TotalEnergies: A Weak Buy, But Patience Is Suggested

  • TotalEnergies SE trades at a discount to peers, boasts strong reserves replacement, and avoids costly mega-mergers, supporting its moderate buy rating. TTE's diversified oil, gas, and LNG portfolio, plus disciplined renewables investment, underpins its solid 5.6% dividend yield amid weak cash flow. Concerns remain about sustainability of buybacks and capital returns, given tight cash flow coverage and rising debt to fund shareholder payouts.