ENXTPA:SGO

Stock Analysis Report

Compagnie de Saint-Gobain

Executive Summary

Compagnie de Saint-Gobain S.A. designs, manufactures, and distributes materials and solutions for wellbeing worldwide.

Rewards

Trading at 15.6% below its fair value

Earnings are forecast to grow 9.07% per year

Earnings grew by 254.2% over the past year

Pays a high and reliable dividend of 6.23%

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Compagnie de Saint-Gobain's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SGO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

SGO

8.6%

FR Building

2.5%

FR Market


1 Year Return

-37.4%

SGO

-34.0%

FR Building

-18.6%

FR Market

Return vs Industry: SGO matched the French Building industry which returned -34.4% over the past year.

Return vs Market: SGO underperformed the French Market which returned -18.9% over the past year.


Shareholder returns

SGOIndustryMarket
7 Day-0.6%8.6%2.5%
30 Day-32.4%-28.3%-17.0%
90 Day-41.7%-37.8%-25.0%
1 Year-34.8%-37.4%-31.4%-34.0%-15.7%-18.6%
3 Year-49.8%-54.4%-48.0%-52.6%0.8%-8.6%
5 Year-40.5%-49.3%-35.4%-44.6%10.8%-6.9%

Price Volatility Vs. Market

How volatile is Compagnie de Saint-Gobain's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Compagnie de Saint-Gobain undervalued compared to its fair value and its price relative to the market?

17.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGO (€22.17) is trading below our estimate of fair value (€26.27)

Significantly Below Fair Value: SGO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SGO is good value based on its PE Ratio (8.5x) compared to the Building industry average (13.2x).

PE vs Market: SGO is good value based on its PE Ratio (8.5x) compared to the French market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: SGO is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SGO is good value based on its PB Ratio (0.6x) compared to the FR Building industry average (0.7x).


Next Steps

Future Growth

How is Compagnie de Saint-Gobain forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGO's forecast earnings growth (9.1% per year) is above the savings rate (-0.1%).

Earnings vs Market: SGO's earnings (9.1% per year) are forecast to grow slower than the French market (12.3% per year).

High Growth Earnings: SGO's earnings are forecast to grow, but not significantly.

Revenue vs Market: SGO's revenue (0.4% per year) is forecast to grow slower than the French market (3.6% per year).

High Growth Revenue: SGO's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGO's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has Compagnie de Saint-Gobain performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGO has a large one-off loss of €753.0M impacting its December 31 2019 financial results.

Growing Profit Margin: SGO's current net profit margins (3.3%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: SGO's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: SGO's earnings growth over the past year (254.2%) exceeds its 5-year average (11.4% per year).

Earnings vs Industry: SGO earnings growth over the past year (254.2%) exceeded the Building industry 23.3%.


Return on Equity

High ROE: SGO's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is Compagnie de Saint-Gobain's financial position?


Financial Position Analysis

Short Term Liabilities: SGO's short term assets (€17.8B) exceed its short term liabilities (€13.1B).

Long Term Liabilities: SGO's short term assets (€17.8B) exceed its long term liabilities (€17.1B).


Debt to Equity History and Analysis

Debt Level: SGO's debt to equity ratio (62%) is considered high.

Reducing Debt: SGO's debt to equity ratio has increased from 58.2% to 62% over the past 5 years.

Debt Coverage: SGO's debt is well covered by operating cash flow (31%).

Interest Coverage: SGO's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet

Inventory Level: SGO has a high level of physical assets or inventory.

Debt Coverage by Assets: SGO's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is Compagnie de Saint-Gobain's current dividend yield, its reliability and sustainability?

6.39%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SGO's dividend (6.23%) is higher than the bottom 25% of dividend payers in the French market (2.04%).

High Dividend: SGO's dividend (6.23%) is low compared to the top 25% of dividend payers in the French market (6.44%).


Stability and Growth of Payments

Stable Dividend: SGO's dividends per share have been stable in the past 10 years.

Growing Dividend: SGO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.2%), SGO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SGO's dividends in 3 years are forecast to be well covered by earnings (42.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Pierre-Andre de Chalendar (61yo)

12.83s

Tenure

€3,514,426

Compensation

Mr. Pierre-Andre de Chalendar serves as Director at BNP Paribas SA since May 23, 2012. Mr. de Chalendar serves as Chief Executive Officer and Chairman at Compagnie de Saint-Gobain since June 7, 2007 and si ...


CEO Compensation Analysis

Compensation vs Market: Pierre-Andre's total compensation ($USD3.88M) is about average for companies of similar size in the French market ($USD3.95M).

Compensation vs Earnings: Pierre-Andre's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pierre-Andre de Chalendar
Chairman & CEO12.83yrs€3.51m0.034% 4.0m
N. Sreedhar
Chief Financial Officer1.25yrsno datano data
Benoit Bazin
Chief Operating Officer1.25yrsno datano data
Benoit d'Iribarne
Senior Vice-President of Technology & Industrial Performance1.25yrsno datano data
Frédéric Verger
Vice-President of Information Systems9.25yrsno datano data
Vivien Dardel
Head of Financial Communication & Investor Relations3.08yrsno datano data
Laurence Pernot
Vice-President of Communications2.5yrsno datano data
Cordula Gudduschat
Vice-President of Marketing & Development1.25yrsno datano data
Claire Pedini
Senior Vice President of Human Resources & Digital Transformation9.83yrsno datano data
Laurent Guillot
Senior VP & CEO of High Performance Solutions3.25yrsno datano data

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: SGO's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pierre-Andre de Chalendar
Chairman & CEO12.83yrs€3.51m0.034% 4.0m
Jean-Dominique Senard
Lead Independent Director2.83yrs€101.20k0.00082% 96.2k
Denis Ranque
Director16.83yrs€82.08k0.00016% 18.8k
Jean-Louis Beffa
Honorary Chairmanno datano datano data
Philippe Varin
Independent Director6.83yrs€88.47k0.00056% 65.7k
Frédéric Lemoine
Director11yrs€92.99k0.00066% 77.4k
Gilles Schnepp
Independent Director10.83yrs€91.17k0.00015% 17.6k
Amal Chakrabortti
Non-Executive Independent Chairman of Grindwell Norton Limitedno datano datano data
Anne-Marie Idrac
Independent Director8.83yrs€93.92k0.00015% 17.6k
Jacques Pestre
Employee Shareholders Director8.83yrs€73.87k0.00064% 75.1k

9.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: SGO's board of directors are considered experienced (9.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Compagnie de Saint-Gobain S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Compagnie de Saint-Gobain S.A.
  • Ticker: SGO
  • Exchange: ENXTPA
  • Founded: 1665
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: €11.732b
  • Shares outstanding: 543.66m
  • Website: https://www.saint-gobain.com

Number of Employees


Location

  • Compagnie de Saint-Gobain S.A.
  • Les Miroirs
  • 18, avenue d’Alsace
  • Courbevoie
  • Ile-de-France
  • 92400
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CODG.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 1981
CODLSE (London Stock Exchange)YesCommon StockGBEURJul 1981
SGOENXTPA (Euronext Paris)YesCommon StockFREURJul 1981
GOBSWX (SIX Swiss Exchange)YesCommon StockCHCHFJul 1981
GOBDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1981
GOBXTRA (XETRA Trading Platform)YesCommon StockDEEURJul 1981
SGOPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJul 1981
SGOBIT (Borsa Italiana)YesCommon StockITEURJul 1981
SGOWBAG (Wiener Boerse AG)YesCommon StockATEURJul 1981
GOBZBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBCHFJul 1981
SGO NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1981
CODY.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 0.2 ORDUSUSDDec 2008
GOBUBST (Boerse-Stuttgart)UNSP ADR EACH REPR 0.2 ORDDEEURDec 2008

Biography

Compagnie de Saint-Gobain S.A. designs, manufactures, and distributes materials and solutions for wellbeing worldwide. It operates through Innovative Materials Sector, Construction Products Sector, and Building Distribution Sector segments. The company offers flat glass and high-performance materials; and insulation and gypsum products, industrial mortars, and pipe and exterior products. It also distributes heavy building materials; plumbing, heating, and sanitary ware products; timbers and panels; interior products; roofing products; ceramic tiles; work site materials and tools; civil engineering products. The company was founded in 1665 and is headquartered in Courbevoie, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 20:46
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.