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CGG SA (CGG.PA) Stock Fundamental Analysis

EPA:CGG - Euronext Paris - Matif - FR0013181864 - Common Stock - Currency: EUR

0.539  -0.02 (-3.68%)

Fundamental Rating

4

CGG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 industry peers in the Energy Equipment & Services industry. While CGG is still in line with the averages on profitability rating, there are concerns on its financial health. CGG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

CGG had positive earnings in the past year.
In the past year CGG had a positive cash flow from operations.
In multiple years CGG reported negative net income over the last 5 years.
In the past 5 years CGG always reported a positive cash flow from operatings.
CGG.PA Yearly Net Income VS EBIT VS OCF VS FCFCGG.PA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M -600M

1.2 Ratios

CGG has a worse Return On Assets (0.87%) than 68.42% of its industry peers.
CGG's Return On Equity of 2.49% is on the low side compared to the rest of the industry. CGG is outperformed by 65.79% of its industry peers.
The Return On Invested Capital of CGG (3.08%) is worse than 71.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CGG is significantly below the industry average of 10.50%.
The 3 year average ROIC (2.91%) for CGG is below the current ROIC(3.08%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.87%
ROE 2.49%
ROIC 3.08%
ROA(3y)-1.41%
ROA(5y)-3.8%
ROE(3y)-4.42%
ROE(5y)-11.41%
ROIC(3y)2.91%
ROIC(5y)2.84%
CGG.PA Yearly ROA, ROE, ROICCGG.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -20 -40 -60 -80 -100

1.3 Margins

CGG has a Profit Margin of 2.22%. This is in the lower half of the industry: CGG underperforms 65.79% of its industry peers.
Looking at the Operating Margin, with a value of 11.61%, CGG is in line with its industry, outperforming 47.37% of the companies in the same industry.
CGG's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 23.93%, CGG is doing good in the industry, outperforming 63.16% of the companies in the same industry.
In the last couple of years the Gross Margin of CGG has grown nicely.
Industry RankSector Rank
OM 11.61%
PM (TTM) 2.22%
GM 23.93%
OM growth 3Y36.06%
OM growth 5Y4.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.96%
GM growth 5Y1.69%
CGG.PA Yearly Profit, Operating, Gross MarginsCGG.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

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2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CGG is destroying value.
CGG has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for CGG has been increased compared to 5 years ago.
The debt/assets ratio for CGG is higher compared to a year ago.
CGG.PA Yearly Shares OutstandingCGG.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
CGG.PA Yearly Total Debt VS Total AssetsCGG.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

Based on the Altman-Z score of 1.32, we must say that CGG is in the distress zone and has some risk of bankruptcy.
CGG's Altman-Z score of 1.32 is in line compared to the rest of the industry. CGG outperforms 47.37% of its industry peers.
CGG has a debt to FCF ratio of 6.75. This is a slightly negative value and a sign of low solvency as CGG would need 6.75 years to pay back of all of its debts.
CGG has a Debt to FCF ratio (6.75) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that CGG has dependencies on debt financing.
CGG's Debt to Equity ratio of 1.20 is on the low side compared to the rest of the industry. CGG is outperformed by 68.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.2
Debt/FCF 6.75
Altman-Z 1.32
ROIC/WACC0.52
WACC5.92%
CGG.PA Yearly LT Debt VS Equity VS FCFCGG.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

CGG has a Current Ratio of 1.69. This is a normal value and indicates that CGG is financially healthy and should not expect problems in meeting its short term obligations.
CGG has a Current ratio (1.69) which is comparable to the rest of the industry.
CGG has a Quick Ratio of 1.33. This is a normal value and indicates that CGG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.33, CGG is in line with its industry, outperforming 52.63% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.69
Quick Ratio 1.33
CGG.PA Yearly Current Assets VS Current LiabilitesCGG.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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4

3. Growth

3.1 Past

CGG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.26%.
The Revenue has grown by 23.26% in the past year. This is a very strong growth!
CGG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.08% yearly.
EPS 1Y (TTM)-64.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%95%
Revenue 1Y (TTM)23.26%
Revenue growth 3Y6.66%
Revenue growth 5Y-2.08%
Sales Q2Q%39.51%

3.2 Future

Based on estimates for the next years, CGG will show a very strong growth in Earnings Per Share. The EPS will grow by 56.64% on average per year.
Based on estimates for the next years, CGG will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y37.18%
EPS Next 2Y65.92%
EPS Next 3Y56.64%
EPS Next 5YN/A
Revenue Next Year0.71%
Revenue Next 2Y4.87%
Revenue Next 3Y5.31%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CGG.PA Yearly Revenue VS EstimatesCGG.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
CGG.PA Yearly EPS VS EstimatesCGG.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 -5 -10 -15

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 26.95, which means the current valuation is very expensive for CGG.
68.42% of the companies in the same industry are cheaper than CGG, based on the Price/Earnings ratio.
CGG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.17.
With a Price/Forward Earnings ratio of 4.26, the valuation of CGG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CGG indicates a rather cheap valuation: CGG is cheaper than 94.74% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CGG to the average of the S&P500 Index (22.10), we can say CGG is valued rather cheaply.
Industry RankSector Rank
PE 26.95
Fwd PE 4.26
CGG.PA Price Earnings VS Forward Price EarningsCGG.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CGG is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
CGG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CGG is cheaper than 94.74% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.14
EV/EBITDA 3.38
CGG.PA Per share dataCGG.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 -0.5 1

4.3 Compensation for Growth

CGG's 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 CGG's earnings are expected to grow with 56.64% in the coming years.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y65.92%
EPS Next 3Y56.64%

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0

5. Dividend

5.1 Amount

No dividends for CGG!.
Industry RankSector Rank
Dividend Yield N/A

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CGG SA

EPA:CGG (5/20/2024, 7:00:00 PM)

0.539

-0.02 (-3.68%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)05-14 2024-05-14/amc
Earnings (Next)07-30 2024-07-30/amc
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap384.66M
Analysts69.09
Price Target0.74 (37.29%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-9.69%
PT rev (3m)-14.41%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-12.68%
EPS NY rev (3m)-15.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-5.16%
Valuation
Industry RankSector Rank
PE 26.95
Fwd PE 4.26
P/S 0.36
P/FCF 2.14
P/OCF 0.96
P/B 0.41
P/tB N/A
EV/EBITDA 3.38
EPS(TTM)0.02
EY3.71%
EPS(NY)0.13
Fwd EY23.45%
FCF(TTM)0.25
FCFY46.69%
OCF(TTM)0.56
OCFY103.68%
SpS1.48
BVpS1.32
TBVpS-0.85
PEG (NY)0.72
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.87%
ROE 2.49%
ROCE 5.64%
ROIC 3.08%
ROICexc 3.61%
ROICexgc 22.19%
OM 11.61%
PM (TTM) 2.22%
GM 23.93%
FCFM 17%
ROA(3y)-1.41%
ROA(5y)-3.8%
ROE(3y)-4.42%
ROE(5y)-11.41%
ROIC(3y)2.91%
ROIC(5y)2.84%
ROICexc(3y)3.36%
ROICexc(5y)3.39%
ROICexgc(3y)17.58%
ROICexgc(5y)17.82%
ROCE(3y)5.34%
ROCE(5y)5.22%
ROICexcg growth 3Y54.1%
ROICexcg growth 5Y4.94%
ROICexc growth 3Y50.21%
ROICexc growth 5Y6.87%
OM growth 3Y36.06%
OM growth 5Y4.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.96%
GM growth 5Y1.69%
F-Score5
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 1.2
Debt/FCF 6.75
Debt/EBITDA 3.01
Cap/Depr 86.1%
Cap/Sales 20.75%
Interest Coverage 250
Cash Conversion 105.72%
Profit Quality 764.31%
Current Ratio 1.69
Quick Ratio 1.33
Altman-Z 1.32
F-Score5
WACC5.92%
ROIC/WACC0.52
Cap/Depr(3y)79.38%
Cap/Depr(5y)72%
Cap/Sales(3y)23.64%
Cap/Sales(5y)24.87%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%95%
EPS Next Y37.18%
EPS Next 2Y65.92%
EPS Next 3Y56.64%
EPS Next 5YN/A
Revenue 1Y (TTM)23.26%
Revenue growth 3Y6.66%
Revenue growth 5Y-2.08%
Sales Q2Q%39.51%
Revenue Next Year0.71%
Revenue Next 2Y4.87%
Revenue Next 3Y5.31%
Revenue Next 5YN/A
EBIT growth 1Y-9.27%
EBIT growth 3Y45.12%
EBIT growth 5Y2.26%
EBIT Next Year149.22%
EBIT Next 3Y47.96%
EBIT Next 5YN/A
FCF growth 1Y86.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y30.44%
OCF growth 3Y26.18%
OCF growth 5Y9.39%