VENTURE GLOBAL INC-CL A (VG) Stock Fundamental Analysis
NYSE:VG - New York Stock Exchange, Inc. - US92333F1012 - Common Stock - Currency: USD
VG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While VG is still in line with the averages on profitability rating, there are concerns on its financial health. VG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VG was profitable.
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
The Return On Assets of VG (3.27%) is comparable to the rest of the industry.
VG's Return On Equity of 22.88% is amongst the best of the industry. VG outperforms 87.14% of its industry peers.
VG has a Return On Invested Capital of 3.37%. This is in the lower half of the industry: VG underperforms 66.19% of its industry peers.
VG had an Average Return On Invested Capital over the past 3 years of 13.35%. This is significantly below the industry average of 23.79%.
The last Return On Invested Capital (3.37%) for VG is well below the 3 year average (13.35%), which needs to be investigated, but indicates that VG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 22.88% | ||
| ROIC | 3.37% |
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 81.90% of the companies in the same industry.
VG has a better Operating Margin (35.46%) than 79.52% of its industry peers.
VG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.83%, VG belongs to the top of the industry, outperforming 84.29% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VG is still creating some value.
Compared to 1 year ago, VG has about the same amount of shares outstanding.
VG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that VG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.93, VG is in line with its industry, outperforming 43.81% of the companies in the same industry.
A Debt/Equity ratio of 4.56 is on the high side and indicates that VG has dependencies on debt financing.
VG has a worse Debt to Equity ratio (4.56) than 88.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.93 |
ROIC/WACC0.39
WACC8.74%
2.3 Liquidity
A Current Ratio of 1.73 indicates that VG should not have too much problems paying its short term obligations.
The Current ratio of VG (1.73) is better than 73.33% of its industry peers.
A Quick Ratio of 1.67 indicates that VG should not have too much problems paying its short term obligations.
The Quick ratio of VG (1.67) is better than 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
VG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.99%.
Looking at the last year, VG shows a very negative growth in Revenue. The Revenue has decreased by -37.04% in the last year.
VG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.12% yearly.
EPS 1Y (TTM)-44.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)-37.04%
Revenue growth 3YN/A
Revenue growth 5Y33.12%
Sales Q2Q%N/A
3.2 Future
Based on estimates for the next years, VG will show a small growth in Earnings Per Share. The EPS will grow by 1.67% on average per year.
VG is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 44.99% yearly.
EPS Next Y57.66%
EPS Next 2Y16.31%
EPS Next 3Y1.67%
EPS Next 5YN/A
Revenue Next Year157.46%
Revenue Next 2Y69.61%
Revenue Next 3Y44.99%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.87 indicates a rather expensive valuation of VG.
Compared to the rest of the industry, the Price/Earnings ratio of VG is on the same level as its industry peers.
When comparing the Price/Earnings ratio of VG to the average of the S&P500 Index (28.04), we can say VG is valued inline with the index average.
With a Price/Forward Earnings ratio of 14.99, VG is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as VG.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, VG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.87 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VG is valued a bit more expensive than the industry average as 70.48% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 29.36 |
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.
The decent profitability rating of VG may justify a higher PE ratio.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y16.31%
EPS Next 3Y1.67%
5. Dividend
5.1 Amount
VG has a yearly dividend return of 0.46%, which is pretty low.
VG's Dividend Yield is slightly below the industry average, which is at 6.35.
With a Dividend Yield of 0.46, VG pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
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 Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y16.31%
EPS Next 3Y1.67%
14.56
+0.1 (+0.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners101.43%
Inst Owner Change0.04%
Ins Owners2.09%
Ins Owner Change27.28%
Market Cap35.23B
Analysts77.14
Price Target16.28 (11.81%)
Short Float %4.49%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-19.62%
Min EPS beat(2)-46.94%
Max EPS beat(2)7.69%
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)1
Avg Revenue beat(2)-10.71%
Min Revenue beat(2)-23.03%
Max Revenue beat(2)1.62%
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)5.31%
PT rev (3m)9.12%
EPS NQ rev (1m)-18.55%
EPS NQ rev (3m)-23.87%
EPS NY rev (1m)-3.13%
EPS NY rev (3m)-16.89%
Revenue NQ rev (1m)6.57%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)5.12%
Revenue NY rev (3m)2.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.87 | ||
| Fwd PE | 14.99 | ||
| P/S | 7.09 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.46 | ||
| P/tB | 5.46 | ||
| EV/EBITDA | 29.36 |
EPS(TTM)0.61
EY4.19%
EPS(NY)0.97
Fwd EY6.67%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.05
BVpS2.66
TBVpS2.66
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 22.88% | ||
| ROCE | 4.18% | ||
| ROIC | 3.37% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 3.69% | ||
| 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-ScoreN/A
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 14.09 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 0.93 |
F-ScoreN/A
WACC8.74%
ROIC/WACC0.39
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)-44.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y57.66%
EPS Next 2Y16.31%
EPS Next 3Y1.67%
EPS Next 5YN/A
Revenue 1Y (TTM)-37.04%
Revenue growth 3YN/A
Revenue growth 5Y33.12%
Sales Q2Q%N/A
Revenue Next Year157.46%
Revenue Next 2Y69.61%
Revenue Next 3Y44.99%
Revenue Next 5YN/A
EBIT growth 1Y-63.65%
EBIT growth 3YN/A
EBIT growth 5Y201.3%
EBIT Next Year150.13%
EBIT Next 3Y29.66%
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%