VENTURE GLOBAL INC-CL A (VG) Stock Fundamental Analysis
NYSE:VG - New York Stock Exchange, Inc. - US92333F1012 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to VG. VG was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of VG while its profitability can be described as average. While showing a medium growth rate, VG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year VG was profitable.
VG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VG reported negative net income in multiple years.
VG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
VG has a Return On Assets (3.39%) which is comparable to the rest of the industry.
VG has a better Return On Equity (33.33%) than 91.12% of its industry peers.
With a Return On Invested Capital value of 3.57%, VG is not doing good in the industry: 65.42% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for VG is significantly below the industry average of 25.71%.
The 3 year average ROIC (13.35%) for VG is well above the current ROIC(3.57%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 33.33% | ||
| ROIC | 3.57% |
ROA(3y)8.37%
ROA(5y)-0.62%
ROE(3y)99.91%
ROE(5y)47.22%
ROIC(3y)13.35%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 29.67%, VG belongs to the best of the industry, outperforming 81.31% of the companies in the same industry.
Looking at the Operating Margin, with a value of 35.46%, VG is in the better half of the industry, outperforming 76.64% of the companies in the same industry.
VG's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 72.83%, VG belongs to the best of the industry, outperforming 83.18% of the companies in the same industry.
VG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.46% | ||
| PM (TTM) | 29.67% | ||
| GM | 72.83% |
OM growth 3YN/A
OM growth 5Y126.34%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y5.01%
2. Health
2.1 Basic Checks
VG 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 VG remains at a similar level compared to 1 year ago.
The number of shares outstanding for VG has been increased compared to 5 years ago.
VG has a better debt/assets ratio than last year.
2.2 Solvency
VG has an Altman-Z score of 0.71. This is a bad value and indicates that VG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VG (0.71) is worse than 60.28% of its industry peers.
VG has a Debt/Equity ratio of 6.63. This is a high value indicating a heavy dependency on external financing.
VG has a worse Debt to Equity ratio (6.63) than 91.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACC0.37
WACC9.68%
2.3 Liquidity
VG has a Current Ratio of 1.29. This is a normal value and indicates that VG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of VG (1.29) is comparable to the rest of the industry.
VG has a Quick Ratio of 1.24. This is a normal value and indicates that VG is financially healthy and should not expect problems in meeting its short term obligations.
VG has a Quick ratio of 1.24. This is in the better half of the industry: VG outperforms 65.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for VG have decreased strongly by -27.78% in the last year.
The earnings per share for VG have been decreasing by -14.83% on average. This is quite bad
VG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -100.00%.
EPS 1Y (TTM)-27.78%
EPS 3Y-25.94%
EPS 5Y-14.83%
EPS Q2Q%1839.13%
Revenue 1Y (TTM)-100%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-6.62%
3.2 Future
The Earnings Per Share is expected to grow by 53.06% on average over the next years. This is a very strong growth
Based on estimates for the next years, VG will show a very strong growth in Revenue. The Revenue will grow by 61.32% on average per year.
EPS Next Y9.02%
EPS Next 2Y38.85%
EPS Next 3Y76.76%
EPS Next 5Y53.06%
Revenue Next Year10.97%
Revenue Next 2Y13.77%
Revenue Next 3Y55.12%
Revenue Next 5Y61.32%
3.3 Evolution
When comparing the EPS 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 71.92, which means the current valuation is very expensive for VG.
Based on the Price/Earnings ratio, VG is valued a bit more expensive than 68.69% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.21. VG is valued rather expensively when compared to this.
VG is valuated quite expensively with a Price/Forward Earnings ratio of 37.31.
VG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. VG is more expensive than 65.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VG to the average of the S&P500 Index (20.44), we can say VG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.92 | ||
| Fwd PE | 37.31 |
4.2 Price Multiples
VG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. VG is more expensive than 70.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VG does not grow enough to justify the current Price/Earnings ratio.
VG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as VG's earnings are expected to grow with 76.76% in the coming years.
PEG (NY)7.97
PEG (5Y)N/A
EPS Next 2Y38.85%
EPS Next 3Y76.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, VG is not a good candidate for dividend investing.
In the last 3 months the price of VG has falen by -46.69%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
VG's Dividend Yield is slightly below the industry average, which is at 7.22.
With a Dividend Yield of 0.72, VG pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
VG is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
DPN/A
EPS Next 2Y38.85%
EPS Next 3Y76.76%
9.35
+0.19 (+2.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners78.65%
Inst Owner Change501545%
Ins OwnersN/A
Ins Owner Change-22146.9%
Market Cap22.62B
Analysts79.05
Price Target14.49 (54.97%)
Short Float %6.61%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.41%
PT rev (3m)N/A
EPS NQ rev (1m)-16.1%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.37%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-3.49%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.92 | ||
| Fwd PE | 37.31 | ||
| P/S | 4.55 | ||
| P/FCF | N/A | ||
| P/OCF | 10.53 | ||
| P/B | 5.11 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 23.29 |
EPS(TTM)0.13
EY1.39%
EPS(NY)0.25
Fwd EY2.68%
FCF(TTM)-4.78
FCFYN/A
OCF(TTM)0.89
OCFY9.5%
SpS2.05
BVpS1.83
TBVpS1.83
PEG (NY)7.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 33.33% | ||
| ROCE | 4.41% | ||
| ROIC | 3.57% | ||
| ROICexc | 3.92% | ||
| ROICexgc | 3.92% | ||
| OM | 35.46% | ||
| PM (TTM) | 29.67% | ||
| GM | 72.83% | ||
| FCFM | N/A |
ROA(3y)8.37%
ROA(5y)-0.62%
ROE(3y)99.91%
ROE(5y)47.22%
ROIC(3y)13.35%
ROIC(5y)N/A
ROICexc(3y)14.95%
ROICexc(5y)N/A
ROICexgc(3y)14.95%
ROICexgc(5y)N/A
ROCE(3y)16.53%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y6.02%
ROICexc growth 3YN/A
ROICexc growth 5Y49.4%
OM growth 3YN/A
OM growth 5Y126.34%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y5.01%
F-Score4
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.63 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 14.07 | ||
| Cap/Depr | 4259.94% | ||
| Cap/Sales | 275.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 0.71 |
F-Score4
WACC9.68%
ROIC/WACC0.37
Cap/Depr(3y)3395.84%
Cap/Depr(5y)8979.36%
Cap/Sales(3y)150.75%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.78%
EPS 3Y-25.94%
EPS 5Y-14.83%
EPS Q2Q%1839.13%
EPS Next Y9.02%
EPS Next 2Y38.85%
EPS Next 3Y76.76%
EPS Next 5Y53.06%
Revenue 1Y (TTM)-100%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-6.62%
Revenue Next Year10.97%
Revenue Next 2Y13.77%
Revenue Next 3Y55.12%
Revenue Next 5Y61.32%
EBIT growth 1Y-63.65%
EBIT growth 3YN/A
EBIT growth 5Y201.3%
EBIT Next Year167.13%
EBIT Next 3Y28.34%
EBIT Next 5YN/A
FCF growth 1Y-220.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-52.77%
OCF growth 3YN/A
OCF growth 5Y87.43%