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Transportadora De Gas Sa Ord B (TGS)
NYSE:TGS

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

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Transportadora De Gas Sa Ord B

(NYSE:TGS)

Rating:71Outperform
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 (TGS) vs. SPDR S&P 500 ETF (SPY)

Transportadora De Gas Sa Ord B Business Overview & Revenue Model

Company DescriptionTransportadora 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 MoneyTGS 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
82
Very Positive
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
78
Positive
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
75
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.22T444.29B495.50B526.69B163.31B
Gross Profit
653.12B159.54B196.42B237.57B82.26B
EBIT
560.30B116.44B163.33B206.75B60.69B
EBITDA
643.37B128.88B235.89B289.63B50.60B
Net Income Common Stockholders
370.16B23.52B100.64B126.97B9.66B
Balance SheetCash, Cash Equivalents and Short-Term Investments
796.54B329.46B131.66B34.48B10.25B
Total Assets
3.39T1.53T1.28T405.52B194.10B
Total Debt
580.11B421.65B294.64B102.42B66.22B
Net Debt
520.14B415.05B285.33B93.79B59.19B
Total Liabilities
1.16T670.12B451.13B170.61B94.44B
Stockholders Equity
2.23T855.67B832.16B234.91B99.66B
Cash FlowFree Cash Flow
194.36B54.49B31.47B125.28B60.99B
Operating Cash Flow
484.17B189.57B110.28B183.80B83.84B
Investing Cash Flow
-384.90B-206.43B-125.23B-183.70B-88.47B
Financing Cash Flow
-31.35B24.65B11.29B-5.82B-14.92B

Transportadora De Gas Sa Ord B Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.31
Price Trends
50DMA
27.35
Positive
100DMA
27.22
Positive
200DMA
25.79
Positive
Market Momentum
MACD
-0.06
Positive
RSI
49.72
Neutral
STOCH
20.94
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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ECEC
77
Outperform
$18.36B5.4418.64%11.10%-2.26%-20.04%
EE
74
Outperform
$46.31B17.074.78%4.89%-2.17%-25.00%
YPYPF
72
Outperform
$13.67B7.8215.54%8.58%
TGTGS
71
Outperform
$4.06B10.2120.40%37.43%395.49%
NFNFG
70
Outperform
$7.41B186.811.30%2.51%7.14%-90.91%
58
Neutral
$7.35B3.36-4.49%5.60%0.82%-49.15%
$33.31M
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TGS
Transportadora De Gas Sa Ord B
28.31
10.54
59.31%
EC
Ecopetrol SA
9.02
-1.00
-9.98%
E
Eni SPA
31.06
2.32
8.07%
NFG
National Fuel Gas Company
82.01
28.50
53.26%
YPF
YPF Sociedad Anonima
36.29
15.62
75.57%
CGBS
Crown LNG Holdings
0.08
-11.64
-99.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.