VAALCO ENERGY INC (EGY)
US91851C2017 - Common Stock
Taking everything into account, EGY scores 6 out of 10 in our fundamental rating. EGY was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. EGY has an excellent financial health rating, but there are some minor concerns on its profitability. EGY may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make EGY a good candidate for value investing.
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.
EGY had positive earnings in 4 of the past 5 years.
EGY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EGY has a Return On Assets of 7.33%. This is comparable to the rest of the industry: EGY outperforms 49.77% of its industry peers.
EGY has a Return On Equity of 12.61%. This is comparable to the rest of the industry: EGY outperforms 44.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.86%, EGY belongs to the top of the industry, outperforming 83.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EGY is significantly below the industry average of 45.80%.
The 3 year average ROIC (24.78%) for EGY is well above the current ROIC(18.86%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 12.61% | ||
| ROIC | 18.86% |
ROA(3y)14.83%
ROA(5y)2.31%
ROE(3y)26.82%
ROE(5y)0.87%
ROIC(3y)24.78%
ROIC(5y)17.72%
1.3 Margins
With a Profit Margin value of 13.26%, EGY perfoms like the industry average, outperforming 44.60% of the companies in the same industry.
EGY's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 36.51%, EGY is doing good in the industry, outperforming 68.08% of the companies in the same industry.
In the last couple of years the Operating Margin of EGY has declined.
EGY has a Gross Margin of 66.89%. This is in the better half of the industry: EGY outperforms 69.48% of its industry peers.
EGY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.51% | ||
| PM (TTM) | 13.26% | ||
| GM | 66.89% |
OM growth 3Y95.17%
OM growth 5Y-5.68%
PM growth 3YN/A
PM growth 5Y-32.18%
GM growth 3Y5.66%
GM growth 5Y1.53%
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.
Compared to 5 years ago, EGY has more shares outstanding
EGY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.83 indicates that EGY is not a great score, but indicates only limited risk for bankruptcy at the moment.
EGY has a Altman-Z score of 2.83. This is in the better half of the industry: EGY outperforms 69.95% of its industry peers.
The Debt to FCF ratio of EGY is 0.70, which is an excellent value as it means it would take EGY, only 0.70 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.70, EGY belongs to the best of the industry, outperforming 86.85% of the companies in the same industry.
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 72.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.7 | ||
| Altman-Z | 2.83 |
ROIC/WACC2.18
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.79 indicates that EGY should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.79, EGY is doing good in the industry, outperforming 73.71% of the companies in the same industry.
EGY has a Quick Ratio of 1.77. 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 Quick ratio of 1.77. This is in the better half of the industry: EGY outperforms 75.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
EGY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.90%.
Measured over the past years, EGY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.05% on average per year.
Looking at the last year, EGY shows a very strong growth in Revenue. The Revenue has grown by 28.43%.
EGY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.11% yearly.
EPS 1Y (TTM)-23.9%
EPS 3YN/A
EPS 5Y-19.05%
EPS growth Q2Q117.65%
Revenue 1Y (TTM)28.43%
Revenue growth 3Y89.19%
Revenue growth 5Y34.11%
Revenue growth Q2Q54.42%
3.2 Future
The Earnings Per Share is expected to grow by 65.94% on average over the next years. This is a very strong growth
Based on estimates for the next years, EGY will show a very negative growth in Revenue. The Revenue will decrease by -12.14% on average per year.
EPS Next Y191.3%
EPS Next 2Y65.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y-12.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.32 indicates a reasonable valuation of EGY.
Compared to the rest of the industry, the Price/Earnings ratio of EGY is on the same level as its industry peers.
EGY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.25.
A Price/Forward Earnings ratio of 6.35 indicates a rather cheap valuation of EGY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EGY indicates a rather cheap valuation: EGY is cheaper than 85.45% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, EGY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 6.35 |
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 95.31% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EGY is valued cheaper than 85.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.32 | ||
| EV/EBITDA | 2.26 |
4.3 Compensation for Growth
EGY's 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 65.94% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y65.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EGY has a Yearly Dividend Yield of 3.77%.
EGY's Dividend Yield is a higher than the industry average which is at 5.79.
EGY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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
EGY pays out 44.36% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.36%
EPS Next 2Y65.94%
EPS Next 3YN/A
VAALCO ENERGY INC
NYSE:EGY (4/24/2024, 7:04:00 PM)
After market: 6.44 -0.01 (-0.16%)6.45
+0.02 (+0.31%)
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 Cap672.09M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 6.35 | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 12.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 36.51% | ||
| PM (TTM) | 13.26% | ||
| GM | 66.89% | ||
| 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.77 | ||
| 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)
Growth
EPS 1Y (TTM)-23.9%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y191.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.43%
Revenue growth 3Y89.19%
Revenue growth 5Y
Revenue growth 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