ENXTPA:ENGI

Stock Analysis Report

Executive Summary

ENGIE SA engages in power, natural gas, and energy services businesses.

Rewards

Trading at 50.8% below its fair value

Earnings are forecast to grow 10.17% per year

Risk Analysis

Has a high level of debt

Dividend of 5.13% is not well covered by earnings



Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has ENGIE's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ENGI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

ENGI

2.7%

FR Integrated Utilities

-1.4%

FR Market


1 Year Return

12.8%

ENGI

19.9%

FR Integrated Utilities

21.1%

FR Market

Return vs Industry: ENGI underperformed the French Integrated Utilities industry which returned 15.4% over the past year.

Return vs Market: ENGI underperformed the French Market which returned 24.9% over the past year.


Shareholder returns

ENGIIndustryMarket
7 Day3.4%2.7%-1.4%
30 Day7.5%7.2%0.5%
90 Day5.3%10.7%5.9%
1 Year19.4%12.8%26.1%19.9%25.3%21.1%
3 Year66.0%39.8%50.2%27.0%43.2%29.5%
5 Year8.3%-20.4%24.7%-4.3%63.1%39.5%

Price Volatility Vs. Market

How volatile is ENGIE's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ENGIE undervalued compared to its fair value and its price relative to the market?

48.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENGI (€14.81) is trading below our estimate of fair value (€30.09)

Significantly Below Fair Value: ENGI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ENGI is poor value based on its PE Ratio (41.4x) compared to the Integrated Utilities industry average (22x).

PE vs Market: ENGI is poor value based on its PE Ratio (41.4x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: ENGI is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: ENGI is good value based on its PB Ratio (1.1x) compared to the XE Integrated Utilities industry average (1.9x).


Next Steps

Future Growth

How is ENGIE forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENGI's forecast earnings growth (10.2% per year) is above the savings rate (-0.1%).

Earnings vs Market: ENGI's earnings (10.2% per year) are forecast to grow slower than the French market (11.7% per year).

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

Revenue vs Market: ENGI's revenue (3.9% per year) is forecast to grow slower than the French market (4.7% per year).

High Growth Revenue: ENGI's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENGI's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has ENGIE performed over the past 5 years?

40.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENGI has high quality earnings.

Growing Profit Margin: ENGI's current net profit margins (1.3%) are lower than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: ENGI has become profitable over the past 5 years, growing earnings by 40.9% per year.

Accelerating Growth: ENGI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ENGI had negative earnings growth (-11.8%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-3.6%).


Return on Equity

High ROE: ENGI's Return on Equity (4.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ENGIE's financial position?


Financial Position Analysis

Short Term Liabilities: ENGI's short term assets (€51.8B) exceed its short term liabilities (€51.2B).

Long Term Liabilities: ENGI's short term assets (€51.8B) do not cover its long term liabilities (€57.8B).


Debt to Equity History and Analysis

Debt Level: ENGI's debt to equity ratio (88.5%) is considered high.

Reducing Debt: ENGI's debt to equity ratio has increased from 68.2% to 88.5% over the past 5 years.

Debt Coverage: ENGI's debt is well covered by operating cash flow (20.8%).

Interest Coverage: ENGI's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

4.84%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.5%markettop25%4.5%industryaverage4.2%forecastin3Years5.9%

Current dividend yield vs market & industry

Notable Dividend: ENGI's dividend (5.13%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: ENGI's dividend (5.13%) is in the top 25% of dividend payers in the French market (4.43%)


Stability and Growth of Payments

Stable Dividend: ENGI's dividend payments have been volatile in the past 10 years.

Growing Dividend: ENGI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (106.2%), ENGI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ENGI's dividends in 3 years are forecast to be covered by earnings (71.2% payout ratio).


Next Steps

Management

What is the CEO of ENGIE's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Isabelle Kocher (53yo)

3.7yrs

Tenure

€2,847,812

Compensation

Ms. Isabelle Kocher serves as Deputy Chief Executive Officer and Chief Operating Officer at ENGIE E&P Deutschland GmbH. Ms. Kocher has been the Chief Executive Officer of ENGIE SA since May 3, 2016. Ms. Ko ...


CEO Compensation Analysis

Compensation vs Market: Isabelle's total compensation ($USD3.17M) is about average for companies of similar size in the French market ($USD3.59M).

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


Management Age and Tenure

4.0yrs

Average Tenure

56yo

Average Age

Experienced Management: ENGI's management team is considered experienced (4 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

58yo

Average Age

Experienced Board: ENGI's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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.


Management Team

  • Pierre Michel Chareyre (63yo)

    Executive Vice President

    • Tenure: 4yrs
  • Didier Holleaux (59yo)

    Executive VP

    • Tenure: 4yrs
  • Shankar Krishnamoorthy (59yo)

    Exec VP and In Charge of Strategy

    • Isabelle Kocher (53yo)

      CEO & Director

      • Tenure: 3.7yrs
      • Compensation: €2.85m
    • Pierre Deheunynck (57yo)

      Executive VP & Chief of The Group Human Resources Department

      • Tenure: 4yrs
    • Yves Le Gelard (60yo)

      Executive VP

      • Judith Hartmann (50yo)

        CFO & Executive VP

        • Tenure: 4.8yrs
      • Paulo Jorge Almirante (55yo)

        Group COO & Executive VP

        • Tenure: 1.5yrs
      • Ana Busto (49yo)

        Executive VP and Chief Brand & Communication Officer

        • Tenure: 4yrs
      • Martin de Lestang (47yo)

        Managing Director of the Gas Chain Metier


        Board Members

        • Gérard Mestrallet (70yo)

          Honorary Chairman

          • Tenure: 1.7yrs
          • Compensation: €1.00m
        • Jean-Pierre Clamadieu (61yo)

          Independent Chairman of the Board

          • Tenure: 1.7yrs
          • Compensation: €217.34k
        • Marie-José Nadeau (66yo)

          Independent Director

          • Tenure: 4.8yrs
          • Compensation: €140.00k
        • Fabrice Brégier (58yo)

          Independent Director

          • Tenure: 3.7yrs
          • Compensation: €78.10k
        • Isabelle Kocher (53yo)

          CEO & Director

          • Tenure: 3.7yrs
          • Compensation: €2.85m
        • Françoise Malrieu (73yo)

          Independent Director

          • Tenure: 8.7yrs
          • Compensation: €133.18k
        • Alain Beullier (55yo)

          Employee Representative Director

          • Tenure: 11yrs
        • Mari-Noëlle Jégo-Laveissière (51yo)

          Director

          • Tenure: 4.8yrs
          • Compensation: €66.03k
        • Philippe Lepage (55yo)

          Employee Representative Director

          • Tenure: 5.8yrs
        • Dominique Magnien

          Director of Communications - Public Affairs & Advisory Board Member

          • Tenure: 2.3yrs

        Company Information

        ENGIE SA's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: ENGIE SA
        • Ticker: ENGI
        • Exchange: ENXTPA
        • Founded: 1880
        • Industry: Multi-Utilities
        • Sector: Utilities
        • Market Cap: €37.883b
        • Shares outstanding: 2.41b
        • Website: https://www.engie.com

        Number of Employees


        Location

        • ENGIE SA
        • 1, place Samuel de Champlain
        • Courbevoie
        • Ile-de-France
        • 92400
        • France

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        ENGIENXTPA (Euronext Paris)YesOrdinary SharesFREURJul 2005
        ENGISWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJul 2005
        GZFXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJul 2005
        0LD0LSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2005
        ENGIBIT (Borsa Italiana)YesOrdinary SharesITEURJul 2005
        GDFLUBDL (Bourse de Luxembourg)YesOrdinary SharesLUEURJul 2005
        ENGIWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 2005
        GZFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2005
        ENGQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2005
        ENGIPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2005
        ENGI NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 2005
        ENGI.YOTCPK (Pink Sheets LLC)SPONS ADRUSUSDJul 2008
        GZFBDB (Deutsche Boerse AG)SPONS ADRDEEURJul 2008
        GZFUDB (Deutsche Boerse AG)4.75%-FRN SUB PERP EUR100000 'REGS'DEEURJul 2013
        NGIAUENXTPA (Euronext Paris)4.75%-FRN SUB PERP EUR100000 'REGS'FREURJul 2013

        Biography

        ENGIE SA engages in power, natural gas, and energy services businesses. The company operates through North America, Latin America, Africa/Asia, Benelux, France, Europe excluding France & Benelux, Infrastructures Europe, GEM & LNG, and Other segments. It engages in the generation and sale of power through nuclear, thermal, solar, wind, biogas, and biomass resources; and seawater desalination activities, as well as offers engineering services in the areas of energy, hydraulics, and infrastructure. The company also provides energy sales and services for buildings and industry, cities and regions, and major infrastructures, as well as to individual and professional customers; and operates natural gas transportation, storage, and distribution networks and facilities, and LNG terminals primarily in France and Germany, as well as sells access rights to these infrastructures to third parties. In addition, it is involved in the development, construction, financing, operation, and maintenance of various renewable power generation assets, including hydraulic, wind, and photovoltaic; design, financing, building, and operation of decentralized energy production and distribution facilities; and design of cryogenic membrane confinement systems for sea transportation and storage of LNG on land and at sea. Further, the company provides energy storage solutions and microgrids, as well as cabling network services; and operates heating and cooling networks. The company was formerly known as GDF SUEZ S.A. and changed its name to ENGIE SA in April 2015. ENGIE SA was founded in 1880 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 Analysis2020/01/24 21:00
        End of Day Share Price2020/01/24 00:00
        Earnings2019/06/30
        Annual Earnings2018/12/31


        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.