VAALCO Energy, Inc.
$5.54
+2.5%VAALCO Energy, Inc., an independent energy company, acquires, explores for, develops, and produces crude oil and natural gas. The company holds Etame production sharing contract related to the Etame Marin block located offshore in the Republic of Gabon in West Africa. It also owns interests in an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -13.9).
Valuation inputs: P/E -13.9, earnings yield N/A, momentum +2.5%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -9.3%, ROIC +6.5%).
Profitability stack: net margin -11.5%, ROE -9.3%, ROIC +6.5%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +51.4%, momentum +2.5%, net margin -11.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
VAALCO Energy, Inc. Market vs Earnings Trajectory
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VAALCO Energy, Inc. Fair Value Envelope
VAALCO Energy, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Non-operating losses: Core business is profitable but other expenses (interest, taxes, one-time items) are driving net losses. Review capital structure and non-operating items.
VAALCO Energy, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
VAALCO Energy, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Financial stress indicators: Both liquidity and leverage metrics raise concerns. The company may face challenges meeting obligations and should focus on strengthening its balance sheet.
VAALCO Energy, Inc. Street Expectations Map
Wall Street analysts project that EGY stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 7.30, with estimates ranging from a low of 7.30 to a high of 7.30.
The consensus 1-year price target stands at 7.30, with estimates ranging from a low of 7.30 to a high of 7.30.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
VAALCO Energy, Inc. Insider Positioning
During the last 12 months, insiders have sold $240K worth of EGY shares, with no buying activity reported.
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6-9 Months
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9-12 Months
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68.9K
240.23K
-240K
-$240K
Top Buyers
No buying activity
Top Sellers
Maxwell George W.M.
Director, Officer: Chief Executive Officer
$139K
Bain Ronald Y
Officer: Chief Financial Officer
$51K
Pruckl Thor
Officer: Chief Operating Officer
$30K
Powers Matthew R
Officer: Evp, Gen. Counsel & Corp. Sect
$16K
Willis Lynn
Officer: Chief Accounting Officer
$5K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $240K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
egy Dividend History
Learning Layer
Related Guides
Build conviction on EGY by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.