ENGIE

Analysis of Engie share price

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The energy sector was privatized a few years ago in France. As a result, several large companies have been listed on the stock market, such as GDF Suez, which recently became “Engie”. You can now buy Engie shares online. To do so, check out its live price here as well as an analysis of its prices and some additional information about the company.

Elements that can influence the price of this asset:

Analysis N°1

First of all, you'll need to follow the development of the positioning and therefore the activities of the Engie group outside the French market with buyouts of subsidiaries operations, the creation of production sites or other international partnerships and in the emerging markets of India or Africa.

Analysis N°2

Engie also focuses on developing its activities in green energies just like its competitors. You should therefore closely monitor the efforts made by the group in this area and its market acquisitions.

Analysis N°3

As you probably know, the Engie group is also facing increasing competition from alternative energy suppliers who are cutting market prices. You should therefore keep a close eye on the strategies put in place by the group to counter this competition with, for example, the implementation of new innovative services.

Analysis N°4

The price of natural gas, which still represents a large part of the Engie group's income, should also be closely monitored.

Analysis N°5

Finally, you'll have to follow Engie's communication regarding its long-term strategic growth plans.

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General presentation of Engie

Engie is a French company whose objective is to respond to current energy and environmental challenges. It offers solutions to individuals, municipalities and companies based on a diversified gas supply and an ecological electricity production park.

It's also an energy supplier in direct competition with one of the largest such as EDF.

The Engie group currently employs over 160,000 people worldwide and generated revenue of € 60.6 billion in 2018.

Analysis of Engie share price
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The major competitors of Engie

We now propose to find out which companies compete directly with the Engie group with its main competitors on the market in Europe and their activities:

EDF

In France, Engie's most important competitor is of course the EDF group, which specialises in electricity production and is partly owned by the state. It is currently the largest producer and supplier of electricity in France and Europe and the second largest in the world behind China Energy Investment in terms of installed capacity.

Enel

Next is the Italian company Enel, which used to be a state-owned company and is still the largest energy producer in Italy. The group has also diversified into other energies with water and gas and is one of the giants in electricity production in the world as well as the world leader in geothermal energy production.

E.ON

E.ON is a European company in this sector and was formerly a share company under German law. It was formed from the merger of Veba and Viag in 2000 and is based in Germany, in the city of Essen. E.ON shares are listed on the Frankfurt Stock Exchange and the company is included in the German DAX 30 stock market index.

RWE

RWE AG is a German energy conglomerate founded in 1898 and also based in Essen. It has several subsidiaries that enable it to distribute electricity, gas and water as well as environmental services to over 120 million customers. It is mainly active in Europe and North America. RWE is currently the second largest electricity producer in Germany.

Iberdrola

Finally, the Spanish group Iberdrola is also a giant in the production, distribution and sale of electricity and natural gas. It is based in the Basque Country and is one of the 10 largest electricity producers in the world. Iberdrola is also the leader in wind power generation. The Iberdrola group operates in ten countries on four continents and has over 30 million customers worldwide. It currently employs 30,000 people in several countries.


The major partners of Engie

The Engie group has also developed a number of strategic partnerships in recent years, particularly with regard to its international development and technological innovation. Here are the main alliances put in place.

Crédit Agricole

In 2013, it signed a strategic partnership with Crédit Agricole aimed at developing its onshore wind farm in the years to come.

Mitsui

Also in 2013, it a partnership with the Japanese company Mitsui, which takes a 20% stake in the construction of a giant dam in Jirau.

BNP Paribas 

In 2015, Engie joined forces with BNP Paribas to set up a pilot collaborative factoring program internationally.

General Electric

In 2016, Engie and General Electric also became partners and strengthened their cooperation in digital development, essentially to improve the performance of the production assets of the Engie group.

Schneider Electric 

In 2017, the Schneider Electric group became partners with Engie by equipping the group's wind and solar farms with its technological control and data management software.

Arvalis

In 2019, the Engie group also set up a strategic partnership with the company Arvalis in order to boost Intermediate Energy and develop knowledge of these intermediate cultures. This partnership is particularly aimed at promoting the development of the biome thane sector by improving knowledge concerning the production of biomass and promoting their dissemination.

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The factors in favour of a rise in the Engie share price:

In order to know how the Engie group is likely to evolve in the years to come, it is interesting to know its main strengths and weaknesses, which are as many advantages and disadvantages likely to change the interest of investors in this stock and therefore its stock price. Here are some elements that will undoubtedly help you in this task:

Let's start this comparative analysis by summarising the main strengths that the Engie group currently enjoys and which may therefore favour a rise in its share price on the stock market.

  • First of all, we can underline the interesting positioning of this company in the energy transition segment since the group is today the main producer of non-nuclear electricity in France as well as the leading provider of energy efficiency services. In addition, the Engie group is the second largest French provider of environmental services. In addition, the Engie group invests a significant amount of its cash in renewable energies each year and sets up partnerships in this sector.
  • The distribution of the group's activities is also a strong point for Engie. Indeed, the company's activity is divided into 5 different branches with, on the one hand, the energy segment for Europe which still represents the largest share of turnover, then the international energy segment, the energy services segment, the liquefied natural gas and natural gas segment as well as the infrastructure segment. This distribution allows the company to protect itself effectively against the risks associated with the collapse of one or more of the main segments.
  • The fact that the Engie group still has a strong position in Europe, the sector from which most of its revenues come, is an advantage over the competition and guarantees it a place among the leaders on a European and global scale.
  • One of the great qualities of the Engie group is its ability to reorganise itself according to the economic situation and the results of its different business lines. Thus, the company divides its activities into divisions or operational entities which are mainly based on geographical areas. Since the last major reorganisation, the group has been able to use these entities to offer several services to the same client without having to distribute these services through different subsidiaries.
  • Still on the subject of the strengths of the Engie group, we can also highlight the quality of the strategic plans implemented by the company, the objectives of which are most often achieved ahead of time or exceeded. These plans generally involve reorganisation, disposal or acquisition of activities, but also investments in research and development in order to make the group a leader in innovation.
  • Finally, the last strong point of the Engie group concerns its financial structure. It is indeed healthy with good ratings from the rating agencies. In addition, the group's investors and shareholders have clear visibility on the payment of the dividend for the current year and the year to come.
The factors in favour of a drop in the Engie share price:

Of course, as you can imagine, the Engie group does not only have its advantages and must also deal with certain weaknesses. We are now going to present the elements that are rather unfavourable to its growth and that can penalise its shares on the stock market.

  • First of all, because of its activities and structure, Engie is subject to significant fiscal pressure which can weigh more or less heavily on its profitability. The regulations and their evolution can also be a brake for this company.
  • Another weak point of the Engie group concerns the market conditions that the company has encountered in recent years, in particular the fall in oil and gas prices, which is not favourable to the sector in general. In addition, the group's share of nuclear energy production remains high despite the freezing of many projects around the world and current ecological and environmental issues.
  • If the financial solidity of the Engie group is no longer to be demonstrated, we can however regret a slight loss of profitability since 2020 because of the Covid-19 pandemic in particular, without counting a decline in this same profitability in certain specific foreign markets such as South America.
  • Finally, we can also talk about the increasingly strong competition in this sector of activity, notably because of the strategy of diversification of the activities of other companies in the energy sector such as the giant TotalEnergies, which is now turning to the production of green and renewable electricity and which may weigh on the group's market shares in the long term.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What are Engie's holdings in subsidiaries?

The Engie group has many subsidiaries which are 100% owned and also owns shares in other companies. Indeed, Engie has stakes in Compagnie Nationale du Rhône, in Gazocean, which is a company based in Marseille and which specializes in the maritime transport of liquefied gas by LNG carriers and up to 80%, in Suez which is a minority subsidiary of Engie and its largest shareholder, in Agenda Diagnostics, in CPCU, and in Climespace.

What is the Engie Group's current growth strategy?

From 2019 to 2021, Engie has had a refocusing strategy directed at green energy and services. The group has accelerated its positioning in renewable energies and services by trying to become the world leader in integrated zero carbon solutions. This requires a major investment plan and the creation of greater green energy production capacities over time.

Is the French State still a shareholder of the Engie group?

Currently, the French State is still a shareholder of the Engie group with 23.64% of the company's capital. For that matter, it's the largest shareholder of the company, ahead of employee shareholding which represents 4.03% of the capital, BlackRock which holds 4.97% of the shares, the CDC which holds 1.83% of the capital and the public including institutional investors, shareholder individuals and others who hold nearly 68.63% of this capital.

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