Societe Generale (SCGLY) AI Stock Analysis

Societe Generale

(Other OTC:SCGLY)

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Rating:59Neutral

Price Target:$14.50▲(4.84% Upside)

Action:reiterated

Date:10/29/26

The score balances a strong, upbeat earnings call (record profitability, cost discipline, strong capital and contained credit risk) and attractive valuation (low P/E) against weaker recent financial statement quality (negative operating/free cash flow and sharply higher leverage) and bearish technicals (price below key moving averages with negative MACD).

Positive Factors

Profitability and cost disciplineImproved returns alongside a sub-60% cost-to-income ratio indicate stronger operating efficiency and earnings capacity. If sustained, this combination can support reinvestment, absorb moderate revenue volatility, and reinforce profitability across the banking group over coming quarters.

Negative Factors

Higher leverage and weak cash conversionThe sharp leverage increase and negative recent cash flow point to weaker financial flexibility despite reported profits. Greater balance-sheet sensitivity to funding and credit conditions could constrain capital allocation and make earnings less durable through a downturn.

Societe Generale (SCGLY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $50.42B
Dividend Yield: 1.28%
Average Volume (3M): 514.38K
Price to Earnings (P/E): 8.0
Beta (1Y): 1.09
Revenue Growth: 16.42%
EPS Growth: 29.45%
Country: US
Employees: 110,000
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Societe Generale Business Overview & Revenue Model

Company Description

Société Générale S.A., a financial institution headquartered in Paris, France, provides a wide array of financial services to a varied client base. This includes individual customers, corporate entities, and large institutional investors, with its op...

How the Company Makes Money

Société Générale primarily earns revenue through a mix of net interest income, fees and commissions, and trading/investment-related income across its main business lines. (1) Net interest income: The bank takes deposits and other funding, then lends...

Societe Generale Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:0.20%|Next Earnings Date:Feb 03, 2027

Earnings Call SentimentPositive

The call was strongly positive. Management reported record quarterly and nine-month net income, profitability above targets, revenue growth exceeding guidance, lower operating expenses over nine months, strong capital and liquidity, contained credit risk, and broad-based momentum in French Retail and GBIS. The main challenges were declines in Mobility and Financial Services, Ayvens used-car sales normalization, lower fixed income and currencies revenue, muted French volumes, competitive margin pressure in Czech Republic and Romania, and a modestly higher expected cost of funding. Highlights significantly outweighed lowlights.

Positive Updates

Record Net Income and Strong Profitability

The group reported record net income for both Q3 2026 and the first nine months of 2026. Nine-month ROTE was 12.3%, up from 10.5% last year and significantly above the year-end target of around 11%. Q3 net income reached a record EUR 1.9 billion, with ROTE at 13% versus 10.7% in Q3 2025.

Negative Updates

Mobility and Financial Services Revenue Decline

Mobility and Financial Services revenue declined 4.3% at constant perimeter and exchange rates in Q3. Net income fell 8.6% to EUR 349 million, and RONE was 12.9%. The decline was driven by normalization of Ayvens used-car sales results.

Company Guidance

Management said the 2026 ROTE target was “around 11%,” the cost-to-income target was “below 60%,” and the cost of risk remained within the “25 to 30 basis points guidance range”; 2026 used car sales results at Ayvens were targeted between EUR 200 and EUR 600 for the full year, MIBS had a “55% target” for cost-to-income and “40 to 45 basis points through-the-cycle cost of risk,” and BoursoBank was on track to exceed its “’26 target of more than EUR 300 million,” with long-term guidance of “above 45% RONE”; management also said it intends to operate at “slightly above practically 13%” with a “strategic objective to be at 13%,” ordinary distribution split “something between, let's say, 40 and 60,” and that “we will exceed our 2026 targets” and “reach our 2029 goals.”

Societe Generale Financial Statement Overview

Summary

Underlying profitability has improved versus 2020 and margins strengthened recently, but the latest annual period shows a sharp revenue decline, a material leverage step-up (debt-to-equity rising to ~4.76x), and negative operating/free cash flow in 2024–2025. This combination signals weaker earnings quality and higher balance-sheet risk despite positive net income.

Income Statement

54Neutral

Balance Sheet

41Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.85B	86.16B	97.64B	87.14B	53.99B	46.12B
Gross Profit	49.86B	52.60B	52.51B	44.36B	36.10B	36.25B
EBITDA	19.63B	19.09B	16.82B	12.84B	9.58B	13.48B
Net Income	7.93B	5.77B	4.20B	2.49B	1.82B	5.64B
Balance Sheet
Total Assets	1.67T	1.55T	1.57T	1.55T	1.49T	1.46T
Cash, Cash Equivalents and Short-Term Investments	404.01B	369.17B	273.13B	287.60B	289.83B	179.97B
Total Debt	172.40B	287.17B	183.09B	181.13B	154.80B	151.28B
Total Liabilities	1.59T	1.47T	1.49T	1.48T	1.41T	1.39T
Stockholders Equity	71.64B	60.36B	70.26B	65.97B	66.97B	65.10B
Cash Flow
Free Cash Flow	-26.19B	-29.01B	-21.53B	25.56B	29.50B	13.83B
Operating Cash Flow	-21.40B	-19.65B	-10.10B	37.42B	39.09B	20.29B
Investing Cash Flow	7.10B	-28.44B	-13.74B	-12.07B	-9.01B	-10.12B
Financing Cash Flow	-2.31B	-8.56B	-1.27B	-3.90B	-214.00M	-3.63B

Societe Generale Technical Analysis

Technical Analysis SentimentNegative

Last Price13.83

Price Trends

50DMA15.63Negative

100DMA16.69Negative

200DMA16.34Negative

Market Momentum

MACD-0.58Negative

RSI34.98Neutral

STOCH52.87Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCGLY, the sentiment is Negative. The current price of 13.83 is below the 20-day moving average (MA) of 14.10, below the 50-day MA of 15.63, and below the 200-day MA of 16.34, indicating a bearish trend. The MACD of -0.58 indicates Negative momentum. The RSI at 34.98 is Neutral, neither overbought nor oversold. The STOCH value of 52.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCGLY.

Societe Generale Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

SCGLY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBN	82Outperform	$105.43B	16.95	15.93%	0.85%	0.06%	1.65%
PNC	78Outperform	$90.46B	12.12	12.61%	3.25%	7.11%	21.33%
LYG	70Outperform	$71.57B	9.56	13.09%	4.30%	1.06%	75.52%
NWG	70Outperform	$61.31B	7.83	15.79%	6.10%	6.17%	16.21%
TFC	68Neutral	$58.47B	12.41	8.14%	4.26%	-4.97%	4.01%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SCGLY	59Neutral	$49.02B	8.03	11.25%	1.28%	16.42%	29.45%

* Financial Sector Average

Performance Comparison

SCGLY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SCGLY	Societe Generale	13.62	1.22	9.81%
TFC	Truist Financial Corporation	48.79	6.39	15.06%
IBN	Icici Bank	29.45	-0.81	-2.69%
LYG	Lloyds Banking Group	5.00	0.43	9.39%
PNC	PNC Financial Services	227.86	50.95	28.80%
NWG	Natwest Group Plc	15.47	0.85	5.84%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

Societe Generale AI Stock Analysis