Fundamental and Technical Analysis of Saint-Gobain (SGO.PA) – February 2025
Saint-Gobain, a French multinational corporation, is a prominent player in the building products and equipment industry.
Headquartered in Courbevoie, France, the company was founded in 1665 and operates through five segments: High Performance Solutions, Northern Europe, Southern Europe & Middle East & Africa, Americas, and Asia-Pacific.
Saint-Gobain offers a wide range of products, including glazing solutions, plaster-based products, ceilings, insulation solutions, mortars, exterior products, pipes, and more.
Analysis of the Latest Quarterly and Annual Financial Results
Saint-Gobain reported its latest financial results for the fiscal year ending December 31, 2023. The company’s total revenue for the year was €46.45 billion, a 6% decrease from the previous year. The net income for the year was €2.88 billion, with a profit margin of 6.2%. The company’s earnings per share (EPS) for the year was €5.69, up 14.5% from the previous year.
Revenue, Profit, and Margin Trends
Over the past five years, Saint-Gobain has shown a mixed performance in revenue and profit. The company’s revenue has fluctuated, with a slight decrease in recent years. The profit margin, however, has been relatively stable, hovering around 6%. The gross margin has been around 27.2%, and the operating margin has been around 11.5%.
Beta (Monthly Over 5 Years)
The beta of Saint-Gobain (SGO.PA) over the past five years has been 1.361, indicating that the stock has been more volatile than the overall market. This volatility is a result of the company’s exposure to various economic cycles and market conditions.
Balance Sheet and Cash Flow: Key Points and Trends
Saint-Gobain’s balance sheet shows a total debt of €17.61 billion and a total cash of €8.17 billion. The company’s quick ratio is 0.944, and the current ratio is 1.411. The operating cash flow for the year was €5.86 billion, and the free cash flow was €3.48 billion.
Important Financial Ratios
The price-to-earnings (P/E) ratio for Saint-Gobain is 16.72, the price-to-book (P/B) ratio is 1.98, and the return on equity (ROE) is 12.41%. These ratios indicate that the stock is relatively expensive compared to its peers, but the company is generating strong returns on its equity.
Technical Analysis
Analysis of the Stock Price Movement for the Current and Previous Year
The stock price of Saint-Gobain (SGO.PA) has shown a range of movements over the past year. The average opening price was €79.46, the highest price was €98.66, and the lowest price was €65.77. The average closing price was €79.57. The volume of shares traded has been relatively stable, with an average of 974,722 shares per day.
Analysis of Common Technical Indicators
The Relative Strength Index (RSI) for Saint-Gobain (SGO.PA) has been fluctuating between 50 and 70, indicating that the stock is neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) has been positive, suggesting that the stock is in an uptrend. The 50-day moving average has been around €88.62, and the 200-day moving average has been around €82.38.
Evaluation of Current Trends and Potential Buy or Sell Signals
Based on the technical indicators, Saint-Gobain (SGO.PA) appears to be in an uptrend. The RSI and MACD suggest that the stock is in a strong position, and the moving averages indicate that the stock is above its long-term trend. However, it is important to note that technical indicators should be used in conjunction with fundamental analysis.
Medium and Long-Term Price Target Recommendations
Analysts have recommended a medium-term price target of €101.59 and a long-term price target of €147.00 for Saint-Gobain (SGO.PA). The average recommendation is a “Buy” rating, with a mean recommendation of 1.88.
Summary Table of Recommendations
| Investment Stance | Medium-Term Price Target | Long-Term Price Target | Trend Invalidation Level |
|---|---|---|---|
| Bullish | €101.59 | €147.00 | €90.00 |
Conclusion
In conclusion, Saint-Gobain (SGO.PA) is a well-established company in the building products and equipment sector with a strong financial performance. The technical analysis recommends that the stock is in an uptrend, but it is essential to consider the fundamental factors as well. Investors should carefully evaluate the company’s financial health and market position before making any investment decisions.
FAQ
What is the P/E ratio of Saint-Gobain (SGO.PA)?
The P/E ratio of Saint-Gobain (SGO.PA) is 16.72.
What is the ROE of Saint-Gobain (SGO.PA)?
The ROE of Saint-Gobain (SGO.PA) is 12.41%.
What is the beta of Saint-Gobain (SGO.PA)?
The beta of Saint-Gobain (SGO.PA) is 1.361.
What is the medium-term price target for Saint-Gobain (SGO.PA)?
The medium-term price target for Saint-Gobain (SGO.PA) is €101.59.
What is the long-term price target for Saint-Gobain (SGO.PA)?
The long-term price target for Saint-Gobain (SGO.PA) is €147.00.
What is the trend invalidation level for Saint-Gobain (SGO.PA)?
The trend invalidation level for Saint-Gobain (SGO.PA) is €90.00.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered as financial advice. Always conduct your own research and consult with a financial advisor before making any investment decisions.