VAALCO ENERGY INC (EGY) Stock Fundamental Analysis
NYSE:EGY - New York Stock Exchange, Inc. - US91851C2017 - Common Stock - Currency: USD
EGY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of EGY get a neutral evaluation. Nothing too spectacular is happening here. EGY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
EGY had positive earnings in the past year.
EGY had a positive operating cash flow in the past year.
Of the past 5 years EGY 4 years were profitable.
Each year in the past 5 years EGY had a positive operating cash flow.
1.2 Ratios
EGY has a Return On Assets of 7.06%. This is in the better half of the industry: EGY outperforms 72.38% of its industry peers.
The Return On Equity of EGY (12.98%) is better than 67.14% of its industry peers.
EGY's Return On Invested Capital of 17.15% is amongst the best of the industry. EGY outperforms 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EGY is significantly below the industry average of 23.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | 12.98% | ||
| ROIC | 17.15% |
ROA(3y)6.43%
ROA(5y)3.25%
ROE(3y)11.67%
ROE(5y)2.67%
ROIC(3y)17.78%
ROIC(5y)18.24%
1.3 Margins
EGY has a Profit Margin (11.10%) which is in line with its industry peers.
In the last couple of years the Profit Margin of EGY has grown nicely.
EGY's Operating Margin of 27.61% is fine compared to the rest of the industry. EGY outperforms 65.24% of its industry peers.
In the last couple of years the Operating Margin of EGY has grown nicely.
The Gross Margin of EGY (64.65%) is better than 73.81% of its industry peers.
EGY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.61% | ||
| PM (TTM) | 11.1% | ||
| GM | 64.65% |
OM growth 3Y-10.49%
OM growth 5Y2.58%
PM growth 3Y-33.55%
PM growth 5Y32.45%
GM growth 3Y0.33%
GM growth 5Y0.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EGY is creating value.
EGY has less shares outstanding than it did 1 year ago.
EGY has more shares outstanding than it did 5 years ago.
EGY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.13 indicates that EGY is not a great score, but indicates only limited risk for bankruptcy at the moment.
EGY has a better Altman-Z score (2.13) than 69.52% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that EGY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.13, EGY is in the better half of the industry, outperforming 74.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.13 |
ROIC/WACC1.82
WACC9.43%
2.3 Liquidity
A Current Ratio of 1.13 indicates that EGY should not have too much problems paying its short term obligations.
The Current ratio of EGY (1.13) is comparable to the rest of the industry.
EGY has a Quick Ratio of 1.09. This is a normal value and indicates that EGY is financially healthy and should not expect problems in meeting its short term obligations.
EGY's Quick ratio of 1.09 is in line compared to the rest of the industry. EGY outperforms 59.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for EGY have decreased strongly by -27.87% in the last year.
Measured over the past years, EGY shows a very strong growth in Earnings Per Share. The EPS has been growing by 69.33% on average per year.
The Revenue has grown by 24.11% in the past year. This is a very strong growth!
The Revenue has been growing by 41.48% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-27.87%
EPS 3Y-25.5%
EPS 5Y69.33%
EPS Q2Q%16.67%
Revenue 1Y (TTM)24.11%
Revenue growth 3Y34%
Revenue growth 5Y41.48%
Sales Q2Q%10.16%
3.2 Future
The Earnings Per Share is expected to decrease by -8.04% on average over the next years.
Based on estimates for the next years, EGY will show a decrease in Revenue. The Revenue will decrease by -3.77% on average per year.
EPS Next Y-95.3%
EPS Next 2Y-8.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-25.69%
Revenue Next 2Y-3.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.55, the valuation of EGY can be described as very reasonable.
EGY's Price/Earnings ratio is a bit cheaper when compared to the industry. EGY is cheaper than 78.10% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.04, EGY is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.34, the valuation of EGY can be described as very reasonable.
EGY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EGY is cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.64. EGY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 10.34 |
4.2 Price Multiples
98.57% of the companies in the same industry are more expensive than EGY, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.41 |
4.3 Compensation for Growth
The decent profitability rating of EGY may justify a higher PE ratio.
EGY's earnings are expected to decrease with -8.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y-8.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.93%, EGY is a good candidate for dividend investing.
EGY's Dividend Yield is a higher than the industry average which is at 6.49.
Compared to an average S&P500 Dividend Yield of 2.35, EGY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.93% |
5.2 History
EGY has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
40.24% of the earnings are spent on dividend by EGY. This is a bit on the high side, but may be sustainable.
DP40.24%
EPS Next 2Y-8.04%
EPS Next 3YN/A
3.76
-0.07 (-1.83%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners63.92%
Inst Owner Change-0.05%
Ins Owners2.77%
Ins Owner Change-0.66%
Market Cap390.36M
Analysts80
Price Target0.11 (-97.07%)
Short Float %4.07%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.93% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP40.24%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.76%
Min EPS beat(2)15.51%
Max EPS beat(2)54.02%
EPS beat(4)3
Avg EPS beat(4)24.6%
Min EPS beat(4)-45.37%
Max EPS beat(4)74.26%
EPS beat(8)5
Avg EPS beat(8)41.13%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)7.85%
Min Revenue beat(2)3.9%
Max Revenue beat(2)11.79%
Revenue beat(4)4
Avg Revenue beat(4)9.53%
Min Revenue beat(4)2.68%
Max Revenue beat(4)19.75%
Revenue beat(8)7
Avg Revenue beat(8)17.23%
Revenue beat(12)9
Avg Revenue beat(12)8.81%
Revenue beat(16)12
Avg Revenue beat(16)10.26%
PT rev (1m)-0.27%
PT rev (3m)1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)113.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 10.34 | ||
| P/S | 0.66 | ||
| P/FCF | N/A | ||
| P/OCF | 3.13 | ||
| P/B | 0.77 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 1.41 |
EPS(TTM)0.44
EY11.7%
EPS(NY)0.36
Fwd EY9.67%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)1.2
OCFY31.92%
SpS5.68
BVpS4.86
TBVpS4.86
PEG (NY)N/A
PEG (5Y)0.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | 12.98% | ||
| ROCE | 21.71% | ||
| ROIC | 17.15% | ||
| ROICexc | 18.14% | ||
| ROICexgc | 18.14% | ||
| OM | 27.61% | ||
| PM (TTM) | 11.1% | ||
| GM | 64.65% | ||
| FCFM | N/A |
ROA(3y)6.43%
ROA(5y)3.25%
ROE(3y)11.67%
ROE(5y)2.67%
ROIC(3y)17.78%
ROIC(5y)18.24%
ROICexc(3y)20.04%
ROICexc(5y)22.91%
ROICexgc(3y)20.04%
ROICexgc(5y)22.91%
ROCE(3y)22.5%
ROCE(5y)23.09%
ROICexcg growth 3Y-31.23%
ROICexcg growth 5Y-1.04%
ROICexc growth 3Y-31.23%
ROICexc growth 5Y-1.04%
OM growth 3Y-10.49%
OM growth 5Y2.58%
PM growth 3Y-33.55%
PM growth 5Y32.45%
GM growth 3Y0.33%
GM growth 5Y0.57%
F-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.21 | ||
| Cap/Depr | 98.23% | ||
| Cap/Sales | 24.59% | ||
| Interest Coverage | 24.27 | ||
| Cash Conversion | 40.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 2.13 |
F-Score6
WACC9.43%
ROIC/WACC1.82
Cap/Depr(3y)162.82%
Cap/Depr(5y)186.49%
Cap/Sales(3y)29.33%
Cap/Sales(5y)28.76%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.87%
EPS 3Y-25.5%
EPS 5Y69.33%
EPS Q2Q%16.67%
EPS Next Y-95.3%
EPS Next 2Y-8.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)24.11%
Revenue growth 3Y34%
Revenue growth 5Y41.48%
Sales Q2Q%10.16%
Revenue Next Year-25.69%
Revenue Next 2Y-3.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.62%
EBIT growth 3Y19.94%
EBIT growth 5Y45.13%
EBIT Next Year46.64%
EBIT Next 3Y39.19%
EBIT Next 5Y37.25%
FCF growth 1Y-383.66%
FCF growth 3Y-1.01%
FCF growth 5Y-7.92%
OCF growth 1Y-27.4%
OCF growth 3Y31.41%
OCF growth 5Y33.82%