Societe Generale (SCGLY) AI Stock Analysis

• Market Cap: $59.20B
• Dividend Yield: 0.6%
• Average Volume (3M): 65.62K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.84
• Revenue Growth: -13.59%
• EPS Growth: 182.59%
• Country: US
• Employees: 111,754
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 3,834,473,900
• 10 Day Avg. Volume: 20,119
• 30 Day Avg. Volume: 65,624
• PEG Ratio: 0.05
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -1.01
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 0.31
• Enterprise Value/Ebitda: 1.90
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $19.50 ▲(41.41% Upside)

The score is driven by strong valuation support (moderate P/E and very high dividend yield) and a constructive earnings-call backdrop with improved profitability, efficiency, and capital strength. These positives are tempered by negative operating/free cash flow and near-term overbought technical signals.

Positive Factors

Strong CET1 capital ratio

A CET1 ratio of 13.7% provides a durable capital buffer above regulatory targets, supporting lending capacity, shock absorbency and regulatory compliance. This strength underpins strategic flexibility for risk-taking, organic growth and shareholder returns over the medium term.

Improved cost efficiency

Sustained cost reduction and a sub-65% cost-to-income ratio enhance structural profitability and margin resilience. Lower operating leverage improves ability to invest in digital capabilities and absorb revenue shocks, supporting medium-term ROTE and capital generation.

Retail client growth (BoursoBank)

Rapid retail customer acquisition strengthens low-cost deposit funding, cross-sell potential and fee diversification. Accelerated scale in a digital retail franchise supports stable deposit growth and recurring revenues, improving funding stability and long-term franchise value.

Negative Factors

Negative operating and free cash flow

Negative operating and free cash flow signal structural cash-generation weakness that can constrain reinvestment, dividend/buyback flexibility and reserve building. Over several months, this increases reliance on capital markets or asset sales to fund growth and regulatory buffers.

Rising bankruptcy rates in France

Rising bankruptcies among SMEs raise expected credit losses and provisioning, pressuring net interest margins and lending appetite. This structural credit deterioration can reduce SME lending volumes and increase cost of risk over the medium term, weighing on profitability.

Regulatory and tax uncertainty

Potential tax changes on buybacks/dividends and regulatory proposals can materially alter capital return policy and fee revenue models. Such structural policy shifts reduce predictability of shareholder distributions and could force strategic adjustments to capital allocation.

Societe Generale Business Overview & Revenue Model

Company Description

Société 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 Money

Societe Generale generates revenue through multiple key streams. Primarily, the company earns income from interest on loans and credit products provided to individual and corporate clients through its retail banking and corporate banking divisions. Additionally, it generates substantial revenue from its investment banking activities, including advisory services for mergers and acquisitions, capital market transactions, and trading operations. Asset management and private banking services also contribute to the company’s earnings by charging management fees and performance fees. Furthermore, Societe Generale benefits from partnerships with other financial institutions and corporations, enhancing its service offerings and expanding its customer base, ultimately contributing to its overall profitability.

Societe Generale Financial Statement Overview

Summary

Income statement shows solid revenue growth (18.37%) and healthy net margin (8.00%), while the balance sheet is stable with a slightly improved equity ratio (4.46%). The main drag is cash flow: operating and free cash flow turned negative in 2024, raising liquidity/flexibility concerns.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.80B	97.64B	87.14B	53.99B	46.12B	42.27B
Gross Profit	51.80B	52.51B	44.36B	36.10B	36.25B	32.02B
EBITDA	8.35B	16.82B	12.84B	9.58B	13.48B	6.66B
Net Income	5.47B	4.20B	2.49B	1.82B	5.64B	-258.00M
Balance Sheet
Total Assets	1.55T	1.57T	1.55T	1.49T	1.46T	1.44T
Cash, Cash Equivalents and Short-Term Investments	212.56B	273.13B	327.40B	289.83B	179.97B	236.07B
Total Debt	172.72B	183.09B	179.81B	89.00B	151.28B	154.66B
Total Liabilities	1.47T	1.49T	1.48T	1.41T	1.39T	1.38T
Stockholders Equity	68.29B	70.26B	65.97B	66.97B	65.10B	61.71B
Cash Flow
Free Cash Flow	0.00	-21.53B	25.56B	29.50B	13.83B	75.20B
Operating Cash Flow	0.00	-10.10B	37.42B	39.09B	20.29B	80.79B
Investing Cash Flow	0.00	-13.74B	-12.07B	-9.01B	-10.12B	-6.86B
Financing Cash Flow	0.00	-1.27B	-3.90B	-214.00M	-3.63B	2.13B

Societe Generale Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 13.79 is below the 20-day moving average (MA) of 16.78, below the 50-day MA of 15.75, and above the 200-day MA of 12.92, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 70.37 is Negative, neither overbought nor oversold. The STOCH value of 95.39 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RF	81 Outperform	$26.69B	12.97	11.68%	3.74%	4.00%	28.54%
PNC	75 Outperform	$92.53B	14.09	11.99%	3.11%	1.79%	30.93%
SCGLY	74 Outperform	$59.20B	13.19	7.25%	0.60%	-13.59%	182.59%
ITUB	69 Neutral	$90.43B	12.86	19.89%	9.77%	11.82%	3.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LYG	64 Neutral	$90.00B	16.89	10.77%	3.19%	-20.94%	-18.71%
MFG	64 Neutral	$114.84B	15.70	10.22%	2.31%	-2.84%	25.48%