EVOLUTION PETROLEUM CORP (EPM) Stock Fundamental Analysis
NYSEARCA:EPM - American Stock Exchange - US30049A1079 - Common Stock - Currency: USD
Taking everything into account, EPM scores 3 out of 10 in our fundamental rating. EPM was compared to 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 has a expensive valuation and it also scores bad on growth. EPM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EPM had positive earnings in the past year.
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
EPM has a worse Return On Assets (2.90%) than 65.53% of its industry peers.
EPM's Return On Equity of 5.75% is on the low side compared to the rest of the industry. EPM is outperformed by 65.05% of its industry peers.
EPM has a Return On Invested Capital of 4.13%. This is in the lower half of the industry: EPM underperforms 67.48% 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 28.73%.
The last Return On Invested Capital (4.13%) 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 | 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
EPM has a Profit Margin of 5.25%. This is in the lower half of the industry: EPM underperforms 63.11% of its industry peers.
EPM's Profit Margin has declined in the last couple of years.
EPM has a worse Operating Margin (9.07%) than 69.90% of its industry peers.
In the last couple of years the Operating Margin of EPM has declined.
EPM has a Gross Margin (44.73%) which is in line with 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EPM is creating 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.
Compared to 1 year ago, EPM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.47 indicates that EPM is not a great score, but indicates only limited risk for bankruptcy at the moment.
EPM has a better Altman-Z score (2.47) than 68.93% 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 45.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.47 |
ROIC/WACC0.47
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.69 indicates that EPM should not have too much problems paying its short term obligations.
EPM's Current ratio of 1.69 is fine compared to the rest of the industry. EPM outperforms 66.99% 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 70.39% 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%.
The earnings per share for EPM have been decreasing by -22.88% on average. This is quite bad
EPM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.26%.
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)-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 Y102%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.55%
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
With a Price/Earnings ratio of 38.64, EPM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of EPM indicates a slightly more expensive valuation: EPM is more expensive than 69.90% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EPM to the average of the S&P500 Index (28.47), we can say EPM is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 22.32, the valuation of EPM can be described as rather expensive.
62.62% 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 rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.64 | ||
| Fwd PE | 22.32 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
EPM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.84%, EPM is a good candidate for dividend investing.
EPM's Dividend Yield is rather good when compared to the industry average which is at 6.57. EPM pays more dividend than 84.47% of the companies in the same industry.
EPM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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 (2/4/2025, 8:04:00 PM)
After market: 5.41 0 (0%)5.41
+0.16 (+3.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.88%
Inst Owner Change-0.23%
Ins Owners10.17%
Ins Owner Change4.95%
Market Cap181.78M
Analysts80
Price Target7.78 (43.81%)
Short Float %2.29%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
Yearly Dividend0.48
Dividend Growth(5Y)3.76%
DP350.96%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-56%
EPS NY rev (1m)-22.58%
EPS NY rev (3m)-22.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-21.24%
Revenue NY rev (1m)-4.99%
Revenue NY rev (3m)-4.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.64 | ||
| Fwd PE | 22.32 | ||
| P/S | 2.09 | ||
| P/FCF | N/A | ||
| P/OCF | 6.99 | ||
| P/B | 2.28 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 7.1 |
EPS(TTM)0.14
EY2.59%
EPS(NY)0.24
Fwd EY4.48%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)0.77
OCFY14.31%
SpS2.59
BVpS2.37
TBVpS2.37
PEG (NY)0.38
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 | 2.47 |
F-Score4
WACC8.78%
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 Y102%
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 Year2.55%
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%