OB:PGS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

PGS ASA operates as a marine geophysical company. More Details


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


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

Stable Share Price: PGS is more volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: PGS's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Norwegian stocks.


Market Performance


7 Day Return

-3.2%

PGS

-1.9%

NO Energy Services

-1.8%

NO Market


1 Year Return

-70.4%

PGS

-38.4%

NO Energy Services

-2.4%

NO Market

Return vs Industry: PGS underperformed the Norwegian Energy Services industry which returned -38.1% over the past year.

Return vs Market: PGS underperformed the Norwegian Market which returned -1.4% over the past year.


Shareholder returns

PGSIndustryMarket
7 Day-3.2%-1.9%-1.8%
30 Day75.9%31.5%9.7%
90 Day39.6%24.7%9.0%
1 Year-70.4%-70.4%-35.4%-38.4%1.1%-2.4%
3 Year-70.1%-70.1%-58.0%-61.0%9.4%-3.0%
5 Year-88.1%-88.1%-24.8%-46.2%59.9%28.6%

Long-Term 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 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: PGS (NOK4.33) is trading below our estimate of fair value (NOK40.97)

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


Price To Earnings Ratio

PE vs Industry: PGS is unprofitable, so we can't compare its PE Ratio to the NO Energy Services industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PGS's PB Ratio (0.4x) is in line with the NO Energy Services industry average.


Next Steps

Future Growth

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

48.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PGS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PGS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PGS's revenue (11.7% per year) is forecast to grow faster than the Norwegian market (6.2% per year).

High Growth Revenue: PGS's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGS is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has PGS performed over the past 5 years?

25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGS is currently unprofitable.

Growing Profit Margin: PGS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PGS is unprofitable, but has reduced losses over the past 5 years at a rate of 25.3% per year.

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

Earnings vs Industry: PGS is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-41.5%).


Return on Equity

High ROE: PGS has a negative Return on Equity (-55.32%), as it is currently unprofitable.


Next Steps

Financial Health

How is PGS's financial position?


Financial Position Analysis

Short Term Liabilities: PGS's short term assets ($339.5M) do not cover its short term liabilities ($1.5B).

Long Term Liabilities: PGS's short term assets ($339.5M) exceed its long term liabilities ($182.0M).


Debt to Equity History and Analysis

Debt Level: PGS's debt to equity ratio (252.9%) is considered high.

Reducing Debt: PGS's debt to equity ratio has increased from 70.8% to 252.9% 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 PGS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PGS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 41.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: PGS is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PGS'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?

1.9yrs

Average management tenure


CEO

Rune Pedersen (50 yo)

3.25yrs

Tenure

US$936,988

Compensation

Mr. Rune Olav Pedersen has been President and Chief Executive Officer of PGS ASA (formerly known as Petroleum Geo-Services ASA) since September 1, 2017. Mr. Pedersen served as an Executive Vice President a...


CEO Compensation Analysis

Compensation vs Market: Rune's total compensation ($USD936.99K) is above average for companies of similar size in the Norwegian market ($USD459.35K).

Compensation vs Earnings: Rune's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Rune Pedersen
President & CEO3.25yrsUS$936.99k0.059%
$ 989.4k
Gottfred Langseth
CFO & Executive VP16.92yrsUS$711.94k0.097%
$ 1.6m
Nathan Oliver
Executive Vice President of Sales & Services1.92yrsUS$534.29kno data
Berit Osnes
Senior Vice President of Sales & Services Eurasia1.92yrsUS$487.36k0.0094%
$ 156.7k
Rob Adams
Executive Vice President of Operations0.92yrno data0.046%
$ 764.8k
David Dakin
Chief Accounting Officerno datano data0.0020%
$ 33.5k
Erik Ewig
Senior Vice President of Technology & Digitalization0.92yrno datano data
Bård Stenberg
Vice President of IR & Corporate Communicationno datano data0.0019%
$ 32.2k
Lars van der Bijl Mysen
General Counselno datano data0.020%
$ 329.0k
Kai Reith
Senior VP of Corporate Developmentno datano data0.011%
$ 191.9k
Kristin Omreng
Senior VP of Global Human Resourcesno datano datano data
Magne Reiersgard
Executive Vice President of Marine Contract6.08yrsUS$651.78kno data

1.9yrs

Average Tenure

54yo

Average Age

Experienced Management: PGS's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Anne Dalane
Independent Vice Chairperson2.92yrsUS$77.50k0.0046%
$ 77.9k
Trond Brandsrud
Independent Director1.67yrsUS$49.31k0.0090%
$ 151.5k
Walter Qvam
Independent Chairperson4.58yrsUS$114.50k0.0090%
$ 151.5k
Anette Valbø
Employee Elected Director5.92yrsUS$7.79k0.0018%
$ 30.8k
Richard Herbert
Independent Director3.58yrsUS$96.00k0.0049%
$ 82.3k
Hege Renshus
Employee Elected Director3.92yrsUS$7.79k0.00050%
$ 8.4k
Marianne Kah
Independent Director2.67yrsUS$96.00k0.0074%
$ 123.7k
Grunde Rønholt
Employee Elected Director1.92yrsUS$7.79k0.012%
$ 194.7k
Michael Malling
Board Memberno datano datano data

3.3yrs

Average Tenure

61yo

Average Age

Experienced Board: PGS's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PGS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.4%.


Top Shareholders

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: kr1.676b
  • Shares outstanding: 387.21m
  • 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. The company offers a range of seismic and reservoir services, including acquisition, imaging, interpretation, and field evaluation to oil and gas companies...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 17:21
End of Day Share Price2020/12/03 00:00
Earnings2020/09/30
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.