TotalEnergies (ENXTPA:TTE): Assessing Valuation After Strong Earnings Jump and New Saudi Solar Venture

TotalEnergies (ENXTPA:TTE) just posted a big jump in quarterly net income, even though its revenues dipped compared to last year. At the same time, the company revealed plans for a sizable solar project in Saudi Arabia.

See our latest analysis for TotalEnergies.

TotalEnergies has kept investors on their toes this year with upbeat results, a big solar deal in Saudi Arabia, and increased buybacks. Despite oil price swings and green energy pushback, momentum has gradually rebounded. Its 5.03% 90-day share price return contrasts sharply with a modest 1-year total shareholder return of -0.72%, but the longer-term picture is still robust, with a 164% total return over five years.

If the latest moves from TotalEnergies have you tracking leaders and up-and-comers in energy, it might be time to broaden your search and discover fast growing stocks with high insider ownership

The recent earnings beat and strategic push into renewables have certainly caught the market's attention. With shares up in the past quarter, is there still value here or is future growth already fully reflected?

Most Popular Narrative: 15% Undervalued

TotalEnergies closed at €53.64, while the most closely followed narrative sets the fair value more than 15% higher. This gap is driven by robust forecasts and catalysts that could change the value equation for investors.

A resilient business model that balances volatile hydrocarbon cycles with growing renewable and power generation divisions, together with ongoing buybacks and industry-leading dividend growth, signals that the current valuation may not fully reflect TotalEnergies' ability to deliver stable or increasing shareholder returns as secular demand for energy grows and decarbonization accelerates.

Read the complete narrative.

Want to uncover the bullish math behind this estimate? The real engine of this valuation is found in analyst assumptions about future profits, margins, and share count. Craving the specifics that drive this leap in fair value? Dive into the full narrative to see which optimistic forecasts are shaping investor expectations.

Result: Fair Value of €63.31 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, if global oil prices remain weak or if execution in new growth segments lags expectations, the attractiveness of the analyst narrative could quickly fade.

Find out about the key risks to this TotalEnergies narrative.

Build Your Own TotalEnergies Narrative

If this perspective does not match your own outlook or you would rather draw your own conclusions, you can create a personal narrative in just a few minutes. Do it your way

A great starting point for your TotalEnergies research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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