ETF (EWQ)
Market Cap
€111.21B
Dividend Yield5.97%
Average Volume (3M)4.31M
Price to Earnings (P/E)9.3
Beta (1Y)0.49
Revenue Growth-8.95%
EPS Growth-31.72%
CountryFR
Employees95,393
SectorEnergy
Sector Strength40
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)1.64
Shares Outstanding2,270,057,100
10 Day Avg. Volume4,103,829
30 Day Avg. Volume4,313,279
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)1.14
Price to Sales (P/S)0.00
P/FCF Ratio8.34
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit3.03
Enterprise Value/Ebitda0.97
Forecast
1Y Price Target
€62.08Price Target Upside18.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
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 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.76
Positive
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.72
Positive
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.70
Positive
| 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 | EBIT |
| 23.78B | 24.11B | 74.56B | 45.67B | 27.86B | -4.87B | EBITDA |
| 38.97B | 36.89B | 50.78B | 59.04B | 42.07B | 17.88B | Net Income Common Stockholders |
| 13.89B | 15.76B | 21.38B | 20.53B | 16.03B | -7.34B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 29.07B | 30.55B | 33.43B | 41.77B | 33.66B | 35.90B | Total Assets |
| 291.06B | 285.49B | 283.65B | 303.86B | 293.46B | 266.13B | Total Debt |
| 58.99B | 51.24B | 47.87B | 60.77B | 64.55B | 77.30B | Net Debt |
| 36.16B | 27.20B | 20.61B | 27.74B | 43.20B | 46.03B | 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
Negative
52.32
Price Trends
53.97
Negative
54.93
Negative
55.92
Negative
Market Momentum
-0.12
Negative
47.51
Neutral
64.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:TTE, the sentiment is Negative. The current price of 52.32 is above the 20-day moving average (MA) of 52.17, below the 50-day MA of 53.97, and below the 200-day MA of 55.92, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 47.51 is Neutral, neither overbought nor oversold. The STOCH value of 64.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:TTE.
TotalEnergies SE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €111.21B | 9.31 | 11.86% | 5.97% | -8.95% | -31.72% | |
57 Neutral | $7.14B | 3.33 | -3.45% | 5.75% | 0.66% | -50.76% | |
| €14.87B | 14.09 | 8.49% | 4.85% | ― | ― | ||
| €202.46B | 31.65 | 20.60% | 1.74% | ― | ― | ||
| €3.01B | 8.83 | 12.53% | 6.79% | ― | ― | ||
| €124.31B | 28.90 | 14.99% | 1.59% | ― | ― |
* Energy Sector Average
Performance Comparison
FR:TTE
TotalEnergies SE
52.32
-9.95
-15.98%
GB:0HAN
Bouygues
39.43
5.84
17.39%
GB:0NZM
L'Oreal
385.45
-56.09
-12.70%
GB:0RTS
Rubis SCA
29.44
0.35
1.20%
GB:0NWV
Schneider Electric
219.57
-8.85
-3.87%
TotalEnergies SE Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -0.06%|
Next Earnings Date:Jul 24, 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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.