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.

Risks

  • TransGlobe Energy is covered by less than 3 analysts.

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

2.8%

NasdaqGS:TGA

-3.1%

US Oil and Gas

-0.7%

US Market


1 Year Return

-52.9%

NasdaqGS:TGA

-22.6%

US Oil and Gas

-0.5%

US Market

TGA underperformed the Oil and Gas industry which returned -22.5% over the past year.

TGA underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

TGAIndustryMarket
7 Day2.8%-3.1%-0.7%
30 Day1.4%-9.5%-3.0%
90 Day-13.3%-12.3%0.9%
1 Year-51.5%-52.9%-19.8%-22.6%1.7%-0.5%
3 Year-24.7%-26.9%-8.3%-16.5%39.5%30.4%
5 Year-74.7%-77.5%-33.6%-42.6%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

TransGlobe Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

TransGlobe Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

TransGlobe Energy is good value based on earnings compared to the US Oil and Gas industry average.

TransGlobe Energy is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

TransGlobe Energy earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

TransGlobe Energy is good value based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

How is TransGlobe Energy expected 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 Estimates


Future Annual Growth Analysis

TransGlobe Energy's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

TransGlobe Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

TransGlobe Energy's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

TransGlobe Energy's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

TransGlobe Energy's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

TransGlobe Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

TransGlobe Energy's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

TransGlobe Energy has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

TransGlobe Energy has become profitable in the last year making it difficult to compare the US Oil and Gas industry average.


Return on Equity

TransGlobe Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

TransGlobe Energy used its assets more efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

TransGlobe Energy has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is TransGlobe Energy's financial position?


Financial Position Analysis

TransGlobe Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

TransGlobe Energy's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

TransGlobe Energy's level of debt (21.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (16.6% vs 21.7% today).

Debt is well covered by operating cash flow (138.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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

3.23%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase TransGlobe Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

TransGlobe Energy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

TransGlobe Energy's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

TransGlobe Energy has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

TransGlobe Energy has only been paying a dividend for 5 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.4x coverage).


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Randy Neely (53yo)

0.6yrs

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

Randy's remuneration is higher than average for companies of similar size in United States of America.

Randy's compensation has increased in line with TransGlobe Energy recently becoming profitable.


Management Age and Tenure

0.6yrs

Average Tenure

The average tenure for the TransGlobe Energy management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

59yo

Average Age

The average tenure for the TransGlobe Energy board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by TransGlobe Energy individual insiders in the past 3 months.


Recent Insider Transactions

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
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
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
Chairman of the Board
Shares17,500
Max PriceUS$2.12
BuyUS$67,80704 Dec 18
David Cook
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares32,289
Max PriceUS$2.10
SellUS$1,677,20001 Oct 18
Ross Clarkson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares500,000
Max PriceUS$3.35

Ownership Breakdown


Management Team

  • Lloyd Herrick (66yo)

    Executive Vice President

    • Tenure: 0.4yrs
    • Compensation: US$1.16m
  • Randy Neely (53yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$1.19m
  • Geoff Probert

    VP & COO

    • Tenure: 0.4yrs
  • Marilyn Vrooman-Robertson

    Corporate Secretary

    • Tenure: 2.6yrs
  • Eddie Ok

    VP of Finance & CFO

    • Tenure: 1.6yrs
    • Compensation: US$694.00k

Board Members

  • Ross Clarkson (65yo)

    Non-Executive Director

    • Tenure: 23.8yrs
    • Compensation: US$1.35m
  • Steve Sinclair (62yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$135.00k
  • Carol Bell (61yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Sue MacKenzie (59yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$137.50k
  • Randy Neely (53yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$1.19m
  • David Cook (57yo)

    Chairman of the Board

    • Tenure: 0.3yrs
    • Compensation: US$130.00k
  • Ed LaFehr (59yo)

    Non-Executive Independent Director

    • Tenure: 0.4yrs

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$106.637m
  • 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 Analysis2019/08/18 23:48
End of Day Share Price2019/08/16 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.