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 210 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! This makes EGY very considerable for value investing!
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.
In the past 5 years EGY always reported a positive cash flow from operatings.
1.2 Ratios
EGY has a better Return On Assets (7.90%) than 62.38% of its industry peers.
EGY has a Return On Equity (13.53%) which is in line with its industry peers.
With an excellent Return On Invested Capital value of 20.75%, EGY belongs to the best of the industry, outperforming 91.90% of the companies in the same industry.
EGY had an Average Return On Invested Capital over the past 3 years of 24.78%. This is significantly below the industry average of 30.79%.
The 3 year average ROIC (24.78%) for EGY is well above the current ROIC(20.75%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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
The Profit Margin of EGY (13.47%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of EGY has declined.
With a decent Operating Margin value of 37.49%, EGY is doing good in the industry, outperforming 70.48% of the companies in the same industry.
EGY's Operating Margin has declined in the last couple of years.
The Gross Margin of EGY (67.18%) is better than 71.43% of its industry peers.
In the last couple of years the Gross Margin of EGY has grown nicely.
| Industry Rank | Sector 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%
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.
EGY has more shares outstanding than it did 5 years ago.
EGY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.08 indicates that EGY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.08, EGY is doing good in the industry, outperforming 75.24% 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 88.10% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that EGY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.16, EGY is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 3.08 |
ROIC/WACC2.34
WACC8.85%
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's Current ratio of 1.66 is fine compared to the rest of the industry. EGY outperforms 69.05% of its industry peers.
A Quick Ratio of 1.64 indicates that EGY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.64, EGY is in the better half of the industry, outperforming 72.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.34% over the past year.
The earnings per share for EGY have been decreasing by -19.22% on average. This is quite bad
EGY shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.71%.
The Revenue has been growing by 34.11% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, EGY will show a very strong growth in Earnings Per Share. The EPS will grow by 46.95% on average per year.
EGY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.84% yearly.
EPS Next Y101.45%
EPS Next 2Y46.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.94%
Revenue Next 2Y2.84%
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.
4. Valuation
4.1 Price/Earnings Ratio
EGY is valuated reasonably with a Price/Earnings ratio of 11.93.
The rest of the industry has a similar Price/Earnings ratio as EGY.
When comparing the Price/Earnings ratio of EGY to the average of the S&P500 Index (24.29), we can say EGY is valued rather cheaply.
EGY is valuated reasonably with a Price/Forward Earnings ratio of 9.68.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EGY indicates a somewhat cheap valuation: EGY is cheaper than 61.90% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.35. EGY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
EGY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EGY is cheaper than 94.76% 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 83.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | 2.44 |
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.
The decent profitability rating of EGY may justify a higher PE ratio.
A more expensive valuation may be justified as EGY's earnings are expected to grow with 46.95% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y46.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.60%, EGY has a reasonable but not impressive dividend return.
EGY's Dividend Yield is comparable with the industry average which is at 5.88.
Compared to an average S&P500 Dividend Yield of 2.29, EGY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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 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 2Y46.95%
EPS Next 3YN/A
VAALCO ENERGY INC
NYSE:EGY (7/26/2024, 3:22:48 PM)
After market: 7.25 -0.03 (-0.41%)7.28
+0.08 (+1.11%)
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 Cap753.19M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.93 | ||
| Fwd PE | 9.68 | ||
| 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)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 Y101.45%
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