VERMILION ENERGY INC (VET.CA) Stock Fundamental Analysis
TSX:VET - Toronto Stock Exchange - CA9237251058 - Common Stock - Currency: CAD
VET gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of VET while its profitability can be described as average. VET does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
VET had negative earnings in the past year.
VET had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VET reported negative net income in multiple years.
Each year in the past 5 years VET had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VET (-0.48%) is comparable to the rest of the industry.
VET has a Return On Equity (-1.18%) which is comparable to the rest of the industry.
The Return On Invested Capital of VET (3.07%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VET is above the industry average of 7.23%.
The last Return On Invested Capital (3.07%) for VET is well below the 3 year average (9.77%), which needs to be investigated, but indicates that VET had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -1.18% | ||
| ROIC | 3.07% |
ROA(3y)4.74%
ROA(5y)-0.65%
ROE(3y)9.7%
ROE(5y)-15.85%
ROIC(3y)9.77%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 14.04%, VET is in line with its industry, outperforming 55.92% of the companies in the same industry.
In the last couple of years the Operating Margin of VET has grown nicely.
VET has a Gross Margin of 67.37%. This is in the better half of the industry: VET outperforms 78.67% of its industry peers.
VET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.04% | ||
| PM (TTM) | N/A | ||
| GM | 67.37% |
OM growth 3Y-29.16%
OM growth 5Y2.82%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.52%
GM growth 5Y0.95%
2. Health
2.1 Basic Checks
VET has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
VET has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VET has been reduced compared to 5 years ago.
Compared to 1 year ago, VET has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.31, we must say that VET is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.31, VET is in line with its industry, outperforming 41.71% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that VET is somewhat dependend on debt financing.
VET has a Debt to Equity ratio (0.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.31 |
ROIC/WACC0.32
WACC9.53%
2.3 Liquidity
A Current Ratio of 0.71 indicates that VET may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.71, VET is in line with its industry, outperforming 43.13% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that VET may have some problems paying its short term obligations.
VET has a Quick ratio of 0.64. This is comparable to the rest of the industry: VET outperforms 42.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
VET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 94.47%, which is quite impressive.
Looking at the last year, VET shows a decrease in Revenue. The Revenue has decreased by -1.88% in the last year.
VET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.65% yearly.
EPS 1Y (TTM)94.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%900%
Revenue 1Y (TTM)-1.88%
Revenue growth 3Y-2.42%
Revenue growth 5Y1.65%
Sales Q2Q%7.63%
3.2 Future
VET is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -71.57% yearly.
The Revenue is expected to grow by 4.63% on average over the next years.
EPS Next Y188.65%
EPS Next 2Y-88.02%
EPS Next 3Y-71.57%
EPS Next 5YN/A
Revenue Next Year21.53%
Revenue Next 2Y-3.16%
Revenue Next 3Y2.69%
Revenue Next 5Y4.63%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for VET. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for VET. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
88.15% of the companies in the same industry are more expensive than VET, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.48 |
4.3 Compensation for Growth
A cheap valuation may be justified as VET's earnings are expected to decrease with -71.57% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-88.02%
EPS Next 3Y-71.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.59%, VET is a good candidate for dividend investing.
In the last 3 months the price of VET has falen by -25.14%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 6.54, VET pays a better dividend. On top of this VET pays more dividend than 80.57% of the companies listed in the same industry.
VET's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
5.2 History
The dividend of VET decreases each year by -28.87%.
VET has been paying a dividend for at least 10 years, so it has a reliable track record.
VET has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-28.87%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of VET are negative and hence is the payout ratio. VET will probably not be able to sustain this dividend level.
The Dividend Rate of VET has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-220.96%
EPS Next 2Y-88.02%
EPS Next 3Y-71.57%
TSX:VET (5/29/2025, 7:00:00 PM)
9.2
+0.1 (+1.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.85%
Inst Owner ChangeN/A
Ins Owners0.55%
Ins Owner ChangeN/A
Market Cap1.42B
Analysts68.75
Price Target15.16 (64.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
Yearly Dividend0.46
Dividend Growth(5Y)-28.87%
DP-220.96%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-91.33%
Min EPS beat(2)-124.5%
Max EPS beat(2)-58.17%
EPS beat(4)0
Avg EPS beat(4)-114.29%
Min EPS beat(4)-247.1%
Max EPS beat(4)-27.39%
EPS beat(8)1
Avg EPS beat(8)-161.1%
EPS beat(12)4
Avg EPS beat(12)1443.31%
EPS beat(16)6
Avg EPS beat(16)1434.15%
Revenue beat(2)0
Avg Revenue beat(2)-5.52%
Min Revenue beat(2)-6.7%
Max Revenue beat(2)-4.34%
Revenue beat(4)0
Avg Revenue beat(4)-7.73%
Min Revenue beat(4)-11.51%
Max Revenue beat(4)-4.34%
Revenue beat(8)0
Avg Revenue beat(8)-10.72%
Revenue beat(12)2
Avg Revenue beat(12)-3.92%
Revenue beat(16)6
Avg Revenue beat(16)4.54%
PT rev (1m)-12.8%
PT rev (3m)-14.86%
EPS NQ rev (1m)-1700%
EPS NQ rev (3m)-151.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-52.98%
Revenue NQ rev (1m)-7.57%
Revenue NQ rev (3m)15.79%
Revenue NY rev (1m)1.7%
Revenue NY rev (3m)7.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.73 | ||
| P/FCF | N/A | ||
| P/OCF | 1.59 | ||
| P/B | 0.49 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | 3.48 |
EPS(TTM)-0.21
EYN/A
EPS(NY)-1.06
Fwd EYN/A
FCF(TTM)-5.3
FCFYN/A
OCF(TTM)5.8
OCFY63.02%
SpS12.55
BVpS18.69
TBVpS18.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -1.18% | ||
| ROCE | 4.27% | ||
| ROIC | 3.07% | ||
| ROICexc | 3.08% | ||
| ROICexgc | 3.08% | ||
| OM | 14.04% | ||
| PM (TTM) | N/A | ||
| GM | 67.37% | ||
| FCFM | N/A |
ROA(3y)4.74%
ROA(5y)-0.65%
ROE(3y)9.7%
ROE(5y)-15.85%
ROIC(3y)9.77%
ROIC(5y)N/A
ROICexc(3y)9.85%
ROICexc(5y)N/A
ROICexgc(3y)9.85%
ROICexgc(5y)N/A
ROCE(3y)13.57%
ROCE(5y)N/A
ROICexcg growth 3Y-31.83%
ROICexcg growth 5Y4.7%
ROICexc growth 3Y-31.83%
ROICexc growth 5Y4.7%
OM growth 3Y-29.16%
OM growth 5Y2.82%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.52%
GM growth 5Y0.95%
F-Score5
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 251.24% | ||
| Cap/Sales | 88.48% | ||
| Interest Coverage | 2.91 | ||
| Cash Conversion | 93.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 0.31 |
F-Score5
WACC9.53%
ROIC/WACC0.32
Cap/Depr(3y)126.62%
Cap/Depr(5y)107.23%
Cap/Sales(3y)33.7%
Cap/Sales(5y)32.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)94.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%900%
EPS Next Y188.65%
EPS Next 2Y-88.02%
EPS Next 3Y-71.57%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.88%
Revenue growth 3Y-2.42%
Revenue growth 5Y1.65%
Sales Q2Q%7.63%
Revenue Next Year21.53%
Revenue Next 2Y-3.16%
Revenue Next 3Y2.69%
Revenue Next 5Y4.63%
EBIT growth 1Y4.97%
EBIT growth 3Y-30.87%
EBIT growth 5Y4.51%
EBIT Next Year102.66%
EBIT Next 3Y12.45%
EBIT Next 5Y15.47%
FCF growth 1Y-235.66%
FCF growth 3Y0.4%
FCF growth 5Y4.86%
OCF growth 1Y-51.99%
OCF growth 3Y5.06%
OCF growth 5Y3.28%