EVOLUTION PETROLEUM CORP (EPM)
US30049A1079 - Common Stock
We assign a fundamental rating of 3 out of 10 to EPM. EPM was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. While EPM seems to be doing ok healthwise, there are quite some concerns on its profitability. EPM has a expensive valuation and it also scores bad on growth. EPM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year EPM was profitable.
In the past year EPM had a positive cash flow from operations.
EPM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years EPM had a positive operating cash flow.
1.2 Ratios
EPM has a worse Return On Assets (2.90%) than 66.67% of its industry peers.
EPM has a Return On Equity of 5.75%. This is in the lower half of the industry: EPM underperforms 66.18% of its industry peers.
EPM has a worse Return On Invested Capital (4.13%) than 67.65% of its industry peers.
EPM had an Average Return On Invested Capital over the past 3 years of 20.97%. This is significantly below the industry average of 29.02%.
The 3 year average ROIC (20.97%) for EPM is well above the current ROIC(4.13%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 5.75% | ||
| ROIC | 4.13% |
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
The Profit Margin of EPM (5.25%) is worse than 64.71% of its industry peers.
EPM's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 9.07%, EPM is not doing good in the industry: 71.08% of the companies in the same industry are doing better.
EPM's Operating Margin has declined in the last couple of years.
EPM's Gross Margin of 44.73% is in line compared to the rest of the industry. EPM outperforms 48.53% of its industry peers.
In the last couple of years the Gross Margin of EPM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.07% | ||
| PM (TTM) | 5.25% | ||
| GM | 44.73% |
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
The number of shares outstanding for EPM has been increased compared to 5 years ago.
The debt/assets ratio for EPM is higher compared to a year ago.
2.2 Solvency
EPM has an Altman-Z score of 2.38. This is not the best score and indicates that EPM is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of EPM (2.38) is better than 69.61% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that EPM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.50, EPM perfoms like the industry average, outperforming 45.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.38 |
ROIC/WACC0.47
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.69 indicates that EPM should not have too much problems paying its short term obligations.
The Current ratio of EPM (1.69) is better than 69.12% of its industry peers.
EPM has a Quick Ratio of 1.69. This is a normal value and indicates that EPM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.69, EPM is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
EPM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -81.58%.
EPM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.88% yearly.
Looking at the last year, EPM shows a very negative growth in Revenue. The Revenue has decreased by -20.26% in the last year.
The Revenue has been growing by 14.71% on average over the past years. This is quite good.
EPS 1Y (TTM)-81.58%
EPS 3Y6.27%
EPS 5Y-22.88%
EPS Q2Q%50%
Revenue 1Y (TTM)-20.26%
Revenue growth 3Y37.96%
Revenue growth 5Y14.71%
Sales Q2Q%6.29%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y160.92%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.87%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
EPM is valuated quite expensively with a Price/Earnings ratio of 34.86.
Compared to the rest of the industry, the Price/Earnings ratio of EPM indicates a slightly more expensive valuation: EPM is more expensive than 71.08% of the companies listed in the same industry.
EPM's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.73.
With a Price/Forward Earnings ratio of 15.59, EPM is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as EPM.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, EPM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.86 | ||
| Fwd PE | 15.59 |
4.2 Price Multiples
EPM's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.48%, EPM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.85, EPM pays a better dividend. On top of this EPM pays more dividend than 82.84% 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 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.48% |
5.2 History
The dividend of EPM has a limited annual growth rate of 3.76%.
EPM has been paying a dividend for at least 10 years, so it has 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
350.96% 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.
DP350.96%
EPS Next 2YN/A
EPS Next 3YN/A
EVOLUTION PETROLEUM CORP
NYSEARCA:EPM (12/20/2024, 8:07:19 PM)
After market: 4.88 0 (0%)4.88
-0.03 (-0.61%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners52.25%
Inst Owner Change-0.66%
Ins Owners17.38%
Ins Owner Change4.69%
Market Cap163.97M
Analysts80
Price Target7.78 (59.43%)
Short Float %2.87%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.48% |
Dividend Growth(5Y)3.76%
DP350.96%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.53%
Min EPS beat(2)-37.46%
Max EPS beat(2)48.51%
EPS beat(4)1
Avg EPS beat(4)-27.56%
Min EPS beat(4)-67%
Max EPS beat(4)48.51%
EPS beat(8)3
Avg EPS beat(8)-11.22%
EPS beat(12)4
Avg EPS beat(12)-10.95%
EPS beat(16)7
Avg EPS beat(16)-7.53%
Revenue beat(2)0
Avg Revenue beat(2)-6.52%
Min Revenue beat(2)-11.4%
Max Revenue beat(2)-1.63%
Revenue beat(4)1
Avg Revenue beat(4)-4.15%
Min Revenue beat(4)-11.4%
Max Revenue beat(4)1.86%
Revenue beat(8)3
Avg Revenue beat(8)-0.84%
Revenue beat(12)7
Avg Revenue beat(12)1.7%
Revenue beat(16)11
Avg Revenue beat(16)12.44%
PT rev (1m)0%
PT rev (3m)-11.59%
EPS NQ rev (1m)-56%
EPS NQ rev (3m)-56%
EPS NY rev (1m)0%
EPS NY rev (3m)-26.19%
Revenue NQ rev (1m)-21.24%
Revenue NQ rev (3m)-21.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.86 | ||
| Fwd PE | 15.59 | ||
| P/S | 1.88 | ||
| P/FCF | N/A | ||
| P/OCF | 6.3 | ||
| P/B | 2.06 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)0.14
EY2.87%
EPS(NY)0.31
Fwd EY6.42%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)0.77
OCFY15.87%
SpS2.59
BVpS2.37
TBVpS2.37
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 5.75% | ||
| ROCE | 5.43% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.34% | ||
| ROICexgc | 4.34% | ||
| OM | 9.07% | ||
| PM (TTM) | 5.25% | ||
| GM | 44.73% | ||
| 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 236.04% | ||
| Cap/Sales | 58.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 2.38 |
F-Score4
WACC8.77%
ROIC/WACC0.47
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)-81.58%
EPS 3Y6.27%
EPS 5Y-22.88%
EPS Q2Q%50%
EPS Next Y160.92%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-20.26%
Revenue growth 3Y37.96%
Revenue growth 5Y14.71%
Sales Q2Q%6.29%
Revenue Next Year8.87%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-75.56%
EBIT growth 3Y23.53%
EBIT growth 5Y-14.83%
EBIT Next Year355.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-414.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-59.49%
OCF growth 3Y68.71%
OCF growth 5Y-1.13%