Valeura Energy (VLE) AI Stock Analysis

• Market Cap: C$839.03M
• Dividend Yield: N/A
• Average Volume (3M): 285.48K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 0.70
• Revenue Growth: 23.77%
• EPS Growth: 198.71%
• Country: CA
• Employees: 189
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.21
• Shares Outstanding: 105,538,650
• 10 Day Avg. Volume: 356,913
• 30 Day Avg. Volume: 285,476
• PEG Ratio: -0.29
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 3.56
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: C$9.00 ▲(17.34% Upside)

Valeura Energy's strong financial performance, undervaluation, and positive earnings call sentiment are the most significant factors driving the high score. Technical indicators and recent corporate events further support the positive outlook, despite some concerns about production guidance and potential overbought conditions.

Positive Factors

Strong Financial Health

Valeura's strong financial health, marked by profitability and low leverage, supports its ability to invest in growth and withstand market fluctuations.

Strategic Expansion in Thailand

The expansion into Thailand through strategic partnerships enhances Valeura's resource base and positions it for long-term growth in a new market.

Improved Cash Position

A strong cash position provides Valeura with the financial flexibility to fund ongoing and future investments, supporting sustainable growth.

Negative Factors

Production Guidance at Lower End

Lower production guidance may limit revenue growth potential, impacting long-term operational performance and financial outcomes.

Share Price Decline

A declining share price can affect investor confidence and the company's ability to raise capital, potentially hindering future growth initiatives.

Tax Loss Utilization

Dependence on oil prices for tax loss utilization introduces uncertainty in financial planning, potentially affecting cash flow and profitability.

Valeura Energy Business Overview & Revenue Model

Company Description

Valeura Energy Inc., together with its subsidiaries, engages in the exploration, development, and production of petroleum and natural gas in Turkey. As of December 31, 2021, the company had interests in six production leases and exploration licenses covering approximately 0.23 million gross acres and 0.19 net acres of deep rights in the Thrace Basin of northwest Turkey. Valeura Energy Inc. was incorporated in 2000 and is headquartered in Calgary, Canada.

How the Company Makes Money

Valeura Energy generates revenue primarily through the sale of natural gas and oil produced from its operations in Turkey. The company's revenue model is based on the production and sale of hydrocarbons at market prices, which can fluctuate based on supply and demand dynamics in the energy market. Key revenue streams include the sale of natural gas to local and regional markets, as well as the potential for future sales of crude oil. Additionally, Valeura may benefit from strategic partnerships and joint ventures that enhance operational efficiency and expand its resource base, thereby contributing to its earnings. The company also focuses on cost management and operational optimization to improve profitability amidst varying commodity prices.

Valeura Energy Financial Statement Overview

Summary

Valeura Energy shows strong financial health with high profitability margins and efficient cash flow management. Despite a slight revenue decline, the company maintains robust margins and a stable balance sheet with low leverage, positioning it well for future growth.

Income Statement

Valeura Energy's income statement shows strong profitability with a high net profit margin of 34.75% and a solid EBIT margin of 23.64% for the TTM period. Despite a slight revenue decline of 5.12% in the TTM, the company maintains robust gross and EBITDA margins, indicating efficient operations. Historical data shows significant revenue growth from 2022 to 2023, highlighting a positive growth trajectory.

Balance Sheet

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio of 0.13, suggesting conservative leverage. The return on equity is impressive at 55.46%, indicating effective use of equity to generate profits. The equity ratio stands at a strong level, showcasing stability in asset financing. However, the company should monitor its debt levels to maintain this stability.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 40.67% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 1.76 suggests efficient cash conversion. However, the free cash flow to net income ratio is moderate at 0.37, indicating room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	642.77M	678.79M	493.46M	352.03K	3.13M	8.55M
Gross Profit	333.10M	399.47M	298.07M	-5.42M	1.18M	403.00K
EBITDA	321.72M	337.67M	421.08M	-15.71M	-82.05M	-1.39M
Net Income	229.59M	240.80M	245.03M	-12.21M	-64.55M	-19.53M
Balance Sheet
Total Assets	859.32M	857.31M	704.31M	64.01M	45.22M	54.86M
Cash, Cash Equivalents and Short-Term Investments	218.77M	236.54M	133.87M	17.52M	40.83M	30.14M
Total Debt	99.55M	74.47M	73.64M	11.09M	0.00	0.00
Total Liabilities	316.64M	329.03M	420.14M	35.55M	2.09M	12.91M
Stockholders Equity	542.67M	528.28M	284.18M	26.04M	43.13M	41.95M
Cash Flow
Free Cash Flow	131.70M	149.95M	-83.30M	-17.91M	-3.20M	-3.27M
Operating Cash Flow	285.75M	305.62M	27.48M	-17.87M	-3.16M	-145.00K
Investing Cash Flow	-150.14M	-161.57M	130.35M	-16.42M	14.05M	-5.03M
Financing Cash Flow	-48.73M	-41.14M	-41.80M	11.13M	-28.00K	-68.00K

Valeura Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VLE, the sentiment is Positive. The current price of 7.67 is above the 20-day moving average (MA) of 7.34, above the 50-day MA of 6.94, and above the 200-day MA of 7.42, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 72.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VLE.

Valeura Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLE	82 Outperform	C$839.03M	2.44	58.06%	―	23.77%	198.71%
CJ	77 Outperform	C$1.27B	14.26	8.46%	8.04%	-9.30%	-26.09%
TAL	68 Neutral	C$365.19M	3.55	14.69%	21.03%	-2.90%	-31.97%
SDE	68 Neutral	$1.56B	39.22	7.22%	―	17.31%	-75.56%
SNM	66 Neutral	C$673.09M	5.69	5.65%	―	46.17%	-82.95%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KEC	61 Neutral	C$1.07B	8.21	14.74%	―	25.52%	77.39%

Valeura Energy Corporate Events

Valeura Energy Launches New Share Buyback Program

Valeura Energy Inc. has announced the approval of a new Normal Course Issuer Bid (NCIB) by the Toronto Stock Exchange, allowing the company to repurchase up to 10% of its public float, or 6,298,884 common shares, over the next year. This move is designed to offset natural dilution and enhance shareholder value, reflecting the company’s belief that its market price does not fully represent its intrinsic value and future prospects.

Valeura Energy Reports Robust Q3 2025 Results and Strategic Expansion

Valeura Energy Inc. reported strong financial and operational results for Q3 2025, with significant increases in oil production and revenue. The company achieved a major offshore acreage expansion in the Gulf of Thailand and entered a joint venture in Türkiye, positioning itself for future growth and transformation. Its financial health is robust, with a record working capital surplus and no debt, setting the stage for both organic and inorganic growth opportunities.

Valeura Energy Enters Joint Venture for Thrace Basin Gas Exploration

Valeura Energy Inc. has entered a joint venture with Pinnacle Turkey, Inc. and Transatlantic Petroleum LLC to explore and develop deep gas formations in the Thrace basin of northwest Türkiye. This agreement marks a strategic move for Valeura, as it seeks to capitalize on the significant gas potential discovered in previous drilling programs. The joint venture aims to test and potentially commercialize these resources, leveraging higher European gas prices and Transatlantic’s operational expertise in Türkiye. This initiative could enhance Valeura’s market position and provide value to stakeholders by advancing exploration activities in a region with proven hydrocarbon presence.

Valeura Energy Boosts Production and Expands Acreage in Q3 2025

Valeura Energy Inc. reported a successful Q3 2025, highlighted by a ten-well drilling campaign at its Nong Yao field, boosting production to 24.8 mbbls/d by quarter-end. The company maintained a strong financial position with a cash reserve of $248.3 million and no debt, facilitating ongoing investments. Additionally, Valeura expanded its offshore acreage through a strategic farm-in agreement in the Gulf of Thailand, positioning itself for future growth and development. The company’s operations continued safely and efficiently, with significant progress on the Wassana field redevelopment project, aiming for first oil by Q2 2027.

Valeura Energy Tops Canada’s 2025 Growth Rankings

Valeura Energy Inc. has been ranked as the No. 1 company on the Report on Business magazine’s 2025 list of Canada’s Top Growing Companies, achieving a remarkable 20,064% revenue growth over three years. This accolade highlights Valeura’s successful execution of its growth strategy and its disciplined approach to value creation, positioning the company as a leader in its industry and underscoring its commitment to stakeholders.