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VERMILION ENERGY INC (VET.CA) Stock Fundamental Analysis

TSX:VET - Toronto Stock Exchange - CA9237251058 - Common Stock - Currency: CAD

12.955  +0.07 (+0.58%)

Fundamental Rating

4

VET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 214 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.


Dividend Valuation Growth Profitability Health

3

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.
In the past 5 years VET always reported a positive cash flow from operatings.
VET.CA Yearly Net Income VS EBIT VS OCF VS FCFVET.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B

1.2 Ratios

VET's Return On Assets of -13.67% is on the low side compared to the rest of the industry. VET is outperformed by 68.66% of its industry peers.
VET has a worse Return On Equity (-28.89%) than 71.64% of its industry peers.
VET has a Return On Invested Capital (2.29%) which is comparable to the rest of the industry.
VET had an Average Return On Invested Capital over the past 3 years of 10.73%. This is above the industry average of 7.73%.
The 3 year average ROIC (10.73%) for VET is well above the current ROIC(2.29%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -13.67%
ROE -28.89%
ROIC 2.29%
ROA(3y)11.47%
ROA(5y)-0.39%
ROE(3y)28.79%
ROE(5y)-15.25%
ROIC(3y)10.73%
ROIC(5y)N/A
VET.CA Yearly ROA, ROE, ROICVET.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150

1.3 Margins

With a Operating Margin value of 10.28%, VET perfoms like the industry average, outperforming 51.24% of the companies in the same industry.
VET's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 65.66%, VET is doing good in the industry, outperforming 75.12% of the companies in the same industry.
VET's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 10.28%
PM (TTM) N/A
GM 65.66%
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%
VET.CA Yearly Profit, Operating, Gross MarginsVET.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

6

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.
The number of shares outstanding for VET has been reduced compared to 1 year ago.
VET has more shares outstanding than it did 5 years ago.
VET has a better debt/assets ratio than last year.
VET.CA Yearly Shares OutstandingVET.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
VET.CA Yearly Total Debt VS Total AssetsVET.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 0.53, we must say that VET is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.53, VET perfoms like the industry average, outperforming 48.26% of the companies in the same industry.
VET has a debt to FCF ratio of 1.96. This is a very positive value and a sign of high solvency as it would only need 1.96 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.96, VET belongs to the top of the industry, outperforming 84.08% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that VET is not too dependend on debt financing.
VET has a Debt to Equity ratio (0.36) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 1.96
Altman-Z 0.53
ROIC/WACC0.32
WACC7.24%
VET.CA Yearly LT Debt VS Equity VS FCFVET.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

2.3 Liquidity

VET has a Current Ratio of 1.25. 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 Current ratio (1.25) which is comparable to the rest of the industry.
VET has a Quick Ratio of 1.19. 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 Quick ratio (1.19) than 64.18% of its industry peers.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 1.19
VET.CA Yearly Current Assets VS Current LiabilitesVET.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

3

3. Growth

3.1 Past

VET shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -213.11%.
Looking at the last year, VET shows a very negative growth in Revenue. The Revenue has decreased by -16.38% in the last year.
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)-213.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2.94%
Revenue 1Y (TTM)-16.38%
Revenue growth 3Y20.74%
Revenue growth 5Y5.64%
Sales Q2Q%-6.62%

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 35.32% on average per year.
Based on estimates for the next years, VET will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
EPS Next Y110.45%
EPS Next 2Y54.13%
EPS Next 3Y35.32%
EPS Next 5YN/A
Revenue Next Year-7.2%
Revenue Next 2Y-0.07%
Revenue Next 3Y-0.04%
Revenue Next 5Y1.73%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
VET.CA Yearly Revenue VS EstimatesVET.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B
VET.CA Yearly EPS VS EstimatesVET.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 5 -5

6

4. Valuation

4.1 Price/Earnings Ratio

VET reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
VET is valuated correctly with a Price/Forward Earnings ratio of 12.45.
VET's Price/Forward Earnings is on the same level as the industry average.
VET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.77.
Industry RankSector Rank
PE N/A
Fwd PE 12.45
VET.CA Price Earnings VS Forward Price EarningsVET.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VET is valued cheaply inside the industry as 90.05% of the companies are valued more expensively.
96.02% of the companies in the same industry are more expensive than VET, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 3.84
EV/EBITDA 2.9
VET.CA Per share dataVET.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 15

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 35.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y54.13%
EPS Next 3Y35.32%

4

5. Dividend

5.1 Amount

VET has a Yearly Dividend Yield of 3.73%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.59, VET pays a bit more dividend than its industry peers.
VET's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 3.73%

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.
VET has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-30.79%
Div Incr Years2
Div Non Decr Years2
VET.CA Yearly Dividends per shareVET.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2022 2023 2024 0.5 1 1.5 2 2.5

5.3 Sustainability

VET has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-8.51%
EPS Next 2Y54.13%
EPS Next 3Y35.32%
VET.CA Yearly Income VS Free CF VS DividendVET.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B -1B -1.5B

VERMILION ENERGY INC

TSX:VET (2/7/2025, 7:00:00 PM)

12.955

+0.07 (+0.58%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)N/A N/A
Inst Owners45.53%
Inst Owner ChangeN/A
Ins Owners0.55%
Ins Owner ChangeN/A
Market Cap2.01B
Analysts73.75
Price Target17.68 (36.47%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.73%
Yearly Dividend0.38
Dividend Growth(5Y)-30.79%
DP-8.51%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-137.25%
Min EPS beat(2)-247.1%
Max EPS beat(2)-27.39%
EPS beat(4)0
Avg EPS beat(4)-289.58%
Min EPS beat(4)-784.7%
Max EPS beat(4)-27.39%
EPS beat(8)3
Avg EPS beat(8)2186.82%
EPS beat(12)5
Avg EPS beat(12)1472.29%
EPS beat(16)7
Avg EPS beat(16)1876.72%
Revenue beat(2)0
Avg Revenue beat(2)-9.94%
Min Revenue beat(2)-11.51%
Max Revenue beat(2)-8.38%
Revenue beat(4)0
Avg Revenue beat(4)-14.52%
Min Revenue beat(4)-23.78%
Max Revenue beat(4)-8.38%
Revenue beat(8)0
Avg Revenue beat(8)-10.36%
Revenue beat(12)4
Avg Revenue beat(12)4.29%
Revenue beat(16)8
Avg Revenue beat(16)7.74%
PT rev (1m)-3.81%
PT rev (3m)-5.56%
EPS NQ rev (1m)-28.12%
EPS NQ rev (3m)-35.21%
EPS NY rev (1m)-27.43%
EPS NY rev (3m)-23.55%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-7.86%
Revenue NY rev (1m)3.08%
Revenue NY rev (3m)0.68%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 12.45
P/S 1.04
P/FCF 3.84
P/OCF 1.83
P/B 0.7
P/tB 0.7
EV/EBITDA 2.9
EPS(TTM)-5.09
EYN/A
EPS(NY)1.04
Fwd EY8.03%
FCF(TTM)3.37
FCFY26.02%
OCF(TTM)7.07
OCFY54.61%
SpS12.47
BVpS18.53
TBVpS18.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -13.67%
ROE -28.89%
ROCE 3.58%
ROIC 2.29%
ROICexc 2.37%
ROICexgc 2.37%
OM 10.28%
PM (TTM) N/A
GM 65.66%
FCFM 27.03%
ROA(3y)11.47%
ROA(5y)-0.39%
ROE(3y)28.79%
ROE(5y)-15.25%
ROIC(3y)10.73%
ROIC(5y)N/A
ROICexc(3y)10.78%
ROICexc(5y)N/A
ROICexgc(3y)10.78%
ROICexgc(5y)N/A
ROCE(3y)16.76%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-1.93%
ROICexc growth 3YN/A
ROICexc growth 5Y-1.93%
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%
F-Score4
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 1.96
Debt/EBITDA 1.05
Cap/Depr 73.88%
Cap/Sales 29.71%
Interest Coverage 2.35
Cash Conversion 112.37%
Profit Quality N/A
Current Ratio 1.25
Quick Ratio 1.19
Altman-Z 0.53
F-Score4
WACC7.24%
ROIC/WACC0.32
Cap/Depr(3y)125.14%
Cap/Depr(5y)105.26%
Cap/Sales(3y)30.8%
Cap/Sales(5y)31.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-213.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2.94%
EPS Next Y110.45%
EPS Next 2Y54.13%
EPS Next 3Y35.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.38%
Revenue growth 3Y20.74%
Revenue growth 5Y5.64%
Sales Q2Q%-6.62%
Revenue Next Year-7.2%
Revenue Next 2Y-0.07%
Revenue Next 3Y-0.04%
Revenue Next 5Y1.73%
EBIT growth 1Y-70.94%
EBIT growth 3YN/A
EBIT growth 5Y-2.93%
EBIT Next Year54.51%
EBIT Next 3Y15.05%
EBIT Next 5Y12%
FCF growth 1Y3.16%
FCF growth 3Y39.67%
FCF growth 5Y68.5%
OCF growth 1Y-29.97%
OCF growth 3Y27%
OCF growth 5Y4.66%