Transportadora De Gas Sa Ord B (TGS) AI Stock Analysis

• Market Cap: $4.06B
• Dividend Yield: N/A
• Average Volume (3M): 281.42K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.51
• Revenue Growth: 37.43%
• EPS Growth: 395.49%
• Country: US
• Employees: 1,147
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.50
• Shares Outstanding: 77,860,535
• 10 Day Avg. Volume: 230,998
• 30 Day Avg. Volume: 281,418
• PEG Ratio: -2.89
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $39.00
• Price Target Upside: 37.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $31.00 ▲(9.50%Upside)

Transportadora De Gas Sa Ord B demonstrates strong financial health, bolstered by impressive revenue and profit growth, and effective cash flow management. However, technical analysis presents mixed signals, and valuation is moderate. The absence of dividend yield and volatility in revenue growth are additional considerations.

Transportadora De Gas Sa Ord B Business Overview & Revenue Model

Company Description

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. It also provides operation and maintenance services for the natural gas transportation facilities. The company's Liquids Production and Commercialization segment produces and commercializes natural gas liquids, such as ethane, liquid petroleum gas, natural gasoline, propane, and butane in Argentina and internationally. Its Other Services segment offers midstream services, including natural gas treatment, separation, and removal of impurities from the natural gas stream, as well as natural gas compression. It also provides services related to pipeline and compression plant construction, operation, and maintenance; and generates steam for electricity production. The Telecommunications segment provides telecommunication services with a network that includes a microwave digital network with synchronous digital hierarchy technology and a dark fiber optic network. As of December 31, 2021, it served 6.2 million residential, commercial, industrial, and electric power generation end users. The company was founded in 1992 and is headquartered in Buenos Aires, Argentina. Transportadora de Gas del Sur S.A. is a subsidiary of Compañía de Inversiones de Energía S.A.

How the Company Makes Money

TGS generates revenue primarily through its natural gas transportation services, which involve the transmission of natural gas through its extensive pipeline network. The company's revenue model is supported by long-term contracts with natural gas producers, distributors, and large industrial users, providing a stable and predictable income stream. In addition to transportation fees, TGS earns money from the sale of natural gas liquids, which are extracted and processed at its facilities. The company also offers midstream services such as gas treatment and conditioning, further diversifying its income sources. TGS maintains strategic partnerships and agreements with key players in the energy sector, enhancing its market position and operational efficiency.

Transportadora De Gas Sa Ord B Financial Statement Overview

Summary

Transportadora De Gas Sa Ord B exhibits strong financial performance with impressive revenue and profit growth, healthy margins, and a robust balance sheet. However, attention should be paid to the volatility in revenue growth and the rising liabilities.

Income Statement

The company shows strong revenue growth, with a significant increase from 2023 to 2024. Gross profit margin and net profit margin are healthy, indicating good cost management and profitability. The EBIT and EBITDA margins are robust, reflecting operational efficiency. However, the revenue growth rate from 2022 to 2023 was negative, which raises concerns about consistent growth.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio, indicating good financial leverage management. The return on equity (ROE) is impressive, showcasing efficient use of shareholder funds to generate profit. The equity ratio is high, suggesting a strong capital structure. However, the significant increase in total liabilities from 2023 to 2024 warrants attention.

Cash Flow

Cash flow generation is strong with substantial free cash flow growth from 2023 to 2024. The operating cash flow to net income ratio is favorable, indicating efficient cash generation from operations. The free cash flow to net income ratio is healthy, demonstrating good cash profitability. Nonetheless, the capital expenditures have increased, which could impact future cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.22T	444.29B	495.50B	526.69B	163.31B
	Gross Profit
653.12B	159.54B	196.42B	237.57B	82.26B
	EBIT
560.30B	116.44B	163.33B	206.75B	60.69B
	EBITDA
643.37B	128.88B	235.89B	289.63B	50.60B
	Net Income Common Stockholders
370.16B	23.52B	100.64B	126.97B	9.66B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
796.54B	329.46B	131.66B	34.48B	10.25B
	Total Assets
3.39T	1.53T	1.28T	405.52B	194.10B
	Total Debt
580.11B	421.65B	294.64B	102.42B	66.22B
	Net Debt
520.14B	415.05B	285.33B	93.79B	59.19B
	Total Liabilities
1.16T	670.12B	451.13B	170.61B	94.44B
	Stockholders Equity
2.23T	855.67B	832.16B	234.91B	99.66B
Cash Flow		Free Cash Flow
194.36B	54.49B	31.47B	125.28B	60.99B
	Operating Cash Flow
484.17B	189.57B	110.28B	183.80B	83.84B
	Investing Cash Flow
-384.90B	-206.43B	-125.23B	-183.70B	-88.47B
	Financing Cash Flow
-31.35B	24.65B	11.29B	-5.82B	-14.92B

Transportadora De Gas Sa Ord B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGS, the sentiment is Positive. The current price of 28.31 is below the 20-day moving average (MA) of 29.49, above the 50-day MA of 27.35, and above the 200-day MA of 25.79, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 49.72 is Neutral, neither overbought nor oversold. The STOCH value of 20.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TGS.

Transportadora De Gas Sa Ord B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EC	77 Outperform	$18.36B	5.44	18.64%	11.10%	-2.26%	-20.04%
E	74 Outperform	$46.31B	17.07	4.78%	4.89%	-2.17%	-25.00%
YPF	72 Outperform	$13.67B	7.82	15.54%	―	8.58%	―
TGS	71 Outperform	$4.06B	10.21	20.40%	―	37.43%	395.49%
NFG	70 Outperform	$7.41B	186.81	1.30%	2.51%	7.14%	-90.91%
Sector *	58 Neutral	$7.35B	3.36	-4.49%	5.60%	0.82%	-49.15%
CGBS		$33.31M	―		―	―	―