Societe Generale (SCGLY) AI Stock Analysis

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Societe Generale

(OTC:SCGLY)

75Outperform

Societe Generale demonstrates robust financial performance with strong revenue growth and profitability, although cash flow management needs attention. Technical indicators show upward momentum but caution due to overbought conditions. Valuation metrics suggest the stock is undervalued, offering potential upside. The positive earnings call further supports the stock's strength, despite some challenges in certain segments.

Societe Generale (SCGLY) vs. S&P 500 (SPY)

Market Cap

$29.72B

Dividend Yield1.45%

Average Volume (3M)45.31K

Price to Earnings (P/E)9.2

Beta (1Y)0.91

Revenue Growth-6.42%

EPS Growth117.22%

CountryUS

Employees111,754

SectorFinancial

Sector Strength83

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.22

Shares Outstanding4,001,584,000

10 Day Avg. Volume135,930

30 Day Avg. Volume45,310

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.48

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$47.74

Price Target Upside446.85% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Societe Generale Business Overview & Revenue Model

Company DescriptionSociété Générale S.A. is a leading European financial services group, headquartered in Paris, France. Established in 1864, the company operates across three main business sectors: French Retail Banking, International Retail Banking and Financial Services, and Global Banking and Investor Solutions. Société Générale offers a wide range of products and services, including retail banking, corporate and investment banking, asset management, and private banking, serving individuals, businesses, and institutional clients worldwide.

How the Company Makes MoneySociété Générale generates revenue through a diversified model consisting of several key streams. In French Retail Banking, income is derived from interest on loans and mortgages, fees for account maintenance, and transaction services. International Retail Banking and Financial Services contribute to earnings through a similar mix of interest income and service fees, but also include specialized financial services like vehicle leasing and fleet management. The Global Banking and Investor Solutions segment provides substantial revenue through investment banking activities, including advisory services, capital markets, trading, and risk management solutions. Additionally, Société Générale benefits from its asset management and securities services, which earn fees based on assets under management and transaction volumes. Strategic partnerships and joint ventures in various financial markets enhance these revenue streams, alongside a focus on digital innovation to improve customer experience and operational efficiency.

Societe Generale Financial Statement Overview

Summary

Societe Generale shows strengths in revenue growth and profitability despite mixed cash flow results. The balance sheet remains strong with improved equity ratios and reduced leverage, enhancing financial stability. However, cash flow management poses a concern, highlighting a need for improved liquidity strategies.

Income Statement

Positive

Societe Generale's revenue growth rate from 2023 to 2024 is approximately 18.37%, indicating a reasonable growth trajectory. The gross profit margin is 100%, showing effective cost management. However, net profit margin decreased slightly from 5.62% in 2023 to 8.00% in 2024, which is still strong. The absence of EBIT and EBITDA figures for 2024 could indicate a shift in reporting or operational challenges.

Balance Sheet

Positive

The equity ratio improved to 4.46% in 2024 from 4.24% in 2023, reflecting a stable equity base. The debt-to-equity ratio is virtually zero due to the absence of reported total debt in 2024, potentially indicating conservative financial management. Return on equity decreased from 3.78% in 2023 to 5.98% in 2024, suggesting improved profitability relative to shareholder equity.

Cash Flow

Neutral

The operating cash flow turned negative in 2024, indicating cash management challenges. Free cash flow also turned negative, impacting financial flexibility. The free cash flow growth rate is negative, pointing to potential liquidity issues. However, the company managed to reduce the financing cash outflows, suggesting efforts to stabilize cash flow.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
54.46B	52.51B	44.36B	38.65B	36.25B	31.82B
	Gross Profit
54.46B	52.51B	44.34B	38.65B	36.25B	31.82B
	EBIT
4.44B	0.00	5.44B	-1.78B	7.34B	946.00M
	EBITDA
943.00M	0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
2.72B	4.20B	2.49B	2.95B	5.64B	196.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
217.73B	317.62B	327.40B	207.01B	284.55B	245.79B
	Total Assets
1.59T	1.57T	1.55T	1.49T	1.46T	1.46T
	Total Debt
182.41B	0.00	179.81B	155.43B	153.47B	155.33B
	Net Debt
-35.31B	-317.62B	-327.40B	-168.92B	-131.08B	-90.45B
	Total Liabilities
182.41B	1.49T	1.48T	1.41T	1.39T	1.39T
	Stockholders Equity
67.34B	70.26B	65.97B	66.45B	65.07B	61.68B
Cash Flow		Free Cash Flow
40.19B	-21.53B	25.56B	29.50B	13.83B	75.20B
	Operating Cash Flow
49.72B	-10.10B	37.42B	39.09B	20.29B	80.79B
	Investing Cash Flow
-24.96B	-13.74B	-12.07B	-9.01B	-10.12B	-6.86B
	Financing Cash Flow
-4.26B	-1.27B	-3.90B	-214.00M	-3.63B	2.13B

Societe Generale Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.73

Price Trends

50DMA

8.29

Positive

100DMA

6.99

Positive

200DMA

6.01

Positive

Market Momentum

MACD

-0.08

Positive

RSI

54.87

Neutral

STOCH

66.88

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCGLY, the sentiment is Positive. The current price of 8.73 is above the 20-day moving average (MA) of 8.73, above the 50-day MA of 8.29, and above the 200-day MA of 6.01, indicating a bullish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 66.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCGLY.

Societe Generale Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITUB	76 Outperform	$55.88B	8.64	20.84%	7.13%	-7.01%	15.18%
LYG	76 Outperform	$52.54B	11.17	9.95%	4.05%	36.29%	-19.79%
SCGLY	75 Outperform	$29.72B	9.17	6.00%	1.45%	-6.42%	117.22%
FITB	67 Neutral	$22.61B	10.79	11.92%	4.31%	11.21%	-2.26%
MTB	67 Neutral	$25.95B	10.79	9.23%	3.42%	1.41%	1.12%
Sector *	63 Neutral	$13.51B	9.48	9.36%	4.87%	16.09%	-8.30%
TFC	55 Neutral	$46.20B	10.63	-0.11%	5.88%	-26.77%	―

* Financial Sector Average

Performance Comparison

SCGLY

Societe Generale

8.73

3.67

72.53%

TFC

Truist Financial

36.18

2.22

6.54%

FITB

Fifth Third Bancorp

34.60

1.74

5.30%

ITUB

Itau Unibanco

5.56

0.49

9.66%

LYG

Lloyds Banking

3.67

1.33

56.84%

MTB

M&T Bank

158.50

25.18

18.89%

Societe Generale Earnings Call Summary

Earnings Call Date: Oct 30, 2025 | % Change Since: 35.56% | Next Earnings Date: Feb 5, 2026

Earnings Call Sentiment Positive

The call highlighted Société Générale's strong financial performance, exceeding targets and increasing profitability across several segments. However, there were challenges in International Retail and French Retail, as well as concerns about cost of risk. Overall, the highlights significantly outweighed the lowlights.

Highlights

Exceeded Financial Targets

Société Générale exceeded all its financial targets for the fiscal year 2024, with revenues up 7%, surpassing the 5% target. The cost-to-income ratio improved by nearly 5 points to 69%, and ROTE increased by 2.7 percentage points to 6.9%.

Strong Capital Position

The CET1 ratio increased by 20 basis points to 13.3%, which is well ahead of the plan. The liquidity profile remains strong with an LCR ratio of 156% and NSFR ratio at 117%.

Record Payout Distribution

The board proposed a total distribution of €1.7 billion, a 75% increase compared to 2023, with a dividend of €1.09 per share and a share buyback program of €872 million.

BoursoBank Growth

BoursoBank acquired 1.3 million new clients, reaching profitability for the second year in a row and decreasing costs per client by 17%.

GBIS Exceptional Performance

GBIS posted over €10 billion of NBI with a RONE of 18.4%, driven by strong performance in Global Markets and Transaction Banking.

Lowlights

Reduced RONE in International Retail

Despite overall performance, the RONE in International Retail decreased to 12% from 17% last year, reflecting higher costs due to lease plan integration.

Challenging Market in French Retail

Loans outstanding in French Retail decreased by 4% compared to last year, although corporate loans are now growing versus Q3 2024.

Cost of Risk Concerns

Cost of risk decreased to 23 basis points in Q4 2024 from 27 basis points in Q3, but concerns remain with Stage 2 provisions at 4.5% of loans.

Company Guidance

During the fourth quarter and full year 2024 results call, Société Générale Group exceeded all financial targets, with revenues up by 7%, surpassing the 5% target. Key business segments contributing to this growth included GBIS, Ayvens, and International Retail. The cost-to-income ratio improved by nearly 5 points, reaching 69%, while the cost of risk was maintained at 26 basis points, reflecting strong risk management. Return on tangible equity (ROTE) increased by 2.7 percentage points to 6.9% for the year. The bank's CET1 ratio rose by 20 basis points to 13.3%, enhancing its capital position. A total distribution of €1.7 billion was proposed, marking a 75% increase from 2023, with a payout ratio of 50% between cash dividends and share buybacks. For 2025, Société Générale targets net banking income (NBI) growth above 3%, a net cost decrease of more than 1%, a cost-to-income ratio below 66%, and a ROTE above 8%.

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.