TotalEnergies (TTE FP) France

Energy

New Constructs

PEBV ratio of 0.3 means the market expects NOPAT to permanently decline by 70%. This expectation seems overly pessimistic for a company that has grown NOPAT by 30% compounded annually since 2016. Even if the energy company’s NOPAT margin falls to its five-year average of 7% (vs. 12% TTM) and revenue falls 1% compounded annually for the next decade, the stock would be worth $75+/share today (30% upside). Should TTE grow profits more in line with historical levels, the stock has even more upside.

- 25 November, 2022

Global Funds: Investor positioning insights

Copley Fund Research

EM Unwind - Allocations among active Global managers have taken an aggressive move lower led by China & HK, South Korea and Brazil.

China & HK Style Switch - Value and Yield managers have aggressively reduced underweights, whilst Growth and Aggressive Growth managers have moved to new lows. AIA Group takes the crown as the most widely held stock and largest overweight.

Asia's Communication Services Fall - Ownership breaking new lows led by Tencent, Nintendo, NetEase and Nippon Telegraph.

Energy Conviction Underweight - TotalEnergies is the most widely held stock, but there is little conviction or consensus to suggest managers are concerned over long-term outperformance of Energy vs. sector peers.

- 18 February, 2022