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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

2. Saint-Gobain's Strong 2025 Performance and Ambitious 2026 Outlook

Saint-Gobain delivered a robust financial performance in 2025, achieving all financial targets set at the 2021 Capital Markets Day. The company's sales grew 2.1% in local currencies, with a notable outperformance in profit, EBITDA, and operating income. Recurring net income reached €3.3 billion, and the proposed dividend increased by 4.5% to €2.3 per share. The actual EPS came out at €3.06, beating estimates of €2.93. Free cash flow was €3.8 billion, with a 58% conversion ratio, demonstrating the company's ability to generate cash from its operations.

Publication Date: Mar -06

📋 Highlights
  • EBITDA Margin Target:: Aiming for >15% EBITDA margin in 2026 (equivalent to 11% EBIT margin), despite weaker H1 due to weather disruptions.
  • Shareholder Returns:: €1.5 billion total returns in 2025, with €8 billion expected from 2026–2030, including a 4.5% dividend increase to €2.30/share.
  • Construction Chemicals Growth:: €9 billion sales target by 2030 via acquisitions (Cemix, FOSROC) delivering 11% organic growth and 20% EBITDA margin.
  • Addressable Market Expansion:: Targeting €500 billion in sustainable construction markets by 2030, driven by nonresidential/infrastructure growth and energy efficiency.
  • Emerging Markets Performance:: 12.6% sales growth in Asia/emerging markets in 2025, outperforming Western regions in profitability and contributing to 40% portfolio rotation over 5 years.

Regional Performance

The company saw significant growth in Asia and emerging markets, up 12.6% in local currencies, driven by strategic acquisitions in construction chemicals, including Cemix and FOSROC. Europe improved in the second half, returning to growth, while North America delivered a broadly stable margin. The company's presence in Asia and emerging countries is a key growth driver, with a leadership position in India and a growing presence in Southeast Asia and China.

Guidance and Outlook

For 2026, Saint-Gobain expects an EBITDA margin of more than 15%, despite a weaker H1 due to extreme weather conditions in Europe and North America. The company assumes a positive price/cost spread, but Q1 volumes will be impacted by weather conditions, with a low to mid-single-digit decline. The H1 margin will be weaker than H2, but the company expects improvement in Q2 and H2. Analysts estimate next year's revenue growth at 4.1%, indicating a continued upward trajectory.

Valuation and Returns

With a P/E Ratio of 18.09 and a Dividend Yield of 2.9%, Saint-Gobain's valuation appears reasonable, considering its growth prospects and returns. The company's Free Cash Flow Yield is 8.69%, indicating a strong ability to generate cash for shareholders. The ROE is 8.6%, and the ROIC is 5.12%, demonstrating the company's ability to create value for shareholders. The Net Debt / EBITDA ratio is 0.53, indicating a healthy balance sheet.

Strategic Focus

Saint-Gobain's new strategic plan, Lead & Grow, aims to capture growth opportunities in sustainable construction, driven by megatrends such as population growth, urbanization, and energy efficiency renovation. The company targets €500 billion in addressable markets and plans to expand its solutions approach into nonresidential and infrastructure markets. The company will continue to make acquisitions and investments to reach €9 billion in sales by 2030 in construction chemicals.

Operational Highlights

The integration of FOSROC and Cemix in construction chemicals has been successful, with 11% organic sales growth and a 20% combined EBITDA margin. The company has a strong pipeline of potential acquisitions and is actively working on portfolio rotation, aiming to achieve a 20% target by 2030. Saint-Gobain's country-led operating model and quality of execution are key to its growth and value creation strategy.

3. NewsRoom

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Is Compagnie de Saint-Gobain (ENXTPA:SGO) Attractive After Recent Share Price Weakness?

Mar -08

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Assessing Saint-Gobain (ENXTPA:SGO) Valuation After A Sharp Short Term Share Price Pullback

Mar -08

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Saint-Gobain Video Series: Success in the Making: Emily Hoffman-Szucs

Mar -05

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Saint-Gobain reports stable 2025 sales as operating income rises

Feb -26

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Saint-Gobain shares down on softer 2026 margin outlook

Feb -26

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Saint-Gobain Video Series: Success in the Making: Andreas Faber

Feb -26

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Aircraft Transparencies Report 2026-2035: A $2.13 Billion Market by 2030 with PPG Industries, Nordam Group, GKN, Gentex, Saint-Gobain, Triumph, AIP Aerospace, Lee Aerospace, Llamas Plastics Leading

Feb -26

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S... for Soil Sealing, a Saint-Gobain Podcast

Feb -24

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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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 4.8/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.9$

Current Price

73.9$

Potential

-0.00%

Expected Cash-Flows