Venture Global, Inc. (VG) Stock Analysis
Venture Global, Inc. (VG) Stock Analysis
Analysis from 10-Q filed 2025-11-10. Data as of Q4 2025.
Overall Grade: F (Concerning)
Venture Global, Inc. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 10.1% | Near cost of capital |
| FCF Margin | -49.4% | Cash flow pressure |
| Debt/Equity | 5.1x | Elevated debt |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore Venture Global, Inc.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Venture Global, Inc. earns 10.1% ROIC, Top 25% in Utilities
Venture Global, Inc.'s trailing-twelve-month ROIC of 10.1% ranks Top 25% in Utilities companies (sector median: 5.8%), driven by NOPAT margin of 30.4% combined with asset turnover of 0.3x. Source: 10-Q filed 2025-11-10. Gross margin of 57.0% with operating margin at 37.4% reflects strong pricing power.
| Metric | VG | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.1% | Adequate | Above sector median of 5.8% |
| Return on Equity (ROE) | 43.8% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 57.0% | Excellent | Strong pricing power |
| Operating Margin | 37.4% | Excellent | Efficient operations |
Cash Flow: Venture Global, Inc. generates $-6.8B FCF at -49.4% margin, positive NaN/8 quarters
Venture Global, Inc. generated $-6.8B in free cash flow (TTM), a -49.4% FCF margin, a margin that ranks Top 5% in Utilities. Operating cash flow exceeds net income by 2.9x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-10.
| Metric | VG | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | -49.4% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-6.8B | Red flag | Cash burn |
| OCF/Net Income | 2.9x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Venture Global, Inc. at 5.1x leverage
Venture Global, Inc.'s debt-to-equity ratio of 5.1x reflects high leverage. Total debt of $34.2B offset by $3.4B in cash. Source: 10-Q filed 2025-11-10.
| Metric | VG | Rating | Context |
|---|---|---|---|
| Debt to Equity | 5.1x | Red flag | Elevated leverage |
| Net Cash Position | $-30.8B | Warning | Net debt position |
Valuation: Venture Global, Inc. trades at 7.3x earnings
Venture Global, Inc. trades at a P/E of 7.3x. Free cash flow yield of -41.1% reflects market expectations for growth.
| Metric | VG | Rating | Context |
|---|---|---|---|
| P/E Ratio | 7.3x | Adequate | Reasonable valuation |
| EV/Sales | 3.2x | Good | Growth premium priced in |
| FCF Yield | -41.1% | Warning | Lower cash yield |
| Dividend Yield | 2.8% | Adequate | Growth focus over income |
Capital Allocation: Venture Global, Inc. returns 2.8% shareholder yield
Venture Global, Inc.'s total shareholder yield is 2.8% (dividends 2.8% + buybacks). Source: 10-Q filed 2025-11-10.
| Metric | VG | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.8% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $465.0M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.1% | Top 25% | 1.7x above |
| Free Cash Flow Margin | -49.4% | Top 5% | - |
| Gross Margin | 57.0% | Bottom 50% | 0.9x below |
| Operating Margin | 37.4% | Top 10% | 1.9x above |
| Return on Equity (ROE) | 43.8% | Top 5% | 4.6x above |
| P/E Ratio | 7.3x | N/A | - |
Financial Scorecard
| Metric | VG | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.1% | Adequate | Top 25% of sector (median: 5.8%) |
| Free Cash Flow Margin | -49.4% | Red flag | Top 5% of sector (median: 0.0%) |
| Gross Margin | 57.0% | Excellent | Bottom 50% of sector (median: 63.3%) |
| Debt to Equity Ratio | 507.3% | Red flag | High financial leverage |
| P/E Ratio (Price-to-Earnings) | 725.5% | Adequate | Attractively valued |
| Free Cash Flow Yield | -41.1% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is Venture Global, Inc.'s Return on Invested Capital (ROIC)?
Venture Global, Inc. (VG) has a trailing twelve-month Return on Invested Capital (ROIC) of 10.1%. This compares above the sector median of 5.8%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is Venture Global, Inc.'s Free Cash Flow Margin?
Venture Global, Inc. (VG) has a free cash flow margin of -49.4%, generating $-6.8 billion in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is Venture Global, Inc. stock overvalued or undervalued?
Venture Global, Inc. (VG) trades at a P/E ratio of 7.3x, which is above the sector median of N/A. The EV/Sales multiple is 3.2x.
Q: Does Venture Global, Inc. pay a dividend?
Venture Global, Inc. (VG) currently pays a dividend yield of 2.8%. Including share buybacks, the total shareholder yield is 2.8%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: How much debt does Venture Global, Inc. have?
Venture Global, Inc. (VG) has a debt-to-equity ratio of 5.1x with total debt of $34.2 billion. Net debt position is $30.8 billion.
Q: What is Venture Global, Inc.'s revenue and earnings growth?
Venture Global, Inc. (VG) grew revenue by 176.9% year-over-year. Earnings per share increased by 53.6% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does Venture Global, Inc. compare to competitors in Utilities?
Compared to other companies in Utilities, Venture Global, Inc. (VG) shows: ROIC of 10.1% is above the sector median of 5.8% (Top 18%). FCF margin of -49.4% trails the sector median of 0.0% (Top -31% of sector). Gross margin at 57.0% is 6.3 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Utilities companies with available SEC filings.
Q: What warning signs should I watch for with Venture Global, Inc.?
Investors in Venture Global, Inc. (VG) should monitor these potential warning signs: 1) FCF margin is thin at -49.4%, leaving limited buffer for economic downturns. 2) Debt-to-equity of 5.1x is elevated. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-10. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.