Societe Generale (SCGLY) AI Stock Analysis

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Societe Generale

(OTC:SCGLY)

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

$40.11B

Dividend Yield2.16%

Average Volume (3M)35.64K

Price to Earnings (P/E)12.0

Beta (1Y)0.90

Revenue Growth-6.42%

EPS Growth117.22%

CountryUS

Employees111,754

SectorFinancial

Sector Strength81

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.41

Shares Outstanding4,001,584,000

10 Day Avg. Volume42,960

30 Day Avg. Volume35,639

Financial Highlights & Ratios

PEG Ratio-0.14

Price to Book (P/B)0.28

Price to Sales (P/S)0.00

P/FCF Ratio0.62

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 Upside318.77% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Societe Generale Business Overview & Revenue Model

Company DescriptionSociété Générale Société anonyme provides financial services to individual, business, and institutional investors in Europe and internationally. It offers retail banking services under the Societe Generale, Credit du Nord, and Boursorama brand names; and insurance, investor, and other financial services. The company was founded in 1864 and is based in Paris, France.

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:Apr 30, 2025

(Q1-2025)

% Change Since: 15.62%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong performance in the first quarter with significant revenue growth, cost reductions, and a solid capital position. However, there are concerns about market volatility and macroeconomic uncertainties affecting future performance. The highlights suggest a positive trajectory, but these are tempered by potential risks.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth

Revenues increased by 10% excluding asset disposals, surpassing the full-year target of more than 3% growth.

Significant Cost Reduction

Costs were reduced by more than 4%, achieving a cost-to-income ratio of 65%, which is better than the target of less than 66% by year-end and an improvement of 10 percentage points compared to Q1 2024.

Improved ROTI

Return on Tangible Equity (ROTI) climbed to 11%, exceeding the year-end guidance of more than 8%.

Strong Capital Position

The CET1 ratio reached 13.4% post Basel IV implementation, ahead of the year-end target.

French Retail Banking Improvement

French retail banking division saw a cost-to-income ratio decrease from 86% in Q1 2024 to 68% in Q1 2025, driven by a 16.5% revenue increase and a 6.6% cost reduction.

Global Markets and Investor Services Performance

Total revenues for GMIS increased by 10% from Q1 2024, with equities revenues up by 22%.

Negative Updates

Market Volatility Concerns

Potential global macroeconomic slowdown and prolonged market volatility are noted as concerns that could affect future performance.

Asset Quality Uncertainty

Uncertainty remains around the impact of tariffs and fiscal stimulus on asset quality, with a cautious stance reflected in increased S1 provisions.

Limited Growth in Certain Areas

Mobility, international retail, and financial services revenue grew by only 0.8% excluding disposals, indicating limited growth in some segments.

Company Guidance

During Société Générale's Q1 2025 results conference call, the company delivered a strong performance, surpassing several key financial targets. Revenues increased by 10% excluding asset disposals, significantly above the full-year target of 3% growth. Costs were reduced by more than 4%, exceeding the commitment of at least a 1% reduction, leading to a cost-to-income ratio of 65%, better than the year-end target of less than 66%. The company's cost of risk was at 23 basis points, below the guidance range, highlighting effective risk management. Société Générale's Return on Tangible Equity (ROTI) climbed to 11%, well above the guidance of more than 8%, and the Common Equity Tier 1 (CET1) ratio stood at 13.4%, exceeding the year-end target post-Basel IV implementation. The CEO expressed confidence in navigating potential macroeconomic challenges due to a strong capital position, diversification, and a robust risk management track record. The company also maintained a strong liquidity profile, with LCR and NSFR ratios well above regulatory requirements, and reported a solid performance across various divisions, including French retail, global banking, and investor solutions.

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.35B	52.51B	44.36B	38.65B	36.25B	31.82B
Gross Profit	28.68B	52.51B	44.34B	38.65B	36.25B	31.82B
EBITDA	-834.00M	0.00	0.00	0.00	0.00	0.00
Net Income	2.35B	4.20B	2.49B	2.95B	5.64B	196.00M
Balance Sheet
Total Assets	1.59T	1.57T	1.55T	1.49T	1.46T	1.46T
Cash, Cash Equivalents and Short-Term Investments	217.73B	317.62B	327.40B	207.01B	284.55B	245.79B
Total Debt	182.41B	0.00	179.81B	155.43B	153.47B	155.33B
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	12.22B	-21.53B	25.56B	29.50B	13.83B	75.20B
Operating Cash Flow	25.16B	-10.10B	37.42B	39.09B	20.29B	80.79B
Investing Cash Flow	-13.56B	-13.74B	-12.07B	-9.01B	-10.12B	-6.86B
Financing Cash Flow	-4.22B	-1.27B	-3.90B	-214.00M	-3.63B	2.13B

Societe Generale Technical Analysis

Technical Analysis Sentiment

Positive

Last Price11.40

Price Trends

50DMA

10.72

Positive

100DMA

9.54

Positive

200DMA

7.48

Positive

Market Momentum

MACD

0.18

Positive

RSI

58.05

Neutral

STOCH

86.17

Negative

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 11.4 is above the 20-day moving average (MA) of 11.18, above the 50-day MA of 10.72, and above the 200-day MA of 7.48, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 58.05 is Neutral, neither overbought nor oversold. The STOCH value of 86.17 is Negative, 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FITB	80 Outperform	$28.79B	13.70	11.71%	3.43%	5.75%	0.68%
SCGLY	77 Outperform	$40.11B	12.04	6.00%	2.16%	-6.42%	117.22%
ITUB	74 Outperform	$69.45B	9.66	20.65%	0.50%	-6.74%	5.13%
MTB	73 Outperform	$32.11B	13.40	9.39%	2.70%	1.20%	1.12%
LYG	72 Outperform	$60.08B	12.58	8.73%	5.14%	-2.65%	-14.84%
TFC	70 Outperform	$58.97B	13.27	0.10%	4.62%	-27.31%	―
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%

* Financial Sector Average

Performance Comparison

SCGLY

Societe Generale

11.40

6.35

125.74%

TFC

Truist Financial

45.03

8.61

23.64%

FITB

Fifth Third Bancorp

43.13

8.39

24.15%

ITUB

Itau Unibanco

6.81

1.72

33.79%

LYG

Lloyds Banking

4.03

1.22

43.42%

MTB

M&T Bank

200.06

57.69

40.52%

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.Date of analysis: May 02, 2025