Transportadora de Gas del Sur SA (TGS, Financial) is a leading company in the Oil & Gas industry. As of August 16, 2023, the company's stock price stands at $12.76, reflecting a gain of 7.68% today. Despite a slight dip of 0.08% over the past four weeks, TGS boasts a market capitalization of $1.92 billion. The company's GF Score is 82 out of 100, indicating good outperformance potential. This article will delve into the components of the GF Score, providing a comprehensive analysis of TGS's financial strength, profitability, growth, GF value, and momentum ranks.
Financial Strength Analysis
TGS's Financial Strength rank is 7 out of 10. This score is based on the company's interest coverage of 6.79, indicating a low debt burden, and a debt to revenue ratio of 0.72, which is relatively low. The company's Altman Z score of 4.74 further attests to its financial stability.
Profitability Rank Analysis
The company's Profitability Rank is a perfect 10 out of 10. This impressive score is driven by an operating margin of 29.58%, a Piotroski F-Score of 5, and a consistent profitability record over the past 10 years. The company's profitability trend over the past five years also shows a positive trajectory, further bolstering its rank.
Growth Rank Analysis
TGS also excels in terms of growth, with a Growth Rank of 10 out of 10. This is attributed to a 5-year revenue growth rate of 40.40% and a 3-year revenue growth rate of 18.80%. The company's 5-year EBITDA growth rate stands at an impressive 42.80%, indicating robust business operations.
GF Value Rank Analysis
However, the company's GF Value Rank is relatively low at 1 out of 10. This suggests that the company's stock may be overvalued, which could be a potential concern for value investors.
Momentum Rank Analysis
The company's Momentum Rank is 3 out of 10, indicating a relatively low momentum in terms of stock price performance. This suggests that the company's stock price may not have a strong upward trend in the near future.
Competitor Analysis
When compared to its main competitors in the Oil & Gas industry, TGS holds its ground. YPF SA (BUE:YPFD, Financial) has a GF Score of 61, Saudi Arabian Oil Co (SAU:2222, Financial) has a GF Score of 75, and Exxon Mobil Corp (XOM, Financial) matches TGS with a GF Score of 82. More details can be found on our competitors page.
Conclusion
In conclusion, Transportadora de Gas del Sur SA (TGS, Financial) demonstrates strong financial strength, profitability, and growth, which are reflected in its high GF Score of 82. However, its low GF Value and Momentum Ranks suggest potential concerns for value and momentum investors. Despite these, TGS remains a strong contender in the Oil & Gas industry, and its future growth potential should not be overlooked.
