WEBULL
WebtradeDownload

Is SES (ENXTPA:SESG) Undervalued As It Builds A New Luxembourg Satellite Facility?

Simply Wall St · 2d ago

SES (ENXTPA:SESG) has broken ground on a 16,000m² satellite manufacturing facility in Kockelscheuer, Luxembourg, signaling a new step in vertical integration, next generation networks and the group’s approach to capital allocation.

The new facility and recent board and dividend announcements arrive after a mixed run for SES, with the share price falling about 44% over the last 90 days and the 1-year total shareholder return declining around 27%. This points to fading momentum despite the latest 1-day share price gain of almost 3% and management’s ongoing focus on capital projects and cash returns.

Compare SES with a curated group of peers by scanning 198 high quality undervalued stocks that combine solid fundamentals with pricing that may not yet reflect their full potential.

The sharp slide in SES against fresh investment in meoSphere and Kockelscheuer raises a simple issue. Are you seeing a business under pressure or a valuation that has swung too far on sentiment?

Most Popular Narrative: 46.5% Undervalued

Against SES’s last close at €4.41, the most followed narrative points to a fair value of about €8.25, which implies a wide gap that hinges on how its capital spend and connectivity contracts translate into future cash generation.

The long-term shift toward software defined multi orbit constellations requires heavy upfront investment. Projects like O3b mPOWER and meoSphere, together with IRIS2 commitments, are front loading 2026 CapEx to around €700 million. This can constrain free cash flow and slow any improvement in earnings and leverage.

See why 5 investors see SES as 46% undervalued.

Result: Fair Value of €8.25 (UNDERVALUED)

Still, the SES story could shift quickly if OpEx synergies improve leverage faster than expected and long dated Media and Government contracts keep cash flows more resilient than feared.

Find out about the key risks to this SES narrative.

Next Steps

Sentiment around SES is split, which is exactly why checking the underlying data yourself matters, and doing it soon lets you react, not just watch. To weigh both sides, start with the 2 key rewards and 3 important warning signs.

Looking for more SES investment ideas?

If SES has you rethinking your watchlist, now is the time to broaden your options with a few focused stock ideas built from clear, data driven filters.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.