LSE:0J6Y

Stock Analysis Report

Société Générale Société anonyme

Executive Summary

Société Générale Société anonyme provides financial services in Europe and internationally.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Société Générale Société anonyme's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0J6Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.8%

0J6Y

-4.1%

GB Banks

-4.4%

GB Market


1 Year Return

11.1%

0J6Y

-11.3%

GB Banks

1.4%

GB Market

Return vs Industry: 0J6Y exceeded the UK Banks industry which returned -11.3% over the past year.

Return vs Market: 0J6Y exceeded the UK Market which returned 1.4% over the past year.


Shareholder returns

0J6YIndustryMarket
7 Day-9.8%-4.1%-4.4%
30 Day-4.9%-8.0%-6.3%
90 Day0.5%-9.1%-2.7%
1 Year22.0%11.1%-6.8%-11.3%6.7%1.4%
3 Year-16.4%-31.4%-10.1%-20.4%12.6%-1.5%
5 Year-6.2%-29.2%-6.7%-24.6%28.8%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Société Générale Société anonyme undervalued compared to its fair value and its price relative to the market?

40.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0J6Y (€28.71) is trading below our estimate of fair value (€48.46)

Significantly Below Fair Value: 0J6Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0J6Y is poor value based on its PE Ratio (9.4x) compared to the Banks industry average (8.9x).

PE vs Market: 0J6Y is good value based on its PE Ratio (9.4x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: 0J6Y is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 0J6Y is good value based on its PB Ratio (0.4x) compared to the GB Banks industry average (0.8x).


Next Steps

Future Growth

How is Société Générale Société anonyme forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0J6Y's forecast earnings growth (11.6% per year) is above the savings rate (0.5%).

Earnings vs Market: 0J6Y's earnings (11.6% per year) are forecast to grow slower than the UK market (13% per year).

High Growth Earnings: 0J6Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0J6Y's revenue (3.2% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: 0J6Y's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0J6Y's Return on Equity is forecast to be low in 3 years time (5.9%).


Next Steps

Past Performance

How has Société Générale Société anonyme performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0J6Y has high quality earnings.

Growing Profit Margin: 0J6Y's current net profit margins (10.8%) are lower than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: 0J6Y's earnings have declined by -2.9% per year over the past 5 years.

Accelerating Growth: 0J6Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0J6Y had negative earnings growth (-25.5%) over the past year, making it difficult to compare to the Banks industry average (26.6%).


Return on Equity

High ROE: 0J6Y's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Société Générale Société anonyme's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0J6Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0J6Y's debt is covered by short term assets (assets are 2x debt).


Financial Institutions Analysis

Asset Level: 0J6Y's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0J6Y has a low allowance for bad loans.

Low Risk Liabilities: 0J6Y's liabilities are made up of primarily higher risk sources of funding.

Loan Level: 0J6Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0J6Y's loans are broadly funded by customer deposits.

Level of Bad Loans: 0J6Y has a high level of bad loans (3.62%)


Next Steps

Dividend

What is Société Générale Société anonyme's current dividend yield, its reliability and sustainability?

7.63%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Société Générale Société anonyme before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company7.6%marketbottom25%1.9%markettop25%5.3%industryaverage6.8%forecastin3Years6.6%

Current dividend yield vs market & industry

Notable Dividend: 0J6Y's dividend (7.63%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: 0J6Y's dividend (7.63%) is in the top 25% of dividend payers in the UK market (5.34%)


Stability and Growth of Payments

Stable Dividend: 0J6Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0J6Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72%), 0J6Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0J6Y's dividends in 3 years are forecast to be well covered by earnings (46.2% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Frédéric Oudéa (56yo)

11.8yrs

Tenure

€3,005,561

Compensation

Mr. Frédéric Oudéa has been the Chief Executive Officer of Société Générale SA/Societe Generale Group since May 13, 2008. Mr. Oudéa has been the President of European Banking Federation since January 1, 20 ...


CEO Compensation Analysis

Compensation vs Market: Frédéric's total compensation ($USD3.27M) is below average for companies of similar size in the UK market ($USD4.70M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frédéric Oudéa
CEO & Director11.8yrs€3.01m0.021% 5.1m
Diony Lebot
Deputy Chief Executive Officer3.6yrs€2.00mno data
Séverin Cabannes
Deputy Chief Executive Officer11.8yrs€1.77mno data
Philippe Aymerich
Deputy Chief Executive Officer1.8yrs€1.76mno data
Philippe Heim
Deputy Chief Executive Officer1.8yrs€1.88mno data
William Kadouch-Chassaing
Group Chief Financial Officer1.8yrsno datano data
Carlos Gonçalves
Head of Global Technology Services3.3yrsno datano data
Delphine Garcin-Meunier
Head of Investor Relations and Financial Communication0yrsno datano data
Edouard-Malo Henry
Group Head of Compliance2.7yrsno datano data
Dominique Bourrinet
Group General Counsel6.1yrsno datano data

3.3yrs

Average Tenure

55yo

Average Age

Experienced Management: 0J6Y's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frédéric Oudéa
CEO & Director11.8yrs€3.01m0.021% 5.1m
Albert Le Dirac'h
Group Country Head of Czech Republic & Slovakia6.5yrsno datano data
Marc Vienot
Honorary Chairman of the Board0yrs€6.70kno data
Jean-Bernard Lévy
Independent Director10.8yrs€133.65k0.00012% 29.4k
Gérard Mestrallet
Independent Director4.8yrs€133.65k0.00014% 34.3k
Lorenzo Bini Smaghi
Independent Chairman of the Board4.8yrs€948.74k0.00024% 58.8k
Kyra Hazou
Independent Director8.8yrs€166.05k0.00012% 29.4k
Nathalie Rachou
Independent Director12.1yrs€274.08k0.00024% 58.8k
France Houssaye
Employee Representative Director10.9yrs€149.98kno data
Alexandra Elisabeth Johanna Schaapveld
Independent Director6.8yrs€247.68k0.00012% 29.4k

8.8yrs

Average Tenure

63yo

Average Age

Experienced Board: 0J6Y's board of directors are considered experienced (8.8 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 been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

Société Générale Société anonyme's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Société Générale Société anonyme
  • Ticker: 0J6Y
  • Exchange: LSE
  • Founded: 1864
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €24.513b
  • Shares outstanding: 849.66m
  • Website: https://www.societegenerale.com

Number of Employees


Location

  • Société Générale Société anonyme
  • 29, boulevard Haussmann
  • Paris
  • Ile-de-France
  • 75009
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGEDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
GLEENXTPA (Euronext Paris)YesCommon StockFREURJan 1992
0J6YLSE (London Stock Exchange)YesCommon StockGBEURJan 1992
GLEBIT (Borsa Italiana)YesCommon StockITEURJan 1992
SGEXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992
GLEPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1992
GLE NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
GLESWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1992
GLEWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
SCGL.YOTCPK (Pink Sheets LLC)SPON ADR-EACH 5 CNV INTO 1 ORD EUR1.25USUSDAug 1993
SGE1DB (Deutsche Boerse AG)SPON ADR-EACH 5 CNV INTO 1 ORD EUR1.25DEEURAug 1993

Biography

Société Générale Société anonyme provides financial services in Europe and internationally. Its primary businesses include French retail banking; international retail banking, insurance, and financial services; and corporate and investment banking. The company offers retail banking services to individuals, professionals, local authorities, and businesses and non-profit clients under the Societe Generale, Crédit du Nord, and Boursorama Banque brands; and international retail banking and consumer credit services to individual and corporate customers in Europe, Russia, the Mediterranean Basin, and Sub-Saharan Africa. It also provides life, retirement savings scheme, personal protection, group retirement, dependence, annuity, auto and home, personal accident, school, and other insurance products; vehicle leasing and fleet management services; and vendor and equipment finance services. In addition, the company assists corporates, financial institutions, public sector institutions, and family offices in terms of investments, strategic advisory, capital raising, and capital structure optimization; and offers structured finance, and investment and risk management solutions. Further, it provides access to market through solutions in equities, fixed income and currencies, commodities, and alternative investments; private banking services and wealth management solutions, including financial analysis; and asset management solutions. Additionally, the company offers securities services, such as clearing, custody and trustee, liquidity management, fund administration and asset servicing, fund distribution, and global issuer services. Société Générale Société anonyme was founded in 1864 and is based in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:11
End of Day Share Price2020/02/25 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.