DB:RZ8G

Stock Analysis Report

Executive Summary

SNGN Romgaz SA engages in the exploration, development, and production of natural gas resources in Romania.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has SNGN Romgaz's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RZ8G has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

RZ8G

1.3%

DE Oil and Gas

0.2%

DE Market


1 Year Return

7.4%

RZ8G

79.6%

DE Oil and Gas

14.4%

DE Market

Return vs Industry: RZ8G underperformed the German Oil and Gas industry which returned 79.6% over the past year.

Return vs Market: RZ8G underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

RZ8GIndustryMarket
7 Day-0.7%1.3%0.2%
30 Day-6.5%5.3%0.9%
90 Day-6.5%30.0%4.6%
1 Year21.3%7.4%84.7%79.6%17.9%14.4%
3 Year96.0%19.0%15.6%6.0%15.7%5.6%
5 Year101.3%1.2%319.0%253.9%23.4%6.5%

Price Volatility Vs. Market

How volatile is SNGN Romgaz's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SNGN Romgaz undervalued compared to its fair value and its price relative to the market?

32.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RZ8G (€7.25) is trading below our estimate of fair value (€10.77)

Significantly Below Fair Value: RZ8G is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RZ8G is good value based on its PE Ratio (9x) compared to the Oil and Gas industry average (10.8x).

PE vs Market: RZ8G is good value based on its PE Ratio (9x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: RZ8G is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: RZ8G is overvalued based on its PB Ratio (1.9x) compared to the DE Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is SNGN Romgaz forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RZ8G's forecast earnings growth (2.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: RZ8G's earnings (2.7% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: RZ8G's earnings are forecast to grow, but not significantly.

Revenue vs Market: RZ8G's revenue (2.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: RZ8G's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RZ8G's Return on Equity is forecast to be high in 3 years time (20.5%)


Next Steps

Past Performance

How has SNGN Romgaz performed over the past 5 years?

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RZ8G has high quality earnings.

Growing Profit Margin: RZ8G's current net profit margins (29.1%) are lower than last year (33.6%).


Past Earnings Growth Analysis

Earnings Trend: RZ8G's earnings have grown by 5.9% per year over the past 5 years.

Accelerating Growth: RZ8G's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RZ8G had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-5.2%).


Return on Equity

High ROE: RZ8G's Return on Equity (21.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SNGN Romgaz's financial position?


Financial Position Analysis

Short Term Liabilities: RZ8G's short term assets (RON2.0B) exceed its short term liabilities (RON477.8M).

Long Term Liabilities: RZ8G's short term assets (RON2.0B) exceed its long term liabilities (RON668.8M).


Debt to Equity History and Analysis

Debt Level: RZ8G is debt free.

Reducing Debt: RZ8G had no debt 5 years ago.

Debt Coverage: RZ8G has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RZ8G has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RZ8G has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RZ8G's debt is covered by short term assets.


Next Steps

Dividend

What is SNGN Romgaz's current dividend yield, its reliability and sustainability?

16.84%

Current Dividend Yield


Dividend Yield vs Market

company16.8%marketbottom25%1.3%markettop25%3.6%industryaverage6.2%forecastin3Years9.7%

Current dividend yield vs market & industry

Notable Dividend: RZ8G's dividend (16.84%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: RZ8G's dividend (16.84%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RZ8G has been paying a dividend for less than 10 years.

Growing Dividend: RZ8G's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (104.5%), RZ8G's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RZ8G's dividends in 3 years are forecast to be covered by earnings (81.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Adrian Volintiru 0

1.7yrs

Tenure

0

Mr. Adrian Constantin Volintiru serves as the Chief Executive Officer of S.N.G.N. RomGaz S.A. and was its Director General since June 15, 2018. Mr. Volintiru served as Director at S.N.G.N. RomGaz S.A. unt ...


Leadership Team

NamePositionTenureCompensationOwnership
Adrian Volintiru
Chief Executive Officer1.7yrsno datano data
Andrei Bobar
CFO & Economic Director2.3yrsno datano data
Tranbitas Gabriela
Director of the Accounting Department0yrsno datano data
Mircea Birsan
Technical Director0yrsno datano data
Manuela Ogrinja
Head of Investor Relations0yrsno datano data
Botond Balazs
Head of Legal Department & Non-Executive Director0.2yrsno datano data
Ioan Stan
Director of the Human Resources0yrsno datano data
Marius Veza
Head of Treasury Department0yrsno datano data
Nicu-Romeo Susanu
Secretary0yrsno datano data
Cristian Cioban
Director of Exploration & Development0yrsno datano data

1.7yrs

Average Tenure

Experienced Management: RZ8G's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Botond Balazs
Head of Legal Department & Non-Executive Director0.2yrsno datano data
Maria Antonius Jansen
Non-Executive Independent Member1.6yrsno datano data
Ciobanu Cristian
Independent Non-Executive Director2.4yrsno datano data
Aristotel Jude
Non-Executive Director0.2yrsno datano data
Stan-Olteanu Manuela-Petronela
Non-Executive Chairperson of the Board0.6yrsno datano data
Harabor Tudorel
Non Executive Director0yrsno datano data
Marin Marius-Dumitru
Non-Executive Director0.2yrsno datano data

0.4yrs

Average Tenure

58yo

Average Age

Experienced Board: RZ8G's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SNGN Romgaz SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SNGN Romgaz SA
  • Ticker: RZ8G
  • Exchange: DB
  • Founded: 1909
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: RON13.798b
  • Listing Market Cap: RON2.887b
  • Shares outstanding: 385.42m
  • Website: https://www.romgaz.ro

Number of Employees


Location

  • SNGN Romgaz SA
  • 4 Constantin I. Motas Square
  • Medias
  • 551130
  • Romania

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNGBVB (Bucharest Stock Exchange)YesOrdinary SharesRORONNov 2013
SNGRLSE (London Stock Exchange)SPON GDR REG SGBUSDNov 2013
SNG1LSE (London Stock Exchange)SPON GDR 144 AGBUSDNov 2013
0QHQLSE (London Stock Exchange)YesOrdinary SharesGBRONNov 2013
RZ8GDB (Deutsche Boerse AG)SPON GDR REG SDEEURNov 2013

Biography

SNGN Romgaz SA engages in the exploration, development, and production of natural gas resources in Romania. It holds a 100% interest in nine blocks located in Romania. The company produces natural gas through 3240 wells and surface facilities; and electricity with an installed capacity of 600 megawatts. It is also engages in the trading of natural gas; transportation of general goods and persons; well recompletion operations, workover and special well operations, and production test works; and underground storage of natural gas. The company was founded in 1909 and is headquartered in Medias, Romania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:39
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.