TGS ASA (TGS.OL) Stock Fundamental Analysis
OSL:TGS - Euronext Oslo - NO0003078800 - Common Stock - Currency: NOK
Overall TGS gets a fundamental rating of 5 out of 10. We evaluated TGS against 36 industry peers in the Energy Equipment & Services industry. While TGS is still in line with the averages on profitability rating, there are concerns on its financial health. TGS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TGS was profitable.
TGS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TGS reported negative net income in multiple years.
TGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TGS's Return On Assets of 3.10% is in line compared to the rest of the industry. TGS outperforms 44.44% of its industry peers.
Looking at the Return On Equity, with a value of 5.85%, TGS is doing worse than 61.11% of the companies in the same industry.
The Return On Invested Capital of TGS (7.34%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TGS is below the industry average of 10.05%.
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
The Profit Margin of TGS (7.23%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TGS has declined.
With a decent Operating Margin value of 16.14%, TGS is doing good in the industry, outperforming 69.44% of the companies in the same industry.
In the last couple of years the Operating Margin of TGS has declined.
TGS's Gross Margin of 76.15% is amongst the best of the industry. TGS outperforms 94.44% of its industry peers.
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
TGS 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, TGS has more shares outstanding
The number of shares outstanding for TGS has been increased compared to 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 1.33, we must say that TGS is in the distress zone and has some risk of bankruptcy.
TGS has a Altman-Z score (1.33) 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.
TGS's Debt to FCF ratio of 2.76 is fine compared to the rest of the industry. TGS outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that TGS is not too dependend on debt financing.
TGS has a Debt to Equity ratio of 0.33. This is in the better half of the industry: TGS outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.87
WACC8.42%
2.3 Liquidity
A Current Ratio of 0.65 indicates that TGS may have some problems paying its short term obligations.
TGS has a worse Current ratio (0.65) than 88.89% of its industry peers.
A Quick Ratio of 0.65 indicates that TGS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, TGS is doing worse than 86.11% of the companies in the same industry.
| 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.
TGS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.33% yearly.
The Revenue has grown by 114.97% in the past year. This is a very strong growth!
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
With a Price/Earnings ratio of 12.50, TGS is valued correctly.
TGS's Price/Earnings ratio is in line with the industry average.
TGS is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.30, the valuation of TGS can be described as very cheap.
TGS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TGS is cheaper than 61.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TGS to the average of the S&P500 Index (22.19), we can say TGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 7.3 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TGS is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.76 | ||
| 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)0.11
PEG (5Y)N/A
EPS Next 2Y51.82%
EPS Next 3Y30.91%
5. Dividend
5.1 Amount
TGS has a Yearly Dividend Yield of 7.25%, which is a nice return.
TGS's Dividend Yield is rather good when compared to the industry average which is at 6.65. TGS pays more dividend than 83.33% of the companies in the same industry.
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 | 7.25% |
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 (6/20/2025, 7:00:00 PM)
87.9
-0.15 (-0.17%)
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 Cap17.25B
Analysts75
Price Target116.92 (33.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.25% |
Yearly Dividend5.57
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)-3.98%
PT rev (3m)-10.54%
EPS NQ rev (1m)-28.89%
EPS NQ rev (3m)-28.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.66%
Revenue NQ rev (1m)-5.32%
Revenue NQ rev (3m)-5.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 7.3 | ||
| P/S | 1.03 | ||
| P/FCF | 5.76 | ||
| P/OCF | 2.16 | ||
| P/B | 0.84 | ||
| P/tB | 8.76 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.03
EY8%
EPS(NY)12.04
Fwd EY13.7%
FCF(TTM)15.27
FCFY17.37%
OCF(TTM)40.75
OCFY46.36%
SpS85.08
BVpS105.19
TBVpS10.04
PEG (NY)0.11
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 | 1.33 |
F-Score6
WACC8.42%
ROIC/WACC0.87
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%