VERMILION ENERGY INC (VET) Stock Fundamental Analysis
NYSE:VET - New York Stock Exchange, Inc. - CA9237251058 - Common Stock - Currency: USD
We assign a fundamental rating of 2 out of 10 to VET. VET was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of VET have multiple concerns. VET is valued expensive and it does not seem to be growing.
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
VET has a worse Return On Assets (-0.48%) than 69.95% of its industry peers.
With a Return On Equity value of -1.18%, VET is not doing good in the industry: 67.14% of the companies in the same industry are doing better.
VET's Return On Invested Capital of 3.37% is on the low side compared to the rest of the industry. VET is outperformed by 66.67% of its industry peers.
VET had an Average Return On Invested Capital over the past 3 years of 10.72%. This is significantly below the industry average of 23.55%.
The 3 year average ROIC (10.72%) for VET is well above the current ROIC(3.37%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -1.18% | ||
| ROIC | 3.37% |
ROA(3y)4.74%
ROA(5y)-0.65%
ROE(3y)9.7%
ROE(5y)-15.85%
ROIC(3y)10.72%
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 45.54% of the companies in the same industry.
VET's Operating Margin has improved in the last couple of years.
VET has a Gross Margin of 67.37%. This is in the better half of the industry: VET outperforms 76.53% of its industry peers.
In the last couple of years the Gross Margin of VET has remained more or less at the same level.
| 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.
The number of shares outstanding for VET has been reduced compared to 1 year ago.
Compared to 5 years ago, VET has less shares outstanding
Compared to 1 year ago, VET has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.33, we must say that VET is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.33, VET is not doing good in the industry: 67.61% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.67 indicates that VET is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, VET is not doing good in the industry: 60.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.33 |
ROIC/WACC0.37
WACC9.03%
2.3 Liquidity
A Current Ratio of 0.71 indicates that VET may have some problems paying its short term obligations.
With a Current ratio value of 0.71, VET is not doing good in the industry: 74.18% of the companies in the same industry are doing better.
A Quick Ratio of 0.64 indicates that VET may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.64, VET is doing worse than 71.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 94.47% over the past year.
VET shows a decrease in Revenue. In the last year, the revenue decreased by -1.88%.
Measured over the past years, VET shows a small growth in Revenue. The Revenue has been growing by 1.65% on average per year.
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
The Earnings Per Share is expected to decrease by -71.57% on average over the next years. This is quite bad
The Revenue is expected to grow by 3.14% 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 5Y3.14%
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
Based on the Enterprise Value to EBITDA ratio, VET is valued cheaper than 81.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.59 |
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
VET has a Yearly Dividend Yield of 5.24%, which is a nice return.
VET's Dividend Yield is a higher than the industry average which is at 6.74.
Compared to an average S&P500 Dividend Yield of 2.39, VET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
5.2 History
The dividend of VET decreases each year by -28.87%.
VET has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of VET decreased 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%
7.2
+0.23 (+3.3%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.85%
Inst Owner Change9.32%
Ins Owners0.55%
Ins Owner ChangeN/A
Market Cap1.11B
Analysts68.75
Price Target9.74 (35.28%)
Short Float %9.07%
Short Ratio9.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
Yearly Dividend0.34
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)-11.19%
PT rev (3m)-20.95%
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)0%
Revenue NY rev (3m)7.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 1.7 | ||
| P/B | 0.53 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 3.59 |
EPS(TTM)-0.15
EYN/A
EPS(NY)-0.77
Fwd EYN/A
FCF(TTM)-3.87
FCFYN/A
OCF(TTM)4.23
OCFY58.78%
SpS9.16
BVpS13.64
TBVpS13.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -1.18% | ||
| ROCE | 4.27% | ||
| ROIC | 3.37% | ||
| ROICexc | 3.38% | ||
| ROICexgc | 3.38% | ||
| 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)10.72%
ROIC(5y)N/A
ROICexc(3y)10.81%
ROICexc(5y)N/A
ROICexgc(3y)10.81%
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 | 0.33 |
F-Score5
WACC9.03%
ROIC/WACC0.37
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 5Y3.14%
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%