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VAALCO Energy

EGY
35
Oil & Gas Exploration & Production · Energy
Also trades as: EGY.L
Winston Score
35
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Weak
Cash Flow
Weak
Stability
Mixed
Valuation
Data not available
Dividends
Good

Winston Score History

The full picture

VAALCO Energy is a small oil and gas company that finds and pumps crude oil from wells it operates in Africa and Canada. Its main product is crude oil, which it sells to refiners and trading companies. The company is best known for its long-running operations in Gabon, West Africa, where it has worked for decades.

VAALCO makes money by selling the oil it produces, so its revenue rises and falls with global oil prices. It operates primarily in Gabon, Equatorial Guinea, and Canada, and has a market value of roughly $600 million, making it a small player in the energy industry. The company's thin operating margin of under 2% shows how sensitive its profits are to oil price swings, and its biggest risk is that falling crude prices could quickly erase earnings and limit its ability to fund new drilling projects.

Growth Profile

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

Revenue Growth

+5.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+389.3% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

3.2%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

~1 months

$40M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

VAALCO Energy has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

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

Profit per sale
Gross Margin
66.4%
Premium pricing power — 66.4% gross margin
Profit after running costs
Operating Margin
32.3%
Excellent — 32.3% operating margin
Return on the money invested
ROCE
8.5%
Below par — 8.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-30.2%
Shrinking sales (-30.2% YoY)
Profit growth
EPS YoY
-391.4%
Earnings shrinking (-391.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
-71.8%
Burning cash (-71.8%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
5.98x
Adequate interest coverage (6.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
no trend
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend
Dividend Yield
4.44%
no trend
Healthy income — 4.44% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
+0.0%
no trend
Dividend flat

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