Vermilion Energy (VET) AI Stock Analysis

• Market Cap: C$1.24B
• Dividend Yield: 6.23%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: -1.72%
• EPS Growth: 79.87%
• Country: CA
• Employees: 743
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.29
• Shares Outstanding: 154,360,050
• 10 Day Avg. Volume: 1,292,077
• 30 Day Avg. Volume: 1,045,433
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.09
• Price to Cash Flow (P/CF): 2.20
• P/FCF Ratio: 12.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$15.27
• Price Target Upside: 90.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

Vermilion Energy has strengths in operational efficiency and cash flow generation, with promising growth from international operations and strategic acquisitions. However, persistent net losses, high leverage, and bearish technical indicators temper the outlook. The high dividend yield is a positive aspect for income-focused investors.

Positive Factors

Acquisition Strategy

The acquisition includes a significant amount of land and gas plants, potentially boosting future production volumes.

Exploration Success

The Wisselshorst test well shows encouraging rates and has the potential to be one of Vermilion's largest discoveries in Europe.

Negative Factors

Debt and Financial Risk

Higher debt and limited clarity on synergies from the acquisition likely leave investors cautious.

Flow Restrictions

The high well costs and risk of exploration, along with prolonged flow restrictions, have led to revising and postponing the expected payout on those wells.

Market Volatility

The share price has seen plenty of volatility due to uncertainties, particularly with European gas prices and restrictions on production flow in Germany.

Vermilion Energy Business Overview & Revenue Model

Company Description

Vermilion Energy Inc. is a Canadian-based international energy producer engaged in the exploration, development, and production of oil and natural gas. The company operates in North America, Europe, and Australia, providing a diversified portfolio of assets across various regions. Vermilion Energy focuses on sustainable energy production with a commitment to environmental stewardship and community engagement.

How the Company Makes Money

Vermilion Energy makes money primarily through the extraction and sale of crude oil and natural gas. Its revenue model is built on the production from its diversified portfolio of assets located in strategic regions like Canada, the United States, Europe, and Australia. The company generates income by selling the hydrocarbons it produces to refineries and other buyers in the energy market. Key revenue streams include the sale of light and heavy crude oil, natural gas, and natural gas liquids. Vermilion's earnings are influenced by global oil and gas prices, production volumes, and operational efficiencies. Strategic partnerships and joint ventures also play a role in enhancing its operational capabilities and market reach.

Vermilion Energy Financial Statement Overview

Summary

Vermilion Energy demonstrates operational efficiency with strong EBITDA margins and solid cash flow generation. However, profitability remains a concern with persistent net losses. The high leverage poses potential risks, requiring careful management. Stability in cash flow provides a buffer against financial challenges.

Income Statement

The company has shown a volatile revenue pattern with a notable decrease from 2022 to 2023. Gross profit margin improved significantly from 2023 to 2024, suggesting better cost management. However, the net profit margin remains negative, indicating profitability challenges. EBITDA margin is strong, highlighting operational efficiency despite net losses.

Balance Sheet

The company maintains a high debt-to-equity ratio, indicating significant leverage. The equity ratio is stable, suggesting a balanced asset structure. Return on equity is negative due to recent net losses, posing a risk to financial stability.

Cash Flow

Operating cash flow remains robust, with a positive free cash flow, indicating strong cash generation capabilities. The free cash flow to net income ratio is favorable, suggesting efficient cash utilization despite net losses. However, fluctuations in free cash flow growth highlight potential volatility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.07B	1.93B	3.72B	2.23B	1.25B
	Gross Profit
1.12B	359.39M	2.59B	1.32B	432.53M
	EBIT
0.00	235.92M	1.88B	715.21M	-188.24M
	EBITDA
761.26M	519.55M	2.55B	2.07B	-1.19B
	Net Income Common Stockholders
-46.74M	-237.59M	1.31B	1.15B	-1.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
131.73M	141.46M	13.84M	6.03M	6.90M
	Total Assets
6.12B	6.24B	6.99B	5.91B	4.11B
	Total Debt
1.02B	947.02M	1.13B	1.71B	2.01B
	Net Debt
886.72M	805.56M	1.12B	1.71B	2.00B
	Total Liabilities
3.30B	3.20B	3.59B	3.84B	3.18B
	Stockholders Equity
2.81B	3.03B	3.40B	2.07B	925.40M
Cash Flow		Free Cash Flow
332.04M	292.06M	1.26B	459.66M	132.95M
	Operating Cash Flow
967.75M	1.02B	1.81B	834.45M	500.15M
	Investing Cash Flow
-634.87M	-576.43M	-1.06B	-469.70M	-401.43M
	Financing Cash Flow
-344.08M	-320.34M	-748.37M	-363.45M	-120.60M

Vermilion Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VET, the sentiment is Negative. The current price of 8.01 is below the 20-day moving average (MA) of 10.57, below the 50-day MA of 11.52, and below the 200-day MA of 13.05, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 46.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VET.

Vermilion Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNQ	84 Outperform	$76.85B	12.75	15.47%	6.04%	-0.87%	-23.92%
SU	77 Outperform	C$55.75B	9.54	13.82%	4.98%	3.25%	-25.69%
ENB	73 Outperform	$127.40B	24.97	8.63%	6.34%	24.95%	-17.19%
TOU	71 Outperform	C$21.33B	16.10	8.55%	2.67%	-8.29%	-30.52%
BTE	63 Neutral	$1.96B	8.62	5.99%	4.13%	22.71%	―
VET	63 Neutral	C$1.24B	―	-1.59%	6.23%	-1.72%	79.87%
Sector *	57 Neutral	$7.44B	4.21	-3.75%	6.64%	-0.07%	-64.77%

Vermilion Energy Corporate Events

Vermilion Energy Declares April 2025 Dividend

Vermilion Energy Inc. has announced a cash dividend of $0.13 CDN per common share, payable on April 15, 2025, to shareholders of record on March 31, 2025. This dividend reflects the company’s commitment to returning capital to investors and underscores its financial strategy of generating free cash flow. The announcement may positively impact Vermilion’s market positioning by reinforcing investor confidence and highlighting its operational focus on profitability and strategic growth.

Vermilion Energy Reports 2024 Results and Announces Major European Gas Discovery

Vermilion Energy Inc. reported a 6% increase in fund flows from operations for 2024, with a significant reduction in net debt and a return of $216 million to shareholders. The company also announced a significant European gas discovery, which could enhance its market positioning and future growth prospects.

Vermilion Energy Completes Strategic Acquisition of Westbrick Energy

Vermilion Energy Inc. has completed its acquisition of Westbrick Energy Ltd., enhancing its presence in the Deep Basin trend in Alberta. The acquisition adds significant production capacity and land, offering operational synergies and long-term production stability. Vermilion plans to leverage these assets to maintain production levels and generate cash flow, aligning with its capital return strategy. The company will update its financial guidance to reflect this increased scale with its Q4 2024 results.

Vermilion Energy Secures $400 Million in Notes Offering

Vermilion Energy Inc. has successfully closed a private offering of US$400 million in senior unsecured notes, set to mature in 2033 with a 7.250% annual interest rate. This financial maneuver is part of Vermilion’s strategy to enhance its liquidity and strengthen its market position, reflecting the company’s broader focus on growth and investor returns through strategic financial management.

Vermilion Energy Prices $400 Million Note Offering to Bolster Financials and Acquisition Plans

Vermilion Energy Inc. has announced the pricing of its private offering of US$400 million in senior unsecured notes with a fixed coupon of 7.250% per annum, maturing in 2033. The proceeds from this offering will be used to manage existing debts, fund the acquisition of Westbrick Energy Ltd., and cover associated transaction fees, positioning Vermilion to strengthen its financial structure and expand its market presence.

Vermilion Energy Expands Loan Facility Amid Acquisition Plans

Vermilion Energy Inc. announced the filing of financial information related to its proposed acquisition of Westbrick Energy Ltd. The company has secured lender commitments to increase its term loan facility from $250 million to $450 million, maturing in May 2028. This strategic move is expected to enhance Vermilion’s financial flexibility as it pursues its growth and acquisition strategies, potentially strengthening its market position and providing additional value to stakeholders.

Vermilion Energy Plans $400 Million Note Issuance

Vermilion Energy Inc. has announced its plan to issue up to $400 million in senior unsecured notes in a private offering, targeting qualified institutional buyers. The proceeds from this issuance are earmarked for several strategic financial maneuvers, including redeeming existing senior notes, funding a portion of the Westbrick Energy Ltd. acquisition, and managing associated transaction costs. This financial move aims to bolster Vermilion’s strategic positioning in the energy sector, potentially impacting its operational flexibility and market competitiveness.