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EGY

VAALCO Energy NYSE:EGY Stock Report

Last Price

US$7.52

Market Cap

US$442.9m

7D

-4.0%

1Y

131.4%

Updated

29 Jun, 2022

Data

Company Financials +
EGY fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends2/6

EGY Stock Overview

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

VAALCO Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for VAALCO Energy
Historical stock prices
Current Share PriceUS$7.52
52 Week HighUS$8.77
52 Week LowUS$2.06
Beta1.78
1 Month Change0.67%
3 Month Change15.16%
1 Year Change131.39%
3 Year Change353.01%
5 Year Change733.89%
Change since IPO186.48%

Recent News & Updates

Jun 22
VAALCO Energy (NYSE:EGY) Is Reinvesting At Lower Rates Of Return

VAALCO Energy (NYSE:EGY) Is Reinvesting At Lower Rates Of Return

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Jun 21

Vaalco: Oil Play, Priced At Less Than 3x Free Cash Flow

Vaalco Energy is a West African crude oil play. Those are two noteworthy risks. But once we look beyond those two elements, Vaalco is probably going to report somewhere around $150 to $200 million of free cash flow over the next twelve months. This puts EGO stock priced at less than 3x free cash flow. Vaalco's balance sheet is debt free, leaving it well positioned to increase its shareholder returns. I rate EGY stock a buy.

Jun 04

Drill Baby Drill: Vaalco Energy

Vaalco's growth program continues to drive production upwards. EGY is not impacted by ESG concerns and regulation to a significant degree. Following 200%+ gains since we initiated coverage, EGY still does not look expensive.

Shareholder Returns

EGYUS Oil and GasUS Market
7D-4.0%0.07%1.6%
1Y131.4%31.4%-20.8%

Return vs Industry: EGY exceeded the US Oil and Gas industry which returned 37.9% over the past year.

Return vs Market: EGY exceeded the US Market which returned -20.4% over the past year.

Price Volatility

Is EGY's price volatile compared to industry and market?
EGY volatility
EGY Average Weekly Movement12.0%
Oil and Gas Industry Average Movement8.8%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: EGY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: EGY's weekly volatility (12%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985117George Maxwellhttps://www.vaalco.com

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 in the Republic of Gabon in West Africa. It also owns interests in an undeveloped block offshore Equatorial Guinea, West Africa.

VAALCO Energy Fundamentals Summary

How do VAALCO Energy's earnings and revenue compare to its market cap?
EGY fundamental statistics
Market CapUS$442.94m
Earnings (TTM)US$82.89m
Revenue (TTM)US$227.96m

5.3x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EGY income statement (TTM)
RevenueUS$227.96m
Cost of RevenueUS$84.89m
Gross ProfitUS$143.06m
Other ExpensesUS$60.18m
EarningsUS$82.89m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.41
Gross Margin62.76%
Net Profit Margin36.36%
Debt/Equity Ratio0%

How did EGY perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

2%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is EGY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EGY?

Other financial metrics that can be useful for relative valuation.

EGY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA5.7x
PEG Ratio-0.08x

Price to Earnings Ratio vs Peers

How does EGY's PE Ratio compare to its peers?

EGY PE Ratio vs Peers
The above table shows the PE ratio for EGY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average34.9x
SJT San Juan Basin Royalty Trust
10.3xn/aUS$439.5m
REPX Riley Exploration Permian
56.6x113.9%US$485.6m
REI Ring Energy
10.3x65.9%US$304.1m
KRP Kimbell Royalty Partners
62.2x26.5%US$1.0b
EGY VAALCO Energy
5.3x-70.7%US$442.9m

Price-To-Earnings vs Peers: EGY is good value based on its Price-To-Earnings Ratio (5.3x) compared to the peer average (34.9x).


Price to Earnings Ratio vs Industry

How does EGY's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: EGY is good value based on its Price-To-Earnings Ratio (5.3x) compared to the US Oil and Gas industry average (12x)


Price to Earnings Ratio vs Fair Ratio

What is EGY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EGY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.3x
Fair PE Ratio4x

Price-To-Earnings vs Fair Ratio: EGY is expensive based on its Price-To-Earnings Ratio (5.3x) compared to the estimated Fair Price-To-Earnings Ratio (4x).


Share Price vs Fair Value

What is the Fair Price of EGY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EGY ($7.52) is trading below our estimate of fair value ($20.57)

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


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-70.7%

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 (-70.7% per year).

Earnings vs Market: EGY's earnings are forecast to decline over the next 3 years (-70.7% 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 (-46% per year).

High Growth Revenue: EGY's revenue is forecast to decline over the next 3 years (-46% 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


Discover growth companies

Past Performance

How has VAALCO Energy performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EGY has a high level of non-cash earnings.

Growing Profit Margin: EGY's current net profit margins (36.4%) are higher than last year (16.4%).


Past Earnings Growth Analysis

Earnings Trend: EGY has become profitable over the past 5 years, growing earnings by 2.5% per year.

Accelerating Growth: EGY's earnings growth over the past year (470%) exceeds its 5-year average (2.5% per year).

Earnings vs Industry: EGY earnings growth over the past year (470%) exceeded the Oil and Gas industry 102.2%.


Return on Equity

High ROE: EGY's Return on Equity (54.4%) is considered outstanding.


Discover strong past performing companies

Financial Health

How is VAALCO Energy's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EGY's short term assets ($96.2M) do not cover its short term liabilities ($117.5M).

Long Term Liabilities: EGY's short term assets ($96.2M) exceed its long term liabilities ($36.2M).


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 363.6%.

Debt Coverage: EGY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EGY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.73%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EGY's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: EGY's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (4.25%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether EGY's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if EGY's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (2.3%), EGY's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (171.6%), EGY's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.2yrs

Average management tenure


CEO

George Maxwell (55 yo)

1.17yrs

Tenure

US$818,108

Compensation

Mr. George Walter-Mitchell Maxwell serves as Chief Executive Officer at VAALCO Energy, Inc. since April 19, 2021. He had been an Independent Non-Executive Director at Lekoil Limited since January 8, 2021 u...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD818.11K) is below average for companies of similar size in the US market ($USD2.81M).

Compensation vs Earnings: George's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: EGY's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: EGY's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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 employee growth, exchange listings and data sources


Key Information

  • Name: VAALCO Energy, Inc.
  • Ticker: EGY
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$442.944m
  • Shares outstanding: 58.90m
  • Website: https://www.vaalco.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.