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Royal Vopak NV (VOPKY)
OTHER OTC:VOPKY
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Royal Vopak
(OTC:VOPKY)
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Rating:71Outperform
Price Target:
$51.00
▲(12.19% Upside)
Royal Vopak's overall score is driven by its strong financial performance and positive earnings call, which highlight strategic growth and robust profitability. While technical indicators suggest a neutral market sentiment, the attractive valuation and dividend yield enhance its investment appeal.
Royal Vopak (VOPKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.03B
Dividend Yield4%
Average Volume (3M)0.00
Price to Earnings (P/E)10.2
Beta (1Y)0.11
Revenue Growth-2.78%
EPS Growth16.33%
CountryUS
Employees4,928
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)2.99
Shares Outstanding115,264,200
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-1.02
Price to Book (P/B)1.70
Price to Sales (P/S)4.00
P/FCF Ratio9.19
Enterprise Value/Market Cap1.82
Enterprise Value/Revenue6.96
Enterprise Value/Gross Profit7.20
Enterprise Value/Ebitda9.96
Forecast
1Y Price Target
$51.00Price Target Upside12.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Royal Vopak Business Overview & Revenue Model
Company DescriptionKoninklijke Vopak N.V., an independent tank storage company, stores and handles liquid chemicals, gases and LNG, oil products, biofuels, and vegetable oils worldwide. It owns and operates specialized facilities, including tanks, jetties, truck loading stations, and pipelines. The company operates 73 terminals in 23 countries with a storage capacity of 36.2 million cubic meters. Koninklijke Vopak N.V. was founded in 1616 and is headquartered in Rotterdam, the Netherlands.
How the Company Makes MoneyRoyal Vopak generates revenue primarily through its storage services, which involve leasing tank capacity to customers. The company charges fees based on the volume of products stored and the duration of storage. Additional revenue streams come from ancillary services such as loading and unloading operations, blending, and logistics support. Vopak also benefits from long-term contracts with major clients in the oil, chemical, and gas sectors, providing a stable income base. Strategic partnerships with major oil and chemical companies further enhance its earning potential, while its presence in high-demand markets allows for competitive pricing and increased profitability.
Royal Vopak Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant contributions from strategic investments and high occupancy rates. However, challenges such as safety performance deterioration, technical issues at specific terminals, and a weak chemical market pose risks. Despite these issues, the overall outlook remains positive due to strong financial results and strategic growth initiatives.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Proportional EBITDA grew to EUR 615 million, leading to an operating cash return of 16.9%. This marks a 3% year-over-year increase driven by positive one-off items and contributions from growth projects.
Successful IPO in India
The joint venture AVTL in India completed its IPO with proceeds of around EUR 300 million, resulting in an exceptional gain of EUR 111 million for Vopak.
High Occupancy Rates
The demand for infrastructure services remained strong, with a proportional occupancy rate of 92% across the portfolio.
Investment in Growth Projects
Year-to-date, EUR 300 million has been spent on growth projects, with expectations to reach EUR 700 million for the full year.
Strategic Initiatives in Energy Transition
Positive investment decisions were made in Malaysia for biofuel capacity expansion and in Antwerp for ammonia capacity development.
Negative Updates
Safety Performance Deterioration
Personal safety performance declined compared to the previous year, though process safety remained stable.
Technical Challenges at EemsEnergy Terminal
Technical challenges led to additional costs, expected to persist into the second half of the year.
Weak Chemical Market
Chemical markets remained weak, impacting terminal performance despite evolving supply chains.
Currency Exchange Impact
A projected negative currency translation effect of around EUR 30 million for the full year.
Company Guidance
During the Royal Vopak First Half Year 2025 Update call, the company provided detailed guidance on its strategic priorities and financial performance. Key highlights included an operating cash return target above 13% throughout the cycle, with a reported operating cash return of 16.9% for the first half of 2025. Vopak aims to invest EUR 2 billion in industrial and gas terminals, equating to EUR 2.6 billion on a proportional basis, and EUR 1 billion in energy transition infrastructure, translating to EUR 1.4 billion on a proportional basis. The company achieved a proportional occupancy rate of 92% and a proportional EBITDA of EUR 615 million, marking a 3% year-over-year increase. Vopak's joint venture, AVTL, completed its IPO, generating proceeds of EUR 300 million and resulting in an exceptional gain of EUR 111 million. The company anticipates a 3% to 5% growth in proportional EBITDA for the full year, excluding currency impacts and the positive one-off item. Vopak also discussed ongoing projects, such as the REEF terminal in Canada, and future expansions in Malaysia and Japan, underscoring its commitment to supporting the energy transition and infrastructure growth.Royal Vopak Financial Statement Overview
Summary
Royal Vopak demonstrates strong profitability with high margins and improving equity returns. Despite fluctuating revenue growth, the company's solid cash flow and balanced leverage indicate a stable financial outlook.Income Statement
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.75
Positive
Balance Sheet
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.68
Positive
Cash Flow
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.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.31B | 1.32B | 1.44B | 1.38B | 1.24B | 1.20B |
| Gross Profit | 1.27B | 1.01B | 1.38B | 1.03B | 896.10M | 890.50M |
| EBITDA | 917.80M | 925.20M | 1.02B | 423.30M | 587.10M | 559.30M |
| Net Income | 481.80M | 375.70M | 455.70M | -168.40M | 214.20M | 294.60M |
Balance Sheet | ||||||
| Total Assets | 6.68B | 6.80B | 6.65B | 7.00B | 7.09B | 6.52B |
| Cash, Cash Equivalents and Short-Term Investments | 99.60M | 94.20M | 197.00M | 33.80M | 73.40M | 68.30M |
| Total Debt | 2.84B | 2.77B | 2.48B | 3.08B | 3.00B | 2.66B |
| Total Liabilities | 3.58B | 3.56B | 3.28B | 3.85B | 3.74B | 3.39B |
| Stockholders Equity | 2.97B | 3.10B | 3.22B | 2.98B | 3.19B | 2.96B |
Cash Flow | ||||||
| Free Cash Flow | 521.50M | 573.40M | 452.20M | 439.10M | 163.50M | 123.20M |
| Operating Cash Flow | 864.90M | 909.10M | 866.20M | 825.20M | 682.00M | 774.00M |
| Investing Cash Flow | -527.60M | -495.30M | 109.60M | -489.40M | -588.40M | -572.70M |
| Financing Cash Flow | -330.90M | -528.80M | -801.90M | -353.50M | -84.80M | -218.70M |
Royal Vopak Technical Analysis
Negative
45.46
Price Trends
46.95
Negative
47.37
Negative
44.89
Positive
Market Momentum
-0.35
Negative
45.30
Neutral
83.03
Negative
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 45.46 is above the 20-day moving average (MA) of 45.45, below the 50-day MA of 46.95, and above the 200-day MA of 44.89, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 83.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VOPKY.
Royal Vopak Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.88B | 12.16 | 52.91% | 8.67% | 9.02% | 17.28% | |
71 Outperform | $5.03B | 10.22 | 15.45% | 4.00% | -2.78% | 16.33% | |
68 Neutral | $2.31B | 14.67 | 542.39% | 10.15% | -12.08% | 1.44% | |
67 Neutral | $11.20B | 17.60 | 8.34% | 9.16% | -4.31% | -17.80% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
51 Neutral | $4.00B | 1,531.44 | -0.38% | 2.63% | -2.78% | -105.22% | |
44 Neutral | $378.52M | 5.86 | -25.85% | ― | 2.91% | -432.03% |
* Energy Sector Average
VOPKY
Royal Vopak
45.46
1.50
3.41%
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38.07
1.60
4.39%
PAA
Plains All American
15.92
0.12
0.76%
SMC
Summit Midstream
20.03
-15.94
-44.31%
DKL
Delek Logistics
43.65
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25.58%
HESM
Hess Midstream Partners
32.68
-0.40
-1.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.