VERMILION ENERGY INC (VET.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:VET - CA9237251058 - Common Stock
11.19 CAD
+0.21 (+1.91%)
Overall VET gets a fundamental rating of 4 out of 10. We evaluated VET against 211 industry peers in the Oil, Gas & Consumable Fuels industry. While VET is still in line with the averages on profitability rating, there are concerns on its financial health. VET does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
VET had negative earnings in the past year.
In the past year VET had a positive cash flow from operations.
In multiple years VET reported negative net income over the last 5 years.
VET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VET (-3.93%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -8.65%, VET is in line with its industry, outperforming 45.67% of the companies in the same industry.
VET's Return On Invested Capital of 3.20% is in line compared to the rest of the industry. VET outperforms 55.77% of its industry peers.
VET had an Average Return On Invested Capital over the past 3 years of 9.77%. This is above the industry average of 6.57%.
The last Return On Invested Capital (3.20%) for VET is well below the 3 year average (9.77%), which needs to be investigated, but indicates that VET had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.93% | ||
| ROE | -8.65% | ||
| ROIC | 3.2% |
ROA(3y)4.74%
ROA(5y)-0.65%
ROE(3y)9.7%
ROE(5y)-15.85%
ROIC(3y)9.77%
ROIC(5y)N/A
1.3 Margins
VET has a Operating Margin of 12.83%. This is comparable to the rest of the industry: VET outperforms 58.65% of its industry peers.
VET's Operating Margin has improved in the last couple of years.
VET has a Gross Margin of 67.54%. This is amongst the best in the industry. VET outperforms 81.25% of its industry peers.
VET's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.83% | ||
| PM (TTM) | N/A | ||
| GM | 67.54% |
OM growth 3Y-29.16%
OM growth 5Y2.82%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.52%
GM growth 5Y0.95%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VET is creating some value.
The number of shares outstanding for VET has been reduced compared to 1 year ago.
VET has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VET has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.39, we must say that VET is in the distress zone and has some risk of bankruptcy.
VET has a Altman-Z score (0.39) which is in line with its industry peers.
A Debt/Equity ratio of 0.49 indicates that VET is not too dependend on debt financing.
VET has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.39 |
ROIC/WACC0.4
WACC8.08%
2.3 Liquidity
VET has a Current Ratio of 0.81. This is a bad value and indicates that VET is not financially healthy enough and could expect problems in meeting its short term obligations.
VET has a Current ratio of 0.81. This is comparable to the rest of the industry: VET outperforms 56.25% of its industry peers.
VET has a Quick Ratio of 0.81. This is a bad value and indicates that VET is not financially healthy enough and could expect problems in meeting its short term obligations.
VET has a Quick ratio (0.71) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 70.33% over the past year.
Looking at the last year, VET shows a decrease in Revenue. The Revenue has decreased by -2.34% in the last year.
Measured over the past years, VET shows a small growth in Revenue. The Revenue has been growing by 1.65% on average per year.
EPS 1Y (TTM)70.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-93.94%
Revenue 1Y (TTM)-2.34%
Revenue growth 3Y-2.42%
Revenue growth 5Y1.65%
Sales Q2Q%-5.34%
3.2 Future
VET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.61% yearly.
The Revenue is expected to grow by 0.17% on average over the next years.
EPS Next Y106.73%
EPS Next 2Y94.97%
EPS Next 3Y37.61%
EPS Next 5YN/A
Revenue Next Year-4.92%
Revenue Next 2Y-2.64%
Revenue Next 3Y-2.24%
Revenue Next 5Y0.17%
3.3 Evolution
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
VET reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 20.71, the valuation of VET can be described as rather expensive.
VET's Price/Forward Earnings is on the same level as the industry average.
VET's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.71 |
4.2 Price Multiples
VET's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VET is cheaper than 91.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.18 |
4.3 Compensation for Growth
VET's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VET's earnings are expected to grow with 37.61% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y94.97%
EPS Next 3Y37.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.74%, VET is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.90, VET pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, VET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
The dividend of VET decreases each year by -28.87%.
VET has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of VET decreased in the last 3 years.
Dividend Growth(5Y)-28.87%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of VET are negative and hence is the payout ratio. VET will probably not be able to sustain this dividend level.
DP-32.97%
EPS Next 2Y94.97%
EPS Next 3Y37.61%
TSX:VET (12/19/2025, 7:00:00 PM)
11.19
+0.21 (+1.91%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners52.7%
Inst Owner ChangeN/A
Ins Owners0.63%
Ins Owner ChangeN/A
Market Cap1.72B
Revenue(TTM)1.89B
Net Income(TTM)-234.26M
Analysts70.67
Price Target13.77 (23.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Yearly Dividend0.46
Dividend Growth(5Y)-28.87%
DP-32.97%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-914.6%
Min EPS beat(2)-1768.81%
Max EPS beat(2)-60.4%
EPS beat(4)0
Avg EPS beat(4)-502.97%
Min EPS beat(4)-1768.81%
Max EPS beat(4)-58.17%
EPS beat(8)0
Avg EPS beat(8)-396.27%
EPS beat(12)3
Avg EPS beat(12)1290.22%
EPS beat(16)5
Avg EPS beat(16)978.47%
Revenue beat(2)0
Avg Revenue beat(2)-22.1%
Min Revenue beat(2)-26.83%
Max Revenue beat(2)-17.37%
Revenue beat(4)0
Avg Revenue beat(4)-13.81%
Min Revenue beat(4)-26.83%
Max Revenue beat(4)-4.34%
Revenue beat(8)0
Avg Revenue beat(8)-14.17%
Revenue beat(12)0
Avg Revenue beat(12)-11.51%
Revenue beat(16)4
Avg Revenue beat(16)-0.24%
PT rev (1m)-1.33%
PT rev (3m)-0.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)126.32%
EPS NY rev (1m)-95.38%
EPS NY rev (3m)-97.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-4.42%
Revenue NY rev (3m)-4.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.71 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | 1.68 | ||
| P/B | 0.63 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 3.18 |
EPS(TTM)-1.51
EYN/A
EPS(NY)0.54
Fwd EY4.83%
FCF(TTM)-4.65
FCFYN/A
OCF(TTM)6.67
OCFY59.58%
SpS12.33
BVpS17.65
TBVpS17.65
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.93% | ||
| ROE | -8.65% | ||
| ROCE | 4.44% | ||
| ROIC | 3.2% | ||
| ROICexc | 3.23% | ||
| ROICexgc | 3.23% | ||
| OM | 12.83% | ||
| PM (TTM) | N/A | ||
| GM | 67.54% | ||
| FCFM | N/A |
ROA(3y)4.74%
ROA(5y)-0.65%
ROE(3y)9.7%
ROE(5y)-15.85%
ROIC(3y)9.77%
ROIC(5y)N/A
ROICexc(3y)9.85%
ROICexc(5y)N/A
ROICexgc(3y)9.85%
ROICexgc(5y)N/A
ROCE(3y)13.57%
ROCE(5y)N/A
ROICexgc growth 3Y-31.83%
ROICexgc growth 5Y4.7%
ROICexc growth 3Y-31.83%
ROICexc growth 5Y4.7%
OM growth 3Y-29.16%
OM growth 5Y2.82%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.52%
GM growth 5Y0.95%
F-Score5
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 248.72% | ||
| Cap/Sales | 91.78% | ||
| Interest Coverage | 1.99 | ||
| Cash Conversion | 108.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.39 |
F-Score5
WACC8.08%
ROIC/WACC0.4
Cap/Depr(3y)126.62%
Cap/Depr(5y)107.23%
Cap/Sales(3y)33.7%
Cap/Sales(5y)32.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)70.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-93.94%
EPS Next Y106.73%
EPS Next 2Y94.97%
EPS Next 3Y37.61%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.34%
Revenue growth 3Y-2.42%
Revenue growth 5Y1.65%
Sales Q2Q%-5.34%
Revenue Next Year-4.92%
Revenue Next 2Y-2.64%
Revenue Next 3Y-2.24%
Revenue Next 5Y0.17%
EBIT growth 1Y21.86%
EBIT growth 3Y-30.87%
EBIT growth 5Y4.51%
EBIT Next Year42.75%
EBIT Next 3Y16.11%
EBIT Next 5Y15.47%
FCF growth 1Y-271.43%
FCF growth 3Y0.4%
FCF growth 5Y4.86%
OCF growth 1Y-13.01%
OCF growth 3Y5.06%
OCF growth 5Y3.28%
VERMILION ENERGY INC / VET.CA FAQ
What is the fundamental rating for VET stock?
ChartMill assigns a fundamental rating of 4 / 10 to VET.CA.
What is the valuation status for VET stock?
ChartMill assigns a valuation rating of 3 / 10 to VERMILION ENERGY INC (VET.CA). This can be considered as Overvalued.
How profitable is VERMILION ENERGY INC (VET.CA) stock?
VERMILION ENERGY INC (VET.CA) has a profitability rating of 5 / 10.
How financially healthy is VERMILION ENERGY INC?
The financial health rating of VERMILION ENERGY INC (VET.CA) is 3 / 10.