Compagnie de Saint-Gobain S.A. (SGO.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Compagnie de Saint-Gobain S.A. designs, manufactures, and distributes materials and solutions for wellbeing worldwide.It operates through five segments: High Performance Solutions; Northern Europe; Southern Europe Middle East (ME) & Africa; Americas; and Asia-Pacific.The company offers glazing solutions for buildings and cars under the Saint-Gobain, GlassSolutions, Vetrotech, and SageGlass brands; plaster-based products for construction and renovation markets under the Placo, Rigips, and Gyproc brands; ceilings under the Ecophon, CertainTeed, Eurocoustic, Sonex, or Vinh Tuong brands; and insulation solutions for a range of applications, such as construction, engine compartments, vehicle interiors, household appliances, and photovoltaic panels under the Isover, CertainTeed, and Izocam brands.

It also offers mortars and building chemicals under the Weber brand; exterior products comprising asphalt and composite shingles, roll roofing systems, and accessories; and pipes under the PAM brand, as well as designs, imports, and distributes instant adhesives, sealants, and silicones.In addition, the company provides interior systems, interior and exterior insulation, cladding, floor coverings, façades and lightweight structures, waterproofing, roofing solutions, pre-assembly, and prefabrication solutions; high performance materials; glass for buildings; plasterboard; and interior glass products.Further, it distributes heavy building materials; plumbing, heating, and sanitary products; timbers and panels; civil engineering products; ceramic tiles; and site equipment and tools.

The company was founded in 1665 and is headquartered in Courbevoie, France.

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1.b. Last Insights on SGO

Compagnie de Saint-Gobain S.A. faces challenges despite a 3.4% year-over-year sales increase to €23.9 billion in the first half. The company's acquisition of Interstar Materials Inc. expands its construction chemicals presence in North America. However, rising investments in sustainable biopharma plastics and regulatory pressures may impact its operations. Saint-Gobain's focus on achieving net-zero carbon by 2050 and milestones by 2030 may also influence its short-term performance. Zacks ranks the company #1, citing distinct sector strengths amid global tariff turmoil.

1.c. Company Highlights

Last Price	86.74
Change Percentage	2.85%
Open	84.94
Previous Close	84.34
Market Cap ( Millions)	43007
Volume	1169207
Year High	106.65
Year Low	71.92
M A 50	86.61
M A 200	93.81

FCF Yield	7.17%
Dividend Yield	2.54%
ROE	8.21%
Debt / Equity	79.68%
Net Debt / EBIDTA	254.19%
Price To Book	1.84
Price Earnings Ratio	21.69
Price To FCF	13.94
Price To sales	1.23
EV / EBITDA	11.09

2. Transcript Summary

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3. NewsRoom

Saint-Gobain Video Series: Success in the Making: Hemanth Kumar Konduru

Dec -04

Source:

Saint-Gobain Canada Recognized as One of Greater Toronto's Top Employers 2026

Dec -02

Source:

Saint-Gobain (ENXTPA:SGO): Assessing Valuation Potential After Recent Share Price Fluctuations

Nov -24

Source:

U… for Urban Mining, a Saint-Gobain Podcast

Nov -20

Source:

Saint-Gobain Video Series: Success in the Making: Daniel Beltran

Nov -13

Source:

Saint-Gobain at COP30: Launching an Action-Oriented Framework To Accelerate Sustainable Construction

Nov -07

Source:

P...for Passive Building, a Saint-Gobain Podcast

Nov -06

Source:

Has Saint-Gobain’s Share Price Drop Created an Opportunity After Its Green Building News?

Nov -04

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.70%)

6. Segments

Southern Europe - Middle East & Africa

Expected Growth: 3.9%

The region is expected to experience moderate growth due to ongoing infrastructure projects and a recovering construction sector, slightly outperforming the global average. Emerging markets in Africa and the Middle East will contribute to this growth.

Northern Europe

Expected Growth: 3.4%

Northern Europe's mature markets and emphasis on sustainability will drive steady growth, slightly below the global average, as the region continues to invest in energy-efficient solutions.

High Performance Solutions

Expected Growth: 4.2%

The segment is poised for higher growth due to increasing demand for high-performance materials in various industries, driven by technological advancements and sustainability trends.

Americas

Expected Growth: 3.6%

The Americas segment will experience growth in line with the global average, driven by the US market's recovery and ongoing infrastructure projects, with a slight moderation due to economic uncertainties.

Asia-Pacific

Expected Growth: 4.5%

The Asia-Pacific region is expected to outperform the global average, driven by rapid urbanization, infrastructure projects, and a growing middle class, leading to increased demand for construction materials.

Other

Expected Growth: None%

None

7. Detailed Products

Glass Solutions

Saint-Gobain's glass solutions include a wide range of products such as flat glass, automotive glass, and glass containers. These products are designed to provide insulation, protection, and aesthetic appeal to various applications.

Ceramic Materials

Saint-Gobain's ceramic materials include refractory products, ceramic fibers, and high-performance ceramics. These materials are designed to withstand high temperatures and provide exceptional durability and resistance to corrosion.

Plastics and Performance Materials

Saint-Gobain's plastics and performance materials include a range of polymers, composites, and specialty materials. These materials are designed to provide exceptional performance, durability, and sustainability to various applications.

Mortars and Gypsum Solutions

Saint-Gobain's mortars and gypsum solutions include a range of products such as plasterboard, drywall, and mortars. These products are designed to provide fire resistance, insulation, and durability to building structures.

High-Performance Materials

Saint-Gobain's high-performance materials include advanced ceramics, composites, and specialty materials. These materials are designed to provide exceptional performance, durability, and sustainability to various applications.

8. Compagnie de Saint-Gobain S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Compagnie de Saint-Gobain S.A. operates in the construction materials and glass industries, where substitutes are available but not always ideal. For instance, in the construction materials segment, there are alternatives like wood, steel, and concrete, but they have different properties and applications. In glass manufacturing, substitutes like plastics or other materials are possible but often have different performance characteristics.

Bargaining Power Of Customers

The customers of Saint-Gobain, primarily builders, contractors, and manufacturers, have relatively low bargaining power. This is because Saint-Gobain's products are essential components in construction and manufacturing processes, and switching costs can be high. Additionally, the company's diversified product portfolio and strong brand reputation reduce customer bargaining power.

Bargaining Power Of Suppliers

Saint-Gobain's suppliers, mainly providers of raw materials like silica, soda ash, and limestone, have a moderate level of bargaining power. While there are multiple suppliers available, the company is a significant customer, and suppliers may have some pricing power due to the volatility of raw material costs. However, Saint-Gobain's size and negotiating capabilities mitigate this power to some extent.

Threat Of New Entrants

The threat of new entrants in Saint-Gobain's industries is relatively low. The construction materials and glass manufacturing sectors have high barriers to entry due to significant capital requirements, economies of scale, and established distribution networks. New entrants would need to invest heavily in research and development, manufacturing capacity, and marketing to compete effectively.

Intensity Of Rivalry

The competitive landscape in the construction materials and glass industries is highly competitive, with several major players operating globally. Companies like 3M, Owens-Illinois, and Asahi Glass Co., Ltd. compete with Saint-Gobain in various segments. The intensity of rivalry is high due to the similarity of products, the presence of multiple competitors, and the slow growth of some markets.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	41.51%
Debt Cost	7.01%
Equity Weight	58.49%
Equity Cost	10.32%
WACC	8.95%
Leverage	70.97%

11. Quality Control: Compagnie de Saint-Gobain S.A. passed 5 out of 9 key points

Strong Liquidity

Low Deb

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

BAE Systems

A-Score: 5.7/10

Value: 2.4

Growth: 6.9

Quality: 4.8

Yield: 4.4

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

Inwido

A-Score: 5.3/10

Value: 6.2

Growth: 4.7

Quality: 5.4

Yield: 6.9

Momentum: 4.0

Volatility: 4.7

1-Year Total Return ->

Saint-Gobain

A-Score: 5.2/10

Value: 4.8

Growth: 5.8

Quality: 4.3

Yield: 4.4

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

Johnson Controls

A-Score: 5.2/10

Value: 1.6

Growth: 4.9

Quality: 5.6

Yield: 3.8

Momentum: 8.5

Volatility: 7.0

1-Year Total Return ->

Trane Technologies

A-Score: 5.1/10

Value: 1.1

Growth: 7.3

Quality: 7.4

Yield: 2.5

Momentum: 5.5

Volatility: 7.0

1-Year Total Return ->

Geberit

A-Score: 4.9/10

Value: 0.9

Growth: 3.7

Quality: 7.2

Yield: 1.9

Momentum: 6.5

Volatility: 9.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.05%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.95%

Compagnie de Saint-Gobain S.A. - FR0000125007

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SGO

1.c. Company Highlights

Average Growth

Medium Volatility

Stable Momentum

Revenues Miss

Less Volatile

Strong Momentum

Average Yield

Fairly Valued

Average 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 (3.70%)

6. Segments

Southern Europe - Middle East & Africa

Expected Growth: 3.9%

Northern Europe

Expected Growth: 3.4%

High Performance Solutions

Expected Growth: 4.2%

Americas

Expected Growth: 3.6%

Asia-Pacific

Expected Growth: 4.5%

Other

Expected Growth: None%

7. Detailed Products

Glass Solutions

Ceramic Materials

Plastics and Performance Materials

Mortars and Gypsum Solutions

High-Performance Materials

8. Compagnie de Saint-Gobain S.A.'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: Compagnie de Saint-Gobain S.A. passed 5 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

86.74$

Current Price

86.74$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA