Technip Energies (ENXTPA:TE) - Share price, News & Analysis

Q: What is the Fair Price of TE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TE (€12.34) is trading below our estimate of [[fair value]] (€15.4)

TE fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	3/6
Financial Health	4/6
Dividends	3/6

TE Stock Overview

Rewards

Trading at 19.9% below our estimate of its fair value

Earnings are forecast to grow 0.35% per year

Earnings grew by 12.1% over the past year

Risk Analysis

Unstable dividend track record

Significant insider selling over the past 3 months

Technip Energies Competitors

Vallourec

ENXTPA:VK

€2.8b

Gaztransport & Technigaz

ENXTPA:GTT

€4.6b

Etablissements Maurel & Prom

ENXTPA:MAU

€920.9m

EssoF

ENXTPA:ES

€817.6m

Price History & Performance

Summary of all time highs, changes and price drops for Technip Energies
Historical stock prices
Current Share Price	€12.34
52 Week High	€14.82
52 Week Low	€8.44
Beta	0
1 Month Change	1.73%
3 Month Change	11.67%
1 Year Change	6.75%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-2.84%

Shareholder Returns

	TE	FR Energy Services	FR Market
7D	0.7%	-2.6%	2.2%
1Y	6.7%	15.9%	-10.6%

Return vs Industry: TE underperformed the French Energy Services industry which returned 17.8% over the past year.

Return vs Market: TE exceeded the French Market which returned -10.6% over the past year.

Price Volatility

Is TE's price volatile compared to industry and market?
TE volatility
TE Average Weekly Movement	5.5%
Energy Services Industry Average Movement	7.8%
Market Average Movement	4.9%
10% most volatile stocks in FR Market	9.1%
10% least volatile stocks in FR Market	2.9%

Stable Share Price: TE is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TE's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2019	15,586	Arnaud Pieton	https://www.technipenergies.com

Technip Energies N.V., together with its subsidiaries, operates as an engineering and technology company for the energy transition in Europe, Russia, the Asia Pacific, Africa, the Middle East, and the Americas. The company operates through two segments, Projects Delivery, and Technology, Products and Services. It is involved in the engineering, procurement, construction management, commissioning, and transport and installation of various energy projects.

Technip Energies Fundamentals Summary

How do Technip Energies's earnings and revenue compare to its market cap?
TE fundamental statistics
Market Cap	€2.23b
Earnings (TTM)	€272.90m
Revenue (TTM)	€6.49b

8.2x

P/E Ratio

0.3x

P/S Ratio

Is TE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TE income statement (TTM)
Revenue	€6.49b
Cost of Revenue	€5.52b
Gross Profit	€973.00m
Other Expenses	€700.10m
Earnings	€272.90m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)	1.51
Gross Margin	14.98%
Net Profit Margin	4.20%
Debt/Equity Ratio	41.7%

How did TE perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

29%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is TE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TE?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TE. This is calculated by dividing TE's market cap by their current preferred multiple.
What is TE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€2.23b

TE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	23.5x

Price to Earnings Ratio vs Peers

How does TE's PE Ratio compare to its peers?

TE PE Ratio vs Peers

The above table shows the PE ratio for TE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18x
VK Vallourec	28.5x	16.5%	€2.8b
GTT Gaztransport & Technigaz	34x	13.1%	€4.6b
MAU Etablissements Maurel & Prom	8.1x	-12.4%	€920.9m
ES EssoF	1.4x	n/a	€817.6m
TE Technip Energies	8.2x	0.3%	€2.2b

Forward PE

Price-To-Earnings vs Peers: TE is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

How does TE's PE Ratio compare vs other companies in the European Energy Services Industry?

Price-To-Earnings vs Industry: TE is good value based on its Price-To-Earnings Ratio (8.2x) compared to the European Energy Services industry average (10.6x)

Price to Earnings Ratio vs Fair Ratio

What is TE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.2x
Fair PE Ratio	11.8x

Price-To-Earnings vs Fair Ratio: TE is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (11.8x).

Share Price vs Fair Value

What is the Fair Price of TE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TE (€12.34) is trading below our estimate of fair value (€15.4)

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

Price to Earnings Growth Ratio

PEG Ratio: TE is poor value based on its PEG Ratio (23.5x)

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Future Growth

How is Technip Energies forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

0.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TE's forecast earnings growth (0.3% per year) is above the savings rate (0.3%).

Earnings vs Market: TE's earnings (0.3% per year) are forecast to grow slower than the French market (11.8% per year).

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

Revenue vs Market: TE's revenue (2.1% per year) is forecast to grow slower than the French market (5.9% per year).

High Growth Revenue: TE's revenue (2.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: TE's Return on Equity is forecast to be low in 3 years time (13.9%).

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Past Performance

How has Technip Energies performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

37.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TE has high quality earnings.

Growing Profit Margin: TE's current net profit margins (4.2%) are lower than last year (4.2%).

Past Earnings Growth Analysis

Earnings Trend: TE's earnings have grown significantly by 37.3% per year over the past 5 years.

Accelerating Growth: TE's earnings growth over the past year (12.1%) is below its 5-year average (37.3% per year).

Earnings vs Industry: TE earnings growth over the past year (12.1%) exceeded the Energy Services industry -1.4%.

Return on Equity

High ROE: TE's Return on Equity (18.9%) is considered low.

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Financial Health

How is Technip Energies's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TE's short term assets (€6.0B) do not cover its short term liabilities (€6.3B).

Long Term Liabilities: TE's short term assets (€6.0B) exceed its long term liabilities (€1.1B).

Debt to Equity History and Analysis

Debt Level: TE has more cash than its total debt.

Reducing Debt: Insufficient data to determine if TE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: TE's debt is well covered by operating cash flow (133.5%).

Interest Coverage: TE's interest payments on its debt are well covered by EBIT (64.8x coverage).

Balance Sheet

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Dividend

What is Technip Energies's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TE's dividend (3.65%) is higher than the bottom 25% of dividend payers in the French market (1.76%).

High Dividend: TE's dividend (3.65%) is low compared to the top 25% of dividend payers in the French market (5.46%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether TE's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if TE's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (29.3%), TE's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (10.2%), TE's dividend payments are thoroughly covered by cash flows.

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Management

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

0.3yrs

Average management tenure

CEO

Arnaud Pieton (48 yo)

no data

Tenure

Mr. Arnaud Pieton serves as Non-Independent Executive Director at Technip Energies N.V. since November 2021. He is Chief Executive Officer of Technip Energies N.V. and served as its Executive Director unti...

Leadership Team

Experienced Management: TE's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.

Ownership

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

Insider Trading Volume

Insider Buying: TE insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31