$1,000 in TotalEnergies Turned Into $2,400 Over Ten Years but Trailed the S&P 500

Core Viewpoint - TotalEnergies has experienced significant fluctuations over the past decade, transitioning from a traditional oil and gas supermajor to navigating a pandemic-induced downturn, a subsequent energy boom, and now facing a post-boom adjustment while shifting towards renewable energy [1][2]. Financial Performance - In 2022, TotalEnergies reported a revenue of $263 billion and a net income of $20.5 billion during the energy crisis caused by geopolitical tensions [3]. - By 2024, revenue is projected to decline by 25.7% to $196 billion, with earnings dropping to $15.8 billion, indicating a shift in underlying business momentum [3]. Investment Returns - A $1,000 investment made during the five-year period from the pandemic recovery turned into $2,200, with dividends contributing approximately half of that return [8]. - Over a ten-year period, TotalEnergies has underperformed compared to the S&P 500, with a total return of 11% versus the S&P 500's approximately 28% [10]. Dividend Sustainability - The company offers a 5.92% yield and a P/E ratio of 10.59, appealing to income-focused investors, supported by an EBITDA of $42.3 billion [11]. - The dividend payout ratio stands at 47%, with earnings of $7.76 per share in 2024, but the sustainability of this dividend is contingent on earnings stabilizing above $6 per share [12].