The company Metrogas (METR) entered this week in the leading stock panel of the S&P Merval index. The fact is that the role of the gas distribution company is ranked as the ninth most operated in Argentina when its volume is measured by dollar CCLwith a daily operated average of US$250,000.
It earned its spot among the top 22 stocks in the S&P Merval index thanks to the increase in liquidity. However, its market capitalization is still low, US$537 million, and there are about 26 larger local businesses ahead of you.
S&P Merval: business situation of Metrogas
The controlling company of Metrogas is YPF, owner of the 70% of the company, while they complete it Integra Gas Distribution LLCwho owns the 16% of the social capital, ANSES which is the owner of 8% and the 6% The remainder is floating capital, as specified from Delphos.
Metrogas is the first company in terms of natural gas distribution in the country. Provides services in the Buenos Aires Metropolitan Area (AMBA)where it manages more than 2 million clients and operates, in total, 21 MMm3/d of gasof which 5.7 are from sales, 10.5 are from transportation and distribution services, 1.3 from other sales and 4.1 come from MetroENERGíA.
“With 569 million shares in circulation and at a price of $1,160 per share, METR’s market capitalization is $660,000 million, equivalent to US$537 million to the CCL. And, with a net debt of US$10 million, The value of the company amounts to $547 million”they added from Delphos.
Metrogas improved its performance and entered the S&P Merval
In the last 12 months, it generated revenues of US$655 million at the official exchange rate, $67 million of EBITDA and US$40 million of operating results. This implies that the margins EBITDA and EBIT were from 10% and 6%, respectively. Additionally, it had an operating cash flow of US$138 million and a free cash flow of US$112 million.
That is, given the value of the company by market, Metrogas is worth 0.8x EV/sales, 7.8x EV/EBITDA, 13.1x EV/EBIT and offers a free cash flow yield of 21%.
With this data, Delphos stressed that “It is among one of the most attractive utilities in the local market. And, unlike other gas distribution companies, it has good liquidity.”
Rebalancing of the S&P Merval
Leading index rebalances semi-annually after third Friday market close March and September.
As part of the process, the composition of the index and the weights of the stocks that comprise it are updated. “The reference date for the rebalancing will be the third Friday of February and August respectively”they specified from BYMA.
“Likewise, the number of shares per component and their respective weights within the index will be updated quarterly, after the market closes on the third Friday of June and December,” they added.
One by one, the 22 shares of the S&P Merval
- Aluar
- BBVA
- Macro Bank
- BYMA
- Central Port
- Silver Commercial Society
- Cresud
- Edenor
- Galicia Financial Group
- IRSA
- Black Hill
- Metrogas
- Mirgor
- Pampa Argentina
- Supervielle Group
- Telecom
- Northern Gas Carrier
- Southern Gas Carrier
- Transener
- Ternium
- Stock Market
- YPF
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
