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TGS

Transportadora de Gas del Sur NYSE:TGS Stock Report

Last Price

AR$5.14

Market Cap

AR$1.6b

7D

-0.4%

1Y

12.7%

Updated

30 Jun, 2022

Data

Company Financials +
TGS fundamental analysis
Snowflake Score
Valuation6/6
Future Growth5/6
Past Performance5/6
Financial Health5/6
Dividends0/6

TGS Stock Overview

Transportadora de Gas del Sur S.A. engages in transportation of natural gas, production, and commercialization of natural gas liquids in Argentina.

Transportadora de Gas del Sur Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Transportadora de Gas del Sur
Historical stock prices
Current Share PriceAR$5.14
52 Week HighAR$7.65
52 Week LowAR$4.05
Beta1.24
1 Month Change-23.96%
3 Month Change-27.30%
1 Year Change12.72%
3 Year Change-63.76%
5 Year Change-67.65%
Change since IPO-51.47%

Recent News & Updates

Jan 11

Transportadora De Gas Del Sur S.A. And Its Real Value

Transportadora de Gas del Sur is facing rising costs and soaring inflation in its home country of Argentina, but has been unable to raise prices due to a government-imposed price. Despite the country’s economic crisis, the company’s book value, cash flow and earnings for the past five years have been increasing. The company appears to be undervalued especially if the prize freeze is relaxed in the near term, but overvalued if government restrictions remain in place. This article tells what investors could likely make in the future with Transportadora de Gas del Sur and what the real value is versus the current share price.

Nov 07

Transportadora De Gas Del Sur Is Selling At Value Price

Transportadora is navigating through one of the most challenging periods of its existence. However it was able to produce $66.5 million in recalculated net income. TGS has a conservative balance sheet and good financial management. The company has two avenues for growth: recovery of the transportation segment (government dependent) and Vaca Muerta's basin growth.

Shareholder Returns

TGSUS Oil and GasUS Market
7D-0.4%1.5%-0.6%
1Y12.7%26.6%-21.7%

Return vs Industry: TGS underperformed the US Oil and Gas industry which returned 31.4% over the past year.

Return vs Market: TGS exceeded the US Market which returned -20.8% over the past year.

Price Volatility

Is TGS's price volatile compared to industry and market?
TGS volatility
TGS Average Weekly Movement7.5%
Oil and Gas Industry Average Movement8.9%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: TGS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TGS's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19921,108Oscar José Sardihttps://www.tgs.com.ar

Transportadora de Gas del Sur S.A. engages in transportation of natural gas, production, and commercialization of natural gas liquids in Argentina. The company operates through four segments: Natural Gas Transportation Services; Liquids Production and Commercialization; Other Services; and Telecommunications. The Natural Gas Transportation segment transports natural gas through 5,769 miles of pipeline system to distribution companies, power plants, and industrial customers.

Transportadora de Gas del Sur Fundamentals Summary

How do Transportadora de Gas del Sur's earnings and revenue compare to its market cap?
TGS fundamental statistics
Market CapAR$196.09b
Earnings (TTM)AR$23.07b
Revenue (TTM)AR$91.72b

8.5x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TGS income statement (TTM)
RevenueAR$91.72b
Cost of RevenueAR$48.31b
Gross ProfitAR$43.41b
Other ExpensesAR$20.34b
EarningsAR$23.07b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)30.64
Gross Margin47.33%
Net Profit Margin25.15%
Debt/Equity Ratio38.0%

How did TGS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is TGS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TGS?

Other financial metrics that can be useful for relative valuation.

TGS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA5.3x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does TGS's PE Ratio compare to its peers?

TGS PE Ratio vs Peers
The above table shows the PE ratio for TGS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.9x
SFL SFL
6.7x0.8%US$1.2b
RTLR Rattler Midstream
14.1x19.8%US$2.0b
DKL Delek Logistics Partners
12.6x16.8%US$2.1b
PBFX PBF Logistics
6.3x-3.0%US$966.5m
TGS Transportadora de Gas del Sur
8.5x30.1%US$196.1b

Price-To-Earnings vs Peers: TGS is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (9.9x).


Price to Earnings Ratio vs Industry

How does TGS's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: TGS is good value based on its Price-To-Earnings Ratio (8.5x) compared to the US Oil and Gas industry average (11.8x)


Price to Earnings Ratio vs Fair Ratio

What is TGS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TGS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.5x
Fair PE Ratio22.1x

Price-To-Earnings vs Fair Ratio: TGS is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (22.1x).


Share Price vs Fair Value

What is the Fair Price of TGS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TGS ($5.14) is trading below our estimate of fair value ($8.14)

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


Price to Earnings Growth Ratio

PEG Ratio: TGS is good value based on its PEG Ratio (0.3x)


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Future Growth

How is Transportadora de Gas del Sur forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


30.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGS's forecast earnings growth (30.1% per year) is above the savings rate (1.9%).

Earnings vs Market: TGS's earnings (30.1% per year) are forecast to grow faster than the US market (13.7% per year).

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

Revenue vs Market: TGS's revenue (29.1% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: TGS's revenue (29.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

How has Transportadora de Gas del Sur performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


17.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TGS has high quality earnings.

Growing Profit Margin: TGS's current net profit margins (25.1%) are higher than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: TGS's earnings have grown by 17.2% per year over the past 5 years.

Accelerating Growth: TGS's earnings growth over the past year (310.4%) exceeds its 5-year average (17.2% per year).

Earnings vs Industry: TGS earnings growth over the past year (310.4%) exceeded the Oil and Gas industry 102.2%.


Return on Equity

High ROE: TGS's Return on Equity (15.6%) is considered low.


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Financial Health

How is Transportadora de Gas del Sur's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TGS's short term assets (ARS49.1B) exceed its short term liabilities (ARS24.1B).

Long Term Liabilities: TGS's short term assets (ARS49.1B) do not cover its long term liabilities (ARS74.7B).


Debt to Equity History and Analysis

Debt Level: TGS's net debt to equity ratio (17.6%) is considered satisfactory.

Reducing Debt: TGS's debt to equity ratio has reduced from 95.2% to 38% over the past 5 years.

Debt Coverage: TGS's debt is well covered by operating cash flow (54.6%).

Interest Coverage: TGS's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


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Dividend

What is Transportadora de Gas del Sur current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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

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


Earnings Payout to Shareholders

Earnings Coverage: TGS is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TGS has not reported any payouts.


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Management

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

4.7yrs

Average management tenure


CEO

Oscar José Sardi (66 yo)

3.17yrs

Tenure

Mr. Oscar José Sardi has been Chief Executive Officer of Transportadora de Gas Del Sur S.A. since April 30, 2019. Mr. Sardi served as Operations Director at Transportadora de Gas Del Sur S.A. since October...


Leadership Team

Experienced Management: TGS's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: TGS's board of directors are considered experienced (3.2 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Transportadora de Gas del Sur S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Transportadora de Gas del Sur S.A.
  • Ticker: TGS
  • Exchange: NYSE
  • Founded: 1992
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: AR$196.094b
  • Listing Market Cap: AR$1.566b
  • Shares outstanding: 752.76m
  • Website: https://www.tgs.com.ar

Number of Employees


Location

  • Transportadora de Gas del Sur S.A.
  • Don Bosco 3672
  • 5th Floor
  • Buenos Aires
  • Capital Federal
  • 1206
  • Argentina

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.