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TransGlobe Energy Corp
TGA : NASDAQ : Basic Materials
$3.94 -0.06 | -1.50%
Today's Range: 3.89 - 4.01
Avg. Daily Volume: 297,200
05/28/15 - 3:05 PM ET

Financial Analysis


TRANSGLOBE ENERGY CORP's gross profit margin for the first quarter of its fiscal year 2015 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, but still managed to outperform when compared to the average company in its industry. TRANSGLOBE ENERGY CORP is extremely liquid. Currently, the Quick Ratio is 8.12 which clearly shows the ability to cover any short-term cash needs. TGA managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 6.24% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY15 Q1 FY14
Net Sales ($mil)28.8978.37
EBITDA ($mil)2.3951.34
EBIT ($mil)-9.1338.18
Net Income ($mil)-11.216.69


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)126.1107.61
Total Assets ($mil)614.35692.34
Total Debt ($mil)65.5187.77
Equity ($mil)486.12518.47


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin46.4675.02
EBITDA Margin8.2765.51
Operating Margin-31.6248.72
Sales Turnover0.380.45
Return on Assets-2.677.26
Return on Equity-3.379.7
Debt Q1 FY15 Q1 FY14
Current Ratio8.767.98
Debt/Capital0.120.14
Interest Expense1.681.89
Interest Coverage-5.4520.18


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)75.3174.72
Div / share0.050.0
EPS-0.170.22
Book value / share6.456.94
Institutional Own % n/a n/a
Avg Daily Volume297212.0376454.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.66 indicates a significant discount versus the S&P 500 average of 2.88 and a significant discount versus the industry average of 11.40. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, TRANSGLOBE ENERGY CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TGA NM Peers 33.91   TGA 1.97 Peers 10.02

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

TGA's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TGA is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TGA NA Peers 50.95   TGA NA Peers 1.95

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TGA 0.66 Peers 11.40   TGA -177.35 Peers -19.83

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TGA is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TGA is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TGA 1.36 Peers 2.40   TGA -25.44 Peers -1.63

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TGA is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

TGA significantly trails its peers on the basis of sales growth

 

 

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