Vermilion Energy (VET) AI Stock Analysis

• Market Cap: C$1.65B
• Dividend Yield: 4.66%
• Average Volume (3M): 669.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: -1.60%
• EPS Growth: 76.21%
• Country: CA
• Employees: 743
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -1.51
• Shares Outstanding: 153,800,000
• 10 Day Avg. Volume: 698,342
• 30 Day Avg. Volume: 669,815
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$13.00
• Price Target Upside: 20.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: C$11.00 ▲(1.85% Upside)

Vermilion Energy's overall stock score reflects a mixed financial performance with challenges in profitability and leverage. However, the positive earnings call highlights significant production growth and strategic asset sales, which contribute to a more favorable outlook. Technical analysis and valuation metrics present a neutral to slightly cautious view, with the dividend yield offering some investor appeal.

Positive Factors

Negative Factors

Vermilion Energy Business Overview & Revenue Model

Company Description

Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas in North America, Europe, and Australia. The company owns 81% working interest in 636,714 net acres of developed land and 85% working interest in 301,026 net acres of undeveloped land in Canada; 130,715 net acres of land in the Powder River basin in the United States; 96% working interest in 248,873 net acres of developed land and 86% working interest in 134,160 net acres of undeveloped land in the Aquitaine and Paris Basins in France; 53% working interest in 901,791 net acres of land in the Netherlands; 54,625 net developed acres and 920,723 net undeveloped acres in Germany; 975,375 net acres land in Croatia; 946,666 net acres land in Hungary; and 48,954 net acres land in Slovakia. It also owns 20% interests in the offshore Corrib natural gas field located to the northwest coast of Ireland; and 100% working interest in the Wandoo offshore oil field and related production facilities that covers 59,553 acres located on Western Australia's northwest shelf. As of December 31, 2021, the company had 401 net producing conventional natural gas wells and 2,132 net producing light and medium crude oil wells in Canada; 167.6 net producing light and medium crude oil wells in the United States; 297.0 net producing light and medium crude oil wells and 3 net producing conventional natural gas wells in France; and 47 net producing natural gas wells in the Netherlands. Vermilion Energy Inc. was founded in 1994 and is headquartered in Calgary, Canada.

How the Company Makes Money

Vermilion Energy generates revenue primarily through the sale of crude oil, natural gas liquids, and natural gas. The company has a revenue model that is heavily dependent on commodity prices, which can fluctuate based on market conditions. Key revenue streams include production from its various operating regions, where it extracts and sells hydrocarbons. Additionally, Vermilion benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. The company also focuses on optimizing its production costs and maintaining a balanced portfolio of assets to mitigate risks associated with price volatility in the energy sector.

Vermilion Energy Financial Statement Overview

Summary

Vermilion Energy's financial performance is mixed. Revenue growth is positive, but profitability is a concern with negative net income and margins. The balance sheet shows stability but increased leverage, and cash flow generation is adequate but with declining free cash flow growth.

Income Statement

Vermilion Energy's income statement shows a mixed performance. The company has experienced significant revenue growth in the TTM period, but profitability metrics such as net profit margin and EBIT margin are negative, indicating challenges in cost management or pricing. The gross profit margin has decreased compared to previous years, suggesting increased cost pressures. Overall, while revenue growth is a positive sign, the lack of profitability is a concern.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has increased over the TTM period, indicating higher leverage, which could pose a risk if not managed properly. However, the company maintains a reasonable equity ratio, suggesting a solid asset base. Return on equity is negative, reflecting the company's current unprofitability. Overall, the balance sheet shows a stable asset base but increased leverage and negative returns are areas of concern.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which is a negative indicator for liquidity. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from operations despite net losses. However, the free cash flow to net income ratio is low, indicating limited cash available after capital expenditures. Overall, the cash flow statement shows adequate operational cash generation but highlights challenges in maintaining free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.08B	2.07B	1.93B	3.72B	2.23B	1.25B
Gross Profit	975.39M	1.12B	359.39M	2.59B	1.32B	432.53M
EBITDA	978.95M	835.80M	519.55M	2.55B	2.07B	-1.19B
Net Income	-185.12M	-46.74M	-237.59M	1.31B	1.15B	-1.52B
Balance Sheet
Total Assets	6.71B	6.12B	6.24B	6.99B	5.91B	4.11B
Cash, Cash Equivalents and Short-Term Investments	69.19M	131.73M	141.46M	13.84M	6.03M	6.90M
Total Debt	2.00B	1.02B	947.02M	1.13B	1.71B	2.01B
Total Liabilities	4.01B	3.30B	3.20B	3.59B	3.84B	3.18B
Stockholders Equity	2.69B	2.81B	3.03B	3.40B	2.07B	925.40M
Cash Flow
Free Cash Flow	141.55M	332.04M	292.06M	1.26B	459.66M	132.95M
Operating Cash Flow	767.99M	967.75M	1.02B	1.81B	834.45M	500.15M
Investing Cash Flow	-1.76B	-634.87M	-576.43M	-1.06B	-469.70M	-401.43M
Financing Cash Flow	786.30M	-344.08M	-320.34M	-748.37M	-363.45M	-120.60M

Vermilion Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 10.8 is above the 20-day moving average (MA) of 10.43, above the 50-day MA of 10.60, and below the 200-day MA of 11.05, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 80.60 is Negative, 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
PXT	76 Outperform	1.81B	10.44	6.67%	8.26%	-20.60%	-56.33%
HWX	74 Outperform	1.84B	9.98	25.11%	5.45%	8.47%	-1.60%
KEL	62 Neutral	1.39B	18.55	6.61%	―	6.97%	9.34%
BIR	55 Neutral	1.62B	21.06	3.42%	3.19%	-15.60%	85.49%
VET	54 Neutral	C$1.65B	―	4.40%	4.66%	-1.60%	76.21%
MER	45 Neutral	1.24B	-2.60	0.00%	5.66%	0.00%	-523.86%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Vermilion Energy Corporate Events

Vermilion Energy Declares October 2025 Cash Dividend

Vermilion Energy Inc. announced a cash dividend of $0.13 CDN per common share, payable on October 15, 2025, to shareholders of record as of September 29, 2025. This dividend reflects Vermilion’s commitment to providing value to its shareholders and highlights its strong financial position in the energy sector, potentially enhancing investor confidence and market positioning.

The most recent analyst rating on (TSE:VET) stock is a Sell with a C$12.00 price target. To see the full list of analyst forecasts on Vermilion Energy stock, see the TSE:VET Stock Forecast page.

Vermilion Energy Reports Q2 2025 Results and Strategic Asset Divestments

Vermilion Energy Inc. reported a net loss of $233 million for Q2 2025, primarily due to a non-cash adjustment related to assets held for sale in Saskatchewan and the United States. Despite this, the company generated $260 million in fund flows from operations, increased production from new wells, and reduced net debt significantly. Vermilion also completed asset divestments for $535 million, which were used to further reduce debt, aligning with their strategy of prioritizing free cash flow and debt reduction while returning capital to shareholders.

The most recent analyst rating on (TSE:VET) stock is a Sell with a C$12.00 price target. To see the full list of analyst forecasts on Vermilion Energy stock, see the TSE:VET Stock Forecast page.