TGS ASA (TGS.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:TGS - NO0003078800 - Common Stock
98.75 NOK
+0.75 (+0.77%)
TGS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 36 industry peers in the Energy Equipment & Services industry. TGS has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, TGS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year TGS was profitable.
- In the past year TGS had a positive cash flow from operations.
- In multiple years TGS reported negative net income over the last 5 years.
- In the past 5 years TGS always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of TGS (1.29%) is worse than 77.78% of its industry peers.
- TGS has a worse Return On Equity (2.48%) than 75.00% of its industry peers.
- The Return On Invested Capital of TGS (6.91%) 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 10.31%.
- The 3 year average ROIC (5.85%) for TGS is below the current ROIC(6.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 2.48% | ||
| ROIC | 6.91% |
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
- With a Profit Margin value of 2.84%, TGS is not doing good in the industry: 69.44% of the companies in the same industry are doing better.
- TGS's Profit Margin has declined in the last couple of years.
- TGS has a Operating Margin (14.42%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of TGS has declined.
- TGS's Gross Margin of 78.59% is amongst the best of the industry. TGS outperforms 91.67% of its industry peers.
- TGS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.42% | ||
| PM (TTM) | 2.84% | ||
| GM | 78.59% |
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
- TGS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for TGS has been increased compared to 1 year ago.
- The number of shares outstanding for TGS has been increased compared to 5 years ago.
- The debt/assets ratio for TGS is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.41, we must say that TGS is in the distress zone and has some risk of bankruptcy.
- TGS has a Altman-Z score of 1.41. This is in the better half of the industry: TGS outperforms 61.11% of its industry peers.
- The Debt to FCF ratio of TGS is 2.37, which is a good value as it means it would take TGS, 2.37 years of fcf income to pay off all of its debts.
- TGS has a Debt to FCF ratio of 2.37. This is in the better half of the industry: TGS outperforms 75.00% of its industry peers.
- TGS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.37, TGS is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.82
WACC8.46%
2.3 Liquidity
- TGS has a Current Ratio of 0.68. This is a bad value and indicates that TGS is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of TGS (0.68) is worse than 91.67% of its industry peers.
- TGS has a Quick Ratio of 0.68. 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's Quick ratio of 0.68 is on the low side compared to the rest of the industry. TGS is outperformed by 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- The earnings per share for TGS have decreased strongly by -11.11% in the last year.
- Measured over the past years, TGS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.33% on average per year.
- The Revenue has grown by 71.64% in the past year. This is a very strong growth!
- 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)-11.11%
EPS 3YN/A
EPS 5Y-22.33%
EPS Q2Q%63.16%
Revenue 1Y (TTM)71.64%
Revenue growth 3Y36.47%
Revenue growth 5Y17.62%
Sales Q2Q%-5.92%
3.2 Future
- TGS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.31% yearly.
- Based on estimates for the next years, TGS will show a decrease in Revenue. The Revenue will decrease by -0.27% on average per year.
EPS Next Y-53.38%
EPS Next 2Y0.98%
EPS Next 3Y16.31%
EPS Next 5YN/A
Revenue Next Year-1.01%
Revenue Next 2Y-3.27%
Revenue Next 3Y0.5%
Revenue Next 5Y-0.27%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 42.02, TGS can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, TGS is valued a bit more expensive than 72.22% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, TGS is valued a bit more expensive.
- The Price/Forward Earnings ratio is 19.00, which indicates a rather expensive current valuation of TGS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TGS indicates a slightly more expensive valuation: TGS is more expensive than 66.67% of the companies listed in the same industry.
- TGS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.02 | ||
| Fwd PE | 19 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, TGS is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.42 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- A more expensive valuation may be justified as TGS's earnings are expected to grow with 16.31% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.98%
EPS Next 3Y16.31%
5. Dividend
5.1 Amount
- TGS has a Yearly Dividend Yield of 6.74%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.63, TGS pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, TGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.74% |
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
- 239.94% of the earnings are spent on dividend by TGS. This is not a sustainable payout ratio.
DP239.94%
EPS Next 2Y0.98%
EPS Next 3Y16.31%
TGS ASA / TGS.OL FAQ
What is the fundamental rating for TGS stock?
ChartMill assigns a fundamental rating of 3 / 10 to TGS.OL.
What is the valuation status of TGS ASA (TGS.OL) stock?
ChartMill assigns a valuation rating of 2 / 10 to TGS ASA (TGS.OL). This can be considered as Overvalued.
Can you provide the profitability details for TGS ASA?
TGS ASA (TGS.OL) has a profitability rating of 3 / 10.
What is the valuation of TGS ASA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TGS ASA (TGS.OL) is 42.02 and the Price/Book (PB) ratio is 0.99.
Can you provide the dividend sustainability for TGS stock?
The dividend rating of TGS ASA (TGS.OL) is 4 / 10 and the dividend payout ratio is 239.94%.