OB:PGS

Stock Analysis Report

Executive Summary

PGS ASA operates as a marine geophysical company.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.

Risks

  • PGS has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

OB:PGS

3.6%

NO Energy Services

1.6%

NO Market


1 Year Return

-66.5%

OB:PGS

-41.6%

NO Energy Services

-14.8%

NO Market

PGS underperformed the Energy Services industry which returned -41.6% over the past year.

PGS underperformed the Market in Norway which returned -14.8% over the past year.


Share holder returns

PGSIndustryMarket
7 Day-1.7%3.6%1.6%
30 Day-13.0%-15.1%-4.4%
90 Day-31.7%-21.7%-5.4%
1 Year-66.5%-66.5%-40.5%-41.6%-9.9%-14.8%
3 Year-42.0%-42.0%-3.5%-10.2%38.1%20.0%
5 Year-76.1%-76.4%-51.1%-65.5%38.6%6.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PGS undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

PGS's share price is below the future cash flow value, and at a moderate discount (> 20%).

PGS's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

PGS is loss making, we can't compare its value to the NO Energy Services industry average.

PGS is loss making, we can't compare the value of its earnings to the Norway market.


Price Based on Expected Growth

Unable to calculate PEG ratio for PGS, we can't assess if its growth is good value.


Price Based on Value of Assets

PGS is overvalued based on assets compared to the NO Energy Services industry average.


Next Steps

Future Growth

How is PGS expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

94.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PGS's revenue is expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).

PGS's earnings are expected to grow significantly at over 20% yearly.

PGS's revenue growth is expected to exceed the Norway market average.

PGS's earnings growth is expected to exceed the Norway market average.

PGS's earnings growth is expected to exceed the low risk savings rate of 1.8%.


Earnings per Share Growth Estimates


Future Return on Equity

PGS is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has PGS performed over the past 5 years?

-13.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PGS does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare PGS's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare PGS's 1-year growth to the NO Energy Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if PGS has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if PGS has efficiently used its assets last year compared to the NO Energy Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if PGS improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is PGS's financial position?


Financial Position Analysis

PGS's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

PGS's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

PGS's level of debt (184.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (57.8% vs 184.8% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


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.

Whilst loss making PGS has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making PGS has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -101.7% per year.


Next Steps

Dividend

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

1.09%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate PGS's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate PGS's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as PGS has not reported any payouts.

Unable to verify if PGS's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as PGS has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of PGS's dividends in 3 years as they are not expected to pay a notable one for Norway.


Next Steps

Management

What is the CEO of PGS's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Rune Pedersen (49yo)

1.9yrs

Tenure

US$828,141

Compensation

Mr. Rune Olav Pedersen has been President and Chief Executive Officer of Petroleum Geo-Services ASA since September 1, 2017. Mr. Pedersen served as an Executive Vice President at Petroleum Geo-Services ASA ...


CEO Compensation Analysis

Rune's remuneration is higher than average for companies of similar size in Norway.

Rune's compensation has increased whilst company is loss making.


Management Age and Tenure

1.9yrs

Average Tenure

55.5yo

Average Age

The average tenure for the PGS management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

60yo

Average Age

The average tenure for the PGS board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by PGS individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$21,152,01415 Aug 19
Caius Capital LLP
EntityCompany
Shares1,951,815
Max PriceUS$10.84
BuyUS$231,80018 Jul 19
Per Reksnes
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Operations & Technology
Shares20,000
Max PriceUS$11.59
BuyUS$441,00020 Jun 19
Gottfred Langseth
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares35,000
Max PriceUS$12.60
BuyUS$444,50020 Jun 19
Trond Brandsrud
EntityIndividual
Role
Member of the Board of Directors
Director
Shares35,000
Max PriceUS$12.70
BuyUS$127,70020 Jun 19
Lars Mysen
EntityIndividual
Shares10,000
Max PriceUS$12.77
BuyUS$131,00020 Jun 19
Walter Qvam
EntityIndividual
Role
Chairman of the Board
Chairperson
Shares10,000
Max PriceUS$13.10
BuyUS$432,30020 Jun 19
Rune Pedersen
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares33,000
Max PriceUS$13.10
BuyUS$151,76031 Jan 19
Anne Dalane
EntityIndividual
Role
Vice Chairman
Vice Chairperson
Shares8,000
Max PriceUS$18.97
BuyUS$568,75007 Jan 19
Kai Reith
EntityIndividual
Shares35,000
Max PriceUS$16.25

Ownership Breakdown


Management Team

  • Magne Reiersgard (58yo)

    Executive Vice President of Marine Contract

    • Tenure: 4.8yrs
    • Compensation: US$651.78k
  • Gottfred Langseth (53yo)

    CFO & Executive VP

    • Tenure: 15.6yrs
    • Compensation: US$745.70k
  • Rune Pedersen (49yo)

    President & CEO

    • Tenure: 1.9yrs
    • Compensation: US$828.14k
  • Terje Bjølseth

    Senior Vice President of Global Human Resources

    • Tenure: 0.0yrs
  • Per Reksnes (62yo)

    Executive Vice President of Operations & Technology

    • Tenure: 0.0yrs
    • Compensation: US$670.93k
  • Bård Stenberg

    Senior VP of IR & Communication

    • Tenure: 0.0yrs
  • Joanna Oustad

    Senior Vice President of Health

    • Tenure: 0.0yrs
  • David Dakin

    Chief Accounting Officer

    • Tenure: 0.0yrs
  • Berit Osnes

    Executive Vice President of New Ventures

    • Tenure: 0.6yrs
  • Nathan Oliver

    Executive Vice President of Sales & Imaging

    • Tenure: 0.6yrs

Board Members

  • Anne Dalane (59yo)

    Vice Chairperson

    • Tenure: 1.6yrs
  • Trond Brandsrud (61yo)

    Director

    • Tenure: 0.3yrs
  • Walter Qvam (66yo)

    Chairperson

    • Tenure: 3.3yrs
  • Anette Valbø

    Director

    • Tenure: 4.6yrs
  • Richard Herbert

    Director

    • Tenure: 2.3yrs
  • Hege Renshus (51yo)

    Director

    • Tenure: 2.6yrs
  • Marianne Kah (66yo)

    Director

    • Tenure: 1.3yrs
  • Grunde Rønholt (47yo)

    Director

    • Tenure: 0.6yrs

Company Information

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


Key Information

  • Name: PGS ASA
  • Ticker: PGS
  • Exchange: OB
  • Founded: 1991
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr3.726b
  • Shares outstanding: 338.58m
  • Website: https://www.pgs.com

Number of Employees


Location

  • PGS ASA
  • Lilleakerveien 4C
  • Oslo
  • Oslo
  • 283
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PGSV.YOTCPK (Pink Sheets LLC)SPONSORED ADSUSUSDOct 2003
PGEJ.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2003
PGS1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2003
PGSOB (Oslo Bors)YesCommon StockNONOKNov 2003
0MHRLSE (London Stock Exchange)YesCommon StockGBNOKNov 2003
PGSOBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBNOKNov 2003

Biography

PGS ASA operates as a marine geophysical company. It offers a range of seismic and reservoir services, including acquisition, imaging, interpretation, and field evaluation to oil and gas companies. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 20:52
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.