Stock of the Day

July 26, 2022

TotalEnergies (TTE)

$60.74
-$0.89 (-1.4%)
Market Cap: $145.51B

About TotalEnergies

TotalEnergies SE, a multi-energy company, produces and markets oil and biofuels, natural gas, green gases, renewables, and electricity in France, rest of Europe, North America, Africa, and internationally. It operates through five segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. The Exploration & Production segment is involved in the exploration and production of oil and natural gas. The Integrated LNG segment comprises the integrated gas chain, including upstream and midstream liquified natural gas (LNG) activities, as well as biogas, hydrogen, and gas trading activities. The Integrated Power segment includes generation, storage, electricity trading, and B2B-B2C distribution of gas and electricity. The Refining & Chemicals segment consists of refining, petrochemicals, and specialty chemicals. This segment also includes oil supply, trading, and marine shipping activities. The Marketing & Services segment supplies and markets petroleum products. The company was formerly known as TOTAL SE and changed its name to TotalEnergies SE in June 2021. TotalEnergies SE was founded in 1924 and is headquartered in Courbevoie, France.

TotalEnergies Bull Case

Here are some ways that investors could benefit from investing in TotalEnergies SE:

  • TotalEnergies SE has recently received multiple upgrades from analysts, including a "strong-buy" rating, indicating strong confidence in the company's future performance.
  • The stock is currently priced at $60.92, which is below its 12-month high of $74.97, suggesting potential for price appreciation.
  • The company reported earnings per share (EPS) of $1.90, exceeding analysts' expectations, which reflects strong operational performance and profitability.
  • TotalEnergies SE has a solid return on equity of 15.22%, indicating effective management and the ability to generate profits from shareholders' equity.
  • The dividend payout ratio is 36.04%, which suggests that the company is returning a significant portion of its earnings to shareholders while still retaining enough capital for growth.

TotalEnergies Bear Case

Investors should be bearish about investing in TotalEnergies SE for these reasons:

  • The stock has recently been downgraded by some analysts, which may indicate concerns about future performance or market conditions.
  • Piper Sandler has lowered its target price for TotalEnergies SE from $77.00 to $62.00, suggesting a more cautious outlook on the stock's potential growth.
  • The company has a debt-to-equity ratio of 0.36, which, while relatively low, indicates that it does carry some debt, potentially impacting financial flexibility.
  • TotalEnergies SE's stock has experienced a decline of 1.4% recently, which may raise concerns about short-term volatility and market sentiment.
  • Analysts predict an EPS of 8.02 for the current year, which may not meet investor expectations if the company fails to achieve this target.

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