Venture Global, Inc. (NYSE: VG)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0002007855
Market Cap 17.23 Bn
P/B 3.03
P/E 8.35
P/S 1.59
ROIC (Qtr) 9.18
Div Yield % 0.93
Rev 1y % (Qtr) 259.50
Total Debt (Qtr) 33.31 Bn
Debt/Equity (Qtr) 5.85

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 2.21B provide 2.59x coverage of short-term debt 856M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 5.13B provides exceptional 25.77x coverage of minority interest expenses 199M, showing strong core operations.
  • Operating cash flow of 5.13B provides strong 134.95x coverage of stock compensation 38M, indicating sustainable incentive practices.
  • Strong operating cash flow of 5.13B provides 12.79x coverage of SG&A expenses 401M, showing efficient operational cost management.
  • Free cash flow of (8.27B) provides excellent 14.72x coverage of dividends (562M), indicating sustainable shareholder returns.

Bear case

  • Operating cash flow of 5.13B barely covers its investment activities of (13.30B), with a coverage ratio of -0.39, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (13.30B) provide weak support for R&D spending of 416M, which is -31.97x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 5.13B provides thin coverage of dividend payments of (562M) with a -9.12 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of (8.27B) provides weak coverage of capital expenditures of 13.40B, with a -0.62 ratio suggesting additional external financing needs for growth initiatives.
  • High receivables of 633M relative to inventory of 227M (2.79 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Peer comparison

Companies in the Oil & Gas Midstream
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ENB Enbridge Inc 100.05 Bn 24.60 2.15 75.15 Bn
2 WMB Williams Companies, Inc. 73.60 Bn 31.09 6.40 27.99 Bn
3 EPD Enterprise Products Partners L.P. 69.94 Bn 12.09 1.32 33.58 Bn
4 KMI Kinder Morgan, Inc. 60.62 Bn 22.23 3.69 32.58 Bn
5 ET Energy Transfer LP 58.05 Bn 13.46 0.73 63.97 Bn
6 TRP Tc Energy Corp 55.97 Bn 22.78 5.27 44.47 Bn
7 MPLX Mplx Lp 54.03 Bn 11.23 4.22 25.92 Bn
8 OKE Oneok Inc /New/ 44.55 Bn 13.34 1.41 33.73 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.91 3.39
EV to Cash from Ops. EV/CFO 8.85 7.77
EV to Debt EV to Debt 1.36 -68.56
EV to EBIT EV/EBIT 11.18 12.77
EV to EBITDA EV/EBITDA 9.41 7.47
EV to Free Cash Flow [EV/FCF] EV/FCF -5.49 13.20
EV to Market Cap EV to Market Cap 2.63 2.49
EV to Revenue EV/Rev 4.18 4.48
Price to Book Value [P/B] P/B 3.03 94.01
Price to Earnings [P/E] P/E 8.35 12.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.48 -3.60
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 72.05
Dividend per Basic Share Div per Share (Qtr) 0.05 1.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -1.50 32.66
Interest Coverage Int. cover (Qtr) 3.61 5.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 1.56 -17.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -54.88 16,113.89
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 197.55 -5.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 118.97 -4.54
EBIT Growth (1y) % EBIT 1y % (Qtr) 200.22 -11.94
EBT Growth (1y) % EBT 1y % (Qtr) 324.13 -230.00
EPS Growth (1y) % EPS 1y % (Qtr) 81.42 -44.55
FCF Growth (1y) % FCF 1y % (Qtr) 28.34 -0.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 78.35 -1.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.22 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.03 0.21
Cash Ratio Cash Ratio (Qtr) 0.56 0.81
Current Ratio Curr Ratio (Qtr) 0.83 1.65
Debt to Equity Ratio Debt/Equity (Qtr) 5.85 1.11
Interest Cover Ratio Int Coverage (Qtr) 3.61 5.11
Times Interest Earned Times Interest Earned (Qtr) 3.61 5.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 44.70 35.86
EBIT Margin % EBIT Margin % (Qtr) 37.42 27.76
EBT Margin % EBT Margin % (Qtr) 27.06 17.28
Gross Margin % Gross Margin % (Qtr) 52.00 48.56
Net Profit Margin % Net Margin % (Qtr) 19.00 15.36