December 28, 2023
Top 10 Stock TGS-NOPEC Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View TGS-NOPEC Strong Buy

360 METRICS	December 28, 2023
VALUE
VALUE	39
GROWTH
GROWTH	83
SAFETY
SAFETY	70
SENTIMENT
SENTIMENT	61
360° VIEW
360° VIEW	82

ANALYSIS: With an Obermatt 360° View of 82 (better than 82% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock TGS-NOPEC are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for TGS-NOPEC. The consolidated Growth Rank has a good rank of 83, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. This means that growth is higher than for 83% of competitors in the same industry. The consolidated Safety Rank at 70 means that the company has a financing structure that is safer than 70% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a good rank of 61, which means that professional investors are more optimistic about the stock than for 61% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 39, meaning that the share price of TGS-NOPEC is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 61% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 82, TGS-NOPEC is better positioned than 82% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as above-average growth (Growth Rank of 83), a safe financing structure (Safety Rank of 70), and positive professional market sentiment (Sentiment Rank of 61), it is a solid stock investment where growth may be the strongest driver of the investment rationale, also reflected by institutional investors. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of TGS-NOPEC compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (83% better than peers). The value rank could be the reverse reflection of that (17%). A Value Rank below that level may be assessed as expensive, a rank above that is still good value. Sometimes market sentiment just reflects the past, sometimes the reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for TGS-NOPEC positive

SENTIMENT METRICS	December 28, 2023
ANALYST OPINION
ANALYST OPINION	42
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	67
MARKET PULSE
MARKET PULSE	52
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	61

ANALYSIS: With an Obermatt Sentiment Rank of 61 (better than 61% compared with alternatives), overall professional sentiment and engagement for the stock TGS-NOPEC is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for TGS-NOPEC. Analyst Opinions are at a rank of 42 (worse than 58% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 50, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in TGS-NOPEC. Even better, the Professional Investors rank is 67, meaning that professional investors hold more stock in this company than in 67% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 52, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 52% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 61 (more positive than 61% compared with investment alternatives), TGS-NOPEC has a reputation among professional investors that is above-average compared with that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more

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Value Strategy: TGS-NOPEC Stock Price Value below-average critical

VALUE METRICS	December 28, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	24
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	50
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	57
DIVIDEND YIELD
DIVIDEND YIELD	59
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	39

ANALYSIS: With an Obermatt Value Rank of 39 (worse than 61% compared with alternatives), TGS-NOPEC shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for TGS-NOPEC. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 50 which means that the stock price compared with what market professionals expect for future profits is lower than for 50% of comparable companies, indicating a good value concerning TGS-NOPEC's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 57, and for Dividend Yield with a Dividend Yield Rank of 59. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 76% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 24). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 39, is a hold recommendation based on TGS-NOPEC's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that TGS-NOPEC has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing TGS-NOPEC shares. ...read more

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Growth Strategy: TGS-NOPEC Growth Momentum high

GROWTH METRICS	December 28, 2023
REVENUE GROWTH
REVENUE GROWTH	88
PROFIT GROWTH
PROFIT GROWTH	63
CAPITAL GROWTH
CAPITAL GROWTH	52
STOCK RETURNS
STOCK RETURNS	47
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	83

ANALYSIS: With an Obermatt Growth Rank of 83 (better than 83% compared with alternatives) for 2023, TGS-NOPEC shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for TGS-NOPEC. Sales Growth has a value of 88 which means that currently professionals expect the company to grow more than 88% of its competitors. Profit Growth with a value of 63 and Capital Growth with a rank of 52 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 47, which means that stock returns have recently been below 53% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 83, is a buy recommendation for growth and momentum investors. TGS-NOPEC has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for TGS-NOPEC, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. ...read more

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Safety Strategy: TGS-NOPEC Debt Financing Safety above-average

SAFETY METRICS	December 28, 2023
LEVERAGE
LEVERAGE	90
REFINANCING
REFINANCING	15
LIQUIDITY
LIQUIDITY	74
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	70

ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company TGS-NOPEC has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of TGS-NOPEC is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for TGS-NOPEC. Leverage is at a rank of 90, meaning the company has a below-average debt-to-equity ratio. It has less debt than 90% of its competitors. Liquidity is also good at a rank of 74, meaning the company generates more profit to service its debt than 74% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 15, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 85% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), TGS-NOPEC has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for TGS-NOPEC. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: TGS-NOPEC Top Financial Performance

COMBINED PERFORMANCE	December 28, 2023
VALUE
VALUE	39
GROWTH
GROWTH	83
SAFETY
SAFETY	74
COMBINED
COMBINED	80

ANALYSIS: With an Obermatt Combined Rank of 80 (better than 80% compared with investment alternatives), TGS-NOPEC (Oil & Gas Equipment, Norway) shares have much better financial characteristics than comparable stocks. Shares of TGS-NOPEC are low in value (priced high) with a consolidated Value Rank of 39 (worse than 61% of alternatives). But they show above-average growth (Growth Rank of 83) and are safely financed (Safety Rank of 70, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 80, is a strong buy recommendation based on TGS-NOPEC's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company TGS-NOPEC exhibits low value (Obermatt Value Rank of 39), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 83). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 70) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). ...read more

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