VAALCO ENERGY INC (EGY)
US91851C2017 - Common Stock
EGY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 205 industry peers in the Oil, Gas & Consumable Fuels industry. EGY has an average financial health and profitability rating. EGY scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make EGY a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year EGY was profitable.
EGY had a positive operating cash flow in the past year.
EGY had positive earnings in 4 of the past 5 years.
Each year in the past 5 years EGY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.39%, EGY is in the better half of the industry, outperforming 76.96% of the companies in the same industry.
With a decent Return On Equity value of 19.45%, EGY is doing good in the industry, outperforming 71.57% of the companies in the same industry.
EGY's Return On Invested Capital of 22.22% is amongst the best of the industry. EGY outperforms 93.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EGY is below the industry average of 29.03%.
| 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
EGY has a Profit Margin (16.06%) which is comparable to the rest of the industry.
EGY's Profit Margin has declined in the last couple of years.
EGY's Operating Margin of 35.32% is fine compared to the rest of the industry. EGY outperforms 71.57% of its industry peers.
EGY's Operating Margin has declined in the last couple of years.
EGY has a better Gross Margin (66.15%) than 71.57% of its industry peers.
EGY's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EGY is creating value.
The number of shares outstanding for EGY has been reduced compared to 1 year ago.
Compared to 5 years ago, EGY has more shares outstanding
EGY has a worse debt/assets ratio than last year.
2.2 Solvency
EGY has an Altman-Z score of 2.40. This is not the best score and indicates that EGY is in the grey zone with still only limited risk for bankruptcy at the moment.
EGY has a better Altman-Z score (2.40) than 69.12% of its industry peers.
The Debt to FCF ratio of EGY is 2.11, which is a good value as it means it would take EGY, 2.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.11, EGY is in the better half of the industry, outperforming 75.49% of the companies in the same industry.
EGY has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.14, EGY is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 2.4 |
ROIC/WACC2.45
WACC9.07%
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.
Looking at the Current ratio, with a value of 1.34, EGY is in line with its industry, outperforming 57.84% of the companies in the same industry.
A Quick Ratio of 1.32 indicates that EGY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.32, EGY is in the better half of the industry, outperforming 65.20% of the companies in the same industry.
| 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.
EGY shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.70%.
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%20.7%
3.2 Future
The Earnings Per Share is expected to grow by 0.72% on average over the next years.
The Revenue is expected to decrease by -1.94% on average over the next years.
EPS Next Y26.09%
EPS Next 2Y0.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.23%
Revenue Next 2Y-1.94%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
EGY is valuated cheaply with a Price/Earnings ratio of 5.93.
Compared to the rest of the industry, the Price/Earnings ratio of EGY indicates a rather cheap valuation: EGY is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EGY to the average of the S&P500 Index (27.54), we can say EGY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.25, the valuation of EGY can be described as correct.
EGY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.99. EGY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.93 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGY is valued cheaply inside the industry as 98.53% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EGY is valued a bit cheaper than 61.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.35 | ||
| EV/EBITDA | 1.3 |
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.
EGY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y0.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.83%, EGY is a good candidate for dividend investing.
In the last 3 months the price of EGY has falen by -23.90%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.14, EGY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, EGY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.83% |
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 Years2
5.3 Sustainability
EGY pays out 26.96% of its income as dividend. This is a sustainable payout ratio.
DP26.96%
EPS Next 2Y0.72%
EPS Next 3YN/A
VAALCO ENERGY INC
NYSE:EGY (12/24/2024, 8:07:59 PM)
After market: 4.35 +0.02 (+0.46%)4.33
+0.01 (+0.23%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners56.33%
Inst Owner Change8.54%
Ins Owners1.97%
Ins Owner Change0%
Market Cap449.19M
Analysts80
Price Target0.12 (-97.23%)
Short Float %4.19%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.83% |
Dividend Growth(5Y)N/A
DP26.96%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.44%
Min EPS beat(2)-45.37%
Max EPS beat(2)74.26%
EPS beat(4)3
Avg EPS beat(4)83.05%
Min EPS beat(4)-45.37%
Max EPS beat(4)205.28%
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)2
Avg Revenue beat(2)11.22%
Min Revenue beat(2)2.68%
Max Revenue beat(2)19.75%
Revenue beat(4)4
Avg Revenue beat(4)29.01%
Min Revenue beat(4)2.68%
Max Revenue beat(4)79.2%
Revenue beat(8)5
Avg Revenue beat(8)7.97%
Revenue beat(12)9
Avg Revenue beat(12)10.99%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.35%
PT rev (3m)-3.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.38%
EPS NY rev (1m)-38.73%
EPS NY rev (3m)-37.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.7%
Revenue NY rev (1m)5.27%
Revenue NY rev (3m)4.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.93 | ||
| Fwd PE | 12.25 | ||
| P/S | 0.74 | ||
| P/FCF | 11.35 | ||
| P/OCF | 3.71 | ||
| P/B | 0.9 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 1.3 |
EPS(TTM)0.73
EY16.86%
EPS(NY)0.35
Fwd EY8.16%
FCF(TTM)0.38
FCFY8.81%
OCF(TTM)1.17
OCFY26.93%
SpS5.85
BVpS4.83
TBVpS4.83
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.39% | ||
| ROE | 19.45% | ||
| ROCE | 28.13% | ||
| ROIC | 22.22% | ||
| ROICexc | 25.17% | ||
| ROICexgc | 25.17% | ||
| OM | 35.32% | ||
| PM (TTM) | 16.06% | ||
| GM | 66.15% | ||
| FCFM | 6.53% |
ROA(3y)14.81%
ROA(5y)2.29%
ROE(3y)26.77%
ROE(5y)0.84%
ROIC(3y)24.78%
ROIC(5y)17.72%
ROICexc(3y)30.84%
ROICexc(5y)23.08%
ROICexgc(3y)30.84%
ROICexgc(5y)23.08%
ROCE(3y)31.36%
ROCE(5y)22.43%
ROICexcg growth 3Y52.77%
ROICexcg growth 5Y-12.33%
ROICexc growth 3Y52.77%
ROICexc growth 5Y-12.33%
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%
F-Score9
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 0.21 | ||
| Cap/Depr | 64.42% | ||
| Cap/Sales | 13.42% | ||
| Interest Coverage | 28.96 | ||
| Cash Conversion | 35.52% | ||
| Profit Quality | 40.62% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.4 |
F-Score9
WACC9.07%
ROIC/WACC2.45
Cap/Depr(3y)200.65%
Cap/Depr(5y)201.1%
Cap/Sales(3y)28.7%
Cap/Sales(5y)26.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)186.49%
EPS 3YN/A
EPS 5Y-19.22%
EPS Q2Q%14.29%
EPS Next Y26.09%
EPS Next 2Y0.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)50.7%
Revenue growth 3Y89.19%
Revenue growth 5Y34.11%
Sales Q2Q%20.7%
Revenue Next Year16.23%
Revenue Next 2Y-1.94%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y99.16%
EBIT growth 3Y269.25%
EBIT growth 5Y26.49%
EBIT Next Year120.7%
EBIT Next 3Y18.91%
EBIT Next 5Y23.92%
FCF growth 1Y87.22%
FCF growth 3Y240.54%
FCF growth 5Y40.48%
OCF growth 1Y-9.11%
OCF growth 3Y101.08%
OCF growth 5Y43.15%