EVOLUTION PETROLEUM CORP (EPM) Stock Fundamental Analysis
NYSEARCA:EPM - NYSE Arca - US30049A1079 - Common Stock - Currency: USD
Overall EPM gets a fundamental rating of 3 out of 10. We evaluated EPM against 211 industry peers in the Oil, Gas & Consumable Fuels industry. EPM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, EPM is valued expensive at the moment. Finally EPM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EPM had negative earnings in the past year.
In the past year EPM had a positive cash flow from operations.
Of the past 5 years EPM 4 years were profitable.
In the past 5 years EPM always reported a positive cash flow from operatings.
1.2 Ratios
EPM's Return On Assets of -0.62% is on the low side compared to the rest of the industry. EPM is outperformed by 70.62% of its industry peers.
Looking at the Return On Equity, with a value of -1.35%, EPM is doing worse than 67.30% of the companies in the same industry.
EPM has a Return On Invested Capital of 2.97%. This is in the lower half of the industry: EPM underperforms 67.77% 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 23.70%.
The last Return On Invested Capital (2.97%) for EPM is well below the 3 year average (20.97%), which needs to be investigated, but indicates that EPM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.35% | ||
| ROIC | 2.97% |
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
In the last couple of years the Profit Margin of EPM has declined.
Looking at the Operating Margin, with a value of 6.09%, EPM is doing worse than 66.35% of the companies in the same industry.
In the last couple of years the Operating Margin of EPM has declined.
EPM has a Gross Margin of 42.56%. This is comparable to the rest of the industry: EPM outperforms 49.29% of its industry peers.
In the last couple of years the Gross Margin of EPM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.09% | ||
| PM (TTM) | N/A | ||
| GM | 42.56% |
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
The debt/assets ratio for EPM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.08 indicates that EPM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.08, EPM is in the better half of the industry, outperforming 69.19% of the companies in the same industry.
The Debt to FCF ratio of EPM is 1.43, which is an excellent value as it means it would take EPM, only 1.43 years of fcf income to pay off all of its debts.
EPM has a better Debt to FCF ratio (1.43) than 86.26% of its industry peers.
EPM has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
EPM has a Debt to Equity ratio (0.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.35
WACC8.56%
2.3 Liquidity
A Current Ratio of 0.88 indicates that EPM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.88, EPM is doing worse than 64.45% of the companies in the same industry.
EPM has a Quick Ratio of 0.88. This is a bad value and indicates that EPM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.88, EPM perfoms like the industry average, outperforming 45.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
EPM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -137.50%.
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 small growth in Revenue. The Revenue has grown by 3.79% 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)-137.5%
EPS 3Y6.27%
EPS 5Y-22.88%
EPS Q2Q%-800%
Revenue 1Y (TTM)3.79%
Revenue growth 3Y37.96%
Revenue growth 5Y14.71%
Sales Q2Q%-2.02%
3.2 Future
The Earnings Per Share is expected to grow by 16.05% on average over the next years. This is quite good.
Based on estimates for the next years, EPM will show a small growth in Revenue. The Revenue will grow by 1.15% on average per year.
EPS Next Y5.21%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.11%
Revenue Next 2Y1.15%
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
EPM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 30.94, EPM can be considered very expensive at the moment.
64.45% of the companies in the same industry are cheaper than EPM, based on the Price/Forward Earnings ratio.
EPM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 30.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EPM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, EPM is valued cheaper than 84.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.91 | ||
| EV/EBITDA | 7.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as EPM's earnings are expected to grow with 16.05% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.02%, EPM is a good candidate for dividend investing.
EPM's Dividend Yield is rather good when compared to the industry average which is at 6.66. EPM pays more dividend than 87.68% of the companies in the same industry.
EPM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.02% |
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 Years0
Div Non Decr Years4
5.3 Sustainability
EPM has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of EPM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-1681.55%
EPS Next 2Y16.05%
EPS Next 3YN/A
5
+0.03 (+0.6%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.16%
Inst Owner Change0.6%
Ins Owners10.04%
Ins Owner Change-0.2%
Market Cap171.55M
Analysts80
Price Target6.27 (25.4%)
Short Float %3.87%
Short Ratio6.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.02% |
Yearly Dividend0.48
Dividend Growth(5Y)3.76%
DP-1681.55%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-489.55%
Min EPS beat(2)-494.06%
Max EPS beat(2)-485.04%
EPS beat(4)1
Avg EPS beat(4)-242.01%
Min EPS beat(4)-494.06%
Max EPS beat(4)48.51%
EPS beat(8)1
Avg EPS beat(8)-154.71%
EPS beat(12)4
Avg EPS beat(12)-89.83%
EPS beat(16)5
Avg EPS beat(16)-70.49%
Revenue beat(2)0
Avg Revenue beat(2)-1.9%
Min Revenue beat(2)-3.68%
Max Revenue beat(2)-0.13%
Revenue beat(4)0
Avg Revenue beat(4)-4.21%
Min Revenue beat(4)-11.4%
Max Revenue beat(4)-0.13%
Revenue beat(8)1
Avg Revenue beat(8)-4.83%
Revenue beat(12)5
Avg Revenue beat(12)0.39%
Revenue beat(16)9
Avg Revenue beat(16)1.52%
PT rev (1m)-7.17%
PT rev (3m)-16.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-103.32%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 30.94 | ||
| P/S | 2 | ||
| P/FCF | 6.91 | ||
| P/OCF | 5.61 | ||
| P/B | 2.39 | ||
| P/tB | 2.39 | ||
| EV/EBITDA | 7.5 |
EPS(TTM)-0.03
EYN/A
EPS(NY)0.16
Fwd EY3.23%
FCF(TTM)0.72
FCFY14.48%
OCF(TTM)0.89
OCFY17.83%
SpS2.51
BVpS2.09
TBVpS2.09
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.35% | ||
| ROCE | 3.91% | ||
| ROIC | 2.97% | ||
| ROICexc | 3.1% | ||
| ROICexgc | 3.1% | ||
| OM | 6.09% | ||
| PM (TTM) | N/A | ||
| GM | 42.56% | ||
| FCFM | 28.9% |
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-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.43 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 26.75% | ||
| Cap/Sales | 6.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.08 |
F-Score5
WACC8.56%
ROIC/WACC0.35
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)-137.5%
EPS 3Y6.27%
EPS 5Y-22.88%
EPS Q2Q%-800%
EPS Next Y5.21%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.79%
Revenue growth 3Y37.96%
Revenue growth 5Y14.71%
Sales Q2Q%-2.02%
Revenue Next Year-2.11%
Revenue Next 2Y1.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-9.09%
EBIT growth 3Y23.53%
EBIT growth 5Y-14.83%
EBIT Next Year221.53%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-42.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-59.49%
OCF growth 3Y68.72%
OCF growth 5Y-1.13%