Compagnie de Saint Gobain (SGO) AI Stock Analysis

• Market Cap: €40.34B
• Dividend Yield: 2.72%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.52
• Revenue Growth: 1.09%
• EPS Growth: -0.94%
• Country: FR
• Employees: 161,482
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 3.63
• Shares Outstanding: 499,067,400
• 10 Day Avg. Volume: 1,297,633
• 30 Day Avg. Volume: 1,049,203
• PEG Ratio: 1.84
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 12.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €107.46
• Price Target Upside: 32.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: €88.00 ▲(8.83% Upside)

Compagnie de Saint Gobain's strong financial performance is a key strength, supported by consistent profitability and cash generation. However, bearish technical indicators and a fair valuation limit the overall score. The absence of earnings call insights and corporate events further restricts the potential for a higher score.

Positive Factors

Cash Generation

Strong cash generation capacity ensures the company can fund operations and investments, supporting long-term sustainability and growth.

Operational Efficiency

Healthy margins indicate effective cost management and operational efficiency, which are crucial for maintaining profitability and competitive advantage.

Balanced Capital Structure

A balanced capital structure with manageable leverage enhances financial stability and flexibility, supporting strategic initiatives and growth.

Negative Factors

Revenue Decline

Declining revenue may signal market challenges or strategic missteps, potentially impacting long-term growth and market position.

Free Cash Flow Decline

A decline in free cash flow, even if slight, can limit the company's ability to invest in growth opportunities and weather economic downturns.

EPS Growth Decline

Negative EPS growth indicates declining profitability, which can affect investor confidence and the company's ability to reinvest in its business.

Compagnie de Saint Gobain Business Overview & Revenue Model

Company Description

Compagnie de Saint-Gobain is a global leader in the habitat and construction markets, founded in 1665. The company operates across multiple sectors including construction products, glass, high-performance materials, and distribution. Saint-Gobain's core products include insulation, gypsum, plaster, pipes, and various types of glass, catering to both residential and commercial building projects. With a strong presence in over 70 countries, the company is committed to sustainability and innovation in its offerings, aiming to enhance the comfort and well-being of its customers.

How the Company Makes Money

Saint-Gobain generates revenue through several key streams, primarily from the sale of construction materials and solutions. The company's diversified portfolio allows it to cater to various sectors, including residential, commercial, and industrial markets. Key revenue streams include the production and supply of insulation materials, glass products, and construction systems, which are sold through both direct channels and a vast distribution network. Additionally, Saint-Gobain engages in partnerships with construction firms, architects, and contractors, enhancing its market reach and collaborative projects. The company's emphasis on sustainability and energy-efficient solutions further positions it to capitalize on the growing demand for eco-friendly construction practices, contributing significantly to its earnings.

Compagnie de Saint Gobain Financial Statement Overview

Summary

Compagnie de Saint Gobain exhibits strong financial health with consistent profitability and cash generation. Despite a decline in revenue, the company maintains efficient operations and a balanced capital structure, indicating a robust foundation with potential for future growth.

Income Statement

Compagnie de Saint Gobain has demonstrated strong profitability with consistent gross and net profit margins over recent years. However, there is a noticeable decline in total revenue from 2022 to 2024, which may indicate market challenges or strategic shifts. EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

The company maintains a stable equity base with a moderate debt-to-equity ratio, suggesting manageable leverage. The return on equity is solid, showing effective use of shareholder funds. The equity ratio indicates a balanced approach to financing with a healthy proportion of assets funded by equity.

Cash Flow

Operating cash flow remains robust, exceeding net income, which indicates strong cash generation capacity. Although free cash flow has declined slightly, it continues to cover net income adequately. The company's free cash flow growth rate and investment in capital expenditures show a commitment to sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.03B	46.57B	47.94B	51.20B	44.16B	38.13B
Gross Profit	9.55B	12.88B	12.65B	13.07B	11.67B	9.45B
EBITDA	5.03B	7.49B	7.05B	6.74B	5.86B	3.38B
Net Income	2.00B	2.84B	2.67B	3.00B	2.52B	456.00M
Balance Sheet
Total Assets	60.31B	61.72B	57.30B	55.38B	51.58B	48.63B
Cash, Cash Equivalents and Short-Term Investments	5.99B	8.46B	8.60B	6.13B	6.94B	8.44B
Total Debt	18.78B	17.84B	15.55B	14.37B	14.13B	15.51B
Total Liabilities	36.18B	36.07B	33.54B	32.22B	30.46B	30.42B
Stockholders Equity	23.57B	25.14B	23.27B	22.71B	20.71B	17.89B
Cash Flow
Free Cash Flow	3.08B	3.49B	4.06B	3.82B	3.00B	3.48B
Operating Cash Flow	4.79B	5.57B	6.04B	5.71B	4.44B	4.71B
Investing Cash Flow	-6.52B	-5.27B	-3.23B	-4.79B	-2.18B	175.00M
Financing Cash Flow	-1.06B	-402.00M	-209.00M	-1.90B	-3.81B	-1.28B

Compagnie de Saint Gobain Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SGO, the sentiment is Negative. The current price of 80.86 is below the 20-day moving average (MA) of 86.84, below the 50-day MA of 89.92, and below the 200-day MA of 93.87, indicating a bearish trend. The MACD of -2.80 indicates Positive momentum. The RSI at 30.01 is Neutral, neither overbought nor oversold. The STOCH value of 8.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:SGO.

Compagnie de Saint Gobain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCT	78 Outperform	€3.05B	11.33	9.78%	3.08%	-3.29%	0.92%
FGR	76 Outperform	€10.45B	10.47	14.39%	4.33%	7.71%	-2.82%
SGO	65 Neutral	€40.34B	14.40	11.84%	2.72%	1.09%	-0.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
LR	63 Neutral	€38.61B	31.80	17.50%	1.68%	12.62%	17.18%
TKTT	61 Neutral	€1.10B	-13.60	-9.67%	―	1.00%	-327.58%

Compagnie de Saint Gobain Corporate Events

Saint-Gobain Reports Q3 Sales Growth, Eyes Future Expansion

Compagnie de Saint-Gobain reported a 1.3% increase in third-quarter 2025 sales in local currencies, driven by growth in construction chemicals and a gradual recovery in Europe. The company is executing its ‘Lead & Grow’ plan to accelerate profitable growth from 2026 to 2030 and expects an operating margin of over 11.0% for 2025. Despite a contraction in North America, the company saw positive momentum in Asia-Pacific and Latin America, with significant contributions from recent acquisitions. The outlook remains positive with expected growth in Europe and Asia-Pacific, while maintaining activity levels in Latin America.

Saint-Gobain Unveils ‘Lead & Grow’ Strategic Plan for Accelerated Growth

Saint-Gobain has launched its new strategic plan, ‘Lead & Grow,’ aiming to accelerate profitable growth by leveraging its leadership in light and sustainable construction. The plan focuses on outperformance through innovative solutions, significant growth investments, and enhanced shareholder returns, with targets set for increased sales, EBITDA margin, and free cash flow conversion. The company plans to expand its presence in high-growth markets like North America and Asia-Pacific, while also enhancing its offerings in non-residential and infrastructure sectors. Saint-Gobain’s strategic initiatives are expected to drive value creation for shareholders and customers, while maintaining a strong focus on sustainability and innovation.

Saint-Gobain to Sell Brazilian Retail Chain Tumelero to GG10 Group

Saint-Gobain has entered into a definitive agreement to sell its Brazilian retail chain, Tumelero, to the GG10 Group, which owns the G-Haus brand. Tumelero, with 16 stores and a logistic center in Rio Grande do Sul, generated €40 million in revenue in 2024 and employs around 580 people. This sale aligns with Saint-Gobain’s strategy to refine its business portfolio as part of its global strategic plan. The transaction, pending antitrust approval, is expected to conclude by the end of 2025.

Saint-Gobain Enters Exclusive Talks to Sell SFIC Belgium

Saint-Gobain has entered exclusive negotiations with Ponsardin Industries to sell SFIC Belgium, a construction materials distribution business specializing in plasterboard, insulation, and ceilings. This move, part of Saint-Gobain’s portfolio optimization strategy, involves SFIC’s 10-branch network in Belgium, with expected 2025 sales of €75 million. The transaction is anticipated to conclude by the end of 2025, pending employee consultations, and reflects Saint-Gobain’s strategic focus on optimizing its business portfolio.

Saint-Gobain Launches North America’s First Zero-Carbon Plasterboard Plant

Saint-Gobain has inaugurated its first fully electrified and zero-carbon plasterboard plant in North America, located in Sainte-Catherine, Canada, powered entirely by hydroelectricity. This plant, the largest of its kind globally, increases production capacity by 40% while reducing energy consumption by 30% and CO₂ emissions by 44,000 tons annually. This initiative not only strengthens Saint-Gobain’s leadership in light construction in Canada but also aligns with its commitment to net zero carbon emissions by 2050, enhancing its growth and market position.

Saint-Gobain Reorganizes German Construction Chemicals Operations

Saint-Gobain is reorganizing its construction chemicals operations in Germany to enhance growth and synergy by transferring its Weber GmbH dry mortars to the joint venture Franken Maxit Mauermörtel GmbH & Co. KG, aiming for national leadership in dry mortar manufacturing. This move, aligned with the ‘Grow & Impact’ strategic plan, will consolidate Saint-Gobain’s construction chemicals businesses under a unified organization, focusing on technical applications and specialty products, thereby strengthening its market position and better serving customer demand amid Germany’s upcoming stimulus plan.

Saint-Gobain’s CSR Monetizes Major Australian Property Asset

CSR, a subsidiary of Saint-Gobain, has agreed to sell its Badgerys Creek property in Australia for A$575 million, with the transaction expected to close by December 19, 2025. This sale is part of CSR’s strategy to monetize property assets, totaling A$900 million since Saint-Gobain’s acquisition of CSR in July 2024, enhancing the company’s financial flexibility and focus on core operations.