Vermilion Energy Inc. Common (Canada) (VET)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

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

I approach Vermilion Energy as a commodity producer, not a franchise. It explores and produces oil and gas across North America, Europe, and Australia, and at $12.25 on 2026-10-13 it has a $1.9B market cap. The latest filed quarter, fiscal Q2 2026, showed revenue of $563.1M, net income of $134.2M, and a 23.84% margin, which is encouraging. Yet the trailing picture is messy: FairStock calculates a negative P/E of -5.86, EPS of -$2.09, ROE of -18.54%, and ROCE of only 2.26%. That tells me the business has not earned adequate returns through the cycle, and commodity producers rarely possess a durable moat unless they are low-cost. The balance sheet has D/E of 0.63, and FairStock's Altman Z-Score of 0.01 flags distress risk; Piotroski is 6/9, middling. On the positive side, trailing free cash flow is $1.4B, a 74.4% FCF yield by FairStock's calculation, and the dividend yield is 3.10% with a low beta of 0.50. But EV/EBITDA of 18.93 looks high for an E&P name, and the FairStock Score of 41/100 suggests limited margin of safety. The latest quarter is a good sign, but I would need consistent free cash flow, lower distress risk, and better returns on capital before calling this a high-quality value opportunity.

In plain English: Vermilion Energy produces oil and natural gas in Canada, Europe, and Australia. Its latest reported quarter was profitable, but over the past year it lost money and earns weak returns on its assets, with moderate debt. The shares look roughly in line with the company's assets but not clearly cheap given the weak trailing profit.

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

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