VAALCO Energy (EGY) Stock Analysis & Winston Score

VAALCO Energy is a small oil and gas company that finds and pumps crude oil from wells it operates in Africa and Canada. Its main product is crude oil, which it sells to refiners and trading companies. The company is best known for its long-running operations in Gabon, West Africa, where it has worked for decades.

VAALCO makes money by selling the oil it produces, so its revenue rises and falls with global oil prices. It operates primarily in Gabon, Equatorial Guinea, and Canada, and has a market value of roughly $600 million, making it a small player in the energy industry. The company's thin operating margin of under 2% shows how sensitive its profits are to oil price swings, and its biggest risk is that falling crude prices could quickly erase earnings and limit its ability to fund new drilling projects.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-43.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

Insider Activity

3.2%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~1 months

$48M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

VAALCO Energy has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

-10.2%

Thin — -10.2% gross margin

Operating Margin

-23.0%

Losing money on operations — -23.0%

ROCE

-2.8%

Weak — -2.8% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-29.8%

Shrinking sales (-29.8% YoY)

EPS YoY

-347.3%

Earnings shrinking (-347.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-42.1%

Burning cash (-42.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.50

Conservative — low debt load (0.50)

Interest Cover

1.15x

Dangerous — barely covers interest (1.1x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend Yield

4.94%

no trend

Healthy income — 4.94% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth

+0.0%

no trend

Dividend flat

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