TOTALENERGIES SE (TTE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:TTE - FR0000120271 - Common Stock
57.98 EUR
+0.74 (+1.29%)
TTE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 75 industry peers in the Oil, Gas & Consumable Fuels industry. TTE has a medium profitability rating, but doesn't score so well on its financial health evaluation. TTE has a valuation in line with the averages, but it does not seem to be growing. Finally TTE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- TTE had positive earnings in the past year.
- TTE had a positive operating cash flow in the past year.
- TTE had positive earnings in 4 of the past 5 years.
- In the past 5 years TTE always reported a positive cash flow from operatings.
1.2 Ratios
- TTE has a better Return On Assets (4.71%) than 68.00% of its industry peers.
- TTE's Return On Equity of 11.94% is fine compared to the rest of the industry. TTE outperforms 66.67% of its industry peers.
- With a decent Return On Invested Capital value of 7.06%, TTE is doing good in the industry, outperforming 65.33% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for TTE is in line with the industry average of 8.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 11.94% | ||
| ROIC | 7.06% |
ROA(3y)6.5%
ROA(5y)4.4%
ROE(3y)16.43%
ROE(5y)11.2%
ROIC(3y)10.57%
ROIC(5y)8.02%
1.3 Margins
- TTE has a Profit Margin (7.50%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of TTE has grown nicely.
- TTE has a Operating Margin (12.79%) which is comparable to the rest of the industry.
- TTE's Operating Margin has improved in the last couple of years.
- The Gross Margin of TTE (35.95%) is worse than 61.33% of its industry peers.
- TTE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.79% | ||
| PM (TTM) | 7.5% | ||
| GM | 35.95% |
OM growth 3Y0.18%
OM growth 5Y5.63%
PM growth 3Y-2.28%
PM growth 5Y5.04%
GM growth 3Y-0.18%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TTE is creating some value.
- Compared to 1 year ago, TTE has less shares outstanding
- TTE has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TTE has a worse debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of TTE is 4.91, which is a neutral value as it means it would take TTE, 4.91 years of fcf income to pay off all of its debts.
- TTE's Debt to FCF ratio of 4.91 is fine compared to the rest of the industry. TTE outperforms 62.67% of its industry peers.
- A Debt/Equity ratio of 0.43 indicates that TTE is not too dependend on debt financing.
- TTE has a Debt to Equity ratio of 0.43. This is comparable to the rest of the industry: TTE outperforms 53.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | N/A |
ROIC/WACC1.05
WACC6.74%
2.3 Liquidity
- A Current Ratio of 1.01 indicates that TTE should not have too much problems paying its short term obligations.
- The Current ratio of TTE (1.01) is worse than 72.00% of its industry peers.
- TTE has a Quick Ratio of 1.01. This is a bad value and indicates that TTE is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.82, TTE is not doing good in the industry: 70.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
- The earnings per share for TTE have decreased strongly by -11.85% in the last year.
- The Earnings Per Share has been growing by 11.97% on average over the past years. This is quite good.
- Looking at the last year, TTE shows a decrease in Revenue. The Revenue has decreased by -9.70% in the last year.
- TTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.11% yearly.
EPS 1Y (TTM)-11.85%
EPS 3Y5.12%
EPS 5Y11.97%
EPS Q2Q%1.72%
Revenue 1Y (TTM)-9.7%
Revenue growth 3Y1.94%
Revenue growth 5Y2.11%
Sales Q2Q%-6.4%
3.2 Future
- TTE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.25% yearly.
- The Revenue is expected to decrease by -0.90% on average over the next years.
EPS Next Y-8.56%
EPS Next 2Y-5.54%
EPS Next 3Y0.28%
EPS Next 5Y5.25%
Revenue Next Year-7.11%
Revenue Next 2Y-5.72%
Revenue Next 3Y-2.42%
Revenue Next 5Y-0.9%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.60 indicates a reasonable valuation of TTE.
- Based on the Price/Earnings ratio, TTE is valued cheaply inside the industry as 81.33% of the companies are valued more expensively.
- TTE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 9.80, the valuation of TTE can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, TTE is valued a bit cheaper than the industry average as 74.67% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of TTE to the average of the S&P500 Index (24.26), we can say TTE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
- TTE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TTE is cheaper than 69.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TTE is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| EV/EBITDA | 4.82 |
4.3 Compensation for Growth
- TTE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y-5.54%
EPS Next 3Y0.28%
5. Dividend
5.1 Amount
- TTE has a Yearly Dividend Yield of 5.94%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.08, TTE pays a better dividend. On top of this TTE pays more dividend than 81.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, TTE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.94% |
5.2 History
- The dividend of TTE has a limited annual growth rate of 5.59%.
Dividend Growth(5Y)5.59%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- TTE pays out 57.83% of its income as dividend. This is a bit on the high side, but may be sustainable.
- TTE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP57.83%
EPS Next 2Y-5.54%
EPS Next 3Y0.28%
TOTALENERGIES SE / TTE.PA FAQ
What is the fundamental rating for TTE stock?
ChartMill assigns a fundamental rating of 4 / 10 to TTE.PA.
Can you provide the valuation status for TOTALENERGIES SE?
ChartMill assigns a valuation rating of 6 / 10 to TOTALENERGIES SE (TTE.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for TOTALENERGIES SE?
TOTALENERGIES SE (TTE.PA) has a profitability rating of 6 / 10.
Can you provide the financial health for TTE stock?
The financial health rating of TOTALENERGIES SE (TTE.PA) is 3 / 10.
Is the dividend of TOTALENERGIES SE sustainable?
The dividend rating of TOTALENERGIES SE (TTE.PA) is 7 / 10 and the dividend payout ratio is 57.83%.