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Totalenergies Se (TTE)
:TTE

TotalEnergies (TTE) AI Stock Analysis

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TotalEnergies

(NYSE:TTE)

Rating:78Outperform
Price Target:
$68.00
▲(8.42%Upside)
TotalEnergies' strong financial performance, highlighted by robust cash flow and profitability, is the primary driver of its overall stock score. The positive sentiment from the earnings call and a solid valuation further bolster the stock's attractiveness. However, technical indicators suggest moderate caution in the near term, impacting the overall score.
Positive Factors
Dividend Yield
2026 could represent a near-term cash generation trough for a company with a sound strategy and strong growth prospects in addition to a 6% dividend yield with limited risk.
Financial Framework
TTE sees current market conditions as supportive of its current financial framework.
Negative Factors
Buyback Reductions
TTE will need to cut its buyback if commodity conditions hold.
Challenging Financial Environment
Earnings reductions in all segments indicate a challenging financial environment for the company.
Leverage Increase
TTE's leverage is expected to climb, potentially reaching 16% by the end of 2025.

TotalEnergies (TTE) vs. SPDR S&P 500 ETF (SPY)

TotalEnergies Business Overview & Revenue Model

Company DescriptionTotalEnergies SE is a global multi-energy company that operates in the oil and gas sector, as well as renewable energies. Headquartered in France, the company is engaged in the exploration and production of oil and natural gas, refining, transportation, and marketing of petroleum products. Additionally, TotalEnergies is actively investing in electricity generation, particularly in solar and wind power, as part of its commitment to transition towards cleaner energy sources. The company serves a broad range of sectors including automotive, power generation, and industrial markets worldwide.
How the Company Makes MoneyTotalEnergies makes money through several key revenue streams. The primary source of revenue comes from the exploration and production of oil and natural gas, which involves extracting raw materials from reserves and selling them to refineries and other buyers. The company also profits from refining crude oil into various petroleum products, which are then distributed and sold through retail networks and to industrial clients. Additionally, TotalEnergies generates income from its growing portfolio in the renewable energy sector, including solar, wind, and bioenergy, as well as from its electricity trading and supply operations. Strategic partnerships and joint ventures with other energy companies and technology firms further enhance its revenue potential by expanding its reach and capabilities in both traditional and renewable energy markets.

TotalEnergies Key Performance Indicators (KPIs)

Any
Any
Petroleum Sales by Region
Petroleum Sales by Region
Shows where petroleum products are being sold globally, indicating regional demand trends and potential exposure to geopolitical or economic shifts.
Chart InsightsTotalEnergies' petroleum sales in the Americas and Rest of World regions have shown significant growth, with the Americas reaching a peak in early 2025. This aligns with the company's robust production growth, as highlighted in their recent earnings call. However, sales in Africa have stagnated, possibly due to geopolitical tensions and market volatility. Despite these challenges, TotalEnergies is maintaining strong shareholder returns and cost discipline, which could support future stability and growth in these regions.
Data provided by:Main Street Data

TotalEnergies Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 8.51%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
TotalEnergies showcased strong production growth and maintained shareholder returns despite a challenging downstream environment and geopolitical uncertainties affecting market stability.
Q1-2025 Updates
Positive Updates
Strong Production Growth
TotalEnergies achieved robust year-on-year production growth of nearly 4% in Oil & Gas and 18% in Electricity, resulting in a unique production growth of close to 5%.
Shareholder Returns Maintained
The Board confirmed a 7.6% increase in the first interim dividend to €0.85 per share and announced share buybacks of up to €2 billion for the second quarter.
Low Operating Costs
TotalEnergies maintained low operating costs, with OpEx per barrel at $4.9 during the first quarter, showcasing strong cost control despite inflationary pressures.
Negative Updates
Challenging Downstream Environment
Downstream posted adjusted net operating income of $0.5 billion, impacted by weak refining margins, declining petrochemical margins, and operational issues at specific refineries.
Volatile Oil and Gas Markets
The company faces uncertainties due to geopolitical tensions like the Ukrainian-Russian conflict and potential impacts from U.S. tariff policies, affecting oil demand and market stability.
Gas Trading Challenges
Gas trading results were negatively affected by the unexpected downturn of European markets, following new uncertainties in the geopolitical landscape.
Company Guidance
In the first-quarter 2025 results conference call, TotalEnergies highlighted robust year-on-year production growth of nearly 4% in Oil & Gas and 18% in Electricity, leading to an overall production increase of close to 5%. The company maintained its cost discipline, with OpEx per barrel remaining below $5 despite inflationary pressures. TotalEnergies reported an adjusted net income of $4.2 billion and funds from operations (FFO) of $7 billion, resulting in a return on capital employed of 13.2% over the past 12 months. The company also executed $2 billion in share buybacks for the first quarter and confirmed a 7.6% increase in the first interim dividend to €0.85 per share. TotalEnergies reiterated its full-year 2025 production growth guidance of more than 3% compared to 2024 and maintained its commitment to attractive shareholder returns, with a focus on sustaining a payout of more than 40% of cash flow from operations through cycles. Despite the geopolitical and macroeconomic uncertainties, the company plans to continue its disciplined capital investment strategy, with net investments totaling $4.9 billion in the first quarter and a full-year guidance of $17 billion to $17.5 billion.

TotalEnergies Financial Statement Overview

Summary
TotalEnergies maintains a robust financial position with strong profitability and cash flow metrics, despite a recent revenue decline. The balance sheet reflects solid equity and manageable debt levels, supporting long-term stability. While growth challenges exist, the company's operational efficiency and cash generation provide a solid foundation for future opportunities.
Income Statement
82
Very Positive
TotalEnergies exhibits strong profitability with a TTM gross profit margin of approximately 20.6% and a net profit margin of 7.2%. While total revenue has declined from 2024 to TTM, the company maintains solid EBIT and EBITDA margins of 12.6% and 20.7% respectively, reflecting efficient operations. However, a decline in revenue from 2022 indicates potential market challenges.
Balance Sheet
78
Positive
The company's balance sheet shows a healthy equity position with an equity ratio of 40.5% in TTM, suggesting financial stability. Although the debt-to-equity ratio has increased slightly to 0.50, it remains manageable. The ROE of 11.8% indicates effective equity utilization, though there's room for improvement in leveraging equity for higher returns.
Cash Flow
85
Very Positive
TotalEnergies' cash flow position is strong, with an operating cash flow to net income ratio of 2.25 in TTM, highlighting robust cash generation. The free cash flow has remained stable, though the free cash flow growth rate has slightly decreased compared to 2024. This solid cash flow profile supports the company's investment and financing needs effectively.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue191.63B195.61B218.94B263.31B184.63B119.70B
Gross Profit31.68B25.06B31.25B81.64B52.46B19.95B
EBITDA39.19B41.11B50.78B59.13B37.84B8.85B
Net Income13.89B15.76B21.38B20.53B16.03B-7.34B
Balance Sheet
Total Assets291.06B285.49B283.65B303.86B293.46B266.13B
Cash, Cash Equivalents and Short-Term Investments29.07B32.76B31.62B41.77B33.66B35.90B
Total Debt58.99B53.56B47.87B60.77B64.55B77.30B
Total Liabilities170.64B165.23B164.20B189.29B178.46B160.05B
Stockholders Equity117.96B117.86B116.75B111.72B111.74B103.70B
Cash Flow
Free Cash Flow15.54B15.95B22.96B31.68B18.07B4.04B
Operating Cash Flow31.25B30.85B40.68B47.37B30.41B14.80B
Investing Cash Flow-18.70B-17.33B-16.45B-15.12B-13.66B-13.08B
Financing Cash Flow-15.28B-14.43B-29.73B-19.27B-26.15B1.40B

TotalEnergies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price62.72
Price Trends
50DMA
59.39
Positive
100DMA
59.55
Positive
200DMA
59.26
Positive
Market Momentum
MACD
0.87
Negative
RSI
59.57
Neutral
STOCH
75.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTE, the sentiment is Positive. The current price of 62.72 is above the 20-day moving average (MA) of 61.40, above the 50-day MA of 59.39, and above the 200-day MA of 59.26, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 75.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTE.

TotalEnergies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CVCVX
82
Outperform
$259.11B17.0110.11%4.61%-1.05%-19.71%
TTTTE
78
Outperform
$139.25B10.2911.75%4.53%-9.86%-32.59%
XOXOM
77
Outperform
$483.54B14.8414.18%3.53%2.36%-7.18%
76
Outperform
$210.61B14.087.40%3.98%
73
Outperform
$64.49B8.0918.28%5.76%3.96%-1.69%
68
Neutral
$15.14B9.956.38%5.21%4.16%-67.19%
BPBP
65
Neutral
$80.57B186.20-1.87%6.14%-7.70%-113.83%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TTE
TotalEnergies
62.72
-3.87
-5.81%
BP
BP
30.93
-3.50
-10.17%
CVX
Chevron
148.37
0.75
0.51%
XOM
Exxon Mobil
112.20
3.80
3.51%
SHEL
Shell
71.92
2.14
3.07%
EQNR
Equinor ASA
25.69
0.12
0.47%
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: Jun 06, 2025