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 211 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 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
VG had positive earnings in the past year.
The reported net income has been mixed in the past 5 years: VG reported negative net income in multiple years.
Of the past 5 years VG 4 years had a positive operating cash flow.
1.2 Ratios
VG's Return On Assets of 3.27% is in line compared to the rest of the industry. VG outperforms 50.24% of its industry peers.
With an excellent Return On Equity value of 22.88%, VG belongs to the best of the industry, outperforming 87.20% of the companies in the same industry.
VG has a Return On Invested Capital of 3.37%. This is in the lower half of the industry: VG underperforms 65.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VG is significantly below the industry average of 23.70%.
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
VG's Profit Margin of 29.67% is amongst the best of the industry. VG outperforms 81.52% of its industry peers.
With a decent Operating Margin value of 35.46%, VG is doing good in the industry, outperforming 79.15% of the companies in the same industry.
VG's Operating Margin has improved in the last couple of years.
VG's Gross Margin of 72.83% is amongst the best of the industry. VG outperforms 84.36% of its industry peers.
In the last couple of years the Gross Margin of VG has grown nicely.
| 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.
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.
The debt/assets ratio for VG has been reduced compared to a year ago.
2.2 Solvency
VG has an Altman-Z score of 0.97. This is a bad value and indicates that VG is not financially healthy and even has some risk of bankruptcy.
VG's Altman-Z score of 0.97 is in line compared to the rest of the industry. VG outperforms 43.13% of its industry peers.
VG has a Debt/Equity ratio of 4.56. This is a high value indicating a heavy dependency on external financing.
VG has a Debt to Equity ratio of 4.56. This is amonst the worse of the industry: VG underperforms 89.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.41
WACC8.15%
2.3 Liquidity
A Current Ratio of 1.73 indicates that VG should not have too much problems paying its short term obligations.
VG has a better Current ratio (1.73) than 72.99% of its industry peers.
VG has a Quick Ratio of 1.67. 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 1.67. This is in the better half of the industry: VG outperforms 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for VG have decreased strongly by -44.99% in the last year.
The Revenue for VG has decreased by -37.04% in the past year. This is quite bad
The Revenue has been growing by 33.12% on average over the past years. This is a very strong growth!
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
VG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.06% yearly.
The Revenue is expected to grow by 45.09% on average over the next years. This is a very strong growth
EPS Next Y62.76%
EPS Next 2Y15.8%
EPS Next 3Y2.06%
EPS Next 5YN/A
Revenue Next Year144.93%
Revenue Next 2Y68.88%
Revenue Next 3Y45.09%
Revenue Next 5YN/A
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 25.54, which means the current valuation is very expensive for VG.
Compared to the rest of the industry, the Price/Earnings ratio of VG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.15, VG is valued at the same level.
With a Price/Forward Earnings ratio of 16.18, VG is valued correctly.
VG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.60. VG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.54 | ||
| Fwd PE | 16.18 |
4.2 Price Multiples
70.14% of the companies in the same industry are cheaper than VG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 30.54 |
4.3 Compensation for Growth
VG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y15.8%
EPS Next 3Y2.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.39%, VG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, VG is paying slightly less dividend.
With a Dividend Yield of 0.39, VG pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
VG does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y15.8%
EPS Next 3Y2.06%
15.58
-0.11 (-0.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners101.43%
Inst Owner Change600807%
Ins Owners2.09%
Ins Owner Change-22146.9%
Market Cap37.70B
Analysts79.05
Price Target15.46 (-0.77%)
Short Float %4.77%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
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)6.66%
PT rev (3m)-27.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.05%
EPS NY rev (1m)-6.99%
EPS NY rev (3m)-37.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.97%
Revenue NY rev (1m)-2.69%
Revenue NY rev (3m)-11.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.54 | ||
| Fwd PE | 16.18 | ||
| P/S | 7.58 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.85 | ||
| P/tB | 5.85 | ||
| EV/EBITDA | 30.54 |
EPS(TTM)0.61
EY3.92%
EPS(NY)0.96
Fwd EY6.18%
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 | 0.97 |
F-ScoreN/A
WACC8.15%
ROIC/WACC0.41
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 Y62.76%
EPS Next 2Y15.8%
EPS Next 3Y2.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-37.04%
Revenue growth 3YN/A
Revenue growth 5Y33.12%
Sales Q2Q%N/A
Revenue Next Year144.93%
Revenue Next 2Y68.88%
Revenue Next 3Y45.09%
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%