CGG (BATS-CHIXE:CGGP) - Share price, News & Analysis

CGGP fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

CGGP Stock Overview

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

Rewards

Trading at 25.6% below our estimate of its fair value

Earnings are forecast to grow 80.53% per year

Risk Analysis

Shares are highly illiquid

CGG Competitors

Schlumberger

NYSE:SLB

US$62.1b

Halliburton

NYSE:HAL

US$34.7b

TGS

OB:TGS

kr17.5b

Fugro

ENXTAM:FUR

€1.4b

Price History & Performance

Summary of all time highs, changes and price drops for CGG
Historical stock prices
Current Share Price	€0.98
52 Week High	€0.99
52 Week Low	€0.55
Beta	2.92
1 Month Change	-0.62%
3 Month Change	n/a
1 Year Change	12.71%
3 Year Change	-32.69%
5 Year Change	-80.46%
Change since IPO	-99.85%

Shareholder Returns

	CGGP	GB Energy Services	GB Market
7D	-0.6%	4.4%	-0.4%
1Y	12.7%	1.9%	-3.0%

Return vs Industry: CGGP exceeded the UK Energy Services industry which returned 1.8% over the past year.

Return vs Market: CGGP exceeded the UK Market which returned -2.7% over the past year.

Price Volatility

Is CGGP's price volatile compared to industry and market?
CGGP volatility
CGGP Average Weekly Movement	n/a
Energy Services Industry Average Movement	7.6%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.1%

Stable Share Price: Insufficient data to determine CGGP's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine CGGP's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1931	3,300	Sophie Zurquiyah-Rousset	https://www.cgg.com

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 & Reservoir; and Equipment segments. The Geology, Geophysics & Reservoir segment develops and licenses multi-client seismic surveys; processes seismic data; and sells seismic data processing and reservoir characterization software primarily under the Hampson-Russell, Jason, Insight Earth, and Velpro brands.

CGG Fundamentals Summary

How do CGG's earnings and revenue compare to its market cap?
CGGP fundamental statistics
Market Cap	US$735.59m
Earnings (TTM)	-US$98.70m
Revenue (TTM)	US$1.03b

0.7x

P/S Ratio

-7.5x

P/E Ratio

Is CGGP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CGGP income statement (TTM)
Revenue	US$1.03b
Cost of Revenue	US$788.20m
Gross Profit	US$241.60m
Other Expenses	US$340.30m
Earnings	-US$98.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)	-0.14
Gross Margin	23.46%
Net Profit Margin	-9.58%
Debt/Equity Ratio	132.4%

How did CGGP perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

25.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CGGP (€0.98) is trading below our estimate of fair value (€1.32)

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

Price To Earnings Ratio

PE vs Industry: CGGP is unprofitable, so we can't compare its Price-To-Earnings Ratio to the European Energy Services industry average.

PE vs Market: CGGP is unprofitable, so we can't compare its Price-To-Earnings Ratio to the UK market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: CGGP is good value based on its Price-To-Book Ratio (0.8x) compared to the GB Energy Services industry average (1x).

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

80.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CGGP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

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

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

Revenue vs Market: CGGP's revenue (12% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: CGGP's revenue (12% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CGGP's Return on Equity is forecast to be low in 3 years time (12.9%).

Past Performance

How has CGG performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-6.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CGGP is currently unprofitable.

Growing Profit Margin: CGGP is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: CGGP is unprofitable, and losses have increased over the past 5 years at a rate of 6.2% per year.

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

Earnings vs Industry: CGGP is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-45.5%).

Return on Equity

High ROE: CGGP has a negative Return on Equity (-10.19%), as it is currently unprofitable.

Financial Health

How is CGG's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CGGP's short term assets ($999.7M) exceed its short term liabilities ($578.5M).

Long Term Liabilities: CGGP's short term assets ($999.7M) do not cover its long term liabilities ($1.3B).

Debt to Equity History and Analysis

Debt Level: CGGP's net debt to equity ratio (93.1%) is considered high.

Reducing Debt: CGGP's debt to equity ratio has reduced from 271.5% to 132.4% 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: Whilst unprofitable CGGP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CGGP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 21.4% per year.

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate CGGP'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 CGGP's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CGGP has not reported any payouts.

Discover strong dividend paying companies

Management

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

4.1yrs

Average management tenure

CEO

Sophie Zurquiyah-Rousset (55 yo)

4.08yrs

Tenure

US$1,513,469

Compensation

Mrs. Sophie Zurquiyah-Rousset has been Director at TechnipFMC plc since April 1, 2021. She has been Chief Executive Officer and Director of CGG SA since April 26, 2018. Mrs. Zurquiyah-Rousset has been Inde...

CEO Compensation Analysis

Compensation vs Market: Sophie's total compensation ($USD1.51M) is about average for companies of similar size in the UK market ($USD1.39M).

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

Leadership Team

Experienced Management: CGGP's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: CGGP's board of directors are considered experienced (4.2 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31