NYSE:EGY

Stock Analysis Report

Executive Summary

VAALCO Energy, Inc., an independent energy company, acquires, explores for, develops, and produces crude oil and natural gas.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.9%

EGY

-0.7%

US Oil and Gas

-1.1%

US Market


1 Year Return

-13.2%

EGY

-18.9%

US Oil and Gas

17.8%

US Market

Return vs Industry: EGY exceeded the US Oil and Gas industry which returned -18.9% over the past year.

Return vs Market: EGY underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

EGYIndustryMarket
7 Day1.9%-0.7%-1.1%
30 Day-10.6%-5.7%1.5%
90 Day20.6%-6.9%6.6%
1 Year-13.2%-13.2%-15.7%-18.9%20.2%17.8%
3 Year86.7%86.7%-12.6%-20.8%47.5%38.1%
5 Year-56.9%-56.9%-20.8%-32.5%71.2%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EGY ($2.11) is trading below our estimate of fair value ($3.35)

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


Price To Earnings Ratio

PE vs Industry: EGY is poor value based on its PE Ratio (20.3x) compared to the Oil and Gas industry average (10x).

PE vs Market: EGY is poor value based on its PE Ratio (20.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EGY is overvalued based on its PB Ratio (1.1x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is VAALCO Energy forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-48.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGY's earnings are forecast to decline over the next 3 years (-48% per year).

Earnings vs Market: EGY's earnings are forecast to decline over the next 3 years (-48% per year).

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

Revenue vs Market: EGY's revenue is expected to decline over the next 3 years (-7.3% per year).

High Growth Revenue: EGY's revenue is forecast to decline over the next 3 years (-7.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EGY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has VAALCO Energy performed over the past 5 years?

59.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGY has high quality earnings.

Growing Profit Margin: EGY's current net profit margins (6.9%) are lower than last year (96.2%).


Past Earnings Growth Analysis

Earnings Trend: EGY has become profitable over the past 5 years, growing earnings by 59.4% per year.

Accelerating Growth: EGY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EGY had negative earnings growth (-93.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-13.3%).


Return on Equity

High ROE: EGY's Return on Equity (6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is VAALCO Energy's financial position?


Financial Position Analysis

Short Term Liabilities: EGY's short term assets ($74.5M) exceed its short term liabilities ($58.3M).

Long Term Liabilities: EGY's short term assets ($74.5M) exceed its long term liabilities ($40.8M).


Debt to Equity History and Analysis

Debt Level: EGY is debt free.

Reducing Debt: EGY has no debt compared to 5 years ago when its debt to equity ratio was 5.4%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if EGY'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: EGY is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: EGY is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate EGY'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 EGY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EGY'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 EGY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Cary Bounds (52yo)

3.2yrs

Tenure

US$1,400,695

Compensation

Mr. Cary Bounds has been Chief Executive Officer of VAALCO Energy, Inc. since December 29, 2016. Mr. Bounds served as Interim Chief Executive Officer of Vaalco Energy Inc. from September 1, 2016 to Decembe ...


CEO Compensation Analysis

Compensation vs Market: Cary's total compensation ($USD1.40M) is above average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Cary's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Cary Bounds
CEO & Director3.2yrsUS$1.40m0.98% $1.2m
Elizabeth Prochnow
Chief Financial Officer0.8yrsUS$403.93k0.019% $22.6k
William Thomas
President & Director0.8yrsno data0.15% $185.6k
Jason Doornik
Chief Accounting Officer & Controller0.7yrsno datano data
Michael Silver
Executive VP & General Counsel0.8yrsno data0.040% $48.4k
David DesAutels
Executive Vice President of Corporate Development1.1yrsno data0.20% $239.9k
Thor Pruckl
Executive Vice President of International Operations1.1yrsno datano data
Julie Ray
Vice President of Treasury2.6yrsno datano data
Al Petrie
Investor Relations Coordinator0yrsno datano data

1.1yrs

Average Tenure

Experienced Management: EGY's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Cary Bounds
CEO & Director3.2yrsUS$1.40m0.98% $1.2m
William Thomas
President & Director0.8yrsno data0.15% $185.6k
Robert Gerry
Chairman Emeritus5.7yrsUS$551.90kno data
Steven Pully
Independent Director4.6yrsUS$171.13k0.30% $364.7k
Andrew Fawthrop
Chairman of the Board4.2yrsUS$205.65k0.34% $416.9k

4.2yrs

Average Tenure

63yo

Average Age

Experienced Board: EGY's board of directors are considered experienced (4.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: VAALCO Energy, Inc.
  • Ticker: EGY
  • Exchange: NYSE
  • Founded: 1984
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$122.100m
  • Shares outstanding: 57.87m
  • Website: https://www.vaalco.com

Number of Employees


Location

  • VAALCO Energy, Inc.
  • 9800 Richmond Avenue
  • Suite 700
  • Houston
  • Texas
  • 77042
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGYNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1998
VAWDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1998
EGYLSE (London Stock Exchange)YesCommon StockGBGBPApr 1998

Biography

VAALCO Energy, Inc., an independent energy company, acquires, explores for, develops, and produces crude oil and natural gas. The company holds Etame production sharing contract related to the Etame Marin block located offshore the Republic of Gabon in West Africa. It also owns interests in an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was founded in 1984 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 02:01
End of Day Share Price2020/02/21 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.