Total, the last stock
In this final part of our series, we’ll look at analyst ratings for Total (TOT), which is at the bottom of our list of top ten companies. The stocks at the bottom of the list have less than 50.0% “buy” ratings from analysts. The other stocks at the bottom are Petrobras (PBR) and ExxonMobil (XOM) with “buy” ratings of 47.0% and 33.0%, respectively. Now let’s look at analyst ratings for Total.
Total is a French integrated energy company with exploration and production; gas, renewables, and power; refining and chemicals; and marketing and services business segments. The company’s market cap (capitalization) of $133.0 billion puts it fourth on our list of ten companies in this series.
Analyst ratings for Total
The above analyst rating graph shows that only one of the six analysts covering TOT has rated it a “buy” in September 2017. Another five analysts (or 83.0%) have rated it a “hold.”
Total’s analyst ratings have weakened in September 2017 over September 2016. It had more “buy” ratings and fewer “hold” ratings in September 2016. In the same period, its mean target price has fallen 6.0% to $51 per share. Its mean price target implies a 5.0% fall from the current level. The negative implied return could also be because Total stock has risen 9.0% in the same period. The stock has risen 7.7% in 3Q17 to date. Shareholders have also received returns in the form of consistent dividends from the company. Total’s current dividend yield stands at 6.4%.
Total trades at a forward PE (price-to-earnings) multiple of 13.3x, which is below the average of 22.8x for our ten integrated stocks. Total also trades at 5.5x for its forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple, which is below the peer average of 6.3x. It has a total-debt-to-total-capital ratio of 33.0%, which is higher than peers ExxonMobil (XOM) and Chevron (CVX) at 18.0% and 23.0%, respectively.
With the rise in its earnings in the first half of 2017 and divestment proceeds flowing in, Total has seen an increase in its cash reserves. That has led to a fall in its net debt in the current year. The company has been growing organically as well as inorganically to create a robust portfolio.
If you want to know more about the top ten dividend-paying integrated energy stocks, please refer to Your Top 10 Integrated Energy Stocks by Dividend Yield.