TGS ASA (TGS.OL) Stock Fundamental Analysis
OSL:TGS - Euronext Oslo - NO0003078800 - Common Stock - Currency: NOK
Taking everything into account, TGS scores 3 out of 10 in our fundamental rating. TGS was compared to 35 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of TGS have multiple concerns. TGS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TGS was profitable.
TGS had a positive operating cash flow in the past year.
In multiple years TGS reported negative net income over the last 5 years.
Each year in the past 5 years TGS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.33%, TGS is doing worse than 68.57% of the companies in the same industry.
TGS's Return On Equity of 4.54% is on the low side compared to the rest of the industry. TGS is outperformed by 71.43% of its industry peers.
TGS has a worse Return On Invested Capital (5.39%) than 71.43% of its industry peers.
TGS had an Average Return On Invested Capital over the past 3 years of 5.78%. This is significantly below the industry average of 14.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 4.54% | ||
| ROIC | 5.39% |
ROA(3y)2.74%
ROA(5y)-0.96%
ROE(3y)4.45%
ROE(5y)-1.33%
ROIC(3y)5.78%
ROIC(5y)N/A
1.3 Margins
TGS has a Profit Margin of 7.15%. This is comparable to the rest of the industry: TGS outperforms 51.43% of its industry peers.
In the last couple of years the Profit Margin of TGS has declined.
TGS has a Operating Margin (15.19%) which is in line with its industry peers.
TGS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 75.54%, TGS belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
TGS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.19% | ||
| PM (TTM) | 7.15% | ||
| GM | 75.54% |
OM growth 3Y-27.91%
OM growth 5Y-12.47%
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TGS is destroying value.
Compared to 1 year ago, TGS has more shares outstanding
The number of shares outstanding for TGS has been increased compared to 5 years ago.
TGS has a worse debt/assets ratio than last year.
2.2 Solvency
TGS has a debt to FCF ratio of 4.25. This is a neutral value as TGS would need 4.25 years to pay back of all of its debts.
TGS has a better Debt to FCF ratio (4.25) than 65.71% of its industry peers.
TGS has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
TGS has a Debt to Equity ratio of 0.34. This is in the better half of the industry: TGS outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | N/A |
ROIC/WACC0.71
WACC7.59%
2.3 Liquidity
A Current Ratio of 0.66 indicates that TGS may have some problems paying its short term obligations.
TGS has a Current ratio of 0.66. This is amonst the worse of the industry: TGS underperforms 85.71% of its industry peers.
A Quick Ratio of 0.66 indicates that TGS may have some problems paying its short term obligations.
TGS has a worse Quick ratio (0.66) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
TGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 208.54%, which is quite impressive.
The earnings per share for TGS have been decreasing by -12.84% on average. This is quite bad
The Revenue has grown by 65.96% 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)208.54%
EPS 3YN/A
EPS 5Y-12.84%
EPS Q2Q%370.66%
Revenue 1Y (TTM)65.96%
Revenue growth 3Y36.47%
Revenue growth 5Y17.62%
Sales Q2Q%159.1%
3.2 Future
The Earnings Per Share is expected to decrease by -24.81% on average over the next years. This is quite bad
Based on estimates for the next years, TGS will show a small growth in Revenue. The Revenue will grow by 7.03% on average per year.
EPS Next Y53.58%
EPS Next 2Y36.07%
EPS Next 3Y-24.81%
EPS Next 5YN/A
Revenue Next Year13.26%
Revenue Next 2Y8.19%
Revenue Next 3Y7.03%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 17.51, the valuation of TGS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TGS is on the same level as its industry peers.
TGS is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.98, the valuation of TGS can be described as very cheap.
Based on the Price/Forward Earnings ratio, TGS is valued a bit cheaper than 71.43% of the companies in the same industry.
TGS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
TGS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.31 | ||
| 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.
A cheap valuation may be justified as TGS's earnings are expected to decrease with -24.81% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y36.07%
EPS Next 3Y-24.81%
5. Dividend
5.1 Amount
TGS has a Yearly Dividend Yield of 6.30%, which is a nice return.
TGS's Dividend Yield is rather good when compared to the industry average which is at 7.05. TGS pays more dividend than 82.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, TGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
5.2 History
The dividend of TGS decreases each year by -8.40%.
Dividend Growth(5Y)-8.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TGS pays out 116.83% of its income as dividend. This is not a sustainable payout ratio.
TGS's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP116.83%
EPS Next 2Y36.07%
EPS Next 3Y-24.81%
OSL:TGS (3/10/2025, 11:08:08 AM)
99.3
-0.5 (-0.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners62.13%
Inst Owner ChangeN/A
Ins Owners0.96%
Ins Owner ChangeN/A
Market Cap19.49B
Analysts72.31
Price Target130.69 (31.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.3% |
Yearly Dividend7.29
Dividend Growth(5Y)-8.4%
DP116.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.14%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)5.21%
Revenue beat(4)2
Avg Revenue beat(4)1.7%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)5.21%
Revenue beat(8)2
Avg Revenue beat(8)-6.35%
Revenue beat(12)5
Avg Revenue beat(12)3.39%
Revenue beat(16)7
Avg Revenue beat(16)11.6%
PT rev (1m)-1.44%
PT rev (3m)-3.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)17.02%
EPS NY rev (1m)-7.49%
EPS NY rev (3m)-10.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.51%
Revenue NY rev (1m)1.13%
Revenue NY rev (3m)-2.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 6.98 | ||
| P/S | 1.37 | ||
| P/FCF | 9.31 | ||
| P/OCF | 2.86 | ||
| P/B | 0.87 | ||
| P/tB | 11.41 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.67
EY5.71%
EPS(NY)14.23
Fwd EY14.33%
FCF(TTM)10.66
FCFY10.74%
OCF(TTM)34.69
OCFY34.94%
SpS72.74
BVpS114.54
TBVpS8.7
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 4.54% | ||
| ROCE | 7.22% | ||
| ROIC | 5.39% | ||
| ROICexc | 5.63% | ||
| ROICexgc | 18.79% | ||
| OM | 15.19% | ||
| PM (TTM) | 7.15% | ||
| GM | 75.54% | ||
| FCFM | 14.66% |
ROA(3y)2.74%
ROA(5y)-0.96%
ROE(3y)4.45%
ROE(5y)-1.33%
ROIC(3y)5.78%
ROIC(5y)N/A
ROICexc(3y)6.49%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.7%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-36%
ROICexc growth 5Y-16.44%
OM growth 3Y-27.91%
OM growth 5Y-12.47%
PM growth 3YN/A
PM growth 5Y-18.03%
GM growth 3Y-8.24%
GM growth 5Y-5.38%
F-Score6
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 33.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 205.1% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | N/A |
F-Score6
WACC7.59%
ROIC/WACC0.71
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)208.54%
EPS 3YN/A
EPS 5Y-12.84%
EPS Q2Q%370.66%
EPS Next Y53.58%
EPS Next 2Y36.07%
EPS Next 3Y-24.81%
EPS Next 5YN/A
Revenue 1Y (TTM)65.96%
Revenue growth 3Y36.47%
Revenue growth 5Y17.62%
Sales Q2Q%159.1%
Revenue Next Year13.26%
Revenue Next 2Y8.19%
Revenue Next 3Y7.03%
Revenue Next 5YN/A
EBIT growth 1Y228.76%
EBIT growth 3Y-1.63%
EBIT growth 5Y2.96%
EBIT Next Year338.19%
EBIT Next 3Y47.12%
EBIT Next 5YN/A
FCF growth 1Y31.94%
FCF growth 3Y13.38%
FCF growth 5Y-1.21%
OCF growth 1Y7.54%
OCF growth 3Y25.56%
OCF growth 5Y2.32%