TotalEnergies SE Ordinary Shares (TTE)

FairStock Score: 54/100 — MIXED

Key Financials

Strengths

• Generates $14.2 billion in annual free cash flow (7.4% yield on market cap)
• Solid return on equity of 11.2% above cost of capital
• Attractive 4.1% dividend yield providing steady income returns
• Established organization with 94,847 employees providing operational scale

Concerns

• Revenue declining at 2.5% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

TotalEnergies SE Ordinary Shares is a large-cap energy company valued at $192.3 billion. The business generates $182.3 billion in annual revenue with a 1.6% net margin and $14.2 billion in free cash flow. From a quality standpoint, TotalEnergies shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is reasonably priced at 15.7x earnings, with trades above its Graham Number with a negative 8% margin. Growth dynamics show revenue growing at -2.5% and profit growth of -26.5%. The 4.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 55/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

TotalEnergies's dominant market position and scale advantages create a durable moat that supports premium valuation over time. With $14.2 billion in annual free cash flow (7.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Sluggish -3% growth in a large-cap company leaves the stock vulnerable to de-rating if the market rotates toward higher-growth opportunities.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer