SES S.A. (SESG.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

SES S.A. provides satellite and ground infrastructure solutions worldwide.The company offers data connectivity services through its MEO and GEO satellite communication systems for aviation, maritime, cruise, energy, government, and telco and MNO industries.It also provides video services, including direct to home broadcast, occasional use, IP delivery, cable distribution, channel management, over the top (OTT), satellite distribution, hybrid TV platform, online video platform, content aggregation, SES 360, audience measurement and ad insertion, subscriber management, content distribution, production, value added, and real time booking services for broadcasters, platform operators, and sports organizations.

The company was formerly known as SES Global S.A. and changed its name to SES S.A. in 2006.SES S.A. was founded in 1985 and is headquartered in Betzdorf, Luxembourg.

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1.b. Last Insights on SESG

SES S.A.'s recent performance was driven by the successful completion of the Intelsat acquisition, creating a global multi-orbit connectivity powerhouse with an expanded fleet of 120 satellites. The company reported solid H1 2025 results, with the acquisition expected to be highly value accretive. Additionally, SES received all required regulatory approvals, including from the US Federal Communications Commission. The appointment of Elisabeth (Lisa) Pataki as new CFO, effective June 16, 2025, also contributed to positive momentum. Furthermore, SES Space & Defense secured a $89.6 million Sustainment Tactical Network contract with the U.S. Army.

1.c. Company Highlights

Last Price	5.52
Change Percentage	0.27%
Open	5.56
Previous Close	5.5
Market Cap ( Millions)	2307
Volume	356499
Year High	7.08
Year Low	2.83
M A 50	6.03
M A 200	5.65

FCF Yield	40.62%
Dividend Yield	8.38%
ROE	-1.32%
Debt / Equity	206.31%
Net Debt / EBIDTA	123.34%
Price To Book	0.73
Price Earnings Ratio	-46.59
Price To FCF	2.46
Price To sales	1.15
EV / EBITDA	3.65

2. SES Intelsat Acquisition and Financial Highlights

SES reported a stable revenue performance in H1 2025, with Networks growing 10.3% and adjusted EBITDA margin at 53%. EPS came in line with estimates at '0.02'. The Intelsat acquisition, closed on July 17, 2025, is expected to drive future growth. The combined company's pro forma 2024 revenue was EUR 3.7 billion, with EBITDA of EUR 1.8 billion. As noted by the staff, "the acquisition will generate EUR 2.4 billion synergy value."

Publication Date: Sep -08

                                    📋 Highlights
                                    Free Cash Flow Target::
                                                EUR 1B before IRIS2, with satellite launches in 2027 (7 total: 4 GEO, 2 mPOWER) driving revenue growth post-2028.
Net Leverage::
                                                <3x within 12–18 months, including 50% hybrids; interest expense: EUR 350M annually in first full-year combined operations.
Merger Synergies::
                                                Leadership reductions and Level 2 team consolidations underway, with non-OpEx synergies progressing as planned.
C-band Auction::
                                                Expected 2026 FCC-led process, critical for U.S. spectrum reallocation; company focused on technical execution support.
Government Demand::
                                                GEO remains core for long-term defense applications; European defense budgets and hybrid MEO/LEO adoption drive growth.

                                

Financial Performance and Valuation

The company's P/E ratio stands at -48.45, indicating potential undervaluation or significant future growth expectations. Other valuation metrics include a P/B ratio of 0.76, P/S ratio of 1.2, EV/EBITDA of 3.74, and a dividend yield of 8.71%. The free cash flow yield is 39.17%, suggesting a strong potential for future cash generation.

Segment Performance and Outlook

Government demand surged, driven by U.S. DoD contracts and the GovSat-2 project. O3b mPOWER satellites 7–10 are operational, boosting capacity threefold by 2027. The combined company targets low-mid-single-digit revenue CAGR and mid-single-digit EBITDA CAGR through 2028, with CapEx averaging EUR 600–650 million annually.

Strategic Priorities and Future Guidance

SES is focused on sovereign connectivity expansion, MEO network scaling, and disciplined capital allocation. The company expects free cash flow to exceed EUR 1 billion by 2027–2028. With a strong pipeline of contracts and a robust backlog of EUR 4.2 billion, SES is well-positioned for long-term growth.

3. NewsRoom

SES Delivers Solid 9 Months and Q3 2025 Results

Nov -06

Source:

SES Appoints Joseph Cohen to Board of Directors

Sep -26

Source:

SES Confirms Interim Dividend of EUR 0.25

Sep -26

Source:

SES delivered unprecedented MEO satellite connectivity for French Navy’s Clemenceau 25 mission

Sep -17

Source:

SES and K2 Space to Accelerate Development of Next-Generation MEO Network

Sep -16

Source:

SES Partners with Cailabs to Test Next-Generation Laser Communication Technology

Sep -15

Source:

SES SCORE Surpasses 600,000 of Transmission Hours, Delivering 900 Hours of Major Sports Content Daily

Sep -11

Source:

Telekom Srbija Expands and Extends Partnership with SES

Sep -11

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.01%)

6. Segments

SES Networks

Expected Growth: 1.2%

SES Networks' 1.2% growth driven by increasing demand for satellite-based connectivity in remote and underserved areas, expansion of government and defense contracts, and growing adoption of IoT and 5G networks, which rely on satellite backhaul. Additionally, SES Networks' investments in O3b mPOWER and other next-generation satellite systems position the company for future growth.

SES Video

Expected Growth: 0.8%

SES Video's 0.8 growth driven by increasing demand for satellite-based broadcasting, expansion into new markets, and growing adoption of 4K and 8K video technologies. Additionally, partnerships with major broadcasters and media companies, as well as investments in digital infrastructure, contribute to the segment's growth.

Other

Expected Growth: 0.5%

SES S.A.'s 0.5 growth driven by increasing demand for satellite-based services, expansion into new markets, and strategic partnerships. Growing need for secure and reliable connectivity in government, enterprise, and consumer segments also contributes to growth. Additionally, investments in next-generation satellite technologies and digital transformation initiatives support SES's growth momentum.

7. Detailed Products

SES-12

A geostationary communications satellite designed to provide high-powered Ku-band capacity to support the growth of video, enterprise, and mobility markets in the Asia-Pacific region.

SES-14

A high-powered satellite designed to provide telecommunications services to the Americas, including video, enterprise, mobility, and government markets.

O3b mPOWER

A next-generation satellite system designed to provide high-speed, low-latency connectivity to remote and underserved communities around the world.

SES Networks

A global network of satellite-enabled connectivity solutions designed to provide reliable, high-performance connectivity to remote and underserved areas.

SES Government Solutions

A range of satellite-based solutions designed to support the unique communications needs of government agencies and institutions.

SES Video

A range of video-centric solutions designed to support the distribution and delivery of high-quality video content to broadcasters, media companies, and other organizations.

8. SES S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

SES S.A. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the satellite industry.

Bargaining Power Of Customers

SES S.A. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and high-quality services further reduce the bargaining power of customers.

Bargaining Power Of Suppliers

SES S.A. relies on a limited number of suppliers for its satellite manufacturing and launch services. While the company has some bargaining power due to its large orders, the suppliers still have some negotiating power.

Threat Of New Entrants

The satellite industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to join the market, reducing the threat of new entrants.

Intensity Of Rivalry

The satellite industry is highly competitive, with several established players competing for market share. SES S.A. faces intense competition from companies like Intelsat, Eutelsat, and Telesat, which drives the need for continuous innovation and investment in new technologies.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	60.94%
Debt Cost	3.95%
Equity Weight	39.06%
Equity Cost	8.16%
WACC	5.59%
Leverage	156.05%

11. Quality Control: SES S.A. passed 6 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

A-Score: 7.0/10

Value: 7.6

Growth: 2.3

Quality: 7.2

Yield: 10.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

TF1

A-Score: 6.9/10

Value: 8.2

Growth: 3.6

Quality: 6.4

Yield: 9.4

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

Orange Polska

A-Score: 6.5/10

Value: 7.3

Growth: 4.1

Quality: 4.5

Yield: 8.1

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

SES

A-Score: 6.1/10

Value: 8.6

Growth: 2.1

Quality: 3.2

Yield: 10.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

RTL Group

A-Score: 5.8/10

Value: 6.0

Growth: 2.2

Quality: 5.5

Yield: 8.8

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

ITV

A-Score: 5.4/10

Value: 6.1

Growth: 3.3

Quality: 5.5

Yield: 8.1

Momentum: 5.0

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-10.03%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.59%

SES S.A. - LU0088087324

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SESG

1.c. Company Highlights

Higher Yield

Cheaper

Average Growth

Earnings Beats

Revenues Beats

Weak Momentum

Revenues Miss

More Volatile

Average Quality

Medium Volatility

Lower Growth

Stable Momentum

Strong Momentum

2. SES Intelsat Acquisition and Financial Highlights

Financial Performance and Valuation

Segment Performance and Outlook

Strategic Priorities and Future Guidance

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.01%)

6. Segments

SES Networks

Expected Growth: 1.2%

SES Video

Expected Growth: 0.8%

Other

Expected Growth: 0.5%

7. Detailed Products

SES-12

SES-14

O3b mPOWER

SES Networks

SES Government Solutions

SES Video

8. SES 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: SES S.A. passed 6 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

5.52$

Current Price

5.52$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA