WSE:TSG

Stock Analysis Report

Executive Summary

Tesgas S.A. designs, constructs, and operates various gas facilities in Poland.

Rewards

Trading at 57.7% below its fair value

Earnings grew by 151.1% over the past year

Risk Analysis

Highly volatile share price over past 3 months

Does not have a meaningful market cap (PLN61M)



Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.8%

TSG

0.8%

PL Gas Utilities

-0.2%

PL Market


1 Year Return

82.1%

TSG

8.6%

PL Gas Utilities

-7.2%

PL Market

Return vs Industry: TSG exceeded the Polish Gas Utilities industry which returned 8.3% over the past year.

Return vs Market: TSG exceeded the Polish Market which returned -7.1% over the past year.


Shareholder returns

TSGIndustryMarket
7 Day5.8%0.8%-0.2%
30 Day-6.8%4.3%-2.1%
90 Day68.7%6.2%0.1%
1 Year82.1%82.1%13.7%8.6%-4.5%-7.2%
3 Year78.0%78.0%51.7%31.3%-6.7%-13.3%
5 Year45.9%37.5%56.3%16.8%2.2%-10.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tesgas 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: TSG (PLN5.5) is trading below our estimate of fair value (PLN13)

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


Price To Earnings Ratio

PE vs Industry: TSG is good value based on its PE Ratio (17x) compared to the Gas Utilities industry average (17.5x).

PE vs Market: TSG is poor value based on its PE Ratio (17x) compared to the Polish market (12.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TSG is good value based on its PB Ratio (0.9x) compared to the XE Gas Utilities industry average (1.3x).


Next Steps

Future Growth

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

3.0%

Forecasted Utilities 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 Tesgas 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 Tesgas performed over the past 5 years?

-13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TSG has high quality earnings.

Growing Profit Margin: TSG's current net profit margins (3.2%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: TSG has become profitable over the past 5 years, growing earnings by -13% per year.

Accelerating Growth: TSG's earnings growth over the past year (151.1%) exceeds its 5-year average (-13% per year).

Earnings vs Industry: TSG earnings growth over the past year (151.1%) exceeded the Gas Utilities industry 10.6%.


Return on Equity

High ROE: TSG's Return on Equity (5.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tesgas's financial position?


Financial Position Analysis

Short Term Liabilities: TSG's short term assets (PLN46.9M) exceed its short term liabilities (PLN22.7M).

Long Term Liabilities: TSG's short term assets (PLN46.9M) exceed its long term liabilities (PLN8.8M).


Debt to Equity History and Analysis

Debt Level: TSG's debt to equity ratio (0.5%) is considered satisfactory.

Reducing Debt: TSG's debt to equity ratio has reduced from 7.5% to 0.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TSG's debt is covered by short term assets (assets are 140.1x 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: TSG is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: TSG is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.6%industryaverage4.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

Dividend Coverage: TSG is not paying a notable dividend for the Polish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TSG's dividend in 3 years as they are not forecast to pay a notable one for the Polish market.


Next Steps

Management

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

zł269k

CEO Compensation


CEO

Wlodzimierz Kocik 0

zł268,800

Compensation

Mr. Wlodzimierz Kocik has been the President of Management Board at TESGAS S.A. since 2004. Mr. Kocik has had over 16 years of experience in the gas sector. Since 1994 he has been working in the Piecobioga ...


CEO Compensation Analysis

Compensation vs Market: Wlodzimierz's total compensation ($USD0.00) is below average for companies of similar size in the Polish market ($USD156.52K).

Compensation vs Earnings: Wlodzimierz's compensation has been consistent with company performance over the past year.


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

Tesgas S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tesgas S.A.
  • Ticker: TSG
  • Exchange: WSE
  • Founded: 2000
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: zł61.858m
  • Shares outstanding: 11.35m
  • Website: https://www.tesgas.pl

Location

  • Tesgas S.A.
  • 9 Batorowska Street
  • Dabrowa
  • Dopiewo
  • 62-070
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSGWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNSep 2009
0P1SLSE (London Stock Exchange)YesCommon Bearer SharesGBPLNSep 2009

Biography

Tesgas S.A. designs, constructs, and operates various gas facilities in Poland. The company engages in the investment and development activities related to the transmission and distribution of natural gas. It is also involved in the construction and renovation of gas networks of high, medium, and low pressures; stations and gas boilers; and facilities connected with the extraction of natural gas and petroleum. In addition, the company engages in the construction of LNG, LPG, and CNG gas stations, as well as micro generation systems; and manufacture of pressure vessels. Further, it operates medium and high pressure gas stations and pipelines; and other gas facilities, including LNG installations, gas boilers, industrial gas installations, etc., as well as provides services for gas facilities. Additionally, the company engages in the distribution of natural gas odorant–tetrahydrogen thiophene (THT), a colorless agent that is added to odorless natural gas to become noticeable; delivery of THT odorizing and filling installation activities; adapting odorization installations for the hermetic filling with THT agent; liquidation of small THT leaks from installations, tanks, etc.; and installation of oil and gas mines. It also designs and constructs steel casings of gas stations and power generator units, flange connection elements, and other devices for gas engineering. The company serves owners of gas transmission networks; reduction and metering station construction customers; building consortiums; and gas mines, gas warehouses, or LNG terminals construction contractors. Tesgas S.A. was founded in 2000 and is headquartered in Dopiewo, Poland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 21:53
End of Day Share Price2020/02/19 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.