TGS ASA (TGS.OL) Stock Fundamental Analysis
OSL:TGS - Euronext Oslo - NO0003078800 - Common Stock - Currency: NOK
We assign a fundamental rating of 5 out of 10 to TGS. TGS was compared to 36 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of TGS while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on TGS.
1. Profitability
1.1 Basic Checks
TGS had positive earnings in the past year.
In the past year TGS had a positive cash flow from operations.
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
TGS has a Return On Assets (3.10%) which is comparable to the rest of the industry.
TGS has a Return On Equity of 5.85%. This is in the lower half of the industry: TGS underperforms 63.89% of its industry peers.
The Return On Invested Capital of TGS (7.34%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TGS is below the industry average of 10.45%.
The 3 year average ROIC (5.85%) for TGS is below the current ROIC(7.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 5.85% | ||
| ROIC | 7.34% |
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
TGS has a Profit Margin (7.23%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TGS has declined.
TGS has a Operating Margin of 16.14%. This is in the better half of the industry: TGS outperforms 69.44% of its industry peers.
TGS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 76.15%, TGS belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
TGS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.14% | ||
| PM (TTM) | 7.23% | ||
| GM | 76.15% |
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.
TGS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TGS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that TGS is in the distress zone and has some risk of bankruptcy.
TGS has a Altman-Z score (1.26) which is in line with its industry peers.
The Debt to FCF ratio of TGS is 2.76, which is a good value as it means it would take TGS, 2.76 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TGS (2.76) is better than 72.22% of its industry peers.
TGS has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
TGS has a better Debt to Equity ratio (0.33) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.86
WACC8.51%
2.3 Liquidity
TGS has a Current Ratio of 0.65. This is a bad value and indicates that TGS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.65, TGS is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
A Quick Ratio of 0.65 indicates that TGS may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, TGS is not doing good in the industry: 86.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
TGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 337.50%, which is quite impressive.
Measured over the past years, TGS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.33% on average per year.
TGS shows a strong growth in Revenue. In the last year, the Revenue has grown by 114.97%.
The Revenue has been growing by 17.62% on average over the past years. This is quite good.
EPS 1Y (TTM)337.5%
EPS 3YN/A
EPS 5Y-22.33%
EPS Q2Q%138.46%
Revenue 1Y (TTM)114.97%
Revenue growth 3Y36.47%
Revenue growth 5Y17.62%
Sales Q2Q%118.55%
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.
The Revenue is expected to grow by 5.42% on average over the next years.
EPS Next Y118.09%
EPS Next 2Y51.82%
EPS Next 3Y30.91%
EPS Next 5YN/A
Revenue Next Year9.91%
Revenue Next 2Y5.95%
Revenue Next 3Y5.42%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 10.43, the valuation of TGS can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TGS is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TGS to the average of the S&P500 Index (27.48), we can say TGS is valued rather cheaply.
The Price/Forward Earnings ratio is 6.09, which indicates a rather cheap valuation of TGS.
Based on the Price/Forward Earnings ratio, TGS is valued a bit cheaper than 66.67% of the companies in the same industry.
TGS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 6.09 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TGS is valued a bit cheaper than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.81 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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 TGS's earnings are expected to grow with 30.91% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y51.82%
EPS Next 3Y30.91%
5. Dividend
5.1 Amount
TGS has a Yearly Dividend Yield of 7.73%, which is a nice return.
Compared to an average industry Dividend Yield of 6.51, TGS pays a better dividend. On top of this TGS pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TGS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.73% |
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
86.21% of the earnings are spent on dividend by TGS. This is not a sustainable payout ratio.
DP86.21%
EPS Next 2Y51.82%
EPS Next 3Y30.91%
OSL:TGS (7/17/2025, 7:00:00 PM)
75.2
-3.5 (-4.45%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners59.49%
Inst Owner ChangeN/A
Ins Owners0.97%
Ins Owner ChangeN/A
Market Cap14.77B
Analysts70
Price Target113.73 (51.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.73% |
Yearly Dividend5.67
Dividend Growth(5Y)-11.71%
DP86.21%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-62.13%
Min EPS beat(2)-72.5%
Max EPS beat(2)-51.76%
EPS beat(4)1
Avg EPS beat(4)-23.85%
Min EPS beat(4)-72.5%
Max EPS beat(4)40.7%
EPS beat(8)1
Avg EPS beat(8)-173.2%
EPS beat(12)2
Avg EPS beat(12)-132.51%
EPS beat(16)3
Avg EPS beat(16)-195.85%
Revenue beat(2)2
Avg Revenue beat(2)10.68%
Min Revenue beat(2)3.57%
Max Revenue beat(2)17.79%
Revenue beat(4)3
Avg Revenue beat(4)5.93%
Min Revenue beat(4)-0.92%
Max Revenue beat(4)17.79%
Revenue beat(8)3
Avg Revenue beat(8)-1.76%
Revenue beat(12)5
Avg Revenue beat(12)1.77%
Revenue beat(16)7
Avg Revenue beat(16)8.91%
PT rev (1m)-2.73%
PT rev (3m)-12.12%
EPS NQ rev (1m)-32.29%
EPS NQ rev (3m)-51.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.7%
Revenue NQ rev (1m)-5.98%
Revenue NQ rev (3m)-10.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 6.09 | ||
| P/S | 0.86 | ||
| P/FCF | 4.81 | ||
| P/OCF | 1.8 | ||
| P/B | 0.7 | ||
| P/tB | 7.31 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.21
EY9.59%
EPS(NY)12.34
Fwd EY16.41%
FCF(TTM)15.64
FCFY20.8%
OCF(TTM)41.74
OCFY55.5%
SpS87.14
BVpS107.73
TBVpS10.28
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 5.85% | ||
| ROCE | 9.53% | ||
| ROIC | 7.34% | ||
| ROICexc | 7.8% | ||
| ROICexgc | 26.18% | ||
| OM | 16.14% | ||
| PM (TTM) | 7.23% | ||
| GM | 76.15% | ||
| FCFM | 17.95% |
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.76 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 29.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 248.11% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.26 |
F-Score6
WACC8.51%
ROIC/WACC0.86
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)337.5%
EPS 3YN/A
EPS 5Y-22.33%
EPS Q2Q%138.46%
EPS Next Y118.09%
EPS Next 2Y51.82%
EPS Next 3Y30.91%
EPS Next 5YN/A
Revenue 1Y (TTM)114.97%
Revenue growth 3Y36.47%
Revenue growth 5Y17.62%
Sales Q2Q%118.55%
Revenue Next Year9.91%
Revenue Next 2Y5.95%
Revenue Next 3Y5.42%
Revenue Next 5YN/A
EBIT growth 1Y360.42%
EBIT growth 3Y-1.41%
EBIT growth 5Y3.1%
EBIT Next Year293.06%
EBIT Next 3Y62.84%
EBIT Next 5YN/A
FCF growth 1Y52%
FCF growth 3Y13.38%
FCF growth 5Y-1.21%
OCF growth 1Y87.11%
OCF growth 3Y25.56%
OCF growth 5Y2.32%