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

$47.10B

Dividend Yield1.83%

Average Volume (3M)43.73K

Price to Earnings (P/E)9.9

Beta (1Y)0.89

Revenue Growth-13.59%

EPS Growth182.59%

CountryUS

Employees111,754

SectorFinancial

Sector Strength71

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.36

Shares Outstanding3,925,901,600

10 Day Avg. Volume69,590

30 Day Avg. Volume43,730

Financial Highlights & Ratios

PEG Ratio0.13

Price to Book (P/B)0.31

Price to Sales (P/S)0.41

P/FCF Ratio-1.01

Enterprise Value/Market Cap4.98

Enterprise Value/Revenue3.58

Enterprise Value/Gross Profit6.36

Enterprise Value/Ebitda38.46

Forecast

1Y Price Target

$47.74

Price Target Upside250.00% 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:Jul 31, 2025

(Q2-2025)

% Change Since: 13.48%|

Next Earnings Date:Oct 30, 2025

Earnings Call Sentiment Positive

The earnings call presented a largely positive outlook with strong revenue growth, effective cost management, and upgraded annual targets. The company demonstrated strength in capital management and shareholder returns. However, challenges in GTPS revenue due to rate decreases and subdued primary markets for the Bernstein joint venture were noted. Overall, the positives outweighed the negatives.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Revenues increased by 8.6% versus H1 2024, excluding asset disposals, with a group ROTE of more than 10% at the end of the first half, and group net income reaching EUR 3.1 billion.

Improvement in Cost Management

Costs decreased by 2.6% since the beginning of the year compared with last year, resulting in a cost-to-income ratio of 64%, which is below the initial annual target.

Upgraded Annual Targets

Annual targets on cost-to-income and ROTE have been upgraded, expecting a cost-to-income ratio below 65% in 2025 and an annual ROTE around 9%.

Capital Strength and Shareholder Returns

CET1 ratio increased to 13.5%, and the company announced a EUR 1 billion share buyback, along with an interim dividend of EUR 0.61 per share.

BoursoBank Milestone

BoursoBank reached 8 million clients, 18 months ahead of initial targets, and continues to show improved financial performance.

Negative Updates

GTPS Revenue Decline

GTPS revenues were impacted by a decrease in interest rates, leading to a decline in performance.

Challenging Primary Markets

Bernstein joint venture in the U.S. faced a subdued primary market, impacting the associates line within GBIS.

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 reported a group net income of EUR 3.1 billion for the first half, with a Return on Tangible Equity (ROTE) exceeding 10%. The cost-to-income ratio improved to 64%, down 7 percentage points from the previous year, driven by an 8.6% revenue increase and a 2.6% cost reduction. Société Générale upgraded its annual targets, expecting a ROTE around 9% for 2025, and announced an exceptional EUR 1 billion share buyback. Additionally, an interim dividend of EUR 0.61 per share was introduced for the first half of 2025. Asset quality remained robust, with the cost of risk at 24 basis points, below the annual guidance. The bank's CET1 ratio increased to 13.5% post-buyback, supporting its strategy of disciplined growth and enhanced shareholder returns.

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	65.57B	52.51B	44.36B	38.65B	36.25B	31.82B
Gross Profit	36.90B	52.51B	44.34B	38.65B	36.25B	31.82B
EBITDA	6.10B	0.00	0.00	0.00	0.00	0.00
Net Income	5.13B	4.20B	2.49B	2.95B	5.64B	196.00M
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	207.01B	284.55B	245.79B
Total Debt	271.33B	112.62B	179.81B	155.43B	153.47B	155.33B
Total Liabilities	1.47T	1.49T	1.48T	1.41T	1.39T	1.39T
Stockholders Equity	70.56B	70.26B	65.97B	66.45B	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

Technical Analysis Sentiment

Positive

Last Price13.64

Price Trends

50DMA

11.77

Positive

100DMA

10.70

Positive

200DMA

8.54

Positive

Market Momentum

MACD

0.53

Negative

RSI

72.73

Negative

STOCH

96.38

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 13.64 is above the 20-day moving average (MA) of 12.43, above the 50-day MA of 11.77, and above the 200-day MA of 8.54, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 72.73 is Negative, neither overbought nor oversold. The STOCH value of 96.38 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 (73)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FITB	78 Outperform	$27.96B	13.15	11.58%	3.44%	1.90%	2.87%
SCGLY	77 Outperform	$47.10B	9.92	7.25%	1.83%	-13.59%	182.59%
ITUB	76 Outperform	$71.70B	10.06	20.49%	6.26%	5.44%	2.81%
MTB	75 Outperform	$29.86B	12.38	9.47%	2.78%	0.69%	14.79%
Sector *	73 Outperform	16.56B	18.78	14.14%	3.74%	11.68%	26.47%
LYG	72 Outperform	$67.26B	13.06	10.06%	3.70%	3.47%	-8.90%
TFC	69 Neutral	$56.75B	11.96	8.13%	4.63%	18.31%	―

* Financial Sector Average

Performance Comparison

SCGLY

Societe Generale

13.64

9.10

200.44%

TFC

Truist Financial

44.95

4.57

11.32%

FITB

Fifth Third Bancorp

43.18

4.60

11.92%

ITUB

Itau Unibanco

6.97

1.25

21.85%

LYG

Lloyds Banking

4.58

1.74

61.27%

MTB

M&T Bank

193.95

36.94

23.53%

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