TransGlobe Energy Corp

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TGA : NASDAQ : Basic Materials
$1.63 | %
Today's Range: 1.61 - 1.65
Avg. Daily Volume: 81,700
07/29/16 - 4:00 PM ET

Financial Analysis


TRANSGLOBE ENERGY CORP's gross profit margin for the first quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not. TRANSGLOBE ENERGY CORP has strong liquidity. Currently, the Quick Ratio is 1.71 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 26.79% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)17.1728.89
EBITDA ($mil)-0.32.39
EBIT ($mil)-10.32-9.13
Net Income ($mil)-16.25-11.2


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)122.03126.1
Total Assets ($mil)441.62614.35
Total Debt ($mil)66.5165.51
Equity ($mil)355.86486.12


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin23.5846.46
EBITDA Margin-1.768.27
Operating Margin-60.1-31.62
Sales Turnover0.180.38
Return on Assets-25.05-2.67
Return on Equity-31.09-3.37
Debt Q1 FY16 Q1 FY15
Current Ratio1.898.76
Debt/Capital0.160.12
Interest Expense1.431.68
Interest Coverage-7.22-5.45


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)72.2175.31
Div / share0.00.05
EPS-0.23-0.17
Book value / share4.936.45
Institutional Own % n/a n/a
Avg Daily Volume87600.0131302.0

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 2.81 and a significant discount versus the industry average of 11.73. 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 70.76   TGA 2.04 Peers 306.30

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 39.26   TGA NA Peers 2.07

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 11.73   TGA -282.92 Peers -202.73

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 1.57 Peers 2.43   TGA -65.95 Peers -25.78

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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