CGG SA (CGG.PA) Stock Fundamental Analysis
EPA:CGG - Euronext Paris - Matif - FR0013181864 - Common Stock - Currency: EUR
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. CGG has a medium profitability rating, but doesn't score so well on its financial health evaluation. CGG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
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.
CGG has a worse Return On Equity (2.49%) 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.
Measured over the past 3 years, the Average Return On Invested Capital for CGG is significantly below the industry average of 11.23%.
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
With a Profit Margin value of 2.22%, CGG is not doing good in the industry: 65.79% of the companies in the same industry are doing better.
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.
In the last couple of years the Operating Margin of CGG has grown nicely.
CGG's Gross Margin of 23.93% is fine compared to the rest 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
CGG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CGG has about the same amount of shares outstanding.
CGG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CGG is higher compared to a year ago.
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 has a Altman-Z score (1.32) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 6.75, CGG is in line with its industry, outperforming 50.00% of the companies in the same 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 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 in line with its industry peers.
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.
The Quick ratio of CGG (1.33) 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.
The Revenue has grown by 23.26% in the past year. This is a very strong growth!
Measured over the past years, CGG shows a decrease in Revenue. The Revenue has been decreasing by -2.08% on average per year.
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
When comparing the Price/Earnings ratio of CGG to the average of the S&P500 Index (27.93), we can say CGG is valued inline with the index average.
Based on the 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.
CGG is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.95 | ||
| Fwd PE | 4.26 |
4.2 Price Multiples
84.21% of the companies in the same industry are more expensive than CGG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CGG is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
| 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%