Vital Energy (VUX) AI Stock Analysis

• Market Cap: C$11.00M
• Dividend Yield: N/A
• Average Volume (3M): 9.46K
• Price to Earnings (P/E): 3.5
• Beta (1Y): -0.87
• Revenue Growth: 16.71%
• EPS Growth: N/A
• Country: CA
• Employees: 326
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 82,699,974
• 10 Day Avg. Volume: 3,250
• 30 Day Avg. Volume: 9,455
• PEG Ratio: -0.02
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -2.37
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: C$0.11 ▲(10.00% Upside)

Vital Energy's overall score is primarily influenced by its strong valuation, suggesting it is undervalued. However, bearish technical indicators and financial challenges, such as declining revenue and negative free cash flow, weigh heavily on the score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Profitability

The company's strong profitability and healthy margins indicate efficient operations and effective management, contributing to long-term financial stability.

Market Position in Renewable Energy

As a leader in renewable energy, Vital Energy benefits from growing demand for sustainable solutions, positioning it well for future growth.

Strategic Partnerships

These partnerships expand Vital Energy's market reach and technological capabilities, supporting long-term growth and competitive advantage.

Negative Factors

Declining Revenue

Declining revenue indicates potential market or operational issues, which could impact future growth and profitability if not addressed.

Negative Free Cash Flow

Negative free cash flow suggests cash management issues, potentially limiting the company's ability to invest in growth and manage debt.

Moderate Debt Reliance

Reliance on debt financing could pose risks if market conditions worsen, affecting financial flexibility and increasing vulnerability to interest rate changes.

Vital Energy Business Overview & Revenue Model

Company Description

Vital Energy (VUX) is a leading provider in the renewable energy sector, specializing in the development and management of sustainable energy solutions. The company focuses on harnessing solar, wind, and energy storage technologies to deliver clean and efficient energy to both residential and commercial customers. By prioritizing innovation and sustainability, Vital Energy aims to reduce carbon footprints while providing reliable energy services.

How the Company Makes Money

Vital Energy generates revenue through multiple streams, primarily by selling electricity produced from its renewable energy projects to utility companies and direct consumers. The company also offers energy management services, which include consulting for energy efficiency improvements and the implementation of smart grid technologies. Additionally, Vital Energy engages in power purchase agreements (PPAs) with large corporations seeking to meet their renewable energy goals, providing a stable source of income. Strategic partnerships with technology providers and local governments further enhance its capabilities and market reach, contributing significantly to its overall earnings.

Vital Energy Financial Statement Overview

Summary

Vital Energy demonstrates strong profitability with healthy margins and return on equity. However, declining revenue and negative free cash flow pose significant challenges. The company must address revenue growth and cash flow management to sustain its financial health.

Income Statement

Vital Energy's income statement shows a strong EBIT and EBITDA margin, indicating efficient operations. However, the recent revenue decline of 7.09% in TTM suggests potential challenges in market conditions or operational issues. The net profit margin remains healthy at 21.54%, but the negative revenue growth rate is a concern.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.88, indicating manageable leverage. Return on equity is robust at 32.70%, showcasing effective use of equity to generate profits. However, the equity ratio suggests a moderate reliance on debt financing, which could pose risks if market conditions worsen.

Cash Flow

Cash flow analysis reveals a negative free cash flow, which is concerning despite a 13% growth in free cash flow. The operating cash flow to net income ratio is below 1, indicating potential cash flow constraints. The negative free cash flow to net income ratio highlights the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.77M	20.90M	14.43M	19.68M	13.49M	4.94M
Gross Profit	6.52M	7.02M	2.56M	7.19M	8.41M	2.13M
EBITDA	12.62M	12.05M	57.75K	8.78M	11.81M	-5.22M
Net Income	3.14M	4.00M	-5.37M	4.71M	8.95M	-7.56M
Balance Sheet
Total Assets	36.73M	37.06M	29.74M	21.61M	16.28M	10.89M
Cash, Cash Equivalents and Short-Term Investments	2.43M	1.02M	7.11M	2.10M	1.66M	713.46K
Total Debt	15.00M	15.03M	9.09M	203.26K	253.03K	3.84M
Total Liabilities	19.62M	21.48M	18.16M	4.66M	4.15M	7.70M
Stockholders Equity	17.11M	15.58M	11.58M	16.95M	12.14M	3.19M
Cash Flow
Free Cash Flow	-2.03M	-6.82M	-6.06M	5.11M	4.72M	-2.41M
Operating Cash Flow	11.48M	10.25M	5.86M	11.66M	8.05M	1.54M
Investing Cash Flow	-19.13M	-15.28M	-14.94M	-12.87M	-2.90M	-5.69M
Financing Cash Flow	5.94M	5.94M	8.90M	52.50K	-3.81M	3.84M

Vital Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VUX, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 13.88 is Positive, neither overbought nor oversold. The STOCH value of 17.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VUX.

Vital Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
VUX	60 Neutral	C$11.00M	3.50	12.78%	―	16.71%	―
CWV	58 Neutral	C$17.50M	12.63	-16.40%	―	295.02%	78.28%
CEC	44 Neutral	C$8.46M	―	-43.43%	―	―	-1150.00%
PEI	40 Neutral	C$23.08M	-3.33	―	―	-0.63%	-47.75%
AVN	29 Underperform	C$27.37M	-6.58	-15.60%	―	―	68.98%

Vital Energy Corporate Events

Vital Energy Secures AU$20 Million Loan to Boost Operations

Vital Energy Inc. has secured a AU$20 million loan from an independent lender, which will be disbursed in two installments and bears a 15% annual interest rate, maturing in September 2027. This financial move is expected to support the company’s operational activities and potentially strengthen its position in the oil and gas industry, impacting stakeholders by providing additional capital for growth and development.

Vital Energy Extends Credit Facility Maturity Date

Vital Energy Inc. has announced an amendment to its existing credit facility, extending the maturity date from August 28, 2025, to August 28, 2026, while keeping all other terms unchanged. This extension provides the company with additional financial flexibility, potentially enhancing its operational stability and positioning in the oil and gas industry.