VAALCO ENERGY INC (EGY)
US91851C2017 - Common Stock
Taking everything into account, EGY scores 6 out of 10 in our fundamental rating. EGY was compared to 204 industry peers in the Oil, Gas & Consumable Fuels industry. EGY has only an average score on both its financial health and profitability. EGY may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, EGY could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
EGY had positive earnings in the past year.
EGY had a positive operating cash flow in the past year.
EGY had positive earnings in 4 of the past 5 years.
In the past 5 years EGY always reported a positive cash flow from operatings.
1.2 Ratios
EGY's Return On Assets of 10.39% is fine compared to the rest of the industry. EGY outperforms 76.35% of its industry peers.
EGY's Return On Equity of 19.45% is fine compared to the rest of the industry. EGY outperforms 69.95% of its industry peers.
EGY has a Return On Invested Capital of 22.22%. This is amongst the best in the industry. EGY outperforms 93.10% of its industry peers.
EGY had an Average Return On Invested Capital over the past 3 years of 24.78%. This is above the industry average of 22.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 19.45% | ||
| ROIC | 22.22% |
ROA(3y)14.81%
ROA(5y)2.29%
ROE(3y)26.77%
ROE(5y)0.84%
ROIC(3y)24.78%
ROIC(5y)17.72%
1.3 Margins
Looking at the Profit Margin, with a value of 16.06%, EGY is in line with its industry, outperforming 55.17% of the companies in the same industry.
In the last couple of years the Profit Margin of EGY has declined.
Looking at the Operating Margin, with a value of 35.32%, EGY is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of EGY has declined.
EGY's Gross Margin of 66.15% is fine compared to the rest of the industry. EGY outperforms 71.43% of its industry peers.
In the last couple of years the Gross Margin of EGY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.32% | ||
| PM (TTM) | 16.06% | ||
| GM | 66.15% |
OM growth 3Y95.17%
OM growth 5Y-5.68%
PM growth 3YN/A
PM growth 5Y-32.33%
GM growth 3Y6.07%
GM growth 5Y1.77%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EGY is creating value.
The number of shares outstanding for EGY has been reduced compared to 1 year ago.
EGY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EGY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.54 indicates that EGY is not a great score, but indicates only limited risk for bankruptcy at the moment.
EGY has a Altman-Z score of 2.54. This is in the better half of the industry: EGY outperforms 68.47% of its industry peers.
EGY has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as EGY would need 2.11 years to pay back of all of its debts.
EGY's Debt to FCF ratio of 2.11 is fine compared to the rest of the industry. EGY outperforms 74.88% of its industry peers.
EGY has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
EGY's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. EGY outperforms 73.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 2.54 |
ROIC/WACC2.49
WACC8.93%
2.3 Liquidity
EGY has a Current Ratio of 1.34. This is a normal value and indicates that EGY is financially healthy and should not expect problems in meeting its short term obligations.
EGY has a Current ratio (1.34) which is in line with its industry peers.
EGY has a Quick Ratio of 1.32. This is a normal value and indicates that EGY is financially healthy and should not expect problems in meeting its short term obligations.
EGY has a Quick ratio of 1.32. This is in the better half of the industry: EGY outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
EGY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 186.49%, which is quite impressive.
Measured over the past years, EGY shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.22% on average per year.
The Revenue has grown by 50.70% in the past year. This is a very strong growth!
Measured over the past years, EGY shows a very strong growth in Revenue. The Revenue has been growing by 34.11% on average per year.
EPS 1Y (TTM)186.49%
EPS 3YN/A
EPS 5Y-19.22%
EPS Q2Q%14.29%
Revenue 1Y (TTM)50.7%
Revenue growth 3Y89.19%
Revenue growth 5Y34.11%
Sales Q2Q%20.69%
3.2 Future
The Earnings Per Share is expected to grow by 30.03% on average over the next years. This is a very strong growth
EGY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.74% yearly.
EPS Next Y105.8%
EPS Next 2Y30.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.41%
Revenue Next 2Y-2.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.41, which indicates a rather cheap valuation of EGY.
EGY's Price/Earnings ratio is a bit cheaper when compared to the industry. EGY is cheaper than 77.34% of the companies in the same industry.
EGY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.65.
With a Price/Forward Earnings ratio of 9.18, the valuation of EGY can be described as very reasonable.
68.47% of the companies in the same industry are more expensive than EGY, based on the Price/Forward Earnings ratio.
EGY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 9.18 |
4.2 Price Multiples
EGY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EGY is cheaper than 98.52% of the companies in the same industry.
EGY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.18 | ||
| EV/EBITDA | 1.6 |
4.3 Compensation for Growth
EGY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of EGY may justify a higher PE ratio.
A more expensive valuation may be justified as EGY's earnings are expected to grow with 30.03% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y30.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.66%, EGY is a good candidate for dividend investing.
EGY's Dividend Yield is a higher than the industry average which is at 6.45.
Compared to an average S&P500 Dividend Yield of 2.23, EGY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
5.2 History
EGY has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
26.96% of the earnings are spent on dividend by EGY. This is a low number and sustainable payout ratio.
DP26.96%
EPS Next 2Y30.03%
EPS Next 3YN/A
VAALCO ENERGY INC
NYSE:EGY (11/21/2024, 3:17:43 PM)
5.41
+0.11 (+2.08%)
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 Cap561.23M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(12)
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Revenue beat(16)
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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 | 7.41 | ||
| Fwd PE | 9.18 | ||
| 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)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 19.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.32% | ||
| PM (TTM) | 16.06% | ||
| GM | 66.15% | ||
| 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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.32 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)186.49%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y105.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)50.7%
Revenue growth 3Y89.19%
Revenue growth 5Y
Sales 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