Compagnie de Saint-Gobain S.A.
🇫🇷 SGO.PA · Paris · FR0000125007
Materials
EUR 70.52 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
12.1
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: 70.52 ÷ 5.83 = 12.1
TTM period through: 2025-12-31
Forward P/E (estimated): 11.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 12.2
Yield (Fwd)
3.26%
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): 3.19%
Net Debt/EBITDA (TTM)
1.8x
Latest quarter: 3.7x
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): 3.7x
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)
39.4%
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): 37.6%
Cash Flow Payout (TTM): 19.2%
FCF Coverage (TTM): 3.19x
ROE
11.7%
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
6.0x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Compagnie de Saint-Gobain is a global leader in sustainable construction materials with exceptional free cash flow generation and a highly defensive balance sheet. Trading at €70.52, the stock sits below our blended fair value estimate of €81-88, offering a 15-25% upside to fair value. Worth considering for new positions at current levels, as the cyclical headwinds in the European construction market and elevated energy prices present an attractive temporary discount for long-term investors.
Sector Context
Compagnie de Saint-Gobain designs, manufactures, and distributes high-performance materials and solutions for the construction, mobility, and industrial markets worldwide. While the building materials sector is inherently cyclical and highly sensitive to interest rates and energy input costs, Saint-Gobain's massive global scale and focus on sustainable, energy-efficient building solutions provide a durable competitive moat. For dividend investors, the company's robust free cash flow generation enables it to maintain and grow distributions even during economic downcycles.
Temporary Opportunity Identified
Cyclical slowdown in European construction demand, compounded by elevated interest rates and recent energy price volatility stemming from geopolitical tensions.
📊 Strategy Analysis
- • Trading at €70.52, below our blended fair value range of €81-88, offering a 15-25% upside as cyclical headwinds eventually subside.
- • Exceptional dividend safety with a low Cash Flow Payout Ratio of 19.2% and Free Cash Flow coverage of 3.19x, indicating strong fundamental support.
- • Highly defensive balance sheet with a Net Debt/EBITDA of 1.76x, providing ample resilience against higher-for-longer interest rates.
- • Proactive management successfully targeting operating margins above 15% by 2026, demonstrating pricing power despite volatile macroeconomic conditions.
⚠ What to Watch
- • Exposure to cyclical construction markets makes the business vulnerable to softening European demand and sustained elevated interest rates.
- • The 3.19% dividend yield sits near the strategy's minimum 3% threshold, meaning a larger portion of total returns must rely on dividend growth and capital appreciation.
- • Escalating geopolitical tensions in the Middle East and resulting energy price volatility could temporarily pressure input costs.
📊 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: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.