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Market Cap

€754.8m

Last Updated

2021/04/12 18:42 UTC

Data Sources

Company Financials +

Executive Summary

CGG operates as a geoscience company in North America, the Central and South Americas, Europe, Africa, the Middle East, and the Asia Pacific. More Details

Rewards

Trading at 48.2% below our estimate of its fair value

Earnings are forecast to grow 85.22% per year

Risk Analysis

No risks detected for CGG from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CGG is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CGG's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

CGG

-2.5%

FR Energy Services

1.4%

FR Market


1 Year Return

-6.6%

CGG

30.6%

FR Energy Services

39.2%

FR Market

Return vs Industry: CGG underperformed the French Energy Services industry which returned 31% over the past year.

Return vs Market: CGG underperformed the French Market which returned 39.4% over the past year.


Shareholder returns

CGGIndustryMarket
7 Day1.6%-2.5%1.4%
30 Day-16.3%-7.6%2.7%
90 Day7.1%5.3%8.9%
1 Year-6.6%-6.6%34.7%30.6%42.0%39.2%
3 Year-40.1%-40.1%-43.3%-47.3%29.4%18.8%
5 Year-90.7%-95.5%-36.6%-52.4%71.8%47.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

48.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CGG (€1.05) is trading below our estimate of fair value (€2.02)

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


Price To Earnings Ratio

PE vs Industry: CGG is unprofitable, so we can't compare its PE Ratio to the XE Energy Services industry average.

PE vs Market: CGG is unprofitable, so we can't compare its PE Ratio to the French market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CGG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CGG's PB Ratio (0.8x) is in line with the XE Energy Services industry average.


Future Growth

How is CGG forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

85.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.4%).

Earnings vs Market: CGG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CGG's is expected to become profitable in the next 3 years.

Revenue vs Market: CGG's revenue (11.3% per year) is forecast to grow faster than the French market (6.9% per year).

High Growth Revenue: CGG's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CGG's Return on Equity is forecast to be low in 3 years time (6.2%).


Past Performance

How has CGG performed over the past 5 years?

42.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CGG is currently unprofitable.

Growing Profit Margin: CGG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CGG is unprofitable, but has reduced losses over the past 5 years at a rate of 42.8% per year.

Accelerating Growth: Unable to compare CGG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CGG is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-0.6%).


Return on Equity

High ROE: CGG has a negative Return on Equity (-32.25%), as it is currently unprofitable.


Financial Health

How is CGG's financial position?


Financial Position Analysis

Short Term Liabilities: CGG's short term assets ($1.3B) exceed its short term liabilities ($717.1M).

Long Term Liabilities: CGG's short term assets ($1.3B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: CGG's debt to equity ratio (106%) is considered high.

Reducing Debt: CGG's debt to equity ratio has reduced from 210.9% to 106% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CGG has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CGG has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is CGG current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CGG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CGG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CGG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CGG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CGG's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Sophie Zurquiyah-Rousset (54 yo)

3yrs

Tenure

US$1,513,469

Compensation

Mrs. Sophie Zurquiyah-Rousset has been Chief Executive Officer and Director of CGG SA since April 26, 2018. Mrs. Zurquiyah-Rousset has been Independent Director of Safran SA since June 15, 2017. She serves...


CEO Compensation Analysis

Compensation vs Market: Sophie's total compensation ($USD1.51M) is above average for companies of similar size in the French market ($USD546.95K).

Compensation vs Earnings: Sophie's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CGG's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: CGG's board of directors are considered experienced (3.2 years average tenure).


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

CGG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CGG
  • Ticker: CGG
  • Exchange: ENXTPA
  • Founded: 1931
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: €754.763m
  • Shares outstanding: 711.37m
  • Website: https://www.cgg.com

Number of Employees


Location

  • CGG
  • 27 Avenue Carnot
  • Massy
  • Ile-de-France
  • 91300
  • France

Listings


Biography

CGG operates as a geoscience company in North America, the Central and South Americas, Europe, Africa, the Middle East, and the Asia Pacific. It operates through two segments, Geology, Geophysics & Reservo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/12 18:42
End of Day Share Price2021/04/12 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.