VERMILION ENERGY INC (VET.CA)
CA9237251058 - Common Stock
Overall VET gets a fundamental rating of 4 out of 10. We evaluated VET against 230 industry peers in the Oil, Gas & Consumable Fuels industry. While VET seems to be doing ok healthwise, there are quite some concerns on its profitability. VET has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
VET had negative earnings in the past year.
In the past year VET had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VET reported negative net income in multiple years.
VET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VET has a worse Return On Assets (-3.81%) than 63.72% of its industry peers.
Looking at the Return On Equity, with a value of -7.84%, VET is doing worse than 66.05% of the companies in the same industry.
VET has a Return On Invested Capital of 3.63%. This is comparable to the rest of the industry: VET outperforms 49.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VET is above the industry average of 8.03%.
The 3 year average ROIC (10.73%) for VET is well above the current ROIC(3.63%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.81% | ||
| ROE | -7.84% | ||
| ROIC | 3.63% |
ROA(3y)11.47%
ROA(5y)-0.39%
ROE(3y)28.79%
ROE(5y)-15.25%
ROIC(3y)10.73%
ROIC(5y)N/A
1.3 Margins
VET has a Operating Margin of 15.64%. This is comparable to the rest of the industry: VET outperforms 54.88% of its industry peers.
In the last couple of years the Operating Margin of VET has declined.
VET has a Gross Margin of 65.62%. This is in the better half of the industry: VET outperforms 78.14% of its industry peers.
VET's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.64% | ||
| PM (TTM) | N/A | ||
| GM | 65.62% |
OM growth 3YN/A
OM growth 5Y-8.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.91%
GM growth 5Y-3.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VET is creating some value.
The number of shares outstanding for VET has been reduced compared to 1 year ago.
The number of shares outstanding for VET has been increased compared to 5 years ago.
VET has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that VET is in the distress zone and has some risk of bankruptcy.
VET has a Altman-Z score (0.72) which is in line with its industry peers.
The Debt to FCF ratio of VET is 3.24, which is a good value as it means it would take VET, 3.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VET (3.24) is better than 78.60% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that VET is not too dependend on debt financing.
VET has a Debt to Equity ratio (0.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.5
WACC7.22%
2.3 Liquidity
VET has a Current Ratio of 1.18. This is a normal value and indicates that VET is financially healthy and should not expect problems in meeting its short term obligations.
VET has a better Current ratio (1.18) than 61.40% of its industry peers.
VET has a Quick Ratio of 1.10. This is a normal value and indicates that VET is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VET (1.10) is better than 66.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for VET have decreased strongly by -135.51% in the last year.
The Revenue for VET has decreased by -41.21% in the past year. This is quite bad
Measured over the past years, VET shows a small growth in Revenue. The Revenue has been growing by 5.64% on average per year.
EPS 1Y (TTM)-135.51%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-308.05%
Revenue 1Y (TTM)-41.21%
Revenue growth 3Y20.74%
Revenue growth 5Y5.64%
Revenue growth Q2Q-37.39%
3.2 Future
Based on estimates for the next years, VET will show a very strong growth in Earnings Per Share. The EPS will grow by 45.66% on average per year.
VET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.90% yearly.
EPS Next Y187.27%
EPS Next 2Y61.92%
EPS Next 3Y45.66%
EPS Next 5YN/A
Revenue Next Year-16.29%
Revenue Next 2Y-13.17%
Revenue Next 3Y0.9%
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings Ratio is negative for VET. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 6.71, which indicates a rather cheap valuation of VET.
73.02% of the companies in the same industry are more expensive than VET, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, VET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VET is valued cheaply inside the industry as 86.51% of the companies are valued more expensively.
VET's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VET is cheaper than 77.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.92 | ||
| EV/EBITDA | 3.32 |
4.3 Compensation for Growth
VET's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VET's earnings are expected to grow with 45.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y61.92%
EPS Next 3Y45.66%
5. Dividend
5.1 Amount
VET has a Yearly Dividend Yield of 2.60%. Purely for dividend investing, there may be better candidates out there.
VET's Dividend Yield is a higher than the industry average which is at 8.97.
VET's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
The dividend of VET decreases each year by -30.79%.
VET has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of VET decreased recently.
Dividend Growth(5Y)-30.79%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VET has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-26.12%
EPS Next 2Y61.92%
EPS Next 3Y45.66%
VERMILION ENERGY INC
TSX:VET (4/24/2024, 6:00:00 PM)
16.21
-0.21 (-1.28%)
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 Cap2.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | N/A | ||
| Fwd PE | 6.71 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.81% | ||
| ROE | -7.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.64% | ||
| PM (TTM) | N/A | ||
| GM | 65.62% | ||
| 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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.1 | ||
| 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)-135.51%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y187.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-41.21%
Revenue growth 3Y20.74%
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