Esso S.A.F. (ES.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Esso S.A.F. refines, distributes, and markets refined petroleum products in France and internationally.The company's refining products include gas, gasoline, fuels and combustibles, and bitumens; petrochemical products, such as steam cracking, intermediate products, polyethylene, polypropylene, Escorez, additives for petroleum products, and Vistalon.It also manufactures and sells base oils, finished lubricants, white oils, and paraffins.

In addition, the company operates a network of service stations under the Esso and Esso Express brands, as well as provides greases.It offers fuels under the Esso brand name and lubricants under the Mobil brand.The company markets its products through a network of authorized distributors, resellers, and directly to industrial accounts.

Esso S.A.F. was founded in 1902 and is headquartered in Nanterre, France.Esso S.A.F. is a subsidiary of ExxonMobil France Holding S.A.S.

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1.b. Last Insights on ES

Esso S.A.F.'s recent activity is marked by a significant special dividend announcement of €60.21 per share, scheduled for November 14, 2025, following shareholder approval. This move underscores the company's strategy of returning substantial capital to shareholders. The decision reflects Esso S.A.F.'s capital allocation priorities, focusing on shareholder returns. Additionally, the company's approach to distributing capital at a single point in time may indicate a shift in its investment narrative. This substantial payout warrants attention to Esso S.A.F.'s future financial strategies.

1.c. Company Highlights

Last Price	41.68
Change Percentage	0.00%
Open	41.6
Previous Close	41.68
Market Cap ( Millions)	536
Volume	17157
Year High	169.6
Year Low	39.7
M A 50	80.61
M A 200	114.21

FCF Yield	22.25%
Dividend Yield	271.62%
ROE	-5.05%
Debt / Equity	1.09%
Net Debt / EBIDTA	1923.29%
Price To Book	0.36
Price Earnings Ratio	-5.69
Price To FCF	4.49
Price To sales	0.04
EV / EBITDA	11.28

2. Transcript Summary

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3. NewsRoom

Can EssoF's (ENXTPA:ES) Special Dividend Reveal Its Latest Capital Allocation Priorities?

Nov -15

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LVMH: Share transactions disclosure

Sep -09

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The BANK of Greenland issued and early redemption of Senior Non-Preferred capital

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.59%)

6. Segments

Electric Distribution

Expected Growth: 4.8%

Growing demand for electricity, increasing adoption of renewable energy sources, and investments in grid modernization are driving the electric distribution market growth.

Eliminations

Expected Growth: 4.5%

Consolidation of financial statements drives growth, eliminating intercompany transactions and balances between ExxonMobil and Esso S.A.F. increases transparency and accuracy, fostering a positive outlook for the company's financial performance.

Natural Gas Distribution

Expected Growth: 4.5%

Increasing demand for clean energy, growing industrialization, and government initiatives to reduce carbon emissions drive the growth of natural gas distribution market.

Electric Transmission

Expected Growth: 4.8%

Growing demand for reliable energy supply, increasing adoption of renewable energy sources, and government initiatives to upgrade grid infrastructure drive the growth of electric transmission from Esso S.A.F.

Other

Expected Growth: 3.5%

Growing demand for aviation fuels, increasing marine trade, and diversification of miscellaneous businesses drive growth in Esso S.A.F.'s 'Other' segment.

Water Distribution

Expected Growth: 4.5%

Growing demand for clean water, increasing urbanization, and government initiatives to improve water infrastructure drive the growth of the water distribution market, ensuring a reliable and efficient supply of clean water to households and businesses.

7. Detailed Products

Fuel

Esso S.A.F. offers a range of fuel products, including gasoline, diesel, and liquefied petroleum gas (LPG), designed to meet the energy needs of vehicles and industries.

Lubricants

Esso S.A.F. provides a variety of lubricants, including motor oils, gear oils, and hydraulic oils, designed to protect and maintain engines, gears, and other machinery.

Chemicals

Esso S.A.F. manufactures and supplies a range of chemicals, including petrochemicals, solvents, and additives, used in various industries such as plastics, textiles, and construction.

Aviation Fuels

Esso S.A.F. offers a range of aviation fuels, including Jet-A and Jet-A1, designed for use in commercial and general aviation aircraft.

Marine Fuels

Esso S.A.F. provides a range of marine fuels, including bunker fuels, marine diesel, and marine gas oil, designed for use in ships and other marine vessels.

Bitumen

Esso S.A.F. manufactures and supplies bitumen, a petroleum-based product used in road construction, roofing, and waterproofing applications.

8. Esso S.A.F.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Esso S.A.F. faces moderate threat from substitutes, as customers have limited alternatives for fuel and lubricants. However, the increasing adoption of electric vehicles and alternative energy sources poses a potential threat to the company's market share.

Bargaining Power Of Customers

Esso S.A.F. has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and wide distribution network make it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Esso S.A.F. relies on a few large suppliers for its crude oil and raw materials. While the company has some bargaining power due to its large scale of operations, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The oil and gas industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to challenge Esso S.A.F.'s market position.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with several major players competing for market share. Esso S.A.F. faces intense rivalry from companies like ExxonMobil, Chevron, and BP, which can lead to pricing pressures and reduced profit margins.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	1.16%
Debt Cost	6.67%
Equity Weight	98.84%
Equity Cost	6.67%
WACC	6.67%
Leverage	1.17%

11. Quality Control: Esso S.A.F. passed 9 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Rubis

A-Score: 7.1/10

Value: 8.2

Growth: 5.6

Quality: 4.8

Yield: 9.4

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

Aker BP

A-Score: 6.9/10

Value: 6.0

Growth: 7.3

Quality: 5.5

Yield: 10.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

SBM Offshore

A-Score: 5.8/10

Value: 7.6

Growth: 5.3

Quality: 3.9

Yield: 3.1

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

DCC

A-Score: 5.3/10

Value: 6.1

Growth: 3.8

Quality: 3.3

Yield: 6.2

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

Esso

A-Score: 4.0/10

Value: 8.8

Growth: 5.2

Quality: 2.0

Yield: 5.6

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

Neste

A-Score: 3.5/10

Value: 4.8

Growth: 3.2

Quality: 1.2

Yield: 5.6

Momentum: 4.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-12.64%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.67%

Esso S.A.F. - FR0000120669

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ES

1.c. Company Highlights

Higher Growth

Strong Momentum

Cheaper

Revenues Miss

More Volatile

Weak Momentum

Stable Momentum

Medium Volatility

Fairly Valued

Lower Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.59%)

6. Segments

Electric Distribution

Expected Growth: 4.8%

Eliminations

Expected Growth: 4.5%

Natural Gas Distribution

Expected Growth: 4.5%

Electric Transmission

Expected Growth: 4.8%

Other

Expected Growth: 3.5%

Water Distribution

Expected Growth: 4.5%

7. Detailed Products

Fuel

Lubricants

Chemicals

Aviation Fuels

Marine Fuels

Bitumen

8. Esso S.A.F.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Esso S.A.F. passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.68$

Current Price

41.68$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA