TotalEnergies SE (TTE)

[Timothy Smith]

TOT, like most of its competitors, is primarily an oil and gas play due to more than 80% of its earnings being driven by the Upstream segment, and given that it has a diversified geographic portfolio. However, TOT has placed itself in a market leading position in the development of renewable energy.

The company intends to increase production by 2.5% annually by following an ambitious exploration program. However, the stock is an ADR, and revenues and profitability are susceptible to exchange rate fluctuations.

The stock is trading at cheap forward P/E, P/B, and P/S multiples of 6.5 times, 1.3 times, and 0.5 times, respectively, when compared to its peers. And it offers the highest forward dividend yield of 6.34% among its integrated oil and gas peers. Therefore, we have a positive stance on the stock.