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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.19
CGG's Cash to Debt is ranked higher than
61% of the 443 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 0.51 vs. CGG: 0.19 )
CGG' s 10-Year Cash to Debt Range
Min: 0.11   Max: No Debt
Current: 0.19

Equity to Asset 0.46
CGG's Equity to Asset is ranked higher than
71% of the 434 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 0.52 vs. CGG: 0.46 )
CGG' s 10-Year Equity to Asset Range
Min: 0.26   Max: 0.55
Current: 0.46

0.26
0.55
F-Score: 3
Z-Score: 0.85
M-Score: -3.30
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Revenue Growth (%) 3.50
CGG's Revenue Growth (%) is ranked higher than
65% of the 381 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 10.00 vs. CGG: 3.50 )
CGG' s 10-Year Revenue Growth (%) Range
Min: -55.8   Max: 17.4
Current: 3.5

-55.8
17.4
EBITDA Growth (%) 6.30
CGG's EBITDA Growth (%) is ranked higher than
71% of the 337 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 7.30 vs. CGG: 6.30 )
CGG' s 10-Year EBITDA Growth (%) Range
Min: -60.7   Max: 207.6
Current: 6.3

-60.7
207.6
EPS Growth (%) 101.90
CGG's EPS Growth (%) is ranked lower than
86% of the 289 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 4.70 vs. CGG: 101.90 )
CGG' s 10-Year EPS Growth (%) Range
Min: -2.9   Max: 119.1
Current: 101.9

-2.9
119.1
» CGG's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

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Guru Investment Theses on CGG

David Herro Comments on CGG - Jan 10, 2014

The largest detractor from the Fund’s performance for the past quarter – and one of the largest detractors in the calendar year – was a holding just added in June: CGG (CGG), an operator and provider of seismic acquisition and data processing.  As a seismic company, CGG relies directly on oil and gas companies' investments.  During the second half of 2013, in an environment with flat oil prices and continuing inflation across the supply chain, several oil and gas companies decided to further postpone their investments and wait until the economy improves to sanction new projects.  Positioned at the beginning of the supply chain, CGG has been hurt by the cancellation of several projects, as well as lower-than-expected price increases.  As a result, management smartly decided to launch a three-year plan to downsize CGG's fleet in order to lower fixed costs and to focus on the most profitable segments.  Despite these conditions, we think our investment case remains valid.  With the end of "easy oil," we believe that this offshore seismic company still offers an attractive investment opportunity.

From David Herro (Trades, Portfolio)'s Oakmark International Small Cap Fund fourth quarter 2013 commentary.

Check out David Herro latest stock trades

Top Ranked Articles about CGG

David Herro Comments on CGG
The largest detractor from the Fund’s performance for the past quarter – and one of the largest detractors in the calendar year – was a holding just added in June: CGG (CGG), an operator and provider of seismic acquisition and data processing.  As a seismic company, CGG relies directly on oil and gas companies' investments.  During the second half of 2013, in an environment with flat oil prices and continuing inflation across the supply chain, several oil and gas companies decided to further postpone their investments and wait until the economy improves to sanction new projects.  Positioned at the beginning of the supply chain, CGG has been hurt by the cancellation of several projects, as well as lower-than-expected price increases.  As a result, management smartly decided to launch a three-year plan to downsize CGG's fleet in order to lower fixed costs and to focus on the most profitable segments.  Despite these conditions, we think our investment case remains valid.  With the end of "easy oil," we believe that this offshore seismic company still offers Read more...
2 New Buys for David Herro Fund Oakmark International Small Cap
The Oakmark International Small Cap Fund (OAKEX) has had a particularly strong past 10 years, with an average annual return of 11.78%. The last year was even better, with a 20.79% return. Leading the fund is guru David Herro, in partnership with Michael Manelli. The stocks that typically fit within the fund’s portfolio are small-cap companies – those with a market cap under $5 billion at the time of initial investment – domiciled outside the U.S. Read more...

Ratios

vs
industry
vs
history
P/B 0.70
CGG's P/B is ranked higher than
94% of the 430 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 1.69 vs. CGG: 0.70 )
CGG' s 10-Year P/B Range
Min: 0.1   Max: 11.47
Current: 0.7

0.1
11.47
P/S 0.80
CGG's P/S is ranked higher than
79% of the 455 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 1.40 vs. CGG: 0.80 )
CGG' s 10-Year P/S Range
Min: 0.09   Max: 1.98
Current: 0.8

0.09
1.98
PFCF 5.10
CGG's PFCF is ranked higher than
93% of the 229 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 18.54 vs. CGG: 5.10 )
CGG' s 10-Year PFCF Range
Min: 0.35   Max: 130.6
Current: 5.1

0.35
130.6
EV-to-EBIT 12.00
CGG's EV-to-EBIT is ranked higher than
78% of the 393 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 14.91 vs. CGG: 12.00 )
CGG' s 10-Year EV-to-EBIT Range
Min: 2.9   Max: 165.4
Current: 12

2.9
165.4

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 64.90
CGG's Price/Tangible Book is ranked lower than
71% of the 416 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 2.00 vs. CGG: 64.90 )
CGG' s 10-Year Price/Tangible Book Range
Min: 0.14   Max: 72.62
Current: 64.9

0.14
72.62
Price/DCF (Projected) 0.30
CGG's Price/DCF (Projected) is ranked higher than
99% of the 229 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 1.60 vs. CGG: 0.30 )
CGG' s 10-Year Price/DCF (Projected) Range
Min: 0.05   Max: 5.98
Current: 0.3

0.05
5.98
Price/Median PS Value 1.10
CGG's Price/Median PS Value is ranked higher than
74% of the 410 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 1.00 vs. CGG: 1.10 )
CGG' s 10-Year Price/Median PS Value Range
Min: 0.08   Max: 2.34
Current: 1.1

0.08
2.34
Earnings Yield (Greenblatt) 8.30
CGG's Earnings Yield (Greenblatt) is ranked higher than
81% of the 402 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 6.40 vs. CGG: 8.30 )
CGG' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.6   Max: 34.9
Current: 8.3

0.6
34.9
Forward Rate of Return (Yacktman) 18.93
CGG's Forward Rate of Return (Yacktman) is ranked higher than
87% of the 341 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 1.67 vs. CGG: 18.93 )
CGG' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -26   Max: 59.5
Current: 18.93

-26
59.5

Business Description

Industry: Oil & Gas - Services » Oil & Gas Equipment & Services
Compare:SPN, GLF, NOV, HAL, SAPMY » details
Traded in other countries:CGG.France, GDG.Germany, CGPVF.USA
CGG ( Compagnie Générale de Géophysique) was established on July 23, 1931 to develop and market geophysical techniques for appraising underground geological resources. The Company is a manufacturer of geophysical equipment and a provider of an array of seismic services in data acquisition and processing both onshore and offshore mainly to clients in the oil and gas exploration and production industry. Starting February 1, 2013, and following the Geoscience Acquisition, it changed its organization and now has three business segments: Equipment, Acquisition and Geology, Geophysics & Reservoir (GGR).

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