VAALCO ENERGY INC (EGY)

US91851C2017 - Common Stock

6.25  +0.01 (+0.16%)

After market: 6.25 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to EGY. EGY was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. While EGY has a great health rating, its profitability is only average at the moment. EGY is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make EGY suitable for value investing!



6

1. Profitability

1.1 Basic Checks

In the past year EGY was profitable.
In the past year EGY had a positive cash flow from operations.
EGY had positive earnings in 4 of the past 5 years.
In the past 5 years EGY always reported a positive cash flow from operatings.

1.2 Ratios

With a decent Return On Assets value of 7.90%, EGY is doing good in the industry, outperforming 60.38% of the companies in the same industry.
The Return On Equity of EGY (13.53%) is comparable to the rest of the industry.
The Return On Invested Capital of EGY (20.75%) is better than 91.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EGY is significantly below the industry average of 38.62%.
The last Return On Invested Capital (20.75%) for EGY is well below the 3 year average (24.78%), which needs to be investigated, but indicates that EGY had better years and this may not be a problem.
Industry RankSector Rank
ROA 7.9%
ROE 13.53%
ROIC 20.75%
ROA(3y)14.81%
ROA(5y)2.29%
ROE(3y)26.77%
ROE(5y)0.84%
ROIC(3y)24.78%
ROIC(5y)17.72%

1.3 Margins

EGY has a Profit Margin (13.47%) which is in line with its industry peers.
In the last couple of years the Profit Margin of EGY has declined.
EGY's Operating Margin of 37.49% is fine compared to the rest of the industry. EGY outperforms 70.28% of its industry peers.
In the last couple of years the Operating Margin of EGY has declined.
Looking at the Gross Margin, with a value of 67.18%, EGY is in the better half of the industry, outperforming 71.23% of the companies in the same industry.
In the last couple of years the Gross Margin of EGY has grown nicely.
Industry RankSector Rank
OM 37.49%
PM (TTM) 13.47%
GM 67.18%
OM growth 3Y95.17%
OM growth 5Y-5.68%
PM growth 3YN/A
PM growth 5Y-32.33%
GM growth 3Y6.07%
GM growth 5Y1.77%

7

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.
The number of shares outstanding for EGY has been reduced compared to 1 year ago.
The number of shares outstanding for EGY has been increased compared to 5 years ago.
Compared to 1 year ago, EGY has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.90 indicates that EGY is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.90, EGY is in the better half of the industry, outperforming 71.70% of the companies in the same industry.
The Debt to FCF ratio of EGY is 0.76, which is an excellent value as it means it would take EGY, only 0.76 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EGY (0.76) is better than 88.21% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that EGY is not too dependend on debt financing.
EGY's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. EGY outperforms 74.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 0.76
Altman-Z 2.9
ROIC/WACC2.31
WACC9%

2.3 Liquidity

EGY has a Current Ratio of 1.66. This is a normal value and indicates that EGY is financially healthy and should not expect problems in meeting its short term obligations.
EGY has a better Current ratio (1.66) than 69.34% of its industry peers.
EGY has a Quick Ratio of 1.64. 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 1.64 is fine compared to the rest of the industry. EGY outperforms 71.70% of its industry peers.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.64

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.34% over the past year.
EGY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.22% yearly.
EGY shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.71%.
Measured over the past years, EGY shows a very strong growth in Revenue. The Revenue has been growing by 34.11% on average per year.
EPS 1Y (TTM)5.34%
EPS 3YN/A
EPS 5Y-19.22%
EPS Q2Q%129.53%
Revenue 1Y (TTM)29.71%
Revenue growth 3Y89.19%
Revenue growth 5Y34.11%
Sales Q2Q%24.57%

3.2 Future

EGY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 69.40% yearly.
The Revenue is expected to decrease by -12.14% on average over the next years. This is quite bad
EPS Next Y166.67%
EPS Next 2Y69.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.04%
Revenue Next 2Y-12.14%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

9

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.25 indicates a reasonable valuation of EGY.
Based on the Price/Earnings ratio, EGY is valued a bit cheaper than the industry average as 64.62% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.20, EGY is valued rather cheaply.
A Price/Forward Earnings ratio of 6.25 indicates a rather cheap valuation of EGY.
EGY's Price/Forward Earnings ratio is rather cheap when compared to the industry. EGY is cheaper than 87.26% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.02, EGY is valued rather cheaply.
Industry RankSector Rank
PE 10.25
Fwd PE 6.25

4.2 Price Multiples

EGY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EGY is cheaper than 97.17% of the companies in the same industry.
EGY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EGY is cheaper than 88.68% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.51
EV/EBITDA 2.11

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EGY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as EGY's earnings are expected to grow with 69.40% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y69.4%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

EGY has a Yearly Dividend Yield of 4.22%, which is a nice return.
EGY's Dividend Yield is a higher than the industry average which is at 5.99.
Compared to an average S&P500 Dividend Yield of 2.37, EGY pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.22%

5.2 History

EGY has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

41.44% of the earnings are spent on dividend by EGY. This is a bit on the high side, but may be sustainable.
DP41.44%
EPS Next 2Y69.4%
EPS Next 3YN/A

VAALCO ENERGY INC

NYSE:EGY (5/29/2024, 3:10:03 PM)

After market: 6.25 0 (0%)

6.25

+0.01 (+0.16%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap646.63M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.22%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 10.25
Fwd PE 6.25
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.06
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 7.9%
ROE 13.53%
ROCE
ROIC
ROICexc
ROICexgc
OM 37.49%
PM (TTM) 13.47%
GM 67.18%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.66
Quick Ratio 1.64
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.34%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y166.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.71%
Revenue growth 3Y89.19%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y