Vermilion Energy (VET) AI Stock Analysis

• Market Cap: $1.63B
• Dividend Yield: 5.02%
• Average Volume (3M): 774.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: 1.04%
• EPS Growth: 94.48%
• Country: CA
• Employees: 743
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.10
• Shares Outstanding: 154,500,000
• 10 Day Avg. Volume: 646,357
• 30 Day Avg. Volume: 774,423
• PEG Ratio: -1.59
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.98
• 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: $12.60
• Price Target Upside: 16.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: C$11.50 ▲(6.68%Upside)

Vermilion Energy's stock score reflects a mix of strengths and challenges. While the company benefits from positive cash flow and strategic acquisitions, concerns over profitability and market volatility weigh down the overall score. The recent asset sale and dividend policy support the stock’s long-term investment appeal, but financial performance and valuation remain key areas for improvement.

Positive Factors

Asset Portfolio

VET remains steadfast in building a balanced portfolio of assets — especially with the addition of Lara Conrad from ARX.

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

European Gas Prices

Uncertainties surrounding European gas prices, regulation, and exploration success all weigh on investor risk appetite.

Financial Performance

For every dollar spent, there was a loss of $0.04 in value in 2024.

Vermilion Energy Business Overview & Revenue Model

Company Description

Vermilion Energy Inc. (VET) is an international energy producer headquartered in Calgary, Alberta, Canada. The company is engaged in the exploration, development, and production of oil and natural gas. Vermilion operates in various regions across North America, Europe, and Australia, focusing on a diversified portfolio of assets that includes conventional and unconventional resource plays. The company's core products are crude oil, natural gas, and natural gas liquids, which it markets globally.

How the Company Makes Money

Vermilion Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids. The company's revenue model is centered around the exploration and production of these hydrocarbon resources, which are then sold in the global commodity markets. Key revenue streams include the sale of oil and gas produced from its various international operations, with significant contributions from its assets in North America, Europe, and Australia. Vermilion's earnings are influenced by factors such as commodity prices, production volumes, and operational efficiencies. The company may also engage in strategic partnerships or joint ventures to optimize its resource development and management, though specific partnerships are not detailed in the provided information.

Vermilion Energy Financial Statement Overview

Summary

Vermilion Energy faces profitability challenges with a negative net profit margin despite a stable asset base and positive operating cash flows. The company's leverage position requires careful management due to a moderately high debt-to-equity ratio.

Income Statement

Vermilion Energy shows a mixed performance in its income statement. The company has seen fluctuating revenue, with a recent decline in the TTM period compared to the previous annual data. Gross profit margin is moderate, and net profit margin is negative, indicating profitability issues. Although EBIT and EBITDA margins are positive, they are not strong enough to offset the negative net income, which raises concerns about operational efficiency.

Balance Sheet

The balance sheet indicates a relatively stable financial position with a reasonable equity base. The debt-to-equity ratio is moderately high, reflecting leverage that could pose risks if not managed properly, but the equity ratio remains healthy. Return on equity is negative due to the net loss, which impacts overall financial health. However, the company maintains a solid asset base, providing some level of stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, although the company is generating positive operating cash flow. The free cash flow to net income ratio is positive, but the overall net loss affects the cash flow metrics. The operating cash flow to net income ratio indicates that the company is generating cash despite profitability challenges, which is a positive sign.

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
EBITDA	835.80M	519.55M	2.55B	2.07B	-1.19B
Net Income	-46.74M	-237.59M	1.31B	1.15B	-1.52B
Balance Sheet
Total Assets	6.12B	6.24B	6.99B	5.91B	4.11B
Cash, Cash Equivalents and Short-Term Investments	131.73M	141.46M	13.84M	6.03M	6.90M
Total Debt	1.02B	947.02M	1.13B	1.71B	2.01B
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: Positive
• Last Price: 10.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 10.78 is above the 20-day moving average (MA) of 10.45, above the 50-day MA of 9.89, and below the 200-day MA of 11.64, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 67.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VET.

Vermilion Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWX	81 Outperform	C$1.64B	8.17	29.87%	6.39%	20.48%	21.66%
PXT	75 Outperform	$1.39B	12.47	4.22%	10.78%	-9.92%	-78.49%
KEL	71 Outperform	$1.52B	28.69	4.98%	―	0.73%	-36.49%
Sector *	67 Neutral	$14.98B	9.65	6.33%	5.29%	4.07%	-66.96%
BIR	63 Neutral	$1.87B	13.52	6.10%	1.75%	-18.20%	260.40%
VET	61 Neutral	$1.63B	―	-1.19%	5.02%	1.04%	94.48%
MER	45 Neutral	$1.13B	―	-25.82%	8.31%	―	-438.52%

Vermilion Energy Corporate Events

Vermilion Energy Sells U.S. Assets, Refocuses on Gas-Weighted Operations

Vermilion Energy Inc. has announced the sale of its United States assets for $120 million, a move that completes its exit from the U.S. market and allows it to focus on its core gas-weighted assets in Canada and Europe. The transaction is expected to close in Q3 2025, with proceeds directed towards debt repayment, enhancing the company’s financial position. Additionally, Vermilion has updated its 2025 guidance, reducing its capital budget and adjusting production expectations, reflecting its strategic shift towards maximizing free cash flow over production growth amid market volatility.

The most recent analyst rating on (TSE:VET) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Vermilion Energy stock, see the TSE:VET Stock Forecast page.

Vermilion Energy Sells Saskatchewan Assets to Strengthen Financial Position

Vermilion Energy Inc. has announced a definitive agreement to sell its Saskatchewan and Manitoba assets for $415 million, with the proceeds directed towards accelerating debt repayment and strengthening its balance sheet. This transaction is part of Vermilion’s strategic plan to reposition its portfolio towards long-duration, scalable assets with high return opportunities, enhancing its global gas franchise and providing capital allocation flexibility for its core Canadian and European assets.

The most recent analyst rating on (TSE:VET) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Vermilion Energy stock, see the TSE:VET Stock Forecast page.

Vermilion Energy Announces AGM Voting Results and Board Changes

Vermilion Energy Inc. announced the results of its annual general meeting, where 50.03% of its common shares were voted. Key resolutions included the election of eight directors, the appointment of Deloitte LLP as auditors, and approval of executive compensation and the Omnibus Incentive Plan. The company also acknowledged the retirement of two directors, Robert B. Michaleski and Timothy R. Marchant, expressing gratitude for their contributions. These developments reflect Vermilion’s ongoing commitment to governance and strategic oversight, potentially impacting its operational focus and stakeholder relations.

Vermilion Energy Declares July 2025 Cash Dividend

Vermilion Energy Inc. announced a cash dividend of $0.13 CDN per common share, payable on July 15, 2025, to shareholders of record on June 30, 2025. This announcement reflects Vermilion’s commitment to returning capital to investors and may positively impact investor sentiment, reinforcing the company’s strategic focus on profitability and shareholder value.

Vermilion Energy Reports Q1 2025 Results and Strategic Acquisition

Vermilion Energy reported a slight decrease in fund flows from operations for Q1 2025 compared to the previous quarter, but saw an increase in free cash flow due to strong European gas prices. The company completed the acquisition of Westbrick, enhancing its position in Alberta’s Deep Basin and identifying significant operational synergies. Vermilion’s production increased, driven by the acquisition and successful exploration activities in Germany. The company remains focused on free cash flow and debt reduction, with a stable capital budget and guidance for 2025.