VAALCO Energy Inc. Common Stock (EGY)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering VAALCO at $6.26 as of the 2026-10-13 close, a $658.5M market cap with a 4.13% dividend yield. It is an oil and gas producer spread across Gabon, Egypt, Equatorial Guinea, Cote d'Ivoire, Nigeria, and Canada. Commodity producers rarely have a durable moat; they sell undifferentiated barrels at prices set by the world, so cost discipline and balance-sheet strength matter enormously. The filed record is volatile. In fiscal 2023 revenue was $455.1M and net income $60.4M; in fiscal 2024 revenue was $479.0M and net income $58.5M. Then fiscal 2025 revenue fell to $359.3M and net income turned to a loss of $41.4M, or diluted EPS -$0.40. Fiscal Q1 2026 showed a $93.8M loss, though fiscal Q2 2026, the quarter ended 2026-06-30, produced $135.2M of revenue and $42.4M of net income, or $0.39 per diluted share. That rebound is encouraging but not yet a trend. Financial health is mixed: trailing free cash flow is -$134.0M, a -20.3% FCF yield; debt-to-equity is 0.69; and FairStock's Altman Z-score is 0.97, which signals distress risk. FairStock calculations also show ROE of -24.40% and ROCE of -1.00%. The Piotroski F-score is 7/9, and beta is only 0.12. Valuation at the 2026-10-13 close is not obviously cheap: P/B is 1.73, EV/EBITDA is 53.12, and the negative P/E is -6.02. FairStock labels it a TURNAROUND—a loss in the latest year after earlier profits—with a score of 37/100. I would need proof of durable free cash flow and debt reduction before calling this a margin of safety.

In plain English: VAALCO Energy is a small oil and gas company that produces in several countries, mostly in West Africa and Canada. The business has been uneven: it lost money in its latest full year and burned cash, though it earned a profit in the most recent quarter. At $6.26 a share, the price looks expensive relative to those weak full-year results, and the company carries meaningful debt.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer