TGS ASA (TGS.OL) Stock Fundamental Analysis
OSL:TGS - Oslo Bors ASA - NO0003078800 - Common Stock - Currency: NOK
TGS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 35 industry peers in the Energy Equipment & Services industry. TGS may be in some trouble as it scores bad on both profitability and health. TGS is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years TGS had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.15%, TGS is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
TGS's Return On Equity of 2.28% is on the low side compared to the rest of the industry. TGS is outperformed by 70.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.22%, TGS is doing worse than 79.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TGS is significantly below the industry average of 12.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 2.28% | ||
| ROIC | 2.22% |
ROA(3y)0.41%
ROA(5y)-0.4%
ROE(3y)0.66%
ROE(5y)-0.78%
ROIC(3y)6.13%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 4.64%, TGS is in line with its industry, outperforming 50.00% of the companies in the same industry.
TGS's Profit Margin has declined in the last couple of years.
TGS has a Operating Margin of 11.67%. This is comparable to the rest of the industry: TGS outperforms 47.06% of its industry peers.
TGS's Operating Margin has declined in the last couple of years.
TGS has a Gross Margin of 79.47%. This is amongst the best in the industry. TGS outperforms 91.18% of its industry peers.
In the last couple of years the Gross Margin of TGS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.67% | ||
| PM (TTM) | 4.64% | ||
| GM | 79.47% |
OM growth 3YN/A
OM growth 5Y-28.46%
PM growth 3YN/A
PM growth 5Y-37.73%
GM growth 3Y-9.52%
GM growth 5Y-6.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TGS is destroying value.
TGS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TGS has more shares outstanding
Compared to 1 year ago, TGS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that TGS is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.02, TGS is doing good in the industry, outperforming 61.76% of the companies in the same industry.
TGS has a debt to FCF ratio of 5.13. This is a neutral value as TGS would need 5.13 years to pay back of all of its debts.
TGS has a Debt to FCF ratio of 5.13. This is comparable to the rest of the industry: TGS outperforms 50.00% 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.
TGS has a Debt to Equity ratio of 0.37. This is in the better half of the industry: TGS outperforms 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.13 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.28
WACC7.97%
2.3 Liquidity
A Current Ratio of 0.68 indicates that TGS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.68, TGS is doing worse than 91.18% of the companies in the same industry.
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 91.18% 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 -61.97% in the last year.
TGS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -34.79% yearly.
TGS shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.42%.
TGS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.28% yearly.
EPS 1Y (TTM)-61.97%
EPS 3YN/A
EPS 5Y-34.79%
EPS Q2Q%18.75%
Revenue 1Y (TTM)23.42%
Revenue growth 3Y30.18%
Revenue growth 5Y5.28%
Sales Q2Q%100.09%
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 12.13% yearly.
The Revenue is expected to decrease by -12.28% on average over the next years. This is quite bad
EPS Next Y264.92%
EPS Next 2Y148.46%
EPS Next 3Y97.22%
EPS Next 5Y12.13%
Revenue Next Year83.18%
Revenue Next 2Y41.15%
Revenue Next 3Y27.03%
Revenue Next 5Y-12.28%
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
Based on the Price/Earnings ratio of 36.37, the valuation of TGS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TGS indicates a slightly more expensive valuation: TGS is more expensive than 64.71% of the companies listed in the same industry.
TGS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.47.
TGS is valuated cheaply with a Price/Forward Earnings ratio of 6.91.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TGS indicates a somewhat cheap valuation: TGS is cheaper than 61.76% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. TGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.37 | ||
| Fwd PE | 6.91 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as TGS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.31 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TGS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TGS's earnings are expected to grow with 97.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y148.46%
EPS Next 3Y97.22%
5. Dividend
5.1 Amount
TGS has a Yearly Dividend Yield of 5.27%, which is a nice return.
Compared to an average industry Dividend Yield of 5.50, TGS pays a better dividend. On top of this TGS pays more dividend than 88.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, TGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
5.2 History
The dividend of TGS decreases each year by -7.01%.
Dividend Growth(5Y)-7.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
213.65% of the earnings are spent on dividend by TGS. This is not a sustainable payout ratio.
DP213.65%
EPS Next 2Y148.46%
EPS Next 3Y97.22%
TGS ASA
OSL:TGS (2/5/2025, 11:25:57 AM)
111.3
-0.5 (-0.45%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners59.44%
Inst Owner ChangeN/A
Ins Owners0.96%
Ins Owner ChangeN/A
Market Cap21.84B
Analysts72.31
Price Target132.6 (19.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
Yearly Dividend0.55
Dividend Growth(5Y)-7.01%
DP213.65%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.44%
Min EPS beat(2)-11.82%
Max EPS beat(2)40.7%
EPS beat(4)1
Avg EPS beat(4)-291.79%
Min EPS beat(4)-1019.38%
Max EPS beat(4)40.7%
EPS beat(8)2
Avg EPS beat(8)-174.22%
EPS beat(12)3
Avg EPS beat(12)-141.84%
EPS beat(16)3
Avg EPS beat(16)-394.54%
Revenue beat(2)1
Avg Revenue beat(2)1.18%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)3.29%
Revenue beat(4)1
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)3.29%
Revenue beat(8)1
Avg Revenue beat(8)-8.35%
Revenue beat(12)4
Avg Revenue beat(12)1.06%
Revenue beat(16)7
Avg Revenue beat(16)14.65%
PT rev (1m)-3.26%
PT rev (3m)-1.09%
EPS NQ rev (1m)-1.35%
EPS NQ rev (3m)-20.65%
EPS NY rev (1m)-8.51%
EPS NY rev (3m)-8.51%
Revenue NQ rev (1m)-3.84%
Revenue NQ rev (3m)-10.33%
Revenue NY rev (1m)2.45%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.37 | ||
| Fwd PE | 6.91 | ||
| P/S | 1.89 | ||
| P/FCF | 11.31 | ||
| P/OCF | 3.24 | ||
| P/B | 0.93 | ||
| P/tB | 15.64 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.06
EY2.75%
EPS(NY)16.1
Fwd EY14.47%
FCF(TTM)9.85
FCFY8.85%
OCF(TTM)34.38
OCFY30.89%
SpS58.76
BVpS119.64
TBVpS7.12
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 2.28% | ||
| ROCE | 4.1% | ||
| ROIC | 2.22% | ||
| ROICexc | 2.4% | ||
| ROICexgc | 8.44% | ||
| OM | 11.67% | ||
| PM (TTM) | 4.64% | ||
| GM | 79.47% | ||
| FCFM | 16.76% |
ROA(3y)0.41%
ROA(5y)-0.4%
ROE(3y)0.66%
ROE(5y)-0.78%
ROIC(3y)6.13%
ROIC(5y)N/A
ROICexc(3y)8.47%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.27%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5Y-31.38%
OM growth 3YN/A
OM growth 5Y-28.46%
PM growth 3YN/A
PM growth 5Y-37.73%
GM growth 3Y-9.52%
GM growth 5Y-6.18%
F-Score4
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 5.13 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 41.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 361.38% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.02 |
F-Score4
WACC7.97%
ROIC/WACC0.28
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)40.73%
Cap/Sales(5y)58.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-61.97%
EPS 3YN/A
EPS 5Y-34.79%
EPS Q2Q%18.75%
EPS Next Y264.92%
EPS Next 2Y148.46%
EPS Next 3Y97.22%
EPS Next 5Y12.13%
Revenue 1Y (TTM)23.42%
Revenue growth 3Y30.18%
Revenue growth 5Y5.28%
Sales Q2Q%100.09%
Revenue Next Year83.18%
Revenue Next 2Y41.15%
Revenue Next 3Y27.03%
Revenue Next 5Y-12.28%
EBIT growth 1Y-4.01%
EBIT growth 3YN/A
EBIT growth 5Y-24.69%
EBIT Next Year767.25%
EBIT Next 3Y121.11%
EBIT Next 5Y65.45%
FCF growth 1Y52.33%
FCF growth 3YN/A
FCF growth 5Y7.8%
OCF growth 1Y78.38%
OCF growth 3Y18.12%
OCF growth 5Y8.43%