Engie S.A.
🇫🇷 ENGI.PA · Paris · FR0010208488
Utilities
EUR 28.97 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
19.2
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: 28.97 ÷ 1.51 = 19.2
TTM period through: 2025-12-31
Forward P/E (estimated): 14.8
Based on analyst estimates
Reference: Provider P/E (Trailing): 19.2
Yield (Fwd)
4.66%
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): 4.75%
Net Debt/EBITDA (TTM)
5.1x
Latest quarter: 10.9x
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): 10.9x
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)
89.4%
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): 118.3%
FCF Coverage (TTM): -2.09x
ROE
11.5%
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.
EV/EBITDA
7.7x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Engie is a major European utility navigating a capital-intensive strategic transition toward renewable energy while managing the financial fallout of legacy nuclear assets. While a temporary €4.4 billion one-time nuclear waste charge obscures strong core operational growth and presents an apparent value opportunity, the announced 17.2% dividend cut, negative free cash flow, and elevated 5.1x debt leverage make it unsuitable for conservative dividend strategies. Not recommended for new positions, as the structural transition risks heavily outweigh the attractive yield.
Sector Context
Engie is a major global utility company that generates, distributes, and supplies electricity and natural gas, while currently undergoing a massive structural transition toward renewable energy. While utilities typically offer stable, regulated cash flows, Engie's capital-intensive shift away from legacy nuclear assets towards low-carbon solutions introduces significant execution risk and higher debt requirements, which can strain dividend sustainability.
Temporary Opportunity Identified
A significant one-time charge of €4.4 billion related to Belgian nuclear waste management and US project overruns temporarily depressed trailing earnings and inflated trailing valuation multiples.
📊 Strategy Analysis
- • Underlying operational performance remains strong, with organic EBIT growth exceeding 50% in recent periods, driven by Renewables and Global Energy Management segments.
- • The trailing P/E of 19.19 is heavily distorted by a temporary €4.4 billion one-time charge for nuclear waste management, making the forward P/E of 14.79 a better reflection of ongoing value.
- • Operates in the essential utilities sector and currently offers a 4.75% trailing dividend yield, though sustainability is challenged.
⚠ What to Watch
- • An announced upcoming 17.2% dividend cut for 2026, alongside a history of strategic reductions (2017-2020), severely undermines income reliability for conservative dividend investors.
- • Free cash flow is heavily negative (-€2.37 billion), completely failing to cover current dividend obligations and forcing reliance on external financing.
- • Net Debt/EBITDA has expanded to 5.1x, significantly exceeding standard utility risk thresholds and increasing financial vulnerability during a capital-intensive transition.
📊 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.