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  5. VET: What are your thoughts on Vermillion today? [Vermilion Energy Inc.]
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Investment Q&A

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Q: What are your thoughts on Vermillion today? The stock was $56 8 years ago, now struggles to maintain $10. Is it just horrible management? Should one hold and hope. They sell much of their products at elevated prices, but still can't seem to gain any traction.
Asked by Mark on August 12, 2025
5i Research Answer:

'Hope' is never a great strategy. VET has struggled with growth, partly due to pricing but also execution. A few years ago management promised no changes to the dividend and then cut it. It is still in the penalty box for that. The stock is more expensive on valuation than many peers, still. Debt is higher than most at 3X cash flow. The sector has not been great and it has missed estimates in eight quarters in a row. On the plus side, there has been some insider buying and we have to think it is a merger or takeover target at some point.  It has potential, but we would not see it as a must-own in the sector, at all.