GTT

Analysis of GTT share price

BUY   SELL
72% of retail investor accounts lose money when trading CFDs with this provider.
 
Chart provided by Tradingview

The GTT share was recently introduced on the stock exchange and it is now possible to trade it on many trading platforms. However, in order to be able to analyse this stock effectively, it is necessary to have a good knowledge of this company and its strengths. In this article dedicated to this stock, we propose you to discover everything you need to know about this French company. In particular, we will discuss the global stock market data but also the detailed activities of this company, its strong and weak points. We will also give you some tips on how to do your fundamental analysis of this stock.

Elements that can influence the price of this asset:

Analysis N°1

First of all, you must consider the GTT share as a yielding stock, given that the company's distribution rate reaches 80% of the distributable profit paid out in two stages. We will therefore check the evolution of this figure over time.

Analysis N°2

The GTT group could also develop its activities geographically, but this time in other countries. Indeed, we will follow in particular the increasingly important development of liquefied natural gas export projects in the United States.

Analysis N°3

It should also be borne in mind that the GTT Group is currently trying to diversify its activities by expanding into the onshore storage of liquefied natural gas. For the time being, this segment represents only a small part of the group's turnover, but it could quickly gain in volume and importance and thus bring in new market shares.

Analysis N°4

It is also known that GTT is in the process of marketing liquefied natural gas as a marine fuel, which could again increase its profitability and revenue streams.

Analysis N°5

The Engie group, which is one of the most important shareholders of the GTT company, could also sell its stake according to some rumours and we will therefore follow this news closely.

Analysis N°6

Finally, we will of course also monitor the implementation of the various strategic plans put in place by GTT, particularly with regard to the evolution of the group's turnover, the evolution of its net margin and the evolution of the distribution to shareholders. You can easily find this information on the website of this company.

72% of retail investor accounts lose money when trading CFDs with this provider. This is an advert for trading CFDs on Plus500

General presentation of GTT

The first thing to do before starting to trade the GTT share price is of course to know exactly what this company does. This is what we propose to do now in detail.

GTT for Gaztransport and Technigaz is a company specialized in the design of cryogenic membrane containment systems for maritime transport and for the storage of liquefied natural gas, also known as LNG. More precisely, GTT is currently the world leader in this sector of activity with more than 70% of the market share. To better understand the activities of this company, it is possible to divide them into two main categories according to the share of turnover they generate and in this way:

Royalties represent the largest share of GTT's revenues with almost 94.3% of the company's turnover. This includes royalties from the construction of LNG carriers for more than 87.7% of the turnover, but also from floating LNG storage and regasification units for 10.2% of the turnover, floating LNG production, storage and unloading units for 1.2% of the turnover or even land-based LNG storage tanks for .07% of the turnover and barges for 0.2% of the turnover.

The remaining 5.7% of GTT's turnover comes from the sale of services, including engineering, consulting, training, maintenance assistance and technical studies.

Analysis of GTT share price
72% of retail investor accounts lose money when trading CFDs with this provider. This is an advert for trading CFDs on Plus500
The factors in favour of a rise in the GTT share price:

Understanding how GTT's share price is likely to perform in the coming months and years requires, first and foremost, a good knowledge of the company's strengths and weaknesses. We propose to help you by first revealing the advantages of this group.

First of all, GTT's positioning in the industry is of course an undeniable strength, as the company is the world leader in its field.

Another of GTT's strengths is that the company bases its strategy on the development of cutting-edge technologies. Indeed, more than two thirds of the company's order book comes from technologies that GTT has developed in the last 3 years. The group holds more than 900 patents with a growth of more than 30% in some years.

As far as GTT's strengths are concerned, it is also known that the liquefied natural gas market is a very buoyant market. The demand forecasts for this sector are in fact increasing at least until 2025. In addition, these activities have very high margins, as the majority of GTT's turnover comes from royalties.

Investors also appreciate the group's order book, which is particularly interesting and offers good visibility over the long term. In addition, the financial situation of the GTT Group is particularly stable and healthy.

The factors in favour of a drop in the GTT share price:

Of course, like all companies, GTT has not only advantages and strengths but also some weaknesses. You must therefore take these few negative elements into account when you analyze this stock and before making any decision. Here are the main weaknesses of this company at the moment.

Firstly, GTT's main weakness is abroad. It should be remembered that the vast majority of natural gas liquefaction supply is located in the countries of Qatar, Malaysia and Indonesia. Because of this very targeted distribution of this activity, GTT is more or less exposed to geopolitical risks that could cause it to lose significant amounts of money.

Another important weakness of GTT is its exposure to risks related to regulations concerning the construction of liquefaction infrastructures, which may be more or less restrictive and therefore limit its expansion and development.

On the other hand, although the liquefied gas market is still growing and forecasts remain positive overall, there has been a slight slowdown in the growth of this market, which has been caused by the recent oil crisis and the increasing difficulties of the Asian market.

In the same way, and if the visibility on the years to come is good as far as GTT's activities are concerned, we note that the orders received over the last two years are relatively less important than in 2014 and 2015.

Finally, the last weak point of the GTT group concerns its customer targets. Indeed, the geographical distribution of the company's various customers is relatively limited. Indeed, more than 90% of GTT's turnover depends on 5 shipyards located in China, South Korea and Japan, which strongly limits the sources of income.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.
72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500