VAALCO Energy, Inc.
VAALCO Energy, Inc. Fundamental Analysis
VAALCO Energy, Inc. (EGY) shows weak financial fundamentals with a PE ratio of 18.98, profit margin of 6.75%, and ROE of 5.63%. The company generates $0.4B in annual revenue with moderate year-over-year growth of 5.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EGY's fundamental strength across five key dimensions:
Efficiency Score
WeakEGY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEGY trades at attractive valuation levels.
Growth Score
ModerateEGY shows steady but slowing expansion.
Financial Health Score
ExcellentEGY maintains a strong and stable balance sheet.
Profitability Score
WeakEGY struggles to sustain strong margins.
Key Financial Metrics
Is EGY Expensive or Cheap?
P/E Ratio
EGY trades at 18.98 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EGY's PEG of -0.76 indicates potential undervaluation.
Price to Book
The market values VAALCO Energy, Inc. at 1.07 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.20 times EBITDA. This is generally considered low.
How Well Does EGY Make Money?
Net Profit Margin
For every $100 in sales, VAALCO Energy, Inc. keeps $6.75 as profit after all expenses.
Operating Margin
Core operations generate 19.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.63 in profit for every $100 of shareholder equity.
ROA
VAALCO Energy, Inc. generates $2.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
VAALCO Energy, Inc. generates strong operating cash flow of $112.03M, reflecting robust business health.
Free Cash Flow
VAALCO Energy, Inc. produces free cash flow of $22.26M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.21 in free cash annually.
FCF Yield
EGY converts 4.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How EGY Stacks Against Its Sector Peers
| Metric | EGY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.98 | 20.19 | Neutral |
| ROE | 5.63% | 1019.00% | Weak |
| Net Margin | 6.75% | -44017.00% (disorted) | Weak |
| Debt/Equity | 0.29 | -0.65 (disorted) | Distorted |
| Current Ratio | 1.05 | 4.60 | Neutral |
| ROA | 2.99% | -11655350.00% (disorted) | Weak |
EGY outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews VAALCO Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
223.31%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
1201.93%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
145.07%
Industry Style: Cyclical, Value, Commodity
High Growth