TGS ASA (TGS.OL) Stock Fundamental Analysis
OSL:TGS - Euronext Oslo - NO0003078800 - Common Stock - Currency: NOK
Taking everything into account, TGS scores 5 out of 10 in our fundamental rating. TGS was compared to 35 industry peers in the Energy Equipment & Services industry. While TGS is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TGS.
1. Profitability
1.1 Basic Checks
TGS had positive earnings in the past year.
In the past year TGS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TGS reported negative net income in multiple years.
In the past 5 years TGS always reported a positive cash flow from operatings.
1.2 Ratios
TGS has a Return On Assets of 3.10%. This is comparable to the rest of the industry: TGS outperforms 44.12% of its industry peers.
TGS has a Return On Equity of 5.85%. This is in the lower half of the industry: TGS underperforms 61.76% of its industry peers.
The Return On Invested Capital of TGS (7.34%) is comparable to the rest of the industry.
TGS had an Average Return On Invested Capital over the past 3 years of 5.85%. This is below the industry average of 10.62%.
The 3 year average ROIC (5.85%) for TGS is below the current ROIC(7.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 5.85% | ||
| ROIC | 7.34% |
ROA(3y)2.74%
ROA(5y)-0.96%
ROE(3y)4.45%
ROE(5y)-1.33%
ROIC(3y)5.85%
ROIC(5y)N/A
1.3 Margins
TGS's Profit Margin of 7.23% is in line compared to the rest of the industry. TGS outperforms 47.06% of its industry peers.
TGS's Profit Margin has declined in the last couple of years.
TGS's Operating Margin of 16.14% is fine compared to the rest of the industry. TGS outperforms 67.65% of its industry peers.
In the last couple of years the Operating Margin of TGS has declined.
The Gross Margin of TGS (76.15%) is better than 94.12% of its industry peers.
In the last couple of years the Gross Margin of TGS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.14% | ||
| PM (TTM) | 7.23% | ||
| GM | 76.15% |
OM growth 3Y-27.75%
OM growth 5Y-12.35%
PM growth 3YN/A
PM growth 5Y-18.03%
GM growth 3Y-8.24%
GM growth 5Y-5.38%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TGS is destroying value.
Compared to 1 year ago, TGS has more shares outstanding
TGS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TGS is higher compared to a year ago.
2.2 Solvency
TGS has an Altman-Z score of 1.28. This is a bad value and indicates that TGS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TGS (1.28) is comparable to the rest of the industry.
TGS has a debt to FCF ratio of 2.76. This is a good value and a sign of high solvency as TGS would need 2.76 years to pay back of all of its debts.
TGS has a Debt to FCF ratio of 2.76. This is in the better half of the industry: TGS outperforms 73.53% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that TGS is not too dependend on debt financing.
TGS has a better Debt to Equity ratio (0.33) than 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.86
WACC8.52%
2.3 Liquidity
TGS has a Current Ratio of 0.65. This is a bad value and indicates that TGS is not financially healthy enough and could expect problems in meeting its short term obligations.
TGS has a Current ratio of 0.65. This is amonst the worse of the industry: TGS underperforms 88.24% of its industry peers.
A Quick Ratio of 0.65 indicates that TGS may have some problems paying its short term obligations.
TGS has a Quick ratio of 0.65. This is amonst the worse of the industry: TGS underperforms 85.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
TGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 337.50%, which is quite impressive.
TGS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.33% yearly.
TGS shows a strong growth in Revenue. In the last year, the Revenue has grown by 114.97%.
Measured over the past years, TGS shows a quite strong growth in Revenue. The Revenue has been growing by 17.62% on average per year.
EPS 1Y (TTM)337.5%
EPS 3YN/A
EPS 5Y-22.33%
EPS Q2Q%138.46%
Revenue 1Y (TTM)114.97%
Revenue growth 3Y36.47%
Revenue growth 5Y17.62%
Sales Q2Q%118.55%
3.2 Future
TGS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.91% yearly.
Based on estimates for the next years, TGS will show a small growth in Revenue. The Revenue will grow by 5.42% on average per year.
EPS Next Y118.09%
EPS Next 2Y51.82%
EPS Next 3Y30.91%
EPS Next 5YN/A
Revenue Next Year9.91%
Revenue Next 2Y5.95%
Revenue Next 3Y5.42%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.37 indicates a reasonable valuation of TGS.
TGS's Price/Earnings ratio is in line with the industry average.
TGS is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.64 indicates a rather cheap valuation of TGS.
Based on the Price/Forward Earnings ratio, TGS is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. TGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 6.64 |
4.2 Price Multiples
67.65% of the companies in the same industry are more expensive than TGS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.24 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TGS's earnings are expected to grow with 30.91% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y51.82%
EPS Next 3Y30.91%
5. Dividend
5.1 Amount
TGS has a Yearly Dividend Yield of 7.73%, which is a nice return.
Compared to an average industry Dividend Yield of 6.19, TGS pays a better dividend. On top of this TGS pays more dividend than 82.35% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, TGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.73% |
5.2 History
The dividend of TGS decreases each year by -11.71%.
Dividend Growth(5Y)-11.71%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TGS pays out 86.21% of its income as dividend. This is not a sustainable payout ratio.
DP86.21%
EPS Next 2Y51.82%
EPS Next 3Y30.91%
OSL:TGS (7/11/2025, 7:00:00 PM)
80.6
-1.65 (-2.01%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners59.49%
Inst Owner ChangeN/A
Ins Owners0.97%
Ins Owner ChangeN/A
Market Cap15.83B
Analysts70
Price Target113.73 (41.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.73% |
Yearly Dividend5.67
Dividend Growth(5Y)-11.71%
DP86.21%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-62.13%
Min EPS beat(2)-72.5%
Max EPS beat(2)-51.76%
EPS beat(4)1
Avg EPS beat(4)-23.85%
Min EPS beat(4)-72.5%
Max EPS beat(4)40.7%
EPS beat(8)1
Avg EPS beat(8)-173.2%
EPS beat(12)2
Avg EPS beat(12)-132.51%
EPS beat(16)3
Avg EPS beat(16)-195.85%
Revenue beat(2)2
Avg Revenue beat(2)10.68%
Min Revenue beat(2)3.57%
Max Revenue beat(2)17.79%
Revenue beat(4)3
Avg Revenue beat(4)5.93%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)17.79%
Revenue beat(8)3
Avg Revenue beat(8)-1.76%
Revenue beat(12)5
Avg Revenue beat(12)1.77%
Revenue beat(16)7
Avg Revenue beat(16)8.91%
PT rev (1m)-2.73%
PT rev (3m)-12.12%
EPS NQ rev (1m)-32.29%
EPS NQ rev (3m)-51.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.7%
Revenue NQ rev (1m)-5.98%
Revenue NQ rev (3m)-10.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 6.64 | ||
| P/S | 0.94 | ||
| P/FCF | 5.24 | ||
| P/OCF | 1.96 | ||
| P/B | 0.76 | ||
| P/tB | 7.97 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.09
EY8.8%
EPS(NY)12.14
Fwd EY15.06%
FCF(TTM)15.38
FCFY19.08%
OCF(TTM)41.05
OCFY50.93%
SpS85.7
BVpS105.95
TBVpS10.11
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 5.85% | ||
| ROCE | 9.53% | ||
| ROIC | 7.34% | ||
| ROICexc | 7.8% | ||
| ROICexgc | 26.18% | ||
| OM | 16.14% | ||
| PM (TTM) | 7.23% | ||
| GM | 76.15% | ||
| FCFM | 17.95% |
ROA(3y)2.74%
ROA(5y)-0.96%
ROE(3y)4.45%
ROE(5y)-1.33%
ROIC(3y)5.85%
ROIC(5y)N/A
ROICexc(3y)6.57%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.72%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-35.15%
ROICexc growth 5Y-15.78%
OM growth 3Y-27.75%
OM growth 5Y-12.35%
PM growth 3YN/A
PM growth 5Y-18.03%
GM growth 3Y-8.24%
GM growth 5Y-5.38%
F-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.76 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 29.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 248.11% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.28 |
F-Score6
WACC8.52%
ROIC/WACC0.86
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)39.85%
Cap/Sales(5y)52.79%
Profit Quality(3y)338.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)337.5%
EPS 3YN/A
EPS 5Y-22.33%
EPS Q2Q%138.46%
EPS Next Y118.09%
EPS Next 2Y51.82%
EPS Next 3Y30.91%
EPS Next 5YN/A
Revenue 1Y (TTM)114.97%
Revenue growth 3Y36.47%
Revenue growth 5Y17.62%
Sales Q2Q%118.55%
Revenue Next Year9.91%
Revenue Next 2Y5.95%
Revenue Next 3Y5.42%
Revenue Next 5YN/A
EBIT growth 1Y360.42%
EBIT growth 3Y-1.41%
EBIT growth 5Y3.1%
EBIT Next Year293.06%
EBIT Next 3Y62.84%
EBIT Next 5YN/A
FCF growth 1Y52%
FCF growth 3Y13.38%
FCF growth 5Y-1.21%
OCF growth 1Y87.11%
OCF growth 3Y25.56%
OCF growth 5Y2.32%