TransGlobe Energy Corp

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TGA : NASDAQ : Basic Materials
$1.35 -0.01 | -0.74%
Today's Range: 1.35 - 1.37
Avg. Daily Volume: 69600.0
07/20/17 - 3:59 PM ET

Financial Analysis


TRANSGLOBE ENERGY CORP's gross profit margin for the first quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. Even though it increased sales and net income significantly, the company was unable to grow at a faster pace than its industry competitors. TRANSGLOBE ENERGY CORP has average liquidity. Currently, the Quick Ratio is 1.45 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 23.54% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)22.4617.17
EBITDA ($mil)7.69-0.3
EBIT ($mil)-2.07-10.32
Net Income ($mil)-12.88-16.25


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)37.7122.03
Total Assets ($mil)403.69441.62
Total Debt ($mil)84.8166.51
Equity ($mil)272.08355.86


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin54.0523.58
EBITDA Margin34.25-1.76
Operating Margin-9.21-60.1
Sales Turnover0.170.18
Return on Assets-20.88-25.05
Return on Equity-30.98-31.09
Debt Q1 FY17 Q1 FY16
Current Ratio2.041.89
Debt/Capital0.240.16
Interest Expense1.551.43
Interest Coverage-1.34-7.22


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)72.2172.21
Div / share0.00.0
EPS-0.18-0.23
Book value / share3.774.93
Institutional Own % n/a n/a
Avg Daily Volume70878.0106625.0

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 0.35 indicates a significant discount versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 87.40. The price-to-sales ratio is well below both the S&P 500 average and 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 54.47   TGA NM Peers 15.44

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.

 

Neutral. 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's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TGA NA Peers 27.57   TGA NA Peers 1.09

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 0.35 Peers 87.40   TGA 24.21 Peers 95.61

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 1.42 Peers 2.23   TGA -15.46 Peers 7.47

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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