Societe Generale, or SocGen, has not been able to generate a level of profitability ahead of its cost of capital since 2006, and we do not anticipate any changes that will position the bank to outearn its cost of capital on a consistent basis. Cost-cutting can potentially improve profitability, but there is also an inflexion point where further cost-cutting will result in damage to the franchise.
SocGen has bolstered its capital materially.
Socgen has not outearned its cost of capital for the better part of a decade.
|
Metric
|
GLE
|
ACA
|
BNP
|
|---|---|---|---|
Price/Earnings (Normalized) | 6.54 | 7.08 | 10.19 |
Price/Book Value | 0.31 | 0.62 | 0.62 |
Price/Sales | 0.46 | 1.88 | 1.29 |
Price/Cash Flow | 1.30 | 1.79 | 3.96 |
|
Metric
|
GLE
|
ACA
|
BNP
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
GLE
|
ACA
|
BNP
|
|---|---|---|---|
Return on Assets (Normalized) | 0.30% | 0.24% | 0.32% |
Return on Equity (Normalized) | 6.88% | 6.45% | 7.33% |
Return on Invested Capital (Normalized) | — | — | — |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
BNPQY
| BNP Paribas ADR | Zdbncghy | Kftb | $81.9 Bil | |
ISNPY
| Intesa Sanpaolo ADR | Ygvgsjnsw | Djjv | $69.0 Bil | |
USB
| U.S. Bancorp | Zvgxgxmcd | Tvd | $63.4 Bil | |
PNC
| PNC Financial Services Group Inc | Sxrddyrr | Whtvnd | $61.0 Bil | |
ITUB
| Itau Unibanco Holding SA ADR | Zyyxwmn | Shnb | $56.1 Bil | |
TFC
| Truist Financial Corp | Xffbpdrlm | Glyhxb | $50.2 Bil | |
MFG
| Mizuho Financial Group Inc ADR | Nnnvjfxd | Cvqhn | $49.5 Bil | |
LYG
| Lloyds Banking Group PLC ADR | Ykcnmplc | Wqjdk | $41.2 Bil | |
NWG
| NatWest Group PLC ADR | Rnfg | Yvv | $33.2 Bil | |
DB
| Deutsche Bank AG | Rdpp | Hgl | $31.8 Bil |
