CGG SA (CGG.PA) Stock Fundamental Analysis
EPA:CGG - Euronext Paris - Matif - FR0013181864 - Common Stock - Currency: EUR
Taking everything into account, CGG scores 4 out of 10 in our fundamental rating. CGG was compared to 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year CGG was profitable.
CGG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CGG reported negative net income in multiple years.
CGG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.87%, CGG is doing worse than 68.42% of the companies in the same industry.
The Return On Equity of CGG (2.49%) is worse than 65.79% of its industry peers.
The Return On Invested Capital of CGG (3.08%) is worse than 71.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CGG is significantly below the industry average of 9.82%.
The 3 year average ROIC (2.91%) for CGG is below the current ROIC(3.08%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
CGG's Profit Margin of 2.22% is on the low side compared to the rest of the industry. CGG is outperformed by 65.79% of its industry peers.
CGG's Operating Margin of 11.61% is in line compared to the rest of the industry. CGG outperforms 47.37% of its industry peers.
CGG's Operating Margin has improved in the last couple of years.
CGG has a Gross Margin of 23.93%. This is in the better half of the industry: CGG outperforms 63.16% of its industry peers.
In the last couple of years the Gross Margin of CGG has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CGG is destroying value.
Compared to 1 year ago, CGG has about the same amount of shares outstanding.
Compared to 5 years ago, CGG has more shares outstanding
CGG has a worse debt/assets ratio than last year.
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.
The Debt to FCF ratio of CGG is 6.75, which is on the high side as it means it would take CGG, 6.75 years of fcf income to pay off 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.
With a Debt to Equity ratio value of 1.20, CGG is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 6.75 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.52
WACC5.92%
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.
CGG has a Quick ratio (1.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for CGG have decreased strongly by -64.26% in the last year.
Looking at the last year, CGG shows a very strong growth in Revenue. The Revenue has grown by 23.26%.
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
The Earnings Per Share is expected to grow by 56.64% on average over the next years. This is a very strong growth
CGG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.31% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.95, which means the current valuation is very expensive for CGG.
Compared to the rest of the industry, the Price/Earnings ratio of CGG indicates a slightly more expensive valuation: CGG is more expensive than 68.42% of the companies listed in the same industry.
CGG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.18.
With a Price/Forward Earnings ratio of 4.26, the valuation of CGG can be described as very cheap.
CGG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CGG is cheaper than 94.74% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.81. CGG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.95 | ||
| Fwd PE | 4.26 |
4.2 Price Multiples
CGG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CGG is cheaper than 84.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CGG is valued cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.14 | ||
| EV/EBITDA | 3.38 |
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%
5. Dividend
5.1 Amount
No dividends for CGG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%