TSXV:VUX

Stock Analysis Report

Executive Summary

Vital Energy Inc., a junior oil and gas company, engages in the acquisition, exploration for, and development of crude oil and natural gas in Western Canada.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VUX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

VUX

0.3%

CA Oil and Gas

0.1%

CA Market


1 Year Return

0%

VUX

-0.7%

CA Oil and Gas

4.7%

CA Market

Return vs Industry: VUX matched the Canadian Oil and Gas industry which returned -0.7% over the past year.

Return vs Market: VUX underperformed the Canadian Market which returned 4.7% over the past year.


Shareholder returns

VUXIndustryMarket
7 Day0%0.3%0.1%
30 Day-64.3%-0.4%0.8%
90 Day-9.1%3.4%3.7%
1 Year0%0%3.6%-0.7%7.9%4.7%
3 Year-16.7%-16.7%-3.5%-13.7%17.9%7.3%
5 Year-68.8%-68.8%-7.2%-22.0%33.8%14.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VUX (CA$0.05) is trading below our estimate of fair value (CA$2.56)

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


Price To Earnings Ratio

PE vs Industry: VUX is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: VUX is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VUX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VUX is good value based on its PB Ratio (0.4x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Vital Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

0.1%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Vital Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Vital Energy performed over the past 5 years?

46.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VUX is currently unprofitable.

Growing Profit Margin: VUX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VUX is unprofitable, but has reduced losses over the past 5 years at a rate of 46.3% per year.

Accelerating Growth: Unable to compare VUX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VUX is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (4.1%).


Return on Equity

High ROE: VUX has a negative Return on Equity (-0.36%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vital Energy's financial position?


Financial Position Analysis

Short Term Liabilities: VUX's short term assets (CA$2.0M) do not cover its short term liabilities (CA$2.1M).

Long Term Liabilities: VUX's short term assets (CA$2.0M) exceed its long term liabilities (CA$1.1M).


Debt to Equity History and Analysis

Debt Level: VUX is debt free.

Reducing Debt: VUX had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if VUX's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable VUX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VUX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 27.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VUX'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?

4.6yrs

Average board tenure


CEO

Yingchuan Wu 0

1.6yrs

Tenure

CA$204,120

Compensation

Mr. Yingchuan Wu, Phd., P.Eng has been President and Chief Executive Officer of Vital Energy Inc., since July 23, 2018 and also serves as its Director since September 2018. 


CEO Compensation Analysis

Compensation vs Market: Yingchuan's total compensation ($USD154.48K) is about average for companies of similar size in the Canadian market ($USD154.65K).

Compensation vs Earnings: Insufficient data to compare Yingchuan's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Yingchuan Wu
President1.6yrsCA$204.12kno data
Fang Chen
Independent Director5.7yrsno data2.37% CA$97.6k
Hai Zhou
Independent Chairman of the Board5.7yrsCA$180.00k63.66% CA$2.6m
Ngai Ho
Independent Director3.6yrsno data1.22% CA$50.0k

4.6yrs

Average Tenure

Experienced Board: VUX's board of directors are considered experienced (4.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Vital Energy Inc.
  • Ticker: VUX
  • Exchange: TSXV
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$4.112m
  • Shares outstanding: 82.25m
  • Website: https://www.vitalenergyoil.com

Location

  • Vital Energy Inc.
  • 940 - 6th Avenue SW
  • Suite 888
  • Calgary
  • Alberta
  • T2P 3T1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VUXTSXV (TSX Venture Exchange)YesCommon SharesCACADJun 2014

Biography

Vital Energy Inc., a junior oil and gas company, engages in the acquisition, exploration for, and development of crude oil and natural gas in Western Canada. The company explores for, develops, and produces light and medium gravity crude oil. It primarily holds a 50% working interest in the Gull Lake project that includes 9 wells producing crude oil from the Roseray, Cantuar, and Upper Shaunavon formations. It also holds a 100% working interest in the Pennant project, which includes 14 contiguous sections of land located in the south west Saskatchewan. The company was formerly known as Ceno Energy Ltd. and changed its name to Vital Energy Inc. in October 2014. Vital Energy Inc. 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 Analysis2020/02/23 02:01
End of Day Share Price2020/02/19 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.