TotalEnergies SE (NYSE: TTE)

Sector: Energy Industry: Oil & Gas Integrated CIK: 0000879764
Market Cap 172.29 Bn
P/B 1.50
P/E 13.13
P/S 0.94
ROIC (Qtr) 7.39
Div Yield % 3.69
Rev 1y % (Qtr) -2.53
Total Debt (Qtr) 61.42 Bn
Debt/Equity (Qtr) 0.53
Add ratio to table...

About

TotalEnergies SE, known by its ticker symbol TTE, operates in the energy sector, focusing on the exploration, production, and marketing of oil and natural gas, as well as the production and sale of renewable energy sources such as solar and wind power. The company's operations span over 40 countries, including the United States, Canada, Europe, and Asia. TotalEnergies' revenue generation primarily comes from the sale of its oil and natural gas products, along with the production and sale of renewable energy sources. The company deals with oil and...

Read more

Investment thesis

Bull case

  • Strong operating cash flow of 27.34B provides robust 0.45x coverage of total debt 61.42B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 26.20B provide 2.11x coverage of short-term debt 12.43B, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 253.71B provides 4.13x coverage of total debt 61.42B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 27.34B provides exceptional 118.88x coverage of minority interest expenses 230M, showing strong core operations.
  • Long-term investments of 43.27B provide solid 0.88x coverage of long-term debt 48.99B, indicating strategic financial planning.

Bear case

  • Operating cash flow of 27.34B barely covers its investment activities of (18.13B), with a coverage ratio of -1.51, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 27.34B provides thin coverage of dividend payments of (8.12B) with a -3.37 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (18.13B) provide weak support for R&D spending of 419M, which is -43.27x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 26.20B provide limited coverage of acquisition spending of (1.14B), which is -22.90x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 25.40B show weak coverage of depreciation charges of 13.85B, with a 1.83 ratio indicating high capital intensity and potential reinvestment needs.

Geographical areas [axis] Breakdown of Revenue (2024)

Segments [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Oil & Gas Integrated
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 XOM Exxon Mobil Corp 630.73 Bn 18.39 1.45 42.04 Bn
2 CVX Chevron Corp 360.16 Bn 29.26 2.14 41.54 Bn
3 TTE TotalEnergies SE 172.29 Bn 13.13 0.94 61.42 Bn
4 IMO Imperial Oil Ltd 99.73 Bn 51.19 4.54 2.90 Bn
5 BP Bp Plc 98.37 Bn 1,788.57 0.51 72.53 Bn
6 SU Suncor Energy Inc 67.22 Bn 15.56 1.87 10.59 Bn
7 CVE Cenovus Energy Inc. 38.97 Bn 17.12 1.04 7.27 Bn
8 NFG National Fuel Gas Co 7.90 Bn 12.06 3.32 2.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.73 1.02
EV to Cash from Ops. EV/CFO 7.78 11.79
EV to Debt EV to Debt 3.46 7.40
EV to EBIT EV/EBIT 8.38 19.95
EV to EBITDA EV/EBITDA 6.04 7.85
EV to Free Cash Flow [EV/FCF] EV/FCF 17.58 46.96
EV to Market Cap EV to Market Cap 1.24 1.30
EV to Revenue EV/Rev 1.17 2.01
Price to Book Value [P/B] P/B 1.50 2.14
Price to Earnings [P/E] P/E 13.13 168.60
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.62 0.95
Dividend Payout Ratio % Div Payout % (Qtr) 48.40 786.52
Dividend per Basic Share Div per Share (Qtr) 2.82 1.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 51.49 37.80
Interest Coverage Int. cover (Qtr) 7.98 42.88
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -7.46 -10.32
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.39 32.58
Dividend Growth (1y) % Div 1y % (Qtr) -16.25 -4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -14.49 142.66
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -4.43 22.56
EBIT Growth (1y) % EBIT 1y % (Qtr) -14.04 35.32
EBT Growth (1y) % EBT 1y % (Qtr) -16.26 190.68
EPS Growth (1y) % EPS 1y % (Qtr) -13.50 511.78
FCF Growth (1y) % FCF 1y % (Qtr) -27.41 4.66
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -3.45 16.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.63 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.19 0.13
Cash Ratio Cash Ratio (Qtr) 0.28 0.27
Current Ratio Curr Ratio (Qtr) 0.97 1.06
Debt to Equity Ratio Debt/Equity (Qtr) 0.53 0.88
Interest Cover Ratio Int Coverage (Qtr) 7.98 42.88
Times Interest Earned Times Interest Earned (Qtr) 7.98 42.88
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 21.50 18.39
EBIT Margin % EBIT Margin % (Qtr) 13.93 6.19
EBT Margin % EBT Margin % (Qtr) 12.19 1.30
Gross Margin % Gross Margin % (Qtr) 36.00 30.31
Net Profit Margin % Net Margin % (Qtr) 7.20 -1.26