OB:PGS

Stock Analysis Report

Executive Summary

PGS ASA operates as a marine geophysical company.

Snowflake

Fundamentals

Reasonable growth potential 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.3%

PGS

-0.9%

NO Energy Services

-1.1%

NO Market


1 Year Return

-19.3%

PGS

-18.7%

NO Energy Services

-2.3%

NO Market

Return vs Industry: PGS underperformed the Norwegian Energy Services industry which returned -18.7% over the past year.

Return vs Market: PGS underperformed the Norwegian Market which returned -2.3% over the past year.


Shareholder returns

PGSIndustryMarket
7 Day-5.3%-0.9%-1.1%
30 Day-3.1%-1.9%0.04%
90 Day34.5%8.3%5.6%
1 Year-19.3%-19.3%-17.0%-18.7%3.0%-2.3%
3 Year-38.7%-38.7%4.9%-3.0%37.2%19.8%
5 Year-60.0%-60.5%-31.0%-53.1%55.6%19.6%

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 (NOK15.58) is trading below our estimate of fair value (NOK44.33)

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 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 is overvalued based on its PB Ratio (0.9x) compared to the NO Energy Services industry average (0.6x).


Next Steps

Future Growth

How is PGS forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

108.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PGS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).

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

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

Revenue vs Market: PGS's revenue (8.1% per year) is forecast to grow faster than the Norwegian market (4.5% per year).

High Growth Revenue: PGS's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PGS's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has PGS performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PGS has large one-off items impacting its financial results.

Growing Profit Margin: PGS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PGS is unprofitable, and losses have increased over the past 5 years at a rate of -2.4% 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 (14%).


Return on Equity

High ROE: PGS has a negative Return on Equity (-17.23%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PGS's financial position?


Financial Position Analysis

Short Term Liabilities: PGS's short term assets ($258.0M) do not cover its short term liabilities ($569.6M)

Long Term Liabilities: PGS's short term assets ($258.0M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: PGS's debt to equity ratio (176.3%) is considered high.

Reducing Debt: PGS's debt to equity ratio has increased from 59.3% to 176.3% over the past 5 years.


Balance Sheet

Inventory Level: PGS has a high level of physical assets or inventory.

Debt Coverage by Assets: PGS's debt is not covered by short term assets (assets are 0.2x 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.

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 108.1% per year.


Next Steps

Dividend

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

0.65%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.9%industryaverage4.4%forecastin3Years0.6%

Current dividend yield vs market & industry

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

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

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

2.2yrs

Average management tenure


CEO

Rune Pedersen (49yo)

2.2yrs

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

Compensation vs Market: Rune's total compensation ($USD828.14K) is above average for companies of similar size in the Norwegian market ($USD443.85K).

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


Management Age and Tenure

2.2yrs

Average Tenure

55.5yo

Average Age

Experienced Management: PGS's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

60yo

Average Age

Experienced Board: PGS's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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
Independent 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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Magne Reiersgard (58yo)

    Executive Vice President of Marine Contract

    • Tenure: 5yrs
    • Compensation: US$651.78k
  • Gottfred Langseth (53yo)

    CFO & Executive VP

    • Tenure: 15.8yrs
    • Compensation: US$745.70k
  • Rune Pedersen (49yo)

    President & CEO

    • Tenure: 2.2yrs
    • Compensation: US$828.14k
  • Terje Bjølseth

    Senior Vice President of Global Human Resources

    • Tenure: 0yrs
  • Per Reksnes (62yo)

    Executive Vice President of Operations & Technology

    • Tenure: 0yrs
    • Compensation: US$670.93k
  • Bård Stenberg

    Senior VP of IR & Communication

    • Tenure: 0yrs
  • Joanna Oustad

    Senior Vice President of Health

    • Tenure: 0yrs
  • David Dakin

    Chief Accounting Officer

    • Tenure: 0yrs
  • Berit Osnes

    Executive Vice President of New Ventures

    • Tenure: 0.8yrs
  • Nathan Oliver

    Executive Vice President of Sales & Imaging

    • Tenure: 0.8yrs

Board Members

  • Anne Dalane (59yo)

    Vice Chairperson

    • Tenure: 1.8yrs
  • Trond Brandsrud (61yo)

    Independent Director

    • Tenure: 0.6yrs
  • Walter Qvam (66yo)

    Chairperson

    • Tenure: 3.5yrs
  • Anette Valbø

    Director

    • Tenure: 4.8yrs
  • Richard Herbert

    Independent Director

    • Tenure: 2.5yrs
  • Hege Renshus (51yo)

    Director

    • Tenure: 2.8yrs
  • Marianne Kah (66yo)

    Independent Director

    • Tenure: 1.6yrs
  • Grunde Rønholt (47yo)

    Director

    • Tenure: 0.8yrs

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: kr5.273b
  • 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 Analysis2019/11/20 20:59
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
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.