📊 EGY Key Takeaways
Is EGY a Good Investment? Thesis Analysis
VAALCO Energy faces significant operational challenges with negative net income (-$41.4M), negative operating margin (-5.7%), and deteriorating revenue (-25% YoY), indicating fundamental business weakness in the current commodity environment. While the company maintains positive free cash flow ($209.7M) and manageable leverage (0.14x debt/equity), the negative profitability metrics, weak liquidity position (0.69x current ratio), and poor interest coverage (-142.1x) suggest structural profitability issues that outweigh the strong cash generation.
Why Buy EGY? Key Strengths
- Exceptional free cash flow generation at $209.7M despite operational losses, providing financial flexibility
- Conservative debt structure with only $60M long-term debt and 0.14x debt/equity ratio
- Strong free cash flow margin of 58.4% demonstrates capital-efficient operations when adjusted for losses
EGY Investment Risks to Consider
- Negative profitability with -$11.5% net margin and -9.3% ROE indicating the core business is not generating shareholder returns
- Severe liquidity stress with current ratio of 0.69x suggesting potential difficulty meeting short-term obligations
- Sharp revenue decline of 25% year-over-year combined with negative interest coverage ratio of -142.1x indicates operational distress and inability to service debt from earnings
- Zero insider purchases in last 90 days suggests management lacks confidence in near-term recovery
Key Metrics to Watch
- Return to operating profitability and path to positive net income margins
- Revenue stabilization and return to growth trajectory
- Liquidity improvement with current ratio moving above 1.0x
- Operating cash flow sustainability and working capital trends
EGY Financial Metrics
💡 AI Analyst Insight
The 58.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
EGY Profitability Ratios
EGY vs Energy Sector
How VAALCO ENERGY INC /DE/ compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EGY Overvalued or Undervalued?
Based on fundamental analysis, VAALCO ENERGY INC /DE/ has mixed fundamental signals 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.
EGY Balance Sheet & Liquidity
EGY 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
EGY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $109.2M | $3.5M | $0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EGY Capital Allocation
EGY SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are EGY's key strengths?
Claude: Exceptional free cash flow generation at $209.7M despite operational losses, providing financial flexibility. Conservative debt structure with only $60M long-term debt and 0.14x debt/equity ratio.
What are the risks of investing in EGY?
Claude: Negative profitability with -$11.5% net margin and -9.3% ROE indicating the core business is not generating shareholder returns. Severe liquidity stress with current ratio of 0.69x suggesting potential difficulty meeting short-term obligations.
What is EGY's revenue and growth?
VAALCO ENERGY INC /DE/ reported revenue of $359.3M.
Does EGY pay dividends?
VAALCO ENERGY INC /DE/ pays dividends, with $26.5M 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 $-0.40.
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 rating reflects both perspectives for balanced insights.
Is EGY a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, VAALCO ENERGY INC /DE/ has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EGY stock overvalued or undervalued?
Valuation metrics for EGY: ROE of -9.3% (sector avg: 14%), net margin of -11.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EGY stock in 2026?
Our dual AI analysis gives VAALCO ENERGY INC /DE/ a combined SELL rating 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 $212.7M, with capital expenditures of $3.0M. FCF margin is 58.4%.
How does EGY compare to other Energy stocks?
Vs Energy sector averages: Net margin -11.5% (avg: 12%), ROE -9.3% (avg: 14%), current ratio 0.69 (avg: 1.3).