OB:TGS

Stock Analysis Report

TGS-NOPEC Geophysical

Executive Summary

TGS-NOPEC Geophysical Company ASA provides geoscientific data products and services to the oil and gas industry worldwide.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has TGS-NOPEC Geophysical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TGS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

TGS

-9.0%

NO Energy Services

-5.1%

NO Market


1 Year Return

-5.2%

TGS

-32.2%

NO Energy Services

-5.6%

NO Market

Return vs Industry: TGS exceeded the Norwegian Energy Services industry which returned -32.8% over the past year.

Return vs Market: TGS matched the Norwegian Market which returned -5.1% over the past year.


Shareholder returns

TGSIndustryMarket
7 Day-3.1%-9.0%-5.1%
30 Day-7.6%-17.6%-5.3%
90 Day-13.6%-19.6%-3.2%
1 Year-0.7%-5.2%-30.2%-32.2%-0.7%-5.6%
3 Year35.9%22.9%-28.1%-33.0%25.1%9.4%
5 Year44.0%19.3%-18.1%-48.5%52.3%18.3%

Price Volatility Vs. Market

How volatile is TGS-NOPEC Geophysical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TGS-NOPEC Geophysical undervalued compared to its fair value and its price relative to the market?

26.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TGS (NOK226.3) is trading below our estimate of fair value (NOK306.18)

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


Price To Earnings Ratio

PE vs Industry: TGS is poor value based on its PE Ratio (26.2x) compared to the Energy Services industry average (9.8x).

PE vs Market: TGS is poor value based on its PE Ratio (26.2x) compared to the Norwegian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: TGS is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: TGS is overvalued based on its PB Ratio (1.8x) compared to the NO Energy Services industry average (0.5x).


Next Steps

Future Growth

How is TGS-NOPEC Geophysical forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

31.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGS's forecast earnings growth (31.7% per year) is above the savings rate (0.7%).

Earnings vs Market: TGS's earnings (31.7% per year) are forecast to grow faster than the Norwegian market (18.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TGS's revenue (16.9% per year) is forecast to grow faster than the Norwegian market (3.4% per year).

High Growth Revenue: TGS's revenue (16.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TGS's Return on Equity is forecast to be low in 3 years time (18.9%).


Next Steps

Past Performance

How has TGS-NOPEC Geophysical performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGS has high quality earnings.

Growing Profit Margin: TGS's current net profit margins (17%) are lower than last year (29.1%).


Past Earnings Growth Analysis

Earnings Trend: TGS's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: TGS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TGS had negative earnings growth (-44.4%) over the past year, making it difficult to compare to the Energy Services industry average (-44.4%).


Return on Equity

High ROE: TGS's Return on Equity (6.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TGS-NOPEC Geophysical's financial position?


Financial Position Analysis

Short Term Liabilities: TGS's short term assets ($721.6M) exceed its short term liabilities ($584.8M).

Long Term Liabilities: TGS's short term assets ($721.6M) exceed its long term liabilities ($67.3M).


Debt to Equity History and Analysis

Debt Level: TGS's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if TGS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: TGS's debt is well covered by operating cash flow (19958.9%).

Interest Coverage: TGS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TGS has a low level of unsold assets or inventory.

Debt Coverage by Assets: TGS's debt is covered by short term assets (assets are 256.9x debt).


Next Steps

Dividend

What is TGS-NOPEC Geophysical's current dividend yield, its reliability and sustainability?

6.21%

Current Dividend Yield


Dividend Yield vs Market

company6.2%marketbottom25%3.0%markettop25%6.4%industryaverage5.7%forecastin3Years6.7%

Current dividend yield vs market & industry

Notable Dividend: TGS's dividend (6.21%) is higher than the bottom 25% of dividend payers in the Norwegian market (3%).

High Dividend: TGS's dividend (6.21%) is low compared to the top 25% of dividend payers in the Norwegian market (6.42%).


Stability and Growth of Payments

Stable Dividend: TGS's dividend payments have been volatile in the past 10 years.

Growing Dividend: TGS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (117.4%), TGS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TGS's dividends in 3 years are forecast to be covered by earnings (70.9% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Kristian Johansen (48yo)

3.9yrs

Tenure

US$2,157,000

Compensation

Mr. Kristian Kuvaas Johansen has been the Chief Executive Officer of TGS-NOPEC Geophysical Company ASA since March 11, 2016 and has been its Interim Leader North & South America since January 13, 2017. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Kristian's total compensation ($USD2.16M) is above average for companies of similar size in the Norwegian market ($USD876.38K).

Compensation vs Earnings: Kristian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kristian Johansen
Chief Executive Officer3.9yrsUS$2.16m0.048% $12.8m
Fredrik Amundsen
Chief Financial Officer0yrsUS$597.00k0.0083% $2.2m
Tana Pool
Executive VP of Legal & General Counsel7.1yrsUS$615.00k0.0079% $2.1m
Tanya Herwanger
Executive Vice President of Staff & Support0.5yrsUS$358.50k0.0054% $1.4m
Will Ashby
Executive Vice President of North America1.1yrsUS$585.00k0.010% $2.7m
Katja Akentieva
Executive Vice President of Onshore3.8yrsUS$639.00k0.0095% $2.5m
Jan Schoolmeesters
Executive Vice President of Operations0.5yrsno data0.043% $11.5m
Paul Young
Managing Director of Asia Pacific8.7yrsno datano data
Rune Eng
Executive Vice President of Southern Hemisphere & Europe0.5yrsno data0.31% $82.2m
Scott Michell
Senior VP of Imaging0.08yrsno datano data

1.1yrs

Average Tenure

55.5yo

Average Age

Experienced Management: TGS's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Henry Hamilton
Chairman of the Board10.7yrsUS$200.00k1.16% $305.8m
Torstein Sanness
Independent Director3.8yrsUS$82.00k0.0056% $1.5m
Christopher Finlayson
Independent Director0.8yrsno datano data
Wenche Agerup
Independent Director4.8yrsUS$82.00k0.0070% $1.9m
Mark Leonard
Independent Director11.1yrsUS$88.00k0.020% $5.4m
Tor Lønnum
Independent Director6.7yrsUS$88.00k0.0098% $2.6m
Vicki Messer
Independent Director8.7yrsUS$82.00k0.013% $3.3m
Irene Egset
Independent Director0.8yrsno data0.0014% $373.2k

5.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: TGS's board of directors are considered experienced (5.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.


Top Shareholders

Company Information

TGS-NOPEC Geophysical Company ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TGS-NOPEC Geophysical Company ASA
  • Ticker: TGS
  • Exchange: OB
  • Founded: 1981
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: kr26.465b
  • Shares outstanding: 116.94m
  • Website: https://www.tgs.com

Number of Employees


Location

  • TGS-NOPEC Geophysical Company ASA
  • Lensmannslia 4
  • Asker
  • 1386
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGSOB (Oslo Bors)YesOrdinary SharesNONOKOct 1997
TGCDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1997
TGSN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1997
0MSJLSE (London Stock Exchange)YesOrdinary SharesGBNOKOct 1997
TGSOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKOct 1997
TGSG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008

Biography

TGS-NOPEC Geophysical Company ASA provides geoscientific data products and services to the oil and gas industry worldwide. The company offers geophysical multi-client data, including seismic data; and geophysical library, such as gravity, magnetic, seep, geothermal, controlled source electromagnetic, and multi-beam data. It also provides geological services comprising digital well logs; and interpretation services and other geoscientific data to support hydrocarbon exploration. In addition, the company offers imaging services, which include depth and time imaging; marine, land, and ocean bottom cables and nodes; anisotropic imaging; transition zone processing; multi component processing; shear wave; and 4D time-lapse, as well as wide azimuth data processing. Further, it provides data and analytics solutions; data integration products; and PRIMA, a multi-function exploration software suite. TGS-NOPEC Geophysical Company ASA has a strategic collaborations with Axxis Geo Solutions and Schlumberger Limited for Ocean Bottom Node Projects in North Sea. TGS-NOPEC Geophysical Company ASA was founded in 1981 and is headquartered in Asker, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 21:23
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.