NOT FOR DISTRIBUTION
Header cover image

Vermilion Energy

Market Cap

CA$1.5b

Last Updated

2021/05/15 22:05 UTC

Data Sources

Company Financials +

Executive Summary

Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas in North America, Europe, and Australia. More Details


Snowflake Analysis

Undervalued with questionable track record.


Similar Companies

Share Price & News

How has Vermilion Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VET is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: VET's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

VET

-0.9%

CA Oil and Gas

-0.7%

CA Market


1 Year Return

50.9%

VET

35.2%

CA Oil and Gas

39.3%

CA Market

Return vs Industry: VET exceeded the Canadian Oil and Gas industry which returned 35.1% over the past year.

Return vs Market: VET exceeded the Canadian Market which returned 39.2% over the past year.


Shareholder returns

VETIndustryMarket
7 Day-2.6%-0.9%-0.7%
30 Day2.6%5.1%1.0%
90 Day36.8%14.9%6.1%
1 Year50.9%50.9%42.6%35.2%43.8%39.3%
3 Year-75.3%-80.1%-5.7%-17.3%28.6%16.4%
5 Year-69.7%-78.1%4.5%-14.4%58.6%34.7%

Long-Term Price Volatility Vs. Market

How volatile is Vermilion Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vermilion Energy undervalued compared to its fair value and its price relative to the market?

47.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VET (CA$9.37) is trading below our estimate of fair value (CA$17.87)

Significantly Below Fair Value: VET is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VET is good value based on its PE Ratio (4.9x) compared to the Canadian Oil and Gas industry average (10.5x).

PE vs Market: VET is good value based on its PE Ratio (4.9x) compared to the Canadian market (15x).


Price to Earnings Growth Ratio

PEG Ratio: VET's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: VET is good value based on its PB Ratio (1.1x) compared to the CA Oil and Gas industry average (1.5x).


Future Growth

How is Vermilion Energy forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-90.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VET's earnings are forecast to decline over the next 3 years (-90.4% per year).

Earnings vs Market: VET's earnings are forecast to decline over the next 3 years (-90.4% per year).

High Growth Earnings: VET's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VET's revenue is expected to decline over the next 3 years (-2.3% per year).

High Growth Revenue: VET's revenue is forecast to decline over the next 3 years (-2.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VET's Return on Equity is forecast to be very high in 3 years time (40.4%).


Past Performance

How has Vermilion Energy performed over the past 5 years?

-33.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VET has a large one-off gain of CA$548.9M impacting its March 31 2021 financial results.

Growing Profit Margin: VET became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VET has become profitable over the past 5 years, growing earnings by -33.9% per year.

Accelerating Growth: VET has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VET has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-15%).


Return on Equity

High ROE: Whilst VET's Return on Equity (21.34%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Vermilion Energy's financial position?


Financial Position Analysis

Short Term Liabilities: VET's short term assets (CA$300.0M) do not cover its short term liabilities (CA$385.3M).

Long Term Liabilities: VET's short term assets (CA$300.0M) do not cover its long term liabilities (CA$2.9B).


Debt to Equity History and Analysis

Debt Level: VET's debt to equity ratio (133.9%) is considered high.

Reducing Debt: VET's debt to equity ratio has increased from 82.1% to 133.9% over the past 5 years.

Debt Coverage: VET's debt is not well covered by operating cash flow (18%).

Interest Coverage: Insufficient data to determine if VET's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Vermilion Energy current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VET's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VET's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VET's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VET's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: VET is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VET's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Curtis Hicks (62 yo)

no data

Tenure

CA$8,168,310

Compensation

Mr. Curtis W. Hicks, CA, serves as President of Vermilion Energy Inc. since May 2020. Mr. Hicks was the Chief Financial Officer of Vermilion Energy Inc. from 2004 until April 01, 2018 and was its Executive...


CEO Compensation Analysis

Compensation vs Market: Curtis's total compensation ($USD6.75M) is above average for companies of similar size in the Canadian market ($USD2.15M).

Compensation vs Earnings: Curtis's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VET's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: VET's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VET insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

Vermilion Energy Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vermilion Energy Inc.
  • Ticker: VET
  • Exchange: TSX
  • Founded: 1994
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$1.515b
  • Shares outstanding: 161.70m
  • Website: https://www.vermilionenergy.com

Number of Employees


Location

  • Vermilion Energy Inc.
  • 520 - 3rd Avenue South West
  • Suite 3500
  • Calgary
  • Alberta
  • T2P 0R3
  • Canada

Listings


Biography

Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas in North America, Europe, and Australia. It owns 81%...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/15 22:05
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.