TGS ASA (TGS.OL) Stock Fundamental Analysis
OSL:TGS - Euronext Oslo - NO0003078800 - Common Stock - Currency: NOK
Overall TGS gets a fundamental rating of 4 out of 10. We evaluated TGS 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TGS had positive earnings in the past year.
TGS had a positive operating cash flow in the past year.
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 2.33%. This is in the lower half of the industry: TGS underperforms 71.43% of its industry peers.
With a Return On Equity value of 4.54%, TGS is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
TGS has a worse Return On Invested Capital (5.56%) than 71.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TGS is below the industry average of 10.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 4.54% | ||
| ROIC | 5.56% |
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
The Profit Margin of TGS (7.15%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TGS has declined.
Looking at the Operating Margin, with a value of 15.19%, TGS is in line with its industry, outperforming 51.43% of the companies in the same industry.
TGS's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 75.54%, TGS belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
In the last couple of years the Gross Margin of TGS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.19% | ||
| PM (TTM) | 7.15% | ||
| GM | 75.54% |
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.
TGS has more shares outstanding than it did 1 year ago.
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 an Altman-Z score of 1.02. This is a bad value and indicates that TGS is not financially healthy and even has some risk of bankruptcy.
TGS has a Altman-Z score (1.02) which is in line with its industry peers.
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.
A Debt/Equity ratio of 0.30 indicates that TGS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.30, TGS is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.72
WACC7.77%
2.3 Liquidity
A Current Ratio of 0.66 indicates that TGS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.66, TGS is doing worse than 85.71% of the companies in the same industry.
A Quick Ratio of 0.66 indicates that TGS may have some problems paying its short term obligations.
The Quick ratio of TGS (0.66) is worse 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 126.09%, 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 65.96%.
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)126.09%
EPS 3YN/A
EPS 5Y-22.33%
EPS Q2Q%416.67%
Revenue 1Y (TTM)65.96%
Revenue growth 3Y36.47%
Revenue growth 5Y17.62%
Sales Q2Q%159.1%
3.2 Future
Based on estimates for the next years, TGS will show a very strong growth in Earnings Per Share. The EPS will grow by 30.91% on average per year.
TGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.03% yearly.
EPS Next Y118.09%
EPS Next 2Y51.82%
EPS Next 3Y30.91%
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 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 14.16 indicates a correct valuation of TGS.
The rest of the industry has a similar Price/Earnings ratio as TGS.
When comparing the Price/Earnings ratio of TGS to the average of the S&P500 Index (28.79), we can say TGS is valued rather cheaply.
TGS is valuated cheaply with a Price/Forward Earnings ratio of 6.50.
80.00% of the companies in the same industry are more expensive than TGS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, TGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.16 | ||
| Fwd PE | 6.5 |
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 | 7.48 | ||
| 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 30.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y51.82%
EPS Next 3Y30.91%
5. Dividend
5.1 Amount
TGS has a Yearly Dividend Yield of 8.28%, which is a nice return.
The stock price of TGS dropped by -34.53% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TGS's Dividend Yield is a higher than the industry average which is at 7.66.
Compared to an average S&P500 Dividend Yield of 2.51, TGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.28% |
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 97.19% of its income as dividend. This is not a sustainable payout ratio.
DP97.19%
EPS Next 2Y51.82%
EPS Next 3Y30.91%
OSL:TGS (4/25/2025, 7:00:00 PM)
76.6
+0.6 (+0.79%)
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 Cap15.03B
Analysts72.31
Price Target121.76 (58.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.28% |
Yearly Dividend5.84
Dividend Growth(5Y)-11.71%
DP97.19%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.79%
Min EPS beat(2)-51.76%
Max EPS beat(2)-11.82%
EPS beat(4)1
Avg EPS beat(4)-260.56%
Min EPS beat(4)-1019.38%
Max EPS beat(4)40.7%
EPS beat(8)1
Avg EPS beat(8)-181.35%
EPS beat(12)3
Avg EPS beat(12)-110.32%
EPS beat(16)3
Avg EPS beat(16)-193.5%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)3.57%
Revenue beat(4)2
Avg Revenue beat(4)1.29%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)3.57%
Revenue beat(8)2
Avg Revenue beat(8)-6.55%
Revenue beat(12)5
Avg Revenue beat(12)3.25%
Revenue beat(16)7
Avg Revenue beat(16)11.5%
PT rev (1m)-0.98%
PT rev (3m)-5.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.83%
EPS NY rev (1m)-13.66%
EPS NY rev (3m)-22.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.16 | ||
| Fwd PE | 6.5 | ||
| P/S | 1.1 | ||
| P/FCF | 7.48 | ||
| P/OCF | 2.3 | ||
| P/B | 0.7 | ||
| P/tB | 9.2 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.41
EY7.06%
EPS(NY)11.79
Fwd EY15.39%
FCF(TTM)10.24
FCFY13.36%
OCF(TTM)33.31
OCFY43.48%
SpS69.83
BVpS109.94
TBVpS8.33
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 4.54% | ||
| ROCE | 7.22% | ||
| ROIC | 5.56% | ||
| ROICexc | 5.82% | ||
| ROICexgc | 21.06% | ||
| 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)5.85%
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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| 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 | 1.02 |
F-Score6
WACC7.77%
ROIC/WACC0.72
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)126.09%
EPS 3YN/A
EPS 5Y-22.33%
EPS Q2Q%416.67%
EPS Next Y118.09%
EPS Next 2Y51.82%
EPS Next 3Y30.91%
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-1.41%
EBIT growth 5Y3.1%
EBIT Next Year302.53%
EBIT Next 3Y62.54%
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%