TGS ASA (TGS.OL) Stock Fundamental Analysis
OSL:TGS - Euronext Oslo - NO0003078800 - Common Stock - Currency: NOK
TGS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 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. TGS 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 TGS was profitable.
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 in line with its industry peers.
TGS has a Return On Equity of 5.85%. This is in the lower half of the industry: TGS underperforms 60.00% of its industry peers.
TGS's Return On Invested Capital of 7.34% is in line compared to the rest of the industry. TGS outperforms 54.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TGS is below the industry average of 10.50%.
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's Profit Margin of 7.23% is in line compared to the rest of the industry. TGS outperforms 45.71% of its industry peers.
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 62.86% of its industry peers.
In the last couple of years the Operating Margin of TGS has declined.
With an excellent Gross Margin value of 76.15%, 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TGS is destroying value.
The number of shares outstanding for TGS has been increased compared to 1 year ago.
Compared to 5 years ago, TGS has more shares outstanding
Compared to 1 year ago, TGS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.32, we must say that TGS is in the distress zone and has some risk of bankruptcy.
TGS has a Altman-Z score (-0.32) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.76, TGS is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that TGS is not too dependend on debt financing.
TGS's Debt to Equity ratio of 0.33 is fine compared to the rest of the industry. TGS outperforms 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | -0.32 |
ROIC/WACC0.93
WACC7.91%
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.
Looking at the Current ratio, with a value of 0.65, TGS is doing worse than 88.57% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that TGS may have some problems paying its short term obligations.
TGS's Quick ratio of 0.65 is on the low side compared to the rest of the industry. TGS is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 337.50% over the past year.
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.
Looking at the last year, TGS shows a very strong growth in Revenue. The Revenue has grown by 114.97%.
TGS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.62% yearly.
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
TGS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.91% yearly.
TGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.42% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.78 indicates a reasonable valuation of TGS.
TGS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.25, TGS is valued rather cheaply.
TGS is valuated cheaply with a Price/Forward Earnings ratio of 6.88.
Based on the Price/Forward Earnings ratio, TGS is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TGS to the average of the S&P500 Index (22.15), we can say TGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TGS is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.43 | ||
| 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)0.1
PEG (5Y)N/A
EPS Next 2Y51.82%
EPS Next 3Y30.91%
5. Dividend
5.1 Amount
TGS has a Yearly Dividend Yield of 7.76%, which is a nice return.
In the last 3 months the price of TGS has falen by -22.29%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TGS's Dividend Yield is a higher than the industry average which is at 6.53.
TGS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.76% |
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 (5/30/2025, 7:00:00 PM)
84
-0.9 (-1.06%)
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 Cap16.49B
Analysts73.85
Price Target121.76 (44.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.76% |
Yearly Dividend5.71
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)-5.91%
PT rev (3m)-7.28%
EPS NQ rev (1m)-28.89%
EPS NQ rev (3m)-32.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.66%
Revenue NQ rev (1m)-5.32%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 6.88 | ||
| P/S | 0.97 | ||
| P/FCF | 5.43 | ||
| P/OCF | 2.03 | ||
| P/B | 0.79 | ||
| P/tB | 8.23 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.13
EY8.49%
EPS(NY)12.21
Fwd EY14.53%
FCF(TTM)15.48
FCFY18.43%
OCF(TTM)41.31
OCFY49.18%
SpS86.24
BVpS106.64
TBVpS10.2
PEG (NY)0.1
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 | -0.32 |
F-Score6
WACC7.91%
ROIC/WACC0.93
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%