NasdaqGS:TGA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and fair value.


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

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


Market Performance


7 Day Return

5.9%

TGA

-1.6%

US Oil and Gas

2.3%

US Market


1 Year Return

-56.9%

TGA

-42.5%

US Oil and Gas

6.7%

US Market

Return vs Industry: TGA underperformed the US Oil and Gas industry which returned -41.5% over the past year.

Return vs Market: TGA underperformed the US Market which returned 6% over the past year.


Shareholder returns

TGAIndustryMarket
7 Day5.9%-1.6%2.3%
30 Day-12.0%-21.7%-0.7%
90 Day31.6%7.1%17.1%
1 Year-55.7%-56.9%-39.8%-42.5%9.0%6.7%
3 Year-49.2%-51.9%-33.7%-40.8%36.7%27.8%
5 Year-81.0%-82.6%-38.3%-48.3%65.2%46.9%

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 ($0.63) is trading below our estimate of fair value ($2.64)

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


Price To Earnings Ratio

PE vs Industry: TGA is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: TGA is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TGA is good value based on its PB Ratio (0.3x) compared to the US Oil and Gas industry average (0.7x).


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 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TGA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TGA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TGA's revenue is expected to decline over the next 3 years (-5% per year).

High Growth Revenue: TGA's revenue is forecast to decline over the next 3 years (-5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TGA is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has TransGlobe Energy performed over the past 5 years?

34.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TGA is currently unprofitable.

Growing Profit Margin: TGA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TGA is unprofitable, but has reduced losses over the past 5 years at a rate of 34.2% per year.

Accelerating Growth: Unable to compare TGA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TGA is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-17.5%).


Return on Equity

High ROE: TGA has a negative Return on Equity (-32.6%), as it is currently unprofitable.


Next Steps

Financial Health

How is TransGlobe Energy's financial position?


Financial Position Analysis

Short Term Liabilities: TGA's short term assets ($85.8M) exceed its short term liabilities ($32.5M).

Long Term Liabilities: TGA's short term assets ($85.8M) exceed its long term liabilities ($54.1M).


Debt to Equity History and Analysis

Debt Level: TGA's debt to equity ratio (23.7%) is considered satisfactory.

Reducing Debt: TGA's debt to equity ratio has increased from 13.5% to 23.7% over the past 5 years.


Balance Sheet


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 TGA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TGA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 13.1% per year.


Next Steps

Dividend

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

3.20%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TGA's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: TGA is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Randy Neely (54yo)

1.5yrs

Tenure

US$1,093,259

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's total compensation ($USD1.09M) is above average for companies of similar size in the US market ($USD609.39K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Randall Neely
President1.5yrsUS$1.09m0.28% $125.0k
Edward Ok
VP of Finance & CFO2.5yrsUS$680.44k0.063% $28.5k
Geoffrey Probert
VP & COO1.33yrsUS$780.77kno data
Marilyn Vrooman-Robertson
Corporate Secretary3.5yrsno datano data

2.0yrs

Average Tenure

Experienced Management: TGA's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Randall Neely
President1.5yrsUS$1.09m0.28% $125.0k
Ross Clarkson
Non-Executive Director24.75yrsUS$97.41k2.55% $1.2m
Steven Sinclair
Independent Director3.33yrsUS$103.06k0.069% $31.3k
Carol Bell
Independent Non-Executive Director1.5yrsUS$101.02kno data
Timothy Marchant
Non-Executive Independent Director0.33yrno data0.055% $25.0k
David Cook
Independent Chairman of the Board1.17yrsUS$129.16k0.14% $64.9k
Edward LaFehr
Non-Executive Independent Director1.33yrsUS$92.15k0.028% $12.5k

1.5yrs

Average Tenure

62yo

Average Age

Experienced Board: TGA's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$45.339m
  • 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 acquisition, exploration, development, and production of crude oil and natural gas in Egypt and Canada. The company holds interests in four production sharing concessions, which include West Gharib, West Bakr, NW Gharib, and South Ghazalat, Egypt; and owns production and working interests in facilities in the Cardium light oil and Mannville liquid-rich gas assets in the Harmattan area of west central Alberta, Canada. TransGlobe Energy Corporation was incorporated in 1968 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 23:57
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
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.