Transportadora de Gas del Sur S.A. Fundamental Analysis (NYSE: TGS)
Transportadora de Gas del Sur S.A. Fundamental Analysis (NYSE: TGS)
Transportadora de Gas del Sur S.A. (NYSE: TGS) shows strong financial fundamentals with a PE ratio of 11.39, profit margin of 27.52%, and ROE of 16.61%. The company generates $2035.5B in annual revenue with strong year-over-year growth of 41.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 92.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze TGS's fundamental strength across five key dimensions:
Efficiency Score
WeakTGS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTGS trades at attractive valuation levels.
Growth Score
ExcellentTGS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTGS maintains a strong and stable balance sheet.
Profitability Score
ExcellentTGS achieves industry-leading margins.
Key Financial Metrics
Is TGS Expensive or Cheap?
P/E Ratio
TGS trades at 11.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TGS's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Transportadora de Gas del Sur S.A. at 1.59 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.07 times EBITDA. This is generally considered low.
How Well Does TGS Make Money?
Net Profit Margin
For every $100 in sales, Transportadora de Gas del Sur S.A. keeps $27.52 as profit after all expenses.
Operating Margin
Core operations generate 43.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.61 in profit for every $100 of shareholder equity.
ROA
Transportadora de Gas del Sur S.A. generates $8.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Transportadora de Gas del Sur S.A. generates strong operating cash flow of $944.44B, reflecting robust business health.
Free Cash Flow
Transportadora de Gas del Sur S.A. generates strong free cash flow of $407.58B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2707.23 in free cash annually.
FCF Yield
TGS converts 6.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How TGS Stacks Against Its Sector Peers
| Metric | TGS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.39 | 21.23 | Better (Cheaper) |
| ROE | 16.61% | 1266.00% | Weak |
| Net Margin | 27.52% | 1278.00% | Weak |
| Debt/Equity | 0.42 | -1.82 (disorted) | Distorted |
| Current Ratio | 3.67 | 2.24 | Strong Liquidity |
| ROA | 8.34% | 4418.00% | Weak |
TGS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Transportadora de Gas del Sur S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
958.15%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
4311.35%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
566.42%
Industry Style: Cyclical, Value, Commodity
High Growth