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Societe Generale (SCGLY)
:SCGLY
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Societe Generale
(OTC:SCGLY)
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Rating:77Outperform
Price Target:―
Societe Generale's overall score is bolstered by strong financial performance, highlighted by impressive revenue growth and profitability. Technical analysis supports a positive outlook, although caution is advised due to potential overbought conditions. Valuation metrics indicate the stock is fairly priced, and the recent earnings call reinforces confidence in the company's strategic direction despite macroeconomic risks.
Societe Generale (SCGLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.26B
Dividend Yield1.89%
Average Volume (3M)25.44K
Price to Earnings (P/E)9.6
Beta (1Y)0.83
Revenue Growth-13.59%
EPS Growth182.59%
CountryUS
Employees111,754
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.36
Shares Outstanding3,925,901,600
10 Day Avg. Volume36,566
30 Day Avg. Volume25,437
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 Cap5.07
Enterprise Value/Revenue5.49
Enterprise Value/Gross Profit21.78
Enterprise Value/Ebitda38.46
Forecast
1Y Price Target
$47.74Price Target Upside256.00% 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 Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presents a strong financial performance with significant revenue growth, improved cost efficiency, and enhanced shareholder returns. While there are some minor challenges such as the rate environment affecting certain segments and limited contribution from the Bernstein JV, the positive aspects significantly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Group net income of EUR 1.5 billion in Q2 '25, up 30.6% versus Q2 '24, with a return on tangible equity of 9.7% versus 7.4% in Q2 '24. Revenue growth of 7.1% versus Q2 '24, excluding disposals.
Capital Strength and Shareholder Returns
CET1 ratio increased to 13.5% after a EUR 1 billion share buyback. Announcement of an additional share buyback of EUR 1 billion and an interim dividend of EUR 0.61 per share.
Improved Cost Efficiency
Cost-to-income ratio improved to 64% in Q2 '25, down from 68% in Q2 '24. Total costs decreased by 2.8% versus Q2 '24, excluding disposals.
Growth in Key Segments
Revenues in French Retail, Private Banking, and Insurance increased by 10.7%, and Global Banking and Investor Solutions delivered a RONE of 17.7% in H1 '25.
BoursoBank Milestone
BoursoBank reached 8 million clients, 18 months ahead of target, with assets under administration improving to EUR 70 billion.
Strong Asset Quality
Cost of risk remains low at 25 basis points, with a decrease in NPL ratio to 2.77%.
Negative Updates
Impact of Rate Environment
GTPS revenues affected by rate decreases, with a noted volume increase but significant price-related headwinds.
Limited Contribution from Bernstein JV
Limited bottom-line impact from Bernstein JV due to its current structure, despite expectations of a strong quarter.
Asset Disposals Impact
Revenues affected by disposals of assets in Morocco, Madagascar, and others, impacting reported revenue figures.
Company Guidance
During the Société Générale Second Quarter and Half Year 2025 Conference Call, CEO Slawomir Krupa provided updated guidance reflecting strong financial performance. The bank upgraded its 2025 targets, expecting a Return on Tangible Equity (ROTE) of around 9%. An exceptional distribution was announced, including a EUR 1 billion share buyback and an interim dividend of EUR 0.61 per share. Notably, the first half of 2025 saw a revenue increase of 8.6% compared to H1 2024, with costs decreasing by 2.6%, leading to a cost-to-income ratio of 64%, surpassing initial targets. The bank maintained strong asset quality, with a cost of risk at 24 basis points, and a CET1 ratio of 13.5% after accounting for the buyback. Krupa emphasized continued strategic execution across French Retail, Private Banking, and Global Banking, with specific growth in mortgage origination and private banking assets under management. The bank's mobility and international retail banking sectors also showed significant profitability improvements.Societe Generale Financial Statement Overview
Summary
Societe Generale exhibits strong revenue growth and profitability, despite mixed cash flow results. The balance sheet is robust with improved equity ratios and reduced leverage, enhancing financial stability. However, cash flow management is a concern, highlighting a need for improved liquidity strategies.Income Statement
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.65
Positive
Balance Sheet
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.78
Positive
Cash Flow
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.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.76B | 97.64B | 24.08B | 25.51B | 25.72B | 18.83B |
| Gross Profit | 10.77B | 52.51B | 44.34B | 36.10B | 25.72B | 18.83B |
| EBITDA | 6.10B | 0.00 | 0.00 | 9.58B | 13.48B | 0.00 |
| Net Income | 5.13B | 4.20B | 2.49B | 1.82B | 5.64B | -258.00M |
Balance Sheet | ||||||
| Total Assets | 1.55T | 1.57T | 1.55T | 1.49T | 1.46T | 1.46T |
| Cash, Cash Equivalents and Short-Term Investments | 169.89B | 317.62B | 327.40B | 289.83B | 284.55B | 245.79B |
| Total Debt | 271.33B | 112.62B | 179.81B | 89.00B | 41.76B | 83.84B |
| Total Liabilities | 1.47T | 1.49T | 1.48T | 1.41T | 1.39T | 1.39T |
| Stockholders Equity | 70.56B | 70.26B | 65.97B | 66.97B | 65.07B | 61.68B |
Cash Flow | ||||||
| Free Cash Flow | 8.03B | -21.53B | 25.56B | 29.50B | 13.83B | 75.20B |
| Operating Cash Flow | 14.22B | -10.10B | 37.42B | 39.09B | 20.29B | 80.79B |
| Investing Cash Flow | -9.67B | -13.74B | -12.07B | -9.01B | -10.12B | -6.86B |
| Financing Cash Flow | -2.62B | -1.27B | -3.90B | -214.00M | -3.63B | 2.13B |
Societe Generale Technical Analysis
Positive
13.41
Price Trends
12.87
Positive
11.98
Positive
9.73
Positive
Market Momentum
0.19
Positive
55.50
Neutral
16.84
Positive
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 13.41 is above the 20-day moving average (MA) of 13.11, above the 50-day MA of 12.87, and above the 200-day MA of 9.73, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 16.84 is Positive, 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $46.26B | 9.63 | 7.25% | 1.89% | -13.59% | 182.59% | |
76 Outperform | 30.07B | 14.09 | 11.06% | 3.26% | 1.90% | 2.87% | |
76 Outperform | 31.28B | 12.88 | 9.47% | 2.77% | 0.69% | 14.79% | |
73 Outperform | 73.27B | 10.20 | 20.54% | 6.57% | 5.44% | 2.81% | |
71 Outperform | 65.83B | 12.66 | 9.67% | 3.78% | 0.76% | -5.74% | |
70 Outperform | 59.34B | 12.43 | 8.05% | 4.52% | 18.31% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
SCGLY
Societe Generale
13.41
8.49
172.56%
ITUB
Itau Unibanco
7.24
1.64
29.29%
LYG
Lloyds Banking
4.48
1.50
50.34%
MFG
Mizuho Financial
6.85
2.67
63.88%
PNC
PNC Financial
203.32
24.93
13.97%
RF
Regions Financial
26.63
4.24
18.94%
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.