EVOLUTION PETROLEUM CORP (EPM) Stock Fundamental Analysis
NYSEARCA:EPM - NYSE Arca - US30049A1079 - Common Stock - Currency: USD
EPM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 212 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of EPM is average, but there are quite some concerns on its profitability. EPM is quite expensive at the moment. It does show a decent growth rate. Finally EPM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EPM was profitable.
EPM had a positive operating cash flow in the past year.
EPM had positive earnings in 4 of the past 5 years.
EPM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.99%, EPM is not doing good in the industry: 65.57% of the companies in the same industry are doing better.
The Return On Equity of EPM (2.09%) is worse than 64.15% of its industry peers.
The Return On Invested Capital of EPM (3.03%) is worse than 68.40% of its industry peers.
EPM had an Average Return On Invested Capital over the past 3 years of 20.97%. This is below the industry average of 25.76%.
The 3 year average ROIC (20.97%) for EPM is well above the current ROIC(3.03%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.09% | ||
| ROIC | 3.03% |
ROA(3y)17.31%
ROA(5y)7.39%
ROE(3y)28.79%
ROE(5y)12.86%
ROIC(3y)20.97%
ROIC(5y)14.37%
1.3 Margins
EPM has a worse Profit Margin (1.84%) than 63.21% of its industry peers.
EPM's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.64%, EPM is not doing good in the industry: 66.98% of the companies in the same industry are doing better.
EPM's Operating Margin has declined in the last couple of years.
EPM has a Gross Margin (43.75%) which is in line with its industry peers.
EPM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.64% | ||
| PM (TTM) | 1.84% | ||
| GM | 43.75% |
OM growth 3Y-10.46%
OM growth 5Y-25.75%
PM growth 3YN/A
PM growth 5Y-33.42%
GM growth 3Y-3.86%
GM growth 5Y-8.15%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EPM is creating value.
Compared to 1 year ago, EPM has more shares outstanding
Compared to 5 years ago, EPM has more shares outstanding
Compared to 1 year ago, EPM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.07 indicates that EPM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EPM (2.07) is better than 69.81% of its industry peers.
EPM has a Debt/Equity ratio of 0.52. This is a neutral value indicating EPM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, EPM is in line with its industry, outperforming 44.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.07 |
ROIC/WACC0.3
WACC10.26%
2.3 Liquidity
EPM has a Current Ratio of 1.64. This is a normal value and indicates that EPM is financially healthy and should not expect problems in meeting its short term obligations.
EPM's Current ratio of 1.64 is fine compared to the rest of the industry. EPM outperforms 70.28% of its industry peers.
A Quick Ratio of 1.64 indicates that EPM should not have too much problems paying its short term obligations.
EPM has a Quick ratio of 1.64. This is in the better half of the industry: EPM outperforms 73.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for EPM have decreased strongly by -89.58% in the last year.
The earnings per share for EPM have been decreasing by -22.88% on average. This is quite bad
The Revenue for EPM has decreased by -10.60% in the past year. This is quite bad
EPM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.71% yearly.
EPS 1Y (TTM)-89.58%
EPS 3Y6.27%
EPS 5Y-22.88%
EPS Q2Q%-300%
Revenue 1Y (TTM)-10.6%
Revenue growth 3Y37.96%
Revenue growth 5Y14.71%
Sales Q2Q%-3.56%
3.2 Future
The Earnings Per Share is expected to grow by 16.05% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y5.21%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.53%
Revenue Next 2Y3.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 86.00, EPM can be considered very expensive at the moment.
EPM's Price/Earnings ratio is a bit more expensive when compared to the industry. EPM is more expensive than 70.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.87, EPM is valued quite expensively.
EPM is valuated quite expensively with a Price/Forward Earnings ratio of 26.61.
61.79% of the companies in the same industry are cheaper than EPM, based on the Price/Forward Earnings ratio.
EPM is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86 | ||
| Fwd PE | 26.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPM is valued a bit cheaper than the industry average as 63.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EPM's earnings are expected to grow with 16.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.51
PEG (5Y)N/A
EPS Next 2Y16.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EPM has a Yearly Dividend Yield of 11.32%, which is a nice return.
Compared to an average industry Dividend Yield of 7.32, EPM pays a better dividend. On top of this EPM pays more dividend than 90.57% of the companies listed in the same industry.
EPM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.32% |
5.2 History
The dividend of EPM has a limited annual growth rate of 3.76%.
EPM has paid a dividend for at least 10 years, which is a reliable track record.
EPM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.76%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
1011.99% of the earnings are spent on dividend by EPM. This is not a sustainable payout ratio.
EPM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP1011.99%
EPS Next 2Y16.05%
EPS Next 3YN/A
4.3
+0.06 (+1.42%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners56.21%
Inst Owner Change0.23%
Ins Owners10.09%
Ins Owner Change1%
Market Cap147.28M
Analysts80
Price Target6.76 (57.21%)
Short Float %2.72%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.32% |
Yearly Dividend0.48
Dividend Growth(5Y)3.76%
DP1011.99%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-222.77%
Min EPS beat(2)-494.06%
Max EPS beat(2)48.51%
EPS beat(4)1
Avg EPS beat(4)-137.5%
Min EPS beat(4)-494.06%
Max EPS beat(4)48.51%
EPS beat(8)2
Avg EPS beat(8)-75.83%
EPS beat(12)4
Avg EPS beat(12)-51.64%
EPS beat(16)6
Avg EPS beat(16)-39.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.65%
Min Revenue beat(2)-3.68%
Max Revenue beat(2)-1.63%
Revenue beat(4)1
Avg Revenue beat(4)-3.71%
Min Revenue beat(4)-11.4%
Max Revenue beat(4)1.86%
Revenue beat(8)2
Avg Revenue beat(8)-1.41%
Revenue beat(12)6
Avg Revenue beat(12)0.52%
Revenue beat(16)10
Avg Revenue beat(16)11.6%
PT rev (1m)-10.17%
PT rev (3m)-13.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-59.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86 | ||
| Fwd PE | 26.61 | ||
| P/S | 1.7 | ||
| P/FCF | N/A | ||
| P/OCF | 5.52 | ||
| P/B | 1.93 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 6.23 |
EPS(TTM)0.05
EY1.16%
EPS(NY)0.16
Fwd EY3.76%
FCF(TTM)-0.62
FCFYN/A
OCF(TTM)0.78
OCFY18.12%
SpS2.52
BVpS2.23
TBVpS2.23
PEG (NY)16.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.09% | ||
| ROCE | 3.99% | ||
| ROIC | 3.03% | ||
| ROICexc | 3.3% | ||
| ROICexgc | 3.3% | ||
| OM | 6.64% | ||
| PM (TTM) | 1.84% | ||
| GM | 43.75% | ||
| FCFM | N/A |
ROA(3y)17.31%
ROA(5y)7.39%
ROE(3y)28.79%
ROE(5y)12.86%
ROIC(3y)20.97%
ROIC(5y)14.37%
ROICexc(3y)22.81%
ROICexc(5y)15.8%
ROICexgc(3y)22.81%
ROICexgc(5y)15.8%
ROCE(3y)27.6%
ROCE(5y)18.91%
ROICexcg growth 3Y-4.57%
ROICexcg growth 5Y-27.84%
ROICexc growth 3Y-4.57%
ROICexc growth 5Y-27.82%
OM growth 3Y-10.46%
OM growth 5Y-25.75%
PM growth 3YN/A
PM growth 5Y-33.42%
GM growth 3Y-3.86%
GM growth 5Y-8.15%
F-Score4
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 213.58% | ||
| Cap/Sales | 55.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 2.07 |
F-Score4
WACC10.26%
ROIC/WACC0.3
Cap/Depr(3y)325.93%
Cap/Depr(5y)306.62%
Cap/Sales(3y)37.87%
Cap/Sales(5y)41.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-89.58%
EPS 3Y6.27%
EPS 5Y-22.88%
EPS Q2Q%-300%
EPS Next Y5.21%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.6%
Revenue growth 3Y37.96%
Revenue growth 5Y14.71%
Sales Q2Q%-3.56%
Revenue Next Year-0.53%
Revenue Next 2Y3.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-73.1%
EBIT growth 3Y23.53%
EBIT growth 5Y-14.83%
EBIT Next Year254.61%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-332.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-59.77%
OCF growth 3Y68.72%
OCF growth 5Y-1.13%