Vermilion EnergyVET -1.27%58 Interest Coverage is 3.81 as of Mar. 2026, which is 28% above its 10-year median of 2.97. GuruFocus rates VET with a GF Score™ of 58/100 and a GF Value™ of $9.77 (Fairly Valued). The stock has 7 warning signs investors should review. Among 728 Oil & Gas companies, Vermilion Energy ranks worse than 88.6% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Vermilion Energy's
Operating Income
for the
three
months ended in Mar. 2026 was $74 Mil. Vermilion Energy's Interest Expense for the
three
months ended in Mar. 2026 was $-19 Mil.
Vermilion Energy's interest coverage for the quarter that ended in Mar. 2026 was 3.81.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Vermilion Energy Inc interest coverage is 1.36, which is low.
The historical rank and industry rank for Vermilion Energy's Interest Coverage or its related term are showing as below:
VET'
s Interest Coverage Range Over the Past 10 Years
Min: 1.26 Med: 2.97 Max: 22.51
Current: 1.36
VET's Interest Coverage is ranked worse than 88.6% of 728
companies
in the Oil & Gas industry
Industry Median: 5.84
vs VET: 1.36
Vermilion Energy (NYSE:VET) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Vermilion Energy Interest Coverage Related Terms
Vermilion Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Vermilion Energy's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
VET vs COP, EOG, OXY: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Vermilion Energy's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Vermilion Energy Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Vermilion Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Vermilion Energy's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Vermilion Energy (VET) has a Interest Coverage of 3.81 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Vermilion Energy and its competitors. This is 28% above median its historical median of 2.97. Over the past decade, Vermilion Energy's Interest Coverage has ranged from 1.26 to 22.51. According to the industry distribution chart, Vermilion Energy ranks #645 out of 728 companies in the Oil & Gas industry, placing it in the top 88.6%.
Is Vermilion Energy's Interest Coverage too high?
Vermilion Energy's current Interest Coverage of 3.81 is 28% above median its 10-year median of 2.97. Over the past 10 years, this metric has ranged from a low of 1.26 to a high of 22.51. The Oil & Gas industry median Interest Coverage is 5.84. Vermilion Energy's value of 3.81 is 34.8% below this industry median. Based on the distribution chart, Vermilion Energy ranks #645 out of 728 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Vermilion Energy has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vermilion Energy's Interest Coverage compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Vermilion Energy ranks #645 out of 728 companies for Interest Coverage. This places Vermilion Energy in the lower half of its industry. The industry median Interest Coverage is 5.84. Vermilion Energy's value of 3.81 is 34.8% below this benchmark. Historically, Vermilion Energy's own Interest Coverage has ranged from 1.26 to 22.51 over the past decade. While the company's 10-year median is 2.97 vs. the industry median of 5.84, Vermilion Energy has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.84, based on 728 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vermilion Energy's current Interest Coverage of 3.81 is 34.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Vermilion Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vermilion Energy's current Interest Coverage is 3.81, which is 28% above median its own 10-year median of 2.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vermilion Energy stock overvalued right now?
Based on GuruFocus' analysis, Vermilion Energy (VET) is currently considered Fairly Valued. The stock's GF Value™ is $9.77, compared to a current price of $9.30 — trading 4.8% below its estimated fair value. The current Interest Coverage is 3.81, which is 28% above median its 10-year median of 2.97 and 34.8% below the Oil & Gas industry median of 5.84. Vermilion Energy's overall GF Score™ is 58/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Vermilion Energy (VET), the current Interest Coverage is 3.81 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Vermilion Energy (VET) Overvalued in 2026?
Based on GuruFocus' analysis, Vermilion Energy stock appears to be undervalued.
The current stock price of $9.30 is trading 4.8% below its estimated GF Value™ of $9.77.
GuruFocus considers Vermilion Energy to be Fairly Valued.
Key valuation signals for VET:
Interest Coverage: 3.81 (28% above median its 10-year median of 2.97)
GF Value™: $9.77 vs. price of $9.30 (4.8% below fair value)
Industry Position: 34.8% below the Oil & Gas median (#645 of 728)
No single metric tells the full story. See the VET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vermilion Energy Inc is an international oil and gas-producing company. The company engages in full-cycle exploration and production programs that focus on the acquisition, exploration, and development of liquids-rich natural gas in Canada and conventional natural gas in Europe while optimizing low-decline oil assets. Its operating segments are: Canada, France, Netherlands, Germany, Ireland, Australia, and CEE, each representing the oil and gas exploration operations at its assets located in these regions. The company mainly derives revenue from the production and sale of petroleum and natural gas. The majority of its revenue is generated from Canada, where the company's operations are mainly focused on the Deep Basin trend in the West Pembina region of Alberta and on the Mica property.
58GF Score
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