OTCPK:ENGI.Y

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 64.5% below its fair value

Earnings are forecast to grow 22.29% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Dividend of 8.5% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Fair value with moderate growth potential.


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.Y's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.7%

ENGI.Y

3.1%

US Integrated Utilities

-1.1%

US Market


1 Year Return

-32.7%

ENGI.Y

-11.5%

US Integrated Utilities

-13.6%

US Market

Return vs Industry: ENGI.Y underperformed the US Integrated Utilities industry which returned -6.3% over the past year.

Return vs Market: ENGI.Y underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

ENGI.YIndustryMarket
7 Day-12.7%3.1%-1.1%
30 Day-40.6%-16.1%-17.8%
90 Day-38.1%-17.2%-22.5%
1 Year-27.7%-32.7%-8.4%-11.5%-11.9%-13.6%
3 Year-15.5%-28.3%11.6%0.4%12.1%4.9%
5 Year-35.6%-51.2%40.1%11.8%30.5%16.3%

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

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENGI.Y ($10.15) is trading below our estimate of fair value ($28.63)

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


Price To Earnings Ratio

PE vs Industry: ENGI.Y is poor value based on its PE Ratio (27.7x) compared to the Integrated Utilities industry average (19.5x).

PE vs Market: ENGI.Y is poor value based on its PE Ratio (27.7x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: ENGI.Y is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: ENGI.Y is good value based on its PB Ratio (0.7x) compared to the US Integrated Utilities industry average (1.7x).


Next Steps

Future Growth

How is ENGIE forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENGI.Y's forecast earnings growth (22.3% per year) is above the savings rate (1.7%).

Earnings vs Market: ENGI.Y's earnings (22.3% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ENGI.Y's revenue (3.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ENGI.Y's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENGI.Y's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has ENGIE performed over the past 5 years?

27.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENGI.Y has a large one-off loss of €1.6B impacting its December 31 2019 financial results.

Growing Profit Margin: ENGI.Y became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ENGI.Y has become profitable over the past 5 years, growing earnings by 27.9% per year.

Accelerating Growth: ENGI.Y has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ENGI.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Integrated Utilities industry (5.7%).


Return on Equity

High ROE: ENGI.Y's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is ENGIE's financial position?


Financial Position Analysis

Short Term Liabilities: ENGI.Y's short term assets (€60.5B) exceed its short term liabilities (€57.9B).

Long Term Liabilities: ENGI.Y's short term assets (€60.5B) do not cover its long term liabilities (€63.9B).


Debt to Equity History and Analysis

Debt Level: ENGI.Y's debt to equity ratio (95.3%) is considered high.

Reducing Debt: ENGI.Y's debt to equity ratio has increased from 68.2% to 95.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ENGI.Y's debt is covered by short term assets (assets are 1.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ENGI.Y is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: ENGI.Y is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

8.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ENGI.Y's dividend (8.5%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: ENGI.Y's dividend (8.5%) is in the top 25% of dividend payers in the US market (5.37%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (235.7%), ENGI.Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ENGI.Y's dividends in 3 years are forecast to be covered by earnings (74.1% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Judith Hartmann (50yo)

0.083

Tenure

Dr. Judith Hartmann serves as a Non-Executive Director at Unilever United States, Inc. since April 2015. Dr. Hartmann served as Director at Gaztransport & Technigaz Société Anonyme since May 23, 2019 until ...


Leadership Team

NamePositionTenureCompensationOwnership
Judith Hartmann
Acting CEO0.083yrno datano data
Paulo Jorge Almirante
Acting CEO0.083yrno datano data
Claire Waysand
Acting CEO0.083yrno datano data
Shankar Krishnamoorthy
Exec VP and In Charge of Strategyno datano datano data
Yves Le Gelard
Executive VPno datano datano data
Ana Busto
Executive VP and Chief Brand & Communication Officer4.17yrsno datano data
Pierre Deheunynck
Executive VP & Chief of The Group Human Resources Department4.17yrsno datano data
Pierre Michel Chareyre
Executive Vice President4.17yrsno datano data
Martin de Lestang
Managing Director of the Gas Chain Metierno datano datano data
Didier Holleaux
Executive VP4.17yrsno datano data

4.2yrs

Average Tenure

56yo

Average Age

Experienced Management: ENGI.Y's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dominique Magnien
Director of Communications - Public Affairs & Advisory Board Member2.5yrsno datano data
Gérard Mestrallet
Honorary Chairman1.83yrs€1.00mno data
Jean-Pierre Clamadieu
Independent Chairman of the Board1.83yrs€217.34k0.0012% 309.5k
Marie-José Nadeau
Independent Director4.92yrs€140.00k0.000040% 10.0k
Fabrice Brégier
Independent Director3.83yrs€78.10k0.000020% 5.0k
Françoise Malrieu
Independent Director8.83yrs€133.18k0.000060% 15.0k
Alain Beullier
Employee Representative Director11.17yrsno datano data
Mari-Noëlle Jégo-Laveissière
Director4.92yrs€66.03k0.000020% 5.0k
Philippe Lepage
Employee Representative Director5.92yrsno data0.000010% 2.5k
Peter Ricketts
Independent Director3.58yrs€85.00k0.000030% 7.5k

4.4yrs

Average Tenure

61yo

Average Age

Experienced Board: ENGI.Y's board of directors are considered experienced (4.4 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

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


Key Information

  • Name: ENGIE SA
  • Ticker: ENGI.Y
  • Exchange: OTCPK
  • Founded: 1880
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: €22.712b
  • Listing Market Cap: €24.959b
  • 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
GZFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 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
ENGQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2005
ENGI NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 2005
ENGIPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2005
ENGIWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 2005
ENGISWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJul 2005
ENGI.YOTCPK (Pink Sheets LLC)SPON ADR EACH REPR 1 SHAREUSUSDJul 2008
GZFBDB (Deutsche Boerse AG)SPON ADR EACH REPR 1 SHAREDEEURJul 2008
NGIAUENXTPA (Euronext Paris)4.75%-FRN SUB PERP EUR100000 'REGS'FREURJul 2013
GZFUDB (Deutsche Boerse AG)4.75%-FRN SUB PERP EUR100000 'REGS'DEEURJul 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 Analysis2020/04/01 00:56
End of Day Share Price2020/03/31 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.