3.36 USD
-0.02 (-0.59%)
3.3612 USD
+0 (+0.04%)
We assign a fundamental rating of 3 out of 10 to EPM. EPM was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of EPM have multiple concerns. EPM is valied quite expensively at the moment, while 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 has reported negative net income.
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's Return On Assets of 0.71% is on the low side compared to the rest of the industry. EPM is outperformed by 65.38% of its industry peers.
Looking at the Return On Equity, with a value of 1.59%, EPM is doing worse than 65.38% of the companies in the same industry.
EPM has a Return On Invested Capital of 2.30%. This is in the lower half of the industry: EPM underperforms 67.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EPM is significantly below the industry average of 21.83%.
The last Return On Invested Capital (2.30%) for EPM is well below the 3 year average (12.05%), which needs to be investigated, but indicates that EPM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 1.59% | ||
| ROIC | 2.3% |
ROA(3y)10.2%
ROA(5y)6.24%
ROE(3y)14.9%
ROE(5y)11.56%
ROIC(3y)12.05%
ROIC(5y)14.05%
1.3 Margins
EPM has a worse Profit Margin (1.33%) than 62.98% of its industry peers.
EPM's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.86%, EPM is not doing good in the industry: 64.90% 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 (42.52%) which is comparable to the rest of the industry.
EPM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.86% | ||
| PM (TTM) | 1.33% | ||
| GM | 42.52% |
OM growth 3Y-51.13%
OM growth 5Y-22.27%
PM growth 3Y-64.96%
PM growth 5Y-42.25%
GM growth 3Y-8.4%
GM growth 5Y-4.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EPM is still creating some value.
The number of shares outstanding for EPM has been increased compared to 1 year ago.
The number of shares outstanding for EPM has been increased compared to 5 years ago.
EPM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that EPM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EPM (1.60) is better than 61.06% of its industry peers.
EPM has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as EPM would need 3.29 years to pay back of all of its debts.
The Debt to FCF ratio of EPM (3.29) is better than 75.48% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that EPM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, EPM perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.27
WACC8.5%
2.3 Liquidity
A Current Ratio of 0.81 indicates that EPM may have some problems paying its short term obligations.
EPM has a worse Current ratio (0.81) than 66.83% of its industry peers.
A Quick Ratio of 0.81 indicates that EPM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, EPM is in line with its industry, outperforming 40.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
EPM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -107.14%.
EPM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.42% yearly.
EPM shows a decrease in Revenue. In the last year, the revenue decreased by -0.04%.
The Revenue has been growing by 23.73% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-107.14%
EPS 3Y-68.61%
EPS 5Y-25.42%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y-7.63%
Revenue growth 5Y23.73%
Sales Q2Q%-2.78%
3.2 Future
EPM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 65.61% yearly.
Based on estimates for the next years, EPM will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
EPS Next Y-116.83%
EPS Next 2Y-58.27%
EPS Next 3YN/A
EPS Next 5Y65.61%
Revenue Next Year-1.34%
Revenue Next 2Y-0.07%
Revenue Next 3YN/A
Revenue Next 5Y3.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
EPM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for EPM. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
69.71% of the companies in the same industry are more expensive than EPM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, EPM is valued a bit cheaper than 77.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.22 | ||
| EV/EBITDA | 5.79 |
4.3 Compensation for Growth
A cheap valuation may be justified as EPM's earnings are expected to decrease with -58.27% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-58.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.20%, EPM is a good candidate for dividend investing.
The stock price of EPM dropped by -27.90% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.91, EPM pays a better dividend. On top of this EPM pays more dividend than 96.63% 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.2% |
5.2 History
On average, the dividend of EPM grows each year by 8.26%, which is quite nice.
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)8.26%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
EPM pays out 1428.93% of its income as dividend. This is not a sustainable payout ratio.
EPM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP1428.93%
EPS Next 2Y-58.27%
EPS Next 3YN/A
3.36
-0.02 (-0.59%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.78%
Inst Owner Change0.34%
Ins Owners10.76%
Ins Owner Change6.18%
Market Cap116.56M
Revenue(TTM)85.84M
Net Income(TTM)1.14M
Analysts77.5
Price Target5.18 (54.17%)
Short Float %5.95%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.2% |
Yearly Dividend0.48
Dividend Growth(5Y)8.26%
DP1428.93%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)202.53%
Min EPS beat(2)-485.04%
Max EPS beat(2)890.1%
EPS beat(4)2
Avg EPS beat(4)-10.12%
Min EPS beat(4)-494.06%
Max EPS beat(4)890.1%
EPS beat(8)2
Avg EPS beat(8)-30.95%
EPS beat(12)4
Avg EPS beat(12)-16.28%
EPS beat(16)6
Avg EPS beat(16)-13.42%
Revenue beat(2)0
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-0.13%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-3.41%
Revenue beat(12)4
Avg Revenue beat(12)-0.36%
Revenue beat(16)8
Avg Revenue beat(16)1.39%
PT rev (1m)0%
PT rev (3m)-5.43%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-350%
EPS NY rev (3m)83.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)2.42%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.36 | ||
| P/FCF | 10.22 | ||
| P/OCF | 3.53 | ||
| P/B | 1.62 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 5.79 |
EPS(TTM)-0.01
EYN/A
EPS(NY)-0.02
Fwd EYN/A
FCF(TTM)0.33
FCFY9.79%
OCF(TTM)0.95
OCFY28.36%
SpS2.47
BVpS2.07
TBVpS2.07
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 1.59% | ||
| ROCE | 3.01% | ||
| ROIC | 2.3% | ||
| ROICexc | 2.34% | ||
| ROICexgc | 2.34% | ||
| OM | 4.86% | ||
| PM (TTM) | 1.33% | ||
| GM | 42.52% | ||
| FCFM | 13.29% |
ROA(3y)10.2%
ROA(5y)6.24%
ROE(3y)14.9%
ROE(5y)11.56%
ROIC(3y)12.05%
ROIC(5y)14.05%
ROICexc(3y)13.17%
ROICexc(5y)15.24%
ROICexgc(3y)13.17%
ROICexgc(5y)15.24%
ROCE(3y)15.75%
ROCE(5y)18.36%
ROICexgc growth 3Y-58.04%
ROICexgc growth 5Y-16.28%
ROICexc growth 3Y-58.04%
ROICexc growth 5Y-16.27%
OM growth 3Y-51.13%
OM growth 5Y-22.27%
PM growth 3Y-64.96%
PM growth 5Y-42.25%
GM growth 3Y-8.4%
GM growth 5Y-4.8%
F-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 98.4% | ||
| Cap/Sales | 25.21% | ||
| Interest Coverage | 1.35 | ||
| Cash Conversion | 126.31% | ||
| Profit Quality | 997.38% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.6 |
F-Score5
WACC8.5%
ROIC/WACC0.27
Cap/Depr(3y)131.6%
Cap/Depr(5y)287.89%
Cap/Sales(3y)29.48%
Cap/Sales(5y)39.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-107.14%
EPS 3Y-68.61%
EPS 5Y-25.42%
EPS Q2Q%-66.67%
EPS Next Y-116.83%
EPS Next 2Y-58.27%
EPS Next 3YN/A
EPS Next 5Y65.61%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y-7.63%
Revenue growth 5Y23.73%
Sales Q2Q%-2.78%
Revenue Next Year-1.34%
Revenue Next 2Y-0.07%
Revenue Next 3YN/A
Revenue Next 5Y3.33%
EBIT growth 1Y-47.19%
EBIT growth 3Y-54.86%
EBIT growth 5Y-3.82%
EBIT Next Year727.12%
EBIT Next 3Y105.63%
EBIT Next 5Y59.84%
FCF growth 1Y142.41%
FCF growth 3YN/A
FCF growth 5Y53.61%
OCF growth 1Y45.42%
OCF growth 3Y-14.27%
OCF growth 5Y21.67%
EVOLUTION PETROLEUM CORP / EPM FAQ
What is the fundamental rating for EPM stock?
ChartMill assigns a fundamental rating of 3 / 10 to EPM.
What is the valuation status of EVOLUTION PETROLEUM CORP (EPM) stock?
ChartMill assigns a valuation rating of 2 / 10 to EVOLUTION PETROLEUM CORP (EPM). This can be considered as Overvalued.
Can you provide the profitability details for EVOLUTION PETROLEUM CORP?
EVOLUTION PETROLEUM CORP (EPM) has a profitability rating of 2 / 10.
What is the expected EPS growth for EVOLUTION PETROLEUM CORP (EPM) stock?
The Earnings per Share (EPS) of EVOLUTION PETROLEUM CORP (EPM) is expected to decline by -116.83% in the next year.
Can you provide the dividend sustainability for EPM stock?
The dividend rating of EVOLUTION PETROLEUM CORP (EPM) is 6 / 10 and the dividend payout ratio is 1428.93%.