The underlying tendency is to the upside for shares in TotalEnergies SE and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Summary
● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● Its low valuation, with P/E ratio at 6.79 and 6.73 for the ongoing fiscal year and 2025 respectively, makes the stock pretty attractive with regard to earnings multiples.
● With regards to fundamentals, the enterprise value to sales ratio is at 0.83 for the current period. Therefore, the company is undervalued.
● The company has a low valuation given the cash flows generated by its activity.
● This company will be of major interest to investors in search of a high dividend stock.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The company's earnings growth outlook lacks momentum and is a weakness.
● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
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TotalEnergies SE is one of the leading worldwide oil groups. Net sales break down by activity as follows:
- refining and chemistry (42.7%): refining of petroleum products (operated, at the end of 2023, 16 refineries throughout the world) and manufacture of basic chemistry (olefins, aromatics, polyethylene, fertilizer, etc.) and of specialty chemistry (rubber, resins, adhesives, etc.). The group is also operating in trading and sea transport of crude oil and oil products;
- petroleum products distribution (37.9%): at the end of 2023 operated 14,571 service stations worldwide;
- electricity generation (11.5%): from combined cycle gas plants and renewable energies;
- gas production, trading, transport and distribution (5%): primarily liquefied natural gas (44.3 million tonnes sold in 2023), natural gas, biogas, hydrogen, liquefied petroleum gas, etc.;
- hydrocarbon operating and production (2.8%): 2.5 million barrels of oil equivalent produced per day in 2023;
- other (0.1%).
Net sales are distributed geographically as follows: France (23.4%), Europe (41.2%), North America (9.4%), Africa (9.2%) and other (16.8%).