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

• Market Cap: $3.10B
• Dividend Yield: 4.18%
• Average Volume (3M): 464.69K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.54
• Revenue Growth: 30.25%
• EPS Growth: 170.05%
• Country: US
• Employees: 1,147
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.16
• Shares Outstanding: 69,513,695
• 10 Day Avg. Volume: 713,007
• 30 Day Avg. Volume: 464,692
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $18.80
• Price Target Upside: -19.42% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: $22.50 ▼(-3.56% Downside)

Transportadora De Gas Sa Ord B's strong financial performance is the primary driver of its score, reflecting robust profitability and a stable balance sheet. However, technical analysis indicates bearish momentum, which is a significant risk. The stock's valuation is reasonable, offering a good dividend yield, but the lack of positive technical signals tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion and stability.

Profitability

High profit margins demonstrate efficient operations and pricing power, contributing to sustained profitability and competitive advantage.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and flexibility, allowing for strategic investments and growth opportunities.

Negative Factors

Cash Flow Concerns

Negative free cash flow growth may indicate challenges in cash generation, potentially impacting the company's ability to fund operations and investments.

Net Income Decline

A decline in net income could signal potential profitability issues if the trend continues, affecting overall financial performance.

Free Cash Flow to Net Income

A moderate free cash flow to net income ratio suggests limited cash available after capital expenditures, which could constrain future growth initiatives.

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 the transportation of natural gas via its pipeline infrastructure, charging fees to customers based on the volume of gas transported. The company also earns income from the processing of gas, where it separates natural gas liquids from the gas stream and sells these by-products in the market. Additionally, TGS has long-term contracts with major gas producers and distributors, ensuring a steady revenue stream. Partnerships with local and international energy companies further enhance its market position and contribute to its earnings by securing consistent business opportunities.

Transportadora De Gas Sa Ord B Financial Statement Overview

Summary

Transportadora De Gas Sa Ord B demonstrates strong financial health with impressive profitability and a stable balance sheet. The company is on a growth trajectory with increasing revenues and margins. While cash flow generation shows some areas for improvement, the overall financial position is robust, with low leverage and efficient equity utilization.

Income Statement

Transportadora De Gas Sa Ord B shows strong profitability with a consistent increase in gross and net profit margins over the years. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 54.82% and a net profit margin of 31.46%, both of which are impressive. Revenue growth is positive at 6.99% in the TTM, indicating a strong upward trajectory. The EBIT and EBITDA margins are also robust, suggesting efficient operations. However, the slight decline in net income from the previous annual report could be a concern if it continues.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.23 in the TTM, indicating low leverage and financial stability. The return on equity (ROE) is healthy at 18.70%, reflecting efficient use of equity capital. The equity ratio is strong, showing a good proportion of equity financing. However, the slight increase in total debt over the years warrants monitoring to ensure it does not impact financial flexibility.

Cash Flow

Cash flow analysis reveals a mixed picture. The operating cash flow to net income ratio is strong at 1.50, indicating good cash generation relative to net income. However, the free cash flow growth rate is negative at -2.36% in the TTM, which could signal potential issues in cash generation. The free cash flow to net income ratio is moderate at 0.51, suggesting that while the company is generating free cash flow, there is room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34T	1.22T	444.29B	495.50B	526.69B	163.31B
Gross Profit	724.18B	653.12B	159.54B	196.42B	237.57B	82.26B
EBITDA	728.57B	643.37B	128.88B	235.89B	289.63B	50.60B
Net Income	347.46B	370.16B	23.52B	100.64B	126.97B	9.66B
Balance Sheet
Total Assets	3.71T	3.39T	1.53T	1.28T	405.52B	194.10B
Cash, Cash Equivalents and Short-Term Investments	676.21B	796.54B	329.46B	131.66B	34.48B	10.25B
Total Debt	673.90B	580.11B	421.65B	294.64B	102.42B	66.22B
Total Liabilities	1.18T	1.16T	670.12B	451.13B	170.61B	94.44B
Stockholders Equity	2.53T	2.23T	855.67B	832.16B	234.91B	99.66B
Cash Flow
Free Cash Flow	292.27B	194.36B	54.49B	31.47B	125.28B	60.99B
Operating Cash Flow	575.65B	484.17B	189.57B	110.28B	183.80B	83.84B
Investing Cash Flow	-337.64B	-384.90B	-206.43B	-125.23B	-183.70B	-88.47B
Financing Cash Flow	-207.25B	-31.35B	24.65B	11.29B	-5.82B	-14.92B

Transportadora De Gas Sa Ord B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 23.33 is below the 20-day moving average (MA) of 26.49, below the 50-day MA of 27.01, and below the 200-day MA of 26.94, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 38.34 is Neutral, neither overbought nor oversold. The STOCH value of 23.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
E	78 Outperform	$53.25B	20.27	4.83%	6.72%	-6.31%	-33.87%
NFG	76 Outperform	$7.71B	31.95	8.00%	2.39%	19.59%	-21.86%
EC	73 Outperform	$18.98B	6.33	15.94%	18.96%	-7.51%	-29.04%
EQNR	73 Outperform	$61.26B	8.02	19.22%	8.58%	1.19%	-7.87%
YPF	72 Outperform	$11.35B	9.19	10.88%	―	4.28%	―
Sector *	65 Neutral	$15.27B	7.60	4.09%	5.25%	4.03%	-61.87%
TGS	62 Neutral	$3.10B	9.45	17.09%	4.18%	30.25%	170.05%