In this week’s StockPointer content analysis (see attachment), we take a look at Total (TOT), which we removed from our ADR model portfolio on November 3rd. 
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For the first time in the last 5 years, Total’s return on capital dipped below 10%, generating a negative performance spread (-0.3%) . TOT’s economic performance has been constantly decreasing since September 2011, and even though the stock currently trades at a P/IV ratio of 0.79, the downward trend does not bode well for the future. It is also important to note that the current P/IV valuation is one of the highest in the last 5 years.
Total currently trades at a premium to its Current Operating Value (COV), with an FGV/EV of 10%. TOT traded at a discount to its COV (negative FGV/EV) from March 2010 to December 2013.
With a decreasing TTM NOPAT since September 2011 and increasing capital charges, the EVA has dropped from $8.7B to $112M today. TOT is almost generating negative EVA on a trailing twelve month basis.
