VERMILION ENERGY INC (VET)
CA9237251058 - Common Stock
Overall VET gets a fundamental rating of 4 out of 10. We evaluated VET against 214 industry peers in the Oil, Gas & Consumable Fuels industry. VET scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VET has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year VET has reported negative net income.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.81%, VET is doing worse than 87.79% of the companies in the same industry.
VET's Return On Equity of -7.84% is on the low side compared to the rest of the industry. VET is outperformed by 85.45% of its industry peers.
With a Return On Invested Capital value of 3.63%, VET is not doing good in the industry: 77.00% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for VET is significantly below the industry average of 45.95%.
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 worse Operating Margin (15.64%) than 61.97% of its industry peers.
VET's Operating Margin has declined in the last couple of years.
VET's Gross Margin of 65.62% is fine compared to the rest of the industry. VET outperforms 68.54% of its industry peers.
In the last couple of years the Gross Margin of VET has declined.
| 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.
Compared to 5 years ago, VET has more shares outstanding
The debt/assets ratio for VET has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 0.72, VET is doing worse than 63.85% of the companies in the same industry.
VET has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as VET would need 3.24 years to pay back of all of its debts.
VET has a Debt to FCF ratio of 3.24. This is in the better half of the industry: VET outperforms 66.67% 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 of 0.31. This is in the better half of the industry: VET outperforms 61.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.5
WACC7.23%
2.3 Liquidity
A Current Ratio of 1.18 indicates that VET should not have too much problems paying its short term obligations.
VET has a Current ratio of 1.18. This is comparable to the rest of the industry: VET outperforms 50.23% of its industry peers.
A Quick Ratio of 1.10 indicates that VET should not have too much problems paying its short term obligations.
The Quick ratio of VET (1.10) is comparable to the rest of the industry.
| 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
The Revenue has been growing slightly by 5.64% on average over the past years.
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
The Earnings Per Share is expected to grow by 45.66% on average over the next years. This is a very strong growth
Based on estimates for the next years, VET will show a small growth in Revenue. The Revenue will grow by 0.90% on average per year.
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.
With a Price/Forward Earnings ratio of 6.81, the valuation of VET can be described as very cheap.
Based on the Price/Forward Earnings ratio, VET is valued cheaply inside the industry as 84.04% of the companies are valued more expensively.
VET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VET is valued cheaper than 86.85% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VET indicates a somewhat cheap valuation: VET is cheaper than 68.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.07 | ||
| EV/EBITDA | 3.32 |
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.
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 comparable with the industry average which is at 5.79.
VET's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
5.2 History
The dividend of VET decreases each year by -30.79%.
VET has been paying a dividend for at least 10 years, so it has a reliable track record.
VET has decreased its dividend 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
NYSE:VET (4/25/2024, 7:23:30 PM)
After market: 12.03 0 (0%)12.03
+0.2 (+1.69%)
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 Cap1.93B
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 | 6.81 | ||
| 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