NasdaqGS:TGA

Stock Analysis Report

Executive Summary

TransGlobe Energy Corporation, together with its subsidiaries, engages in the exploration, development, and production of crude oil and natural gas in Egypt and Canada.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

TGA

-0.1%

US Oil and Gas

1.0%

US Market


1 Year Return

-51.7%

TGA

-20.1%

US Oil and Gas

8.0%

US Market

Return vs Industry: TGA underperformed the US Oil and Gas industry which returned -20.1% over the past year.

Return vs Market: TGA underperformed the US Market which returned 8% over the past year.


Shareholder returns

TGAIndustryMarket
7 Day-3.8%-0.1%1.0%
30 Day-12.6%-5.4%-0.07%
90 Day-13.8%-8.6%-1.0%
1 Year-49.5%-51.7%-17.1%-20.1%10.4%8.0%
3 Year-32.2%-35.9%-7.4%-15.9%46.2%36.7%
5 Year-68.0%-72.0%-22.6%-33.7%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is TransGlobe Energy 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: TGA ($1.25) is trading below our estimate of fair value ($3.05)

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


Price To Earnings Ratio

PE vs Industry: TGA is good value based on its PE Ratio (4.6x) compared to the Oil and Gas industry average (9.6x).

PE vs Market: TGA is good value based on its PE Ratio (4.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: TGA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TGA is good value based on its PB Ratio (0.4x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is TransGlobe Energy forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-35.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGA's earnings are forecast to decline over the next 3 years (-35.4% per year).

Earnings vs Market: TGA's earnings are forecast to decline over the next 3 years (-35.4% per year).

High Growth Earnings: TGA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TGA's revenue is expected to decline over the next 3 years (-7% per year).

High Growth Revenue: TGA's revenue is forecast to decline over the next 3 years (-7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TGA's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has TransGlobe Energy performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TGA's earnings have declined by -2.7% per year over the past 5 years.

Accelerating Growth: TGA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TGA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (20.6%).


Return on Equity

High ROE: TGA's Return on Equity (8.9%) is considered low.


Return on Assets

ROA vs Industry: TGA has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: TGA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is TransGlobe Energy's financial position?


Financial Position Analysis

Short Term Liabilities: TGA's short term assets ($76.5M) exceeds its short term liabilities ($22.4M)

Long Term Liabilities: TGA's short term assets (76.5M) exceeds its long term liabilities (72.0M)


Debt to Equity History and Analysis

Debt Level: TGA's debt to equity ratio (21.7%) is considered satisfactory

Reducing Debt: TGA's debt to equity ratio has increased from 16.6% to 21.7% over the past 5 years.

Debt Coverage: TGA's debt is well covered by operating cash flow (138.3%).

Interest Coverage: TGA's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet

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

Debt Coverage by Assets: TGA's debt is covered by short term assets (assets are 1.590340x debt).


Next Steps

Dividend

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

5.60%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years3.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TGA's dividend (5.6%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TGA's dividend (5.6%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: TGA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TGA has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.7%), TGA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TGA's dividends in 3 years are forecast to be well covered by earnings (18.5% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Randy Neely (53yo)

0.8yrs

Tenure

US$1,194,883

Compensation

Mr. Randall C. Neely, also known as Randy, CPA ("CA"), CFA, ICD.D., has been President and Chief Executive Officer of TransGlobe Energy Corporation since January 10, 2018 and January 1, 2019and also its Di ...


CEO Compensation Analysis

Compensation vs. Market: Randy has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: TGA's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

59yo

Average Age

Experienced Board: TGA's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$8,02230 Sep 19
Edward LaFehr
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares6,000
Max PriceUS$1.34
BuyUS$25,38327 Sep 19
Randall Neely
EntityIndividual
Role
Chief Executive Officer
President
Shares24,700
Max PriceUS$1.03
BuyUS$51,26205 Sep 19
David Cook
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares37,731
Max PriceUS$1.36
BuyUS$28,70024 Jun 19
Edward Ok
EntityIndividual
Role
Chief Financial Officer
VP of Finance & CFO
Shares20,000
Max PriceUS$1.44
BuyUS$35,75624 Jun 19
Randall Neely
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceUS$1.43
BuyUS$9,52103 Jun 19
David Cook
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares6,347
Max PriceUS$1.50
BuyUS$4,08822 Mar 19
Edward LaFehr
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares2,000
Max PriceUS$2.04
BuyUS$16,20022 Dec 18
David Cook
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares10,000
Max PriceUS$1.62
BuyUS$34,07120 Dec 18
Steven Sinclair
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$1.71
BuyUS$40,21011 Dec 18
George MacDougall
EntityIndividual
Shares20,000
Max PriceUS$2.03
BuyUS$37,09506 Dec 18
David Cook
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares17,500
Max PriceUS$2.12
BuyUS$67,80704 Dec 18
David Cook
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares32,289
Max PriceUS$2.10

Ownership Breakdown


Management Team

  • Lloyd Herrick (66yo)

    Executive Vice President

    • Tenure: 0.6yrs
    • Compensation: US$1.16m
  • Randy Neely (53yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$1.19m
  • Geoff Probert

    VP & COO

    • Tenure: 0.6yrs
  • Marilyn Vrooman-Robertson

    Corporate Secretary

    • Tenure: 2.8yrs
  • Eddie Ok

    VP of Finance & CFO

    • Tenure: 1.8yrs
    • Compensation: US$694.00k

Board Members

  • Ross Clarkson (65yo)

    Non-Executive Director

    • Tenure: 24yrs
    • Compensation: US$1.35m
  • Steve Sinclair (62yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$135.00k
  • Carol Bell (61yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Sue MacKenzie (59yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$137.50k
  • Randy Neely (53yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$1.19m
  • David Cook (57yo)

    Independent Chairman of the Board

    • Tenure: 0.4yrs
    • Compensation: US$130.00k
  • Ed LaFehr (59yo)

    Non-Executive Independent Director

    • Tenure: 0.6yrs

Company Information

TransGlobe Energy Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TransGlobe Energy Corporation
  • Ticker: TGA
  • Exchange: NasdaqGS
  • Founded: 1968
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$90.678m
  • Shares outstanding: 72.54m
  • Website: https://www.trans-globe.com

Number of Employees


Location

  • TransGlobe Energy Corporation
  • 250 – 5th Street SW
  • Suite 2300
  • Calgary
  • Alberta
  • T2P 0R4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGANasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJan 1980
TGLTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1980
TRPDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980
TGLAIM (London Stock Exchange AIM Market)YesCommon SharesGBGBPJan 1980

Biography

TransGlobe Energy Corporation, together with its subsidiaries, engages in the exploration, development, and production of crude oil and natural gas in Egypt and Canada. The company holds an interest in fiv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:42
End of Day Share Price2019/10/21 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.