Societe Generale SA ADR SCGLY

Morningstar Rating

Company Report

Societe Generale's Low Profitability Justifies Discount Compared With Peers

Societe Generale, or SocGen, has not been able to generate a level of profitability ahead of its cost of capital since 2006, and we do not anticipate any changes that will position the bank to outearn its cost of capital on a consistent basis. Cost-cutting can potentially improve profitability, but there is also an inflexion point where further cost-cutting will result in damage to the franchise.

Price vs Fair Value

SCGLY is trading within a range we consider fairly valued.
Price
$5.15
Fair Value
$7.40
Uncertainty
Very High
1-Star Price
$26.70
5-Star Price
$8.50
Economic Moat
Jhxd
Capital Allocation
Bbp

Bulls Say, Bears Say

Bulls

SocGen has bolstered its capital materially.

Bears

Socgen has not outearned its cost of capital for the better part of a decade.

News

Trading Information

Previous Close Price
Day Range
52-Week Range
Bid/Ask
/
Market Cap
Volume/Avg
/

Key Statistics

Price/Earnings (Normalized)
5.57
Price/Sales
0.33
Dividend Yield (Trailing)
3.77%
Dividend Yield (Forward)
3.77%
Total Yield
12.86%

Company Profile

Founded in 1884, Societe Generale is one of France's major banks. It was historically viewed as primarily a corporate and investment bank, but it has meaningful retail banking operations in France, Eastern Europe, and North Africa.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Core
Total Number of Employees
126,000

Competitors

Valuation

Metric
SCGLY
ACA
BNP
Price/Earnings (Normalized)
5.576.497.46
Price/Book Value
0.280.600.65
Price/Sales
0.331.731.05
Price/Cash Flow
1.941.703.15
Price/Earnings
SCGLY
ACA
BNP

Financial Strength

Metric
SCGLY
ACA
BNP
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
SCGLY
ACA
BNP
Return on Assets (Normalized)
0.27%0.29%0.40%
Return on Equity (Normalized)
6.35%7.90%9.15%
Return on Invested Capital (Normalized)
Return on Assets
SCGLY
ACA
BNP

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