VAALCO ENERGY INC (EGY) Stock Fundamental Analysis
USA - NYSE:EGY - US91851C2017 - Common Stock
4.05 USD
-0.03 (-0.74%)
4.05 USD
0 (0%)
Overall EGY gets a fundamental rating of 5 out of 10. We evaluated EGY against 211 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year EGY was profitable.
EGY had a positive operating cash flow in the past year.
Of the past 5 years EGY 4 years were profitable.
EGY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.96%, EGY perfoms like the industry average, outperforming 55.92% of the companies in the same industry.
EGY has a Return On Equity (7.47%) which is comparable to the rest of the industry.
The Return On Invested Capital of EGY (12.38%) is better than 88.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EGY is below the industry average of 21.55%.
The last Return On Invested Capital (12.38%) for EGY is well below the 3 year average (17.78%), which needs to be investigated, but indicates that EGY had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 7.47% | ||
| ROIC | 12.38% |
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's Profit Margin of 8.14% is in line compared to the rest of the industry. EGY outperforms 52.61% of its industry peers.
EGY's Profit Margin has improved in the last couple of years.
EGY has a Operating Margin of 26.84%. This is in the better half of the industry: EGY outperforms 65.88% of its industry peers.
In the last couple of years the Operating Margin of EGY has grown nicely.
EGY has a Gross Margin of 65.02%. This is in the better half of the industry: EGY outperforms 72.51% of its industry peers.
In the last couple of years the Gross Margin of EGY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.84% | ||
| PM (TTM) | 8.14% | ||
| GM | 65.02% |
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
EGY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
EGY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EGY has been increased compared to 5 years ago.
The debt/assets ratio for EGY has been reduced compared to a year ago.
2.2 Solvency
EGY has an Altman-Z score of 1.87. This is not the best score and indicates that EGY is in the grey zone with still only limited risk for bankruptcy at the moment.
EGY's Altman-Z score of 1.87 is fine compared to the rest of the industry. EGY outperforms 63.03% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that EGY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, EGY is in the better half of the industry, outperforming 66.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.87 |
ROIC/WACC1.42
WACC8.74%
2.3 Liquidity
EGY has a Current Ratio of 1.39. This is a normal value and indicates that EGY is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EGY (1.39) is better than 63.51% of its industry peers.
A Quick Ratio of 1.38 indicates that EGY should not have too much problems paying its short term obligations.
EGY has a Quick ratio of 1.38. This is in the better half of the industry: EGY outperforms 69.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for EGY have decreased strongly by -55.56% in the last year.
EGY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 69.33% yearly.
Looking at the last year, EGY shows a very negative growth in Revenue. The Revenue has decreased by -19.44% in the last year.
Measured over the past years, EGY shows a very strong growth in Revenue. The Revenue has been growing by 41.48% on average per year.
EPS 1Y (TTM)-55.56%
EPS 3Y-25.5%
EPS 5Y69.33%
EPS Q2Q%-54.55%
Revenue 1Y (TTM)-19.44%
Revenue growth 3Y34%
Revenue growth 5Y41.48%
Sales Q2Q%-17.03%
3.2 Future
EGY is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.96% yearly.
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-90.6%
EPS Next 2Y-11.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-24.83%
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 12.66, EGY is valued correctly.
61.14% of the companies in the same industry are more expensive than EGY, based on the Price/Earnings ratio.
EGY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.90.
A Price/Forward Earnings ratio of 12.15 indicates a correct valuation of EGY.
The rest of the industry has a similar Price/Forward Earnings ratio as EGY.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.36, EGY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EGY indicates a rather cheap valuation: EGY is cheaper than 97.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.84 |
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 -11.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-11.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.41%, EGY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.08, EGY pays a bit more dividend than its industry peers.
EGY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.41% |
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
68.86% of the earnings are spent on dividend by EGY. This is not a sustainable payout ratio.
DP68.86%
EPS Next 2Y-11.96%
EPS Next 3YN/A
4.05
-0.03 (-0.74%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners62.05%
Inst Owner Change0%
Ins Owners2.7%
Ins Owner Change-0.49%
Market Cap422.25M
Analysts80
Price Target0.12 (-97.04%)
Short Float %3.59%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.41% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP68.86%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)155.78%
Min EPS beat(2)15.51%
Max EPS beat(2)296.04%
EPS beat(4)3
Avg EPS beat(4)80.05%
Min EPS beat(4)-45.37%
Max EPS beat(4)296.04%
EPS beat(8)6
Avg EPS beat(8)80.91%
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)3.34%
Min Revenue beat(2)2.78%
Max Revenue beat(2)3.9%
Revenue beat(4)4
Avg Revenue beat(4)5.29%
Min Revenue beat(4)2.68%
Max Revenue beat(4)11.79%
Revenue beat(8)7
Avg Revenue beat(8)16.1%
Revenue beat(12)9
Avg Revenue beat(12)8.83%
Revenue beat(16)12
Avg Revenue beat(16)9.35%
PT rev (1m)2.7%
PT rev (3m)3.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-500%
EPS NY rev (1m)300%
EPS NY rev (3m)100%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 12.15 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 2.95 | ||
| P/B | 0.83 | ||
| P/tB | 0.83 | ||
| EV/EBITDA | 1.84 |
EPS(TTM)0.32
EY7.9%
EPS(NY)0.33
Fwd EY8.23%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)1.38
OCFY33.95%
SpS4.5
BVpS4.91
TBVpS4.91
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 7.47% | ||
| ROCE | 15.67% | ||
| ROIC | 12.38% | ||
| ROICexc | 13.52% | ||
| ROICexgc | 13.52% | ||
| OM | 26.84% | ||
| PM (TTM) | 8.14% | ||
| GM | 65.02% | ||
| 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-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 113.11% | ||
| Cap/Sales | 34.38% | ||
| Interest Coverage | 20.9 | ||
| Cash Conversion | 53.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 1.87 |
F-Score5
WACC8.74%
ROIC/WACC1.42
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)-55.56%
EPS 3Y-25.5%
EPS 5Y69.33%
EPS Q2Q%-54.55%
EPS Next Y-90.6%
EPS Next 2Y-11.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-19.44%
Revenue growth 3Y34%
Revenue growth 5Y41.48%
Sales Q2Q%-17.03%
Revenue Next Year-24.83%
Revenue Next 2Y-3.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-38.77%
EBIT growth 3Y19.94%
EBIT growth 5Y45.13%
EBIT Next Year51.11%
EBIT Next 3Y39.19%
EBIT Next 5Y36.89%
FCF growth 1Y-5.52%
FCF growth 3Y-1.01%
FCF growth 5Y-7.92%
OCF growth 1Y4.34%
OCF growth 3Y31.41%
OCF growth 5Y33.82%