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Vermilion Energy

VET
27
Oil & Gas Exploration & Production · Energy
Exchange
New York Stock Exchange
Winston Score
27
Winston is worried
Below-average fundamentals — multiple weak pillars.

Vermilion Energy is a Canadian oil and gas company that drills for and produces crude oil and natural gas. It sells these commodities to energy buyers, utilities, and industrial customers across multiple continents. The company is unusual among its peers because it operates in a wide range of countries, including Canada, the United States, France, Germany, the Netherlands, Ireland, Australia, and Central Europe.

Vermilion earns money by selling the oil and natural gas it pulls out of the ground. Its geographic diversity is a key part of its strategy — European natural gas prices often trade at a premium to North American prices, which can boost profits when energy markets are tight. The company pays a dividend to shareholders, which it has historically prioritized. The main risk Vermilion faces is that its revenue depends heavily on commodity prices, which can swing sharply and are outside the company's control. Regulatory changes in Europe, particularly around energy taxation, also pose an ongoing challenge.

Winston Score History

Growth Profile

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

Revenue Growth

-16.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

Insider Activity

0.9%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$82M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Vermilion Energy's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

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
25.4%
Modest — 25.4% gross margin
Operating Margin
20.8%
Excellent — 20.8% operating margin
ROCE
3.1%
Weak — 3.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-8.7%
Shrinking sales (-8.7% YoY)
EPS YoY
N/A
Data not available
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
16.6%
Converts sales into free cash efficiently (16.6%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.61
Moderate — manageable debt (0.61)
Interest Cover
2.89x
Tight — interest eats into profit (2.9x)

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
3.93%
no trend
Moderate income — 3.93% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+6.9%
no trend
Dividend growing modestly (6.9% YoY)

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