TSE:VET

Vermilion Energy Inc (VET.TO)

16.23
+0.39 (2.46%)
as of Jun 8, 2026, 8:00:00 pm Market Open.
584 watching
0
Investor Insights
star iconJun 8, 2026, 12:00 am

This summary was created by AI, based on 14 opinions in the last 12 months.

Vermilion Energy Inc (VET-T) has received mixed reviews from analysts. While some see potential for growth due to increasing demand for natural gas in Europe and a disciplined management team, others consider it a value trap lacking catalysts. The company is working on consolidating its geographical exposure, with a focus on its operations in Canada and Western Europe, particularly in light of Europe's energy challenges post-conflict in Ukraine. Some experts highlight the firm's strong cash flow return and dividend payouts, while cautioning about the volatility associated with geopolitical factors impacting energy prices. Overall, while there are positive indicators, most experts suggest caution and strategic planning for exits in the context of market fluctuations.

consensus icon
Consensus
Mixed
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Valuation
Fair Value
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Similar
TOU
WATCH
The dividend is very high. A good example of how the market doesn't want to be in fossil fuels. It's at 13% right now. It's a good company with European exposure. A great company but investors aren't buying it.
WATCH
The dividend is very high. A good example of how the market doesn't want to be in fossil fuels. It's at 13% right now. It's a good company with European exposure. A great company but investors aren't buying it.
BUY
They have a high yield and the market punished the stock. They only pay out 2/3'rds of their cash flow. He worries that they might cut the dividend a little at some point, but there is no reason for them to cut it at this point. There will be continued headline risk but they will climb higher over the next few months. You will see a geopolitical risk premium.
WATCH
It was a Top Pick and is up nicely. Don’t chase the stock right now. He does not think there is risk to the 12% dividend.
COMMENT

From a pension plan manager perspective, he is looking for yield. He worries that there may something wrong with VET-T as the dividend is so high. He swapped into ARX-T instead. He met with management recently and does not see anything specific to worry about and the team said their dividend is safe -- for now. Yield 10%

BUY
It is a very well positioned company, very good management. They can continue to pay that dividend. He has a lot of confidence in this company. This will perform well if the oil industry comes back. (Analysts’ price target is $32.00)
DON'T BUY
Yield of 14%! The company has indicated they intend to keep the dividend in place. However, whenever it gets to 10% yield, the market is usually telling you it will not be maintained. The recent purchase of Canadian natural gas assets is being questioned by investors.
COMMENT
The dividend is likely safe. They have some exposure to European natural gas where prices have fallen. Investors are concerned about the CEO getting a 52% pay raise last year, but the stock underperformed the index--what's going on? When oil stocks rally again, this will likely underperform over Euro prices and using their balance sheet to pay their dividend. But there aren't major issues here and it's overall fine.
PAST TOP PICK
(A Top Pick Sep 05/18, Down 48%) They have never cut the dividend in worse times. The shorts might give up. The assets are good and management is good.
DON'T BUY
Pays a near 15% dividend, which is getting dangerous. They carry $2 billion of debt, not horrible leverage, but still.... VET is in the wrong sector--oil is getting punished. There needs to be a China trade deal for oil to lift. Could be a couple of years before oil picks up. He owns only 4% oil.
TOP PICK
The dividend is very rich. A big chunk of free cash flow comes from Europe. A decade ago the dividend got to 20%. He thinks it is a bargain here. The balance sheet is in good shape and management says they are supportive of the dividend. He has a $36 dollar target on it. (Analysts’ price target is $32.40)
BUY
14% dividend safe? Yes, it's safe. The whole energy sector has been annihlated in the past year--so it's a fantastic opportunity to buy now. Investors have given up, so he's been buying energy stocks. Prices are low and so are valuations. Eventually, oil stocks will turn around.
DON'T BUY

If it cuts the dividend, the stock will likely fall. Sadly, there's no interest in Canadian oil stocks. VET has a lot of debt--keep that in mind. Can they maintain their cash flow and the dividend? Is it prudent to pay so much dividend when the price of oil is struggling? If you want oil, look at Cenovus.

DON'T BUY
They can't maintain a 14% yield though he's buying oil stocks now. He likes its volume now, but it's very risky. It could touch $24 again.
HOLD
Yield 14%!!!?? He owns it for some of his income holdings and he thinks the dividend is still safe. The majority of the assets are outside Canada and he likes that. He can't guarantee the dividend is safe, but he will continue to hold it. Yield 14%
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