OB:EMGS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Electromagnetic Geoservices

Executive Summary

Electromagnetic Geoservices ASA, together with its subsidiaries, provides electromagnetic (EM) surveying services to the offshore oil and gas exploration industry.


Snowflake Analysis

Good value with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EMGS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.5%

EMGS

5.1%

NO Energy Services

3.5%

NO Market


1 Year Return

-70.5%

EMGS

-40.3%

NO Energy Services

-8.5%

NO Market

Return vs Industry: EMGS underperformed the Norwegian Energy Services industry which returned -40.3% over the past year.

Return vs Market: EMGS underperformed the Norwegian Market which returned -8.5% over the past year.


Shareholder returns

EMGSIndustryMarket
7 Day-1.5%5.1%3.5%
30 Day1.3%9.5%6.3%
90 Day14.7%16.4%8.8%
1 Year-70.5%-70.5%-38.6%-40.3%-5.8%-8.5%
3 Year-67.8%-68.8%-51.3%-54.1%14.0%1.6%
5 Year-97.2%-98.6%-31.9%-56.3%42.7%13.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EMGS (NOK0.71) is trading below our estimate of fair value (NOK42.87)

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


Price To Earnings Ratio

PE vs Industry: EMGS is good value based on its PE Ratio (1.5x) compared to the XE Energy Services industry average (10x).

PE vs Market: EMGS is good value based on its PE Ratio (1.5x) compared to the Norwegian market (14.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EMGS has negative assets, so we can't compare its PB Ratio to the NO Energy Services industry average.


Next Steps

Future Growth

How is Electromagnetic Geoservices forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

79.1%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Electromagnetic Geoservices has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Electromagnetic Geoservices performed over the past 5 years?

35.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMGS has a large one-off loss of $7.5M impacting its June 30 2020 financial results.

Growing Profit Margin: EMGS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: EMGS has become profitable over the past 5 years, growing earnings by 35.2% per year.

Accelerating Growth: EMGS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EMGS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (8%).


Return on Equity

High ROE: EMGS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Electromagnetic Geoservices's financial position?


Financial Position Analysis

Short Term Liabilities: EMGS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: EMGS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: EMGS has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: EMGS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: EMGS's debt is well covered by operating cash flow (64%).

Interest Coverage: EMGS's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Electromagnetic Geoservices's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if EMGS'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 EMGS's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Bjørn Lindhom

1.67yrs

Tenure

US$3,358,000

Compensation

Mr. Bjørn Petter Lindhom serves Chief Executive Officer of Electromagnetic Geoservices ASA since June 2019 and was President of EMGS NSA until October, 2019. He served as Interim Chief Executive Officer at ...


CEO Compensation Analysis

Compensation vs Market: Bjørn's total compensation ($USD371.23K) is about average for companies of similar size in the Norwegian market ($USD398.00K).

Compensation vs Earnings: Insufficient data to compare Bjørn's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Bjørn Lindhom
Chief Executive Officer1.67yrsUS$3.36mno data
Øyvind Bjørndal
Chief Legal Counsel & Directorno dataUS$1.54mno data
Dag Helland-Hansen
Global Exploration Advisor & Business Unit President of EMEA2.33yrsUS$2.29mno data
Anders Eimstad
Chief Financial Officer0.58yrno datano data
Rune Mittet
Chief Scientistno datano datano data
Friedrich Rothwangl
Vice President of Imaging & Interpretation Services8.58yrsno datano data

2.3yrs

Average Tenure

Experienced Management: EMGS's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Øyvind Bjørndal
Chief Legal Counsel & Directorno dataUS$1.54mno data
Mimi Berdal
Independent Chairman0.17yrUS$366.00k0.054%
$ 49.8k
Petteri Soininen
Directior5.67yrsUS$252.00kno data
Adam Robinson
Alternate Employee Representative Directorno datano datano data
Ellen Fossbakk
Alternate Employee Representative Director2.67yrsno datano data

2.7yrs

Average Tenure

Experienced Board: EMGS's board of directors are not considered experienced ( 2.7 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

Electromagnetic Geoservices ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Electromagnetic Geoservices ASA
  • Ticker: EMGS
  • Exchange: OB
  • Founded: 2002
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr92.858m
  • Shares outstanding: 130.97m
  • Website: https://www.emgs.com

Number of Employees


Location

  • Electromagnetic Geoservices ASA
  • Stiklestadveien 1
  • Trondheim
  • Sør-Trøndelag
  • 7041
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMGSOB (Oslo Bors)YesOrdinary SharesNONOKMar 2007
0J5BLSE (London Stock Exchange)YesOrdinary SharesGBNOKMar 2007
EMGSOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMar 2007

Biography

Electromagnetic Geoservices ASA, together with its subsidiaries, provides electromagnetic (EM) surveying services to the offshore oil and gas exploration industry. It is involved in the planning, acquisiti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 21:29
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.