VAALCO ENERGY INC (EGY) Stock Fundamental Analysis
NYSE:EGY - New York Stock Exchange, Inc. - US91851C2017 - Common Stock - Currency: USD
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. EGY has only an average score on both its financial health and profitability. EGY scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
In the past 5 years EGY always reported a positive cash flow from operatings.
1.2 Ratios
EGY has a Return On Assets of 6.85%. This is in the better half of the industry: EGY outperforms 69.95% of its industry peers.
The Return On Equity of EGY (13.04%) is better than 66.20% of its industry peers.
EGY has a Return On Invested Capital of 17.37%. This is amongst the best in the industry. EGY outperforms 92.49% of its industry peers.
EGY had an Average Return On Invested Capital over the past 3 years of 17.78%. This is significantly below the industry average of 25.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 13.04% | ||
| ROIC | 17.37% |
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 (11.29%) which is in line with its industry peers.
In the last couple of years the Profit Margin of EGY has grown nicely.
Looking at the Operating Margin, with a value of 29.35%, EGY is in the better half of the industry, outperforming 67.61% of the companies in the same industry.
In the last couple of years the Operating Margin of EGY has grown nicely.
Looking at the Gross Margin, with a value of 66.23%, EGY is in the better half of the industry, outperforming 74.18% of the companies in the same industry.
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 | 29.35% | ||
| PM (TTM) | 11.29% | ||
| GM | 66.23% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EGY is creating some 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.
Compared to 1 year ago, EGY has an improved debt to assets ratio.
2.2 Solvency
EGY has an Altman-Z score of 2.02. 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.
Looking at the Altman-Z score, with a value of 2.02, EGY is in the better half of the industry, outperforming 68.54% of the companies in the same industry.
EGY has a debt to FCF ratio of 7.53. This is a slightly negative value and a sign of low solvency as EGY would need 7.53 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.53, EGY perfoms like the industry average, outperforming 55.40% of the companies in the same industry.
EGY has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.13, EGY is doing good in the industry, outperforming 73.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 7.53 | ||
| Altman-Z | 2.02 |
ROIC/WACC1.67
WACC10.37%
2.3 Liquidity
EGY has a Current Ratio of 1.31. 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 Current ratio (1.31) which is in line with its industry peers.
EGY has a Quick Ratio of 1.26. 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 1.26 is fine compared to the rest of the industry. EGY outperforms 63.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for EGY have decreased strongly by -27.87% in the last year.
The Earnings Per Share has been growing by 69.33% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.26% in the past 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)-27.87%
EPS 3Y-25.5%
EPS 5Y69.33%
EPS Q2Q%16.67%
Revenue 1Y (TTM)5.26%
Revenue growth 3Y34%
Revenue growth 5Y41.48%
Sales Q2Q%10.16%
3.2 Future
Based on estimates for the next years, EGY will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.18% on average per year.
The Revenue is expected to decrease by -3.45% on average over the next years.
EPS Next Y-92.95%
EPS Next 2Y14.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-25.69%
Revenue Next 2Y-3.45%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
A Price/Earnings ratio of 7.20 indicates a rather cheap valuation of EGY.
82.63% of the companies in the same industry are more expensive than EGY, based on the Price/Earnings ratio.
EGY is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.66, which indicates a rather cheap valuation of EGY.
88.26% of the companies in the same industry are more expensive than EGY, based on the Price/Forward Earnings ratio.
EGY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 5.66 |
4.2 Price Multiples
99.06% of the companies in the same industry are more expensive than EGY, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as EGY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.69 | ||
| EV/EBITDA | 1.08 |
4.3 Compensation for Growth
EGY has a very decent profitability rating, which may justify a higher PE ratio.
EGY's earnings are expected to grow with 14.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y14.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EGY has a Yearly Dividend Yield of 7.65%, which is a nice return.
The stock price of EGY dropped by -20.75% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
EGY's Dividend Yield is a higher than the industry average which is at 6.81.
EGY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.65% |
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 Years2
5.3 Sustainability
EGY pays out 40.09% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.09%
EPS Next 2Y14.18%
EPS Next 3YN/A
3.17
-0.1 (-3.06%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners62.65%
Inst Owner Change1.57%
Ins Owners1.97%
Ins Owner Change-0.18%
Market Cap329.11M
Analysts80
Price Target0.11 (-96.53%)
Short Float %4.41%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.65% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP40.09%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.32%
Min EPS beat(2)-45.37%
Max EPS beat(2)54.02%
EPS beat(4)3
Avg EPS beat(4)45.23%
Min EPS beat(4)-45.37%
Max EPS beat(4)98.02%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)7.24%
Min Revenue beat(2)2.68%
Max Revenue beat(2)11.79%
Revenue beat(4)4
Avg Revenue beat(4)28.36%
Min Revenue beat(4)2.68%
Max Revenue beat(4)79.2%
Revenue beat(8)6
Avg Revenue beat(8)11.34%
Revenue beat(12)9
Avg Revenue beat(12)10.4%
Revenue beat(16)12
Avg Revenue beat(16)10.78%
PT rev (1m)3.24%
PT rev (3m)-3.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)120.69%
EPS NY rev (3m)-90.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-4.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 5.66 | ||
| P/S | 0.57 | ||
| P/FCF | 30.69 | ||
| P/OCF | 2.89 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 1.08 |
EPS(TTM)0.44
EY13.88%
EPS(NY)0.56
Fwd EY17.68%
FCF(TTM)0.1
FCFY3.26%
OCF(TTM)1.1
OCFY34.55%
SpS5.58
BVpS4.83
TBVpS4.83
PEG (NY)N/A
PEG (5Y)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 13.04% | ||
| ROCE | 21.99% | ||
| ROIC | 17.37% | ||
| ROICexc | 19.45% | ||
| ROICexgc | 19.45% | ||
| OM | 29.35% | ||
| PM (TTM) | 11.29% | ||
| GM | 66.23% | ||
| FCFM | 1.85% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 7.53 | ||
| Debt/EBITDA | 0.22 | ||
| Cap/Depr | 72.01% | ||
| Cap/Sales | 17.78% | ||
| Interest Coverage | 25.32 | ||
| Cash Conversion | 36.33% | ||
| Profit Quality | 16.39% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 2.02 |
F-Score6
WACC10.37%
ROIC/WACC1.67
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-92.95%
EPS Next 2Y14.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.26%
Revenue growth 3Y34%
Revenue growth 5Y41.48%
Sales Q2Q%10.16%
Revenue Next Year-25.69%
Revenue Next 2Y-3.45%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.32%
EBIT growth 3Y19.94%
EBIT growth 5Y45.13%
EBIT Next Year46.64%
EBIT Next 3Y39.19%
EBIT Next 5Y29.27%
FCF growth 1Y-91.52%
FCF growth 3Y-1.01%
FCF growth 5Y-7.92%
OCF growth 1Y-49.14%
OCF growth 3Y31.41%
OCF growth 5Y33.82%