TSX:VET

Stock Analysis Report

Vermilion Energy

Executive Summary

Vermilion Energy Inc. acquires, explores, develops, and produces petroleum and natural gas in Canada, France, the Netherlands, Germany, Ireland, Australia, the United States, and Central and Eastern Europe.

Snowflake

Fundamentals

Average dividend payer and fair value.

Risks

  • Vermilion Energy has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-5.7%

TSX:VET

-1.5%

CA Oil and Gas

-0.9%

CA Market


1 Year Return

-55.1%

TSX:VET

-23.9%

CA Oil and Gas

-6.1%

CA Market

VET underperformed the Oil and Gas industry which returned -23.9% over the past year.

VET underperformed the Market in Canada which returned -6.1% over the past year.


Share holder returns

VETIndustryMarket
7 Day-5.7%-1.5%-0.9%
30 Day-22.8%-5.2%-3.4%
90 Day-37.0%-11.8%-3.1%
1 Year-51.1%-55.1%-20.6%-23.9%-2.8%-6.1%
3 Year-52.2%-60.7%-15.4%-23.8%13.2%3.1%
5 Year-64.0%-73.5%-36.7%-45.8%10.8%-4.7%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Vermilion Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

Vermilion Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Vermilion Energy is overvalued based on earnings compared to the CA Oil and Gas industry average.

Vermilion Energy is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Vermilion Energy earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Vermilion Energy is overvalued based on assets compared to the CA Oil and Gas industry average.


Next Steps

Future Growth

How is Vermilion Energy expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

-3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vermilion Energy's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).

Vermilion Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Vermilion Energy's revenue growth is positive but not above the Canada market average.

Vermilion Energy's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.

Vermilion Energy's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Vermilion Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Vermilion Energy performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Vermilion Energy's year on year earnings growth rate has been positive over the past 5 years.

Vermilion Energy has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Vermilion Energy has become profitable in the last year making it difficult to compare the CA Oil and Gas industry average.


Return on Equity

Vermilion Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Vermilion Energy used its assets more efficiently than the CA Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Vermilion Energy has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Vermilion Energy's financial position?


Financial Position Analysis

Vermilion Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Vermilion Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Vermilion Energy's level of debt (70.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (59.5% vs 70.7% today).

Debt is well covered by operating cash flow (46.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

14.62%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Vermilion Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Vermilion Energy's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).

Vermilion Energy's dividend is above the markets top 25% of dividend payers in Canada (5.93%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.5x coverage).


Next Steps

Management

What is the CEO of Vermilion Energy's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

Tony Marino (58yo)

3.4yrs

Tenure

CA$6,245,635

Compensation

Mr. Anthony William Marino, also known as Tony, P.Eng., has been the Chief Executive Officer of Vermilion Energy Inc., since March 1, 2016. Mr. Marino has been President of Vermilion Energy Inc., since Mar ...


CEO Compensation Analysis

Tony's remuneration is higher than average for companies of similar size in Canada.

Tony's compensation has increased in line with Vermilion Energy recently becoming profitable.


Management Age and Tenure

3.4yrs

Average Tenure

58yo

Average Age

The tenure for the Vermilion Energy management team is about average.


Board Age and Tenure

3.4yrs

Average Tenure

64yo

Average Age

The tenure for the Vermilion Energy board of directors is about average.


Insider Trading

Vermilion Energy individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyCA$9,12728 Jun 19
Catherine Williams
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares323
Max PriceCA$28.26
SellCA$270,56418 Jun 19
Mona Jasinski
EntityIndividual
Role
Head of Human Resources
Executive Vice President of People & Culture
Shares10,000
Max PriceCA$27.06
SellCA$188,82607 Jun 19
Mona Jasinski
EntityIndividual
Role
Head of Human Resources
Executive Vice President of People & Culture
Shares6,715
Max PriceCA$28.12
BuyCA$86,10023 May 19
Anthony Marino
EntityIndividual
Role
Chief Executive Officer
President
Shares3,000
Max PriceCA$28.70
SellCA$124,69916 May 19
Robert Engbloom
EntityIndividual
Shares3,984
Max PriceCA$31.30
SellCA$2,12729 Mar 19
Mona Jasinski
EntityIndividual
Role
Head of Human Resources
Executive Vice President of People & Culture
Shares63
Max PriceCA$33.76
SellCA$1,21529 Mar 19
Anthony Hatcher
EntityIndividual
Shares36
Max PriceCA$33.76
SellCA$6,61729 Mar 19
Anthony Marino
EntityIndividual
Role
Chief Executive Officer
President
Shares196
Max PriceCA$33.76
SellCA$2,16129 Mar 19
Michael Kaluza
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares64
Max PriceCA$33.76
SellCA$1,58729 Mar 19
Jenson Tan
EntityIndividual
Shares47
Max PriceCA$33.76
SellCA$54029 Mar 19
Terrance Hergott
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares16
Max PriceCA$33.76
SellCA$1,55329 Mar 19
Lars Glemser
EntityIndividual
Role
Chief Financial Officer
VP & CFO
Shares46
Max PriceCA$33.76
BuyCA$153,95801 Feb 19
Gerard Schut
EntityIndividual
Shares5,000
Max PriceCA$33.02
BuyCA$41,00029 Jan 19
Catherine Williams
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceCA$41.00
BuyCA$88,10928 Jan 19
Mona Jasinski
EntityIndividual
Role
Head of Human Resources
Executive Vice President of People & Culture
Shares2,830
Max PriceCA$31.13
BuyCA$60,79114 Dec 18
Catherine Williams
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$30.40
SellCA$25,24811 Dec 18
Michael Kaluza
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares790
Max PriceCA$31.96
BuyCA$175,05030 Oct 18
Terrance Hergott
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares5,000
Max PriceCA$35.01
BuyCA$207,76828 Aug 18
Carin Knickel
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceCA$41.55

Ownership Breakdown


Management Team

  • Tony Marino (58yo)

    President

    • Tenure: 3.4yrs
    • Compensation: CA$6.25m
  • Mike Kaluza (59yo)

    Executive VP & COO

    • Tenure: 3.4yrs
    • Compensation: CA$1.75m
  • Kyle Preston

    Vice President of Investor Relations

    • Tenure: 3.2yrs
  • Bruce Lake

    Managing Director of Australia Business Unit

    • Tenure: 0.0yrs
    • Compensation: CA$897.94k
  • Mona Jasinski (55yo)

    Executive Vice President of People & Culture

    • Tenure: 4.5yrs
    • Compensation: CA$1.26m
  • Terry Hergott

    Vice President of Marketing

    • Tenure: 7.3yrs
  • Lars Glemser

    VP & CFO

    • Tenure: 1.3yrs
    • Compensation: CA$890.95k
  • Darcy Kerwin

    Managing Director of Ireland Business Unit

    • Tenure: 1.5yrs
  • Scott Seatter

    MD of United States Business Unit

    • Tenure: 3.7yrs
  • Bryan Sralla

    Managing Director of Central & Eastern Europe Business Unit

    • Tenure: 0.0yrs

Board Members

  • Loren Leiker (65yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: CA$169.78k
  • Lorenzo Donadeo (63yo)

    Co-Founder & Independent Chairman

    • Tenure: 3.4yrs
    • Compensation: CA$283.33k
  • Carin Knickel (63yo)

    Director

    • Tenure: 1.0yrs
    • Compensation: CA$401.91k
  • Larry MacDonald (71yo)

    Lead Independent Director

    • Tenure: 3.4yrs
    • Compensation: CA$224.05k
  • Bob Michaleski (66yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: CA$181.04k
  • Cathy Williams (68yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: CA$191.28k
  • Tony Marino (58yo)

    President

    • Tenure: 3.4yrs
    • Compensation: CA$6.25m
  • Steve Larke (47yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: CA$176.28k
  • Tim Marchant (68yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: CA$176.38k
  • Bill Roby (59yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: CA$177.28k

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$2.911b
  • Shares outstanding: 155.16m
  • Website: https://www.vermilionenergy.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VETTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 1996
VETNYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 1996
CVZDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1996

Biography

Vermilion Energy Inc. acquires, explores, develops, and produces petroleum and natural gas in Canada, France, the Netherlands, Germany, Ireland, Australia, the United States, and Central and Eastern Europe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:21
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.