| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 197.47 | 374 |
| Intrinsic value (DCF) | 33.86 | -19 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 13.47 | -68 |
Esso S.A.F. (ES.PA) is a leading player in the oil and gas refining and marketing sector, operating primarily in France and internationally. As a subsidiary of ExxonMobil France Holding S.A.S., the company refines, distributes, and markets a wide range of petroleum products, including gasoline, fuels, lubricants, and petrochemicals. Esso S.A.F. operates under the well-known Esso and Mobil brands, leveraging a robust network of service stations, authorized distributors, and direct industrial sales. Founded in 1902 and headquartered in Nanterre, France, the company has established itself as a key player in the European energy market. With a strong focus on refining efficiency and product diversification, Esso S.A.F. serves both retail and industrial customers, ensuring a steady demand for its high-quality fuels and lubricants. The company's strategic positioning within ExxonMobil's global network further enhances its competitive edge in the energy sector.
Esso S.A.F. presents a stable investment opportunity within the energy sector, supported by its strong brand recognition and integration into ExxonMobil's global operations. The company's diversified product portfolio and extensive distribution network provide resilience against market volatility. However, its relatively low beta (0.115) suggests limited sensitivity to broader market movements, which may appeal to conservative investors. Financial metrics indicate solid revenue (€17.94 billion) and net income (€106.5 million), though the modest EPS (€8.32) and dividend yield (€3 per share) may not attract high-growth investors. The company's strong operating cash flow (€649.1 million) and healthy cash position (€1.5 billion) underscore its financial stability. Risks include exposure to fluctuating oil prices and regulatory pressures in the refining sector. Overall, Esso S.A.F. is suited for investors seeking steady returns in the energy sector.
Esso S.A.F. benefits from its affiliation with ExxonMobil, one of the world's largest integrated oil companies, which provides access to advanced refining technologies and a global supply chain. This relationship enhances Esso's competitive positioning in the French and international markets. The company's strong brand equity, particularly with the Esso and Mobil labels, allows it to command premium pricing for its lubricants and fuels. However, the refining and marketing sector is highly competitive, with significant pressure from both integrated oil majors and independent refiners. Esso's focus on operational efficiency and product quality differentiates it from smaller competitors, but it faces stiff competition from larger European players like TotalEnergies and Shell. The company's relatively small scale compared to these giants may limit its ability to achieve similar economies of scale. Additionally, the shift toward renewable energy poses a long-term challenge, though Esso's petrochemical and lubricant segments provide some diversification. Overall, Esso's competitive advantage lies in its brand strength and ExxonMobil backing, but it must navigate a rapidly evolving energy landscape.