Credit Agricole SA
🇫🇷 ACA.PA · Paris · FR0000045072
Bank
EUR 16.36 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
7.0
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 16.36 ÷ 2.34 = 7.0
TTM period through: 2025-12-31
Forward P/E (estimated): 8.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 7.5
Yield (Fwd)
6.90%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 6.82%
Net Debt/EBITDA (TTM)
30.1x
Latest quarter: 63.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 63.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
48.3%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 47.0%
Cash Flow Payout (TTM): 17.5%
FCF Coverage (TTM): 5.38x
ROE
6.9%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
Summary
Credit Agricole SA is a systemically important European commercial bank providing essential financial services with a robust long-term growth trajectory. Trading at €16.36, the stock is well below our fair value estimate of €22-26 (representing a 34-58% upside), presenting a compelling entry point for dividend investors seeking quality financial exposure. The heavily discounted P/E of 7.00 reflects temporary macroeconomic fears, allowing investors to lock in a highly secure 6.8% yield backed by record dividend payouts.
Sector Context
Credit Agricole is a leading French universal cooperative bank providing retail banking, corporate and investment banking, insurance, and wealth management services globally. In the banking sector, elevated Debt/Equity ratios (such as the current 7.47x) are standard practice as customer deposits are classified as liabilities; dividend investors should instead focus on earnings sustainability, cash flow coverage, and return on equity metrics.
Temporary Opportunity Identified
Cyclical margin pressure and broad geopolitical uncertainties have temporarily compressed valuation multiples and caused a short-term earnings dip, masking the bank's long-term growth and record dividend announcements.
📊 Strategy Analysis
- • Trading at €16.36, the stock sits well below our implied fair value range of €22-26, offering significant upside as the current P/E of 7.00 is heavily discounted compared to historical averages.
- • The 6.82% dividend yield is highly secure, supported by a conservative 50% payout ratio and exceptional free cash flow coverage of 5.38x.
- • Despite AI-flagged warnings of a 2025 dividend cut, recent corporate announcements confirm a record dividend payout of €1.13-€1.16, demonstrating robust capital return capabilities.
- • Long-term fundamentals remain solid, evidenced by a 10-year revenue CAGR of 14.1% and a massive 273% revenue expansion over the past decade.
⚠ What to Watch
- • Return on Equity (ROE) sits at 6.86%, which is below the ideal >10% target typically preferred for well-capitalized banking institutions.
- • The recent 8-quarter trajectory shows declining earnings, reflecting margin pressures stemming from the restrictive European Central Bank interest rate environment.
- • Ongoing geopolitical tensions and regional macroeconomic uncertainties continue to weigh heavily on European banking multiples.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.