Royal Vopak (VOPKY) AI Stock Analysis

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Royal Vopak

(OTC:VOPKY)

66Neutral

Royal Vopak's overall stock score reflects strong financial performance with efficient cash conversion and solid profitability. While revenue growth challenges exist, the company's balanced leverage and improving equity returns provide a stable outlook. Neutral technical indicators and a reasonable valuation further support this score, making it a relatively stable investment in the fossil fuels industry.

Royal Vopak (VOPKY) vs. S&P 500 (SPY)

Market Cap

$4.72B

Dividend Yield3.17%

Average Volume (3M)7.00

Price to Earnings (P/E)12.3

Beta (1Y)0.42

Revenue Growth-7.67%

EPS Growth-14.29%

CountryUS

Employees4,928

SectorEnergy

Sector Strength45

IndustryOil & Gas Midstream

Share Statistics

EPS (TTM)3.37

Shares Outstanding117,816,150

10 Day Avg. Volume21

30 Day Avg. Volume7

Financial Highlights & Ratios

PEG Ratio0.69

Price to Book (P/B)N/A

Price to Sales (P/S)3.07

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Royal Vopak Business Overview & Revenue Model

Company DescriptionRoyal Vopak (VOPKY) is a global leader in the independent tank storage industry, specializing in the storage and handling of oil, chemicals, liquefied natural gas (LNG), biofuels, and vegetable oils. Headquartered in Rotterdam, Netherlands, Vopak operates a network of strategically located terminals worldwide, providing critical infrastructure for the safe and efficient storage and distribution of liquid bulk commodities. The company serves a diverse range of industries, including oil and gas, petrochemicals, and renewable energy, offering tailored storage solutions to meet the specific needs of its clients.

How the Company Makes MoneyRoyal Vopak makes money primarily through the leasing of its tank storage facilities to customers in various industries. The company charges fees for the storage and handling of liquid bulk products, which are typically based on the volume of product stored and the duration of storage. Vopak's revenue model is largely based on long-term contracts with customers, providing a stable and predictable cash flow. Additionally, the company generates income from ancillary services such as blending, heating, and other value-added services. Vopak's strategic partnerships with key players in the oil, chemical, and energy sectors, as well as its continuous investment in expanding and upgrading its terminal infrastructure, contribute significantly to its earnings.

Royal Vopak Financial Statement Overview

Summary

Royal Vopak demonstrates solid financial health with high profitability margins and improving equity returns. Despite some revenue growth challenges, the company's strong cash flow conversion and balanced leverage provide a stable financial foundation.

Income Statement

Positive

Royal Vopak shows strong profitability with a consistent gross profit margin above 70% and a net profit margin improving to 28.5% in 2024 from a negative figure in 2022. Revenue growth has been fluctuating, with a decline noted in 2024. However, the company has maintained a positive EBIT and EBITDA margin, indicating robust operational efficiency.

Balance Sheet

Positive

The balance sheet reflects moderate leverage with a debt-to-equity ratio of approximately 0.89 in 2024, suggesting manageable debt levels. The equity ratio is stable, around 45.5%, showing a balanced capital structure. ROE improved significantly to 12.1% in 2024, showcasing better utilization of equity.

Cash Flow

Positive

The cash flow statement highlights a positive trend in free cash flow, growing by 26.8% in 2024. The operating cash flow to net income ratio is strong, indicating that the company is converting its income into cash efficiently. However, the free cash flow to net income ratio suggests room for improvement in cash generation relative to profits.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.36B	1.32B	1.44B	1.37B	1.23B	1.19B
	Gross Profit
346.70M	1.01B	1.38B	1.03B	896.10M	890.50M
	EBIT
557.80M	347.30M	691.50M	521.60M	471.70M	456.40M
	EBITDA
735.50M	925.20M	1.02B	423.30M	741.20M	773.20M
	Net Income Common Stockholders
444.10M	375.70M	455.70M	-137.80M	214.20M	294.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.50M	94.20M	197.00M	33.80M	73.40M	68.30M
	Total Assets
5.51B	6.80B	6.65B	7.00B	7.09B	6.52B
	Total Debt
1.90B	2.77B	2.48B	3.08B	3.00B	2.66B
	Net Debt
1.82B	2.67B	2.29B	3.05B	2.93B	2.59B
	Total Liabilities
2.67B	3.56B	3.28B	3.85B	3.74B	3.39B
	Stockholders Equity
2.68B	3.10B	3.22B	2.98B	3.19B	2.98B
Cash Flow		Free Cash Flow
518.20M	573.40M	452.20M	439.10M	163.50M	123.20M
	Operating Cash Flow
870.30M	909.10M	866.20M	825.20M	682.00M	774.00M
	Investing Cash Flow
-128.70M	-495.30M	109.60M	-489.40M	-588.40M	-584.50M
	Financing Cash Flow
-713.20M	-528.80M	-801.90M	-353.50M	-84.80M	-218.70M

Royal Vopak Technical Analysis

Technical Analysis Sentiment

Negative

Last Price41.84

Price Trends

50DMA

43.59

Negative

100DMA

44.51

Negative

200DMA

44.94

Negative

Market Momentum

MACD

-0.08

Negative

RSI

47.52

Neutral

STOCH

62.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VOPKY, the sentiment is Negative. The current price of 41.84 is below the 20-day moving average (MA) of 42.78, below the 50-day MA of 43.59, and below the 200-day MA of 44.94, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 62.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VOPKY.

Royal Vopak Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NGS	79 Outperform	$227.74M	13.45	7.02%	―	29.36%	261.48%
NOV	78 Outperform	$4.37B	7.19	10.12%	2.60%	3.42%	-35.98%
MUR	74 Outperform	$2.85B	7.41	7.77%	6.13%	-12.48%	-36.47%
NRP	74 Outperform	$1.18B	7.93	32.48%	3.33%	-16.56%	-24.95%
VOPKY	66 Neutral	$4.72B	12.31	12.01%	3.17%	-7.67%	-14.29%
NFG	65 Neutral	$6.70B	82.82	-0.36%	2.79%	-10.64%	-102.62%
Sector *	57 Neutral	$7.44B	4.21	-3.75%	6.64%	-0.07%	-64.77%

* Energy Sector Average

Performance Comparison

VOPKY

Royal Vopak

41.84

4.28

11.40%

MUR

Murphy Oil

20.87

-24.00

-53.49%

NFG

National Fuel Gas Company

76.46

25.35

49.60%

NOV

11.84

-6.97

-37.05%

NGS

Natural Gas Services Group

18.52

-5.44

-22.70%

NRP

Natural Resource PRN

94.60

8.08

9.34%

Royal Vopak Earnings Call Summary

Earnings Call Date: Feb 19, 2025 | % Change Since: -11.84% | Next Earnings Date: Apr 23, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance and strategic expansions in key regions, along with significant investments in sustainable energy solutions. However, some operational challenges and mixed market conditions in specific regions were noted.

Highlights

Strong Financial Performance

Proportional EBITDA grew by 11% year-on-year to EUR 894 million year-to-date, with an operating cash return of 16.2%, driven by strong business performance and growth projects.

Expansion in India and China

Announced an expansion in the joint venture Aegis Vopak in India with 94,000 cubic meters of storage capacity. In China, commissioned a new greenfield industrial terminal, Huizhou, adding over 0.5 million cubic meters of capacity.

Strategic Investments in New Energies

Progress in redeveloping Vopak Energy Park Antwerp for green methanol storage and signing of a memorandum in Australia for CO2 infrastructure development.

Strong Cash Flow and Shareholder Returns

Gross cash flows increased by 8% year-to-date, with almost EUR 500 million returned to shareholders through dividends and share buybacks.

Lowlights

Operational Challenges at EemsEnergyTerminal

Temporary technical challenges at EemsEnergyTerminal leading to increased operational costs, with expected resolution in 2025.

Mixed Performance in Chemical Markets

Pressure in Asian and Middle Eastern chemical markets, despite solid performance in the U.S.

Market Challenges in Mexico

Challenges in the Mexican oil distribution market, partially offsetting strong performance in other regions.

Company Guidance

During the Royal Vopak Q3 2024 earnings call, the company reported a strong performance with a proportional occupancy rate of 92% and a proportional EBITDA growth of 11% year-on-year, amounting to EUR 894 million year-to-date. The operating cash return improved to 16.2%, driven by robust business performance and contributions from growth projects. Vopak announced an expansion in its joint venture in India, with a primary equity issue of 3.4% for EUR 88 million, and the construction of 94,000 cubic meters of storage capacity in the Port of Kandla. In China, a new greenfield industrial terminal was commissioned, adding over 0.5 million cubic meters of capacity. The company updated its full-year outlook, raising the proportional EBITDA range to EUR 1,160 million - EUR 1,180 million and consolidated EBITDA to EUR 930 million - EUR 950 million, despite some temporary technical challenges at the EemsEnergyTerminal. The call also highlighted Vopak's strategic focus on expanding industrial and gas terminals and progressing towards new energies and sustainable feedstocks.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.