📊 EGY Key Takeaways
Is Vaalco Energy Inc. /DE/ (EGY) a Good Investment?
VAALCO Energy is in acute financial distress with a liquidity crisis (current ratio 0.51x), negative operating cash flow (-$39.2M), and inability to cover interest from operations. Revenue declined 25% YoY with net losses of $93.8M, and the company is burning cash operationally with no clear path to profitability, creating imminent solvency risk.
VAALCO ENERGY shows a mixed fundamental profile: earnings and margins are weak, with revenue down 25% year over year and net losses persisting, but balance sheet leverage remains low and operating cash flow is still strong. The key question is growth quality and cash flow durability, because current free cash flow looks unusually strong relative to reported losses and very low capital spending. Fundamentally, the company appears financially viable but not operationally strong enough to justify a more bullish view until profitability and liquidity improve.
Vaalco Energy Inc. /DE/ Key Strengths (EGY)
- Moderate leverage ratio (0.44x D/E) provides some balance sheet cushion
- Asset base of $920.7M offers potential for restructuring or asset sale value
- Oil & gas sector could benefit from commodity price recovery
- Low leverage with debt/equity of 0.14x and only $60.0M of long-term debt
- Strong operating cash flow of $212.67M despite reported net loss
- Substantial equity base of $443.50M provides balance sheet support
EGY Stock Risks: Vaalco Energy Inc. /DE/ Investment Risks
- Critical liquidity crisis with current ratio of 0.51x (current assets insufficient to cover current liabilities)
- Negative operating cash flow (-$39.2M) indicates core business is not sustainable
- Unable to service debt (interest coverage -111.3x); cash burn at current rate threatens viability within months
- Severe revenue decline (-25% YoY) with expanding losses (-$93.8M net income)
- Likely covenant violations given negative cash flow and liquidity stress
- Minimal insider support (zero Form 4 filings in 90 days)
- Revenue declined 25.0% year over year, indicating weak top-line momentum
- Negative operating margin, net margin, ROE, and ROA show poor core profitability
- Current ratio of 0.69x points to near-term liquidity pressure
Key Metrics to Watch
- Operating cash flow recovery (trend reversal from -$39.2M is essential)
- Current ratio normalization above 1.0x (critical for avoiding forced restructuring)
- Cash depletion rate and runway before additional financing needed
- Revenue stabilization and path to positive EBITDA
- Debt covenant compliance status and refinancing needs
- Asset sale activity or divestiture announcements
- Operating cash flow and free cash flow conversion versus net income
- Revenue trend and operating margin recovery
Vaalco Energy Inc. /DE/ (EGY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
EGY Profit Margin, ROE & Profitability Analysis
EGY vs Energy Sector: How Vaalco Energy Inc. /DE/ Compares
How Vaalco Energy Inc. /DE/ compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Vaalco Energy Inc. /DE/ Stock Overvalued? EGY Valuation Analysis 2026
Based on fundamental analysis, Vaalco Energy Inc. /DE/ shows some fundamental concerns relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Vaalco Energy Inc. /DE/ Balance Sheet: EGY Debt, Cash & Liquidity
EGY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Vaalco Energy Inc. /DE/'s revenue has grown significantly by 141% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.56 reflects profitable operations.
EGY Revenue Growth, EPS Growth & YoY Performance
EGY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $62.6M | $7.7M | $0.07 |
| Q3 2025 | $61.0M | $1.1M | $0.01 |
| Q2 2025 | $96.9M | $7.7M | $0.08 |
| Q1 2025 | $100.2M | $7.7M | $0.07 |
| Q3 2024 | $116.3M | $3.5M | $0.06 |
| Q2 2024 | $109.2M | $3.5M | $0.06 |
| Q1 2024 | $80.4M | $3.5M | $0.03 |
| Q3 2023 | $78.1M | $3.5M | $0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Vaalco Energy Inc. /DE/ Dividends, Buybacks & Capital Allocation
EGY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Vaalco Energy Inc. /DE/ (CIK: 0000894627)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EGY
What is the AI rating for EGY?
Vaalco Energy Inc. /DE/ (EGY) has a Combined AI Grade of C from Claude (D) and ChatGPT (B) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EGY's key strengths?
Claude: Moderate leverage ratio (0.44x D/E) provides some balance sheet cushion. Asset base of $920.7M offers potential for restructuring or asset sale value. ChatGPT: Low leverage with debt/equity of 0.14x and only $60.0M of long-term debt. Strong operating cash flow of $212.67M despite reported net loss.
What are the risks of investing in EGY?
Claude: Critical liquidity crisis with current ratio of 0.51x (current assets insufficient to cover current liabilities). Negative operating cash flow (-$39.2M) indicates core business is not sustainable. ChatGPT: Revenue declined 25.0% year over year, indicating weak top-line momentum. Negative operating margin, net margin, ROE, and ROA show poor core profitability.
What is EGY's revenue and growth?
Vaalco Energy Inc. /DE/ reported revenue of $62.6M.
Does EGY pay dividends?
Vaalco Energy Inc. /DE/ pays dividends, with $6.7M distributed to shareholders in the trailing twelve months.
Where can I find EGY SEC filings?
Official SEC filings for Vaalco Energy Inc. /DE/ (CIK: 0000894627) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EGY's EPS?
Vaalco Energy Inc. /DE/ has a diluted EPS of $-0.90.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is EGY's fundamental grade?
Based on our AI fundamental analysis in June 2026, Vaalco Energy Inc. /DE/ has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is EGY stock overvalued or undervalued?
Valuation metrics for EGY: ROE of -27.2% (sector avg: 14%), net margin of -149.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is EGY's AI grade for 2026?
Our dual AI analysis gives Vaalco Energy Inc. /DE/ a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EGY's free cash flow?
Vaalco Energy Inc. /DE/'s operating cash flow is $-39.2M, with capital expenditures of $3.0M. FCF margin is -67.5%.
How does EGY compare to other Energy stocks?
Vs Energy sector averages: Net margin -149.8% (avg: 12%), ROE -27.2% (avg: 14%), current ratio 0.51 (avg: 1.3).