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 Analysis

Good value average dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.0%

VET

1.2%

CA Oil and Gas

0.6%

CA Market


1 Year Return

-41.6%

VET

0.2%

CA Oil and Gas

5.3%

CA Market

Return vs Industry: VET underperformed the Canadian Oil and Gas industry which returned 0.2% over the past year.

Return vs Market: VET underperformed the Canadian Market which returned 5.3% over the past year.


Shareholder returns

VETIndustryMarket
7 Day3.0%1.2%0.6%
30 Day-8.2%-0.4%1.0%
90 Day-2.0%5.2%4.5%
1 Year-34.5%-41.6%4.6%0.2%8.6%5.3%
3 Year-52.6%-62.6%-3.1%-13.4%18.0%7.4%
5 Year-51.3%-65.7%-6.5%-21.4%34.4%14.9%

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?

42.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VET (CA$19.29) is trading below our estimate of fair value (CA$33.69)

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 (8.4x) compared to the Oil and Gas industry average (11x).

PE vs Market: VET is good value based on its PE Ratio (8.4x) compared to the Canadian market (16x).


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 overvalued based on its PB Ratio (1.2x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

-0.1%

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 (-0.1% per year).

Earnings vs Market: VET's earnings are forecast to decline over the next 3 years (-0.1% 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 (-1.9% per year).

High Growth Revenue: VET's revenue is forecast to decline over the next 3 years (-1.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VET's Return on Equity is forecast to be low in 3 years time (3.3%).


Next Steps

Past Performance

How has Vermilion Energy performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VET has a large one-off gain of CA$135.0M impacting its September 30 2019 financial results.

Growing Profit Margin: VET became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VET's earnings have grown significantly by 20.7% per year over the past 5 years.

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 (6%).


Return on Equity

High ROE: VET's Return on Equity (14%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vermilion Energy's financial position?


Financial Position Analysis

Short Term Liabilities: VET's short term assets (CA$347.7M) do not cover its short term liabilities (CA$395.1M).

Long Term Liabilities: VET's short term assets (CA$347.7M) do not cover its long term liabilities (CA$3.0B).


Debt to Equity History and Analysis

Debt Level: VET's debt to equity ratio (76.1%) is considered high.

Reducing Debt: VET's debt to equity ratio has increased from 59.9% to 76.1% over the past 5 years.

Debt Coverage: VET's debt is well covered by operating cash flow (40.5%).

Interest Coverage: VET's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet

Inventory Level: VET has a high level of physical assets or inventory.

Debt Coverage by Assets: VET's 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?

14.31%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company14.3%marketbottom25%1.9%markettop25%5.3%industryaverage4.7%forecastin3Years14.2%

Current dividend yield vs market & industry

Notable Dividend: VET's dividend (14.31%) is higher than the bottom 25% of dividend payers in the Canadian market (1.89%).

High Dividend: VET's dividend (14.31%) is in the top 25% of dividend payers in the Canadian market (5.3%)


Stability and Growth of Payments

Stable Dividend: VET's dividends per share have been stable in the past 10 years.

Growing Dividend: VET's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (119.8%), VET's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VET's dividends in 3 years are not forecast to be well covered by earnings (622.8% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Tony Marino (58yo)

3.9yrs

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

Compensation vs Market: Tony's total compensation ($USD4.71M) is above average for companies of similar size in the Canadian market ($USD2.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Marino
President3.9yrsCA$6.25m0.24% CA$7.4m
Lars Glemser
VP & CFO1.8yrsCA$890.95k0.0090% CA$270.1k
Michael Kaluza
Executive VP & COO3.9yrsCA$1.75m0.071% CA$2.1m
Mona Jasinski
Executive Vice President of People & Culture5yrsCA$1.26m0.028% CA$844.5k
Kyle Preston
Vice President of Investor Relations3.7yrsno data0.022% CA$667.2k
Terrance Hergott
Vice President of Marketing7.8yrsno data0.038% CA$1.1m
Bruce Lake
Managing Director of Australia Business Unit0yrsCA$897.94kno data
Darcy Kerwin
Managing Director of Ireland Business Unit2yrsno datano data
Scott Seatter
MD of United States Business Unit4.2yrsno datano data
Bryan Sralla
Managing Director of Central & Eastern Europe Business Unit0yrsno datano data

3.9yrs

Average Tenure

58yo

Average Age

Experienced Management: VET's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Marino
President3.9yrsCA$6.25m0.24% CA$7.4m
Loren Leiker
Independent Director7.2yrsCA$169.78k0.016% CA$491.4k
Lorenzo Donadeo
Co-Founder & Independent Chairman3.9yrsCA$283.33k1.87% CA$56.3m
Carin Knickel
Independent Director1.5yrsCA$401.91k0.0054% CA$162.2k
Lawrence MacDonald
Lead Independent Director3.9yrsCA$224.05k0.041% CA$1.2m
Robert Michaleski
Independent Director3.3yrsCA$181.04k0.0099% CA$298.8k
Catherine Williams
Independent Director5yrsCA$191.28k0.013% CA$406.7k
Stephen Larke
Independent Director2.7yrsCA$176.28k0.020% CA$599.3k
Timothy Marchant
Independent Director10.1yrsCA$176.38k0.034% CA$1.0m
William Roby
Independent Director2.8yrsCA$177.28k0.0040% CA$121.5k

3.9yrs

Average Tenure

64yo

Average Age

Experienced Board: VET's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 15.8%.


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$3.015b
  • Shares outstanding: 156.29m
  • 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. It owns 80% interest in 544,500 net acres of developed land and 87% interest in 439,800 net acres of undeveloped land, and 397 net producing natural gas wells and 3,346 net producing oil wells; and 96% interest in 248,900 net acres of developed land and 92% interest in 251,800 net acres of undeveloped land in the Aquitaine and Paris Basins, and 337 net producing oil wells and 2 net producing gas wells. The company also owns 48% interest in 930,000 net acres of land and 103 net producing gas wells; 32,600 net acres of developed and 1,149,400 net acres of undeveloped land, and 105 net producing oil wells and 8 net producing natural gas wells; and 148,700 net acres of land and 118 net producing oil wells. In addition, it owns 20% interest in the offshore Corrib gas field; and 60% interest in the Wandoo field comprises 59,600 acres; and lands of 652,800 net acres, 242,500 net acres, and 2.35 million net acres. Further, the company has 181,664 barrels of oil equivalent (Mboe) of gross proved reserves and 284,476 Mboe of gross proved plus probable reserves; 43,466 Mboe of gross proved reserves and 63,918 Mboe of gross proved plus probable reserves; 11,802 Mboe of gross proved reserves and 22,196 Mboe of gross proved plus probable reserves; 12,991 Mboe of gross proved reserves and 25,735 Mboe of gross proved plus probable reserves; 13,093 Mboe of gross proved reserves and 20,575 Mboe of gross proved plus probable reserves; 9,668 Mboe of gross proved reserves and 14,480 Mboe of gross proved plus probable reserves; 25,147 Mboe of gross proved reserves and 56,214 Mboe of gross proved plus probable reserves; and 131 Mboe of gross proved reserves and 191 Mboe of gross proved plus probable reserves. The company was founded in 1994 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:33
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
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.