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Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

Vermillion Inc (VRML-Q) has recently made an acquisition in BC to bolster reserve life, but experts are divided on the company's strategy for allocating capital and the quality of its assets. Despite decent results and a strong balance sheet, the company is facing challenges due to windfall taxes and inventory depth. The stock is currently trading at a discount to peers but lacks a clear buy thesis, with some experts expressing concerns about the company's overall performance.

Consensus
Mixed
Valuation
Undervalued
Similar
ExxonMobil, XOM
DON'T BUY
Vermillion Inc

Recent acquisition in BC, to try to bolster reserve life. Trades at discount to peers because not as much room to run. Lacks the currency to alleviate that. 3x multiple is appropriate. 4% upside, not as much as other names.

Healthcare
DON'T BUY
Vermillion Inc

Windfall taxes have taken away some upside. Different assets in different geographies. Bigger question is what's the strategy for allocating capital? Best ones should get the lion's share. Needs to refocus.

Healthcare
BUY
Vermillion Inc
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $0.35 missed estimates of $0.4134 and revenues of $475.53M missed estimates of $526.25M. Fund flows from operations were $270M, net debt decreased to $1.2B, production hit the top end of its guidance for the quarter, and the company is targeting to return 30% of free cash flows to shareholders in 2023. VET is maintaining its 2023 annual production guidance of 82,000 to 86,000 boe/d. The company is working on reducing its debt and we like that it maintained its guidance. These were decent results, and largely, the name will follow the price of oil. It continues to trade at a cheap valuation of 5.4X forward earnings and 1.2X forward sales. With its debt reduction underway, its balance sheet is quite strong and this name has some positive momentum behind it recently. We feel that if the price of oil stabilizes here or increases, we can expect to see the share price of VET move higher.
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Healthcare
HOLD
Vermillion Inc

Irish Government windfall profit taxes hard on company. Currently owns shares. Expecting return of 50% of cash flow in 2024. Inventory depth a concern. Better options for investors in sector. 

Healthcare
DON'T BUY
Vermillion Inc

No buy thesis. Hodge-podge of assets. Second-warmest winter in Europe, plus greedy Irish government imposed 75% windfall tax on them. Paying down debt, returning modest amount of capital to shareholders. Cheap, but quality of assets not good. He'd rather pay a premium for a name that has a catalyst.

Healthcare
DON'T BUY
Vermillion Inc

Does not own shares in company.
Bearish on natural gas prices.
High windfall taxes in Ireland.
Better names in Canadian heavy oil producers.
Lots of debt being used to pay down debt.

Healthcare
BUY ON WEAKNESS
Vermillion Inc

Share price on downward trend with weak natural gas pricing in Europe.
Energy fundamentals strong.  
Wait to buy. 
Does not own shares in the company. 
Fundamentally, better names in the sector. 

Healthcare
HOLD
Vermillion Inc
Has since sold shares in the company. Free cash flow yield from Europe natural gas prices has since fallen. Irish government demand for 75% windfall tax unacceptable. Shares still cheap, but better names out there.
Healthcare
DON'T BUY
Vermillion Inc
It has really improved like other oil stocks. They cut their dividends. Balance sheet has really improved. Vermillion is not perfect, with more debt, less cashflow growth, and it is only growing from higher commodity price. It will only work if oil prices continue to go up. Not his favourite.
Healthcare
DON'T BUY
Vermillion Inc
He wouldn't own this name. There are too many assets globally and it is over leveraged. It's hard to maintain focus and cost controls globally. He would prefer a more focused company.
Healthcare
HOLD
Vermillion Inc
He owns it. He bought it in the $20 range. Everything has been hammered this week, so you have to be forgiving of some names. If Vermillion doesn't pick back up to the $20 range, he would be worried. It's a well-run company that is better than some in the space.
Healthcare
DON'T BUY
Vermillion Inc
He’s not bullish on it. All oil and gas stocks are showing the same down-ward trend. He doesn’t see a lot of volume so he would avoid this stock. If it drops below $18.50, get out.
Healthcare
COMMENT
Vermillion Inc
Cash generation is improving, dividend yield and stock buy backs is improving. Share holders want a return through dividends or buy backs. It's at 14% yields.
Healthcare
COMMENT
Vermillion Inc
Wants to like it, but hasn't seen any reason to. They made an acquisition of Spartan in Saskatchewan to diversify their asset base. The fall of Canadian energy has weighed down on the stock price. Wouldn't buy it today and would buy pipelines instead. They pay a good dividend and doesn't foresee it being cut.
Healthcare
COMMENT
Vermillion Inc
A good, well-run company with a sustainable dividend, but you don't want an oil company paying a big dividend. Rather, they should invest that money in drilling.
Healthcare
Showing 1 to 15 of 17 entries

Vermillion Inc(VRML-Q) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 4

Total Signals / Votes : 7

Stockchase rating for Vermillion Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Vermillion Inc(VRML-Q) Frequently Asked Questions

What is Vermillion Inc stock symbol?

Vermillion Inc is a American stock, trading under the symbol VRML-Q on the NASDAQ (VRML). It is usually referred to as NASDAQ:VRML or VRML-Q

Is Vermillion Inc a buy or a sell?

In the last year, 7 stock analysts published opinions about VRML-Q. 2 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Vermillion Inc.

Is Vermillion Inc a good investment or a top pick?

Vermillion Inc was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Vermillion Inc.

Why is Vermillion Inc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Vermillion Inc worth watching?

7 stock analysts on Stockchase covered Vermillion Inc In the last year. It is a trending stock that is worth watching.

What is Vermillion Inc stock price?

On 2020-06-11, Vermillion Inc (VRML-Q) stock closed at a price of $4.