EPSILON ENERGY LTD (EPSN) Stock Fundamental Analysis
USA - NASDAQ:EPSN - CA2943752097 - Common Stock
4.7 USD
-0.03 (-0.63%)
4.61 USD
-0.09 (-1.91%)
We assign a fundamental rating of 6 out of 10 to EPSN. EPSN was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. While EPSN has a great health rating, its profitability is only average at the moment. EPSN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year EPSN was profitable.
In the past year EPSN had a positive cash flow from operations.
EPSN had positive earnings in each of the past 5 years.
EPSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EPSN has a Return On Assets (4.18%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.16%, EPSN is in line with its industry, outperforming 43.06% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.85%, EPSN is in the better half of the industry, outperforming 61.24% of the companies in the same industry.
EPSN had an Average Return On Invested Capital over the past 3 years of 10.21%. This is significantly below the industry average of 21.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 5.16% | ||
| ROIC | 6.85% |
ROA(3y)11.91%
ROA(5y)9.69%
ROE(3y)14.27%
ROE(5y)11.75%
ROIC(3y)10.21%
ROIC(5y)8.94%
1.3 Margins
EPSN has a better Profit Margin (11.75%) than 61.72% of its industry peers.
EPSN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 29.48%, EPSN is in the better half of the industry, outperforming 71.77% of the companies in the same industry.
In the last couple of years the Operating Margin of EPSN has declined.
EPSN has a Gross Margin of 74.34%. This is amongst the best in the industry. EPSN outperforms 85.65% of its industry peers.
In the last couple of years the Gross Margin of EPSN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.48% | ||
| PM (TTM) | 11.75% | ||
| GM | 74.34% |
OM growth 3Y-31.37%
OM growth 5Y-9.53%
PM growth 3Y-39.36%
PM growth 5Y-28.44%
GM growth 3Y-4.33%
GM growth 5Y-0.17%
2. Health
2.1 Basic Checks
EPSN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for EPSN has been reduced compared to 1 year ago.
The number of shares outstanding for EPSN has been reduced compared to 5 years ago.
EPSN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
EPSN has an Altman-Z score of 3.03. This indicates that EPSN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.03, EPSN belongs to the top of the industry, outperforming 80.86% of the companies in the same industry.
There is no outstanding debt for EPSN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.03 |
ROIC/WACC0.79
WACC8.72%
2.3 Liquidity
A Current Ratio of 2.23 indicates that EPSN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.23, EPSN is in the better half of the industry, outperforming 77.51% of the companies in the same industry.
EPSN has a Quick Ratio of 2.23. This indicates that EPSN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.23, EPSN is in the better half of the industry, outperforming 79.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
EPSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.00%, which is quite impressive.
The earnings per share for EPSN have been decreasing by -22.77% on average. This is quite bad
Looking at the last year, EPSN shows a very strong growth in Revenue. The Revenue has grown by 45.91%.
EPSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.38% yearly.
EPS 1Y (TTM)68%
EPS 3Y-43.6%
EPS 5Y-22.77%
EPS Q2Q%375%
Revenue 1Y (TTM)45.91%
Revenue growth 3Y-9.41%
Revenue growth 5Y3.38%
Sales Q2Q%59.03%
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 Y206%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year38.2%
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
The Price/Earnings ratio is 11.19, which indicates a very decent valuation of EPSN.
EPSN's Price/Earnings ratio is a bit cheaper when compared to the industry. EPSN is cheaper than 71.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.19, EPSN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.60, the valuation of EPSN can be described as very reasonable.
EPSN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EPSN is cheaper than 74.16% of the companies in the same industry.
EPSN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EPSN indicates a rather cheap valuation: EPSN is cheaper than 83.73% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as EPSN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.57 | ||
| EV/EBITDA | 3.72 |
4.3 Compensation for Growth
EPSN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
EPSN has a Yearly Dividend Yield of 5.18%, which is a nice return.
In the last 3 months the price of EPSN has falen by -22.95%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 6.15, EPSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, EPSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
5.2 History
EPSN has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
106.25% of the earnings are spent on dividend by EPSN. This is not a sustainable payout ratio.
DP106.25%
EPS Next 2YN/A
EPS Next 3YN/A
4.7
-0.03 (-0.63%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.39%
Inst Owner Change-0.54%
Ins Owners4.75%
Ins Owner Change0.49%
Market Cap103.68M
Revenue(TTM)44.02M
Net Income(TTM)5.17M
Analysts82.86
Price Target8.57 (82.34%)
Short Float %2%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP106.25%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)79.45%
Min EPS beat(2)26.05%
Max EPS beat(2)132.84%
EPS beat(4)2
Avg EPS beat(4)16.68%
Min EPS beat(4)-50.98%
Max EPS beat(4)132.84%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)15.75%
Min Revenue beat(2)-3.78%
Max Revenue beat(2)35.29%
Revenue beat(4)2
Avg Revenue beat(4)8.04%
Min Revenue beat(4)-3.78%
Max Revenue beat(4)35.29%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 9.6 | ||
| P/S | 2.36 | ||
| P/FCF | 16.57 | ||
| P/OCF | 4.2 | ||
| P/B | 1.03 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 3.72 |
EPS(TTM)0.42
EY8.94%
EPS(NY)0.49
Fwd EY10.42%
FCF(TTM)0.28
FCFY6.03%
OCF(TTM)1.12
OCFY23.81%
SpS2
BVpS4.54
TBVpS4.54
PEG (NY)0.05
PEG (5Y)N/A
Graham Number6.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 5.16% | ||
| ROCE | 11.17% | ||
| ROIC | 6.85% | ||
| ROICexc | 7.49% | ||
| ROICexgc | 7.49% | ||
| OM | 29.48% | ||
| PM (TTM) | 11.75% | ||
| GM | 74.34% | ||
| FCFM | 14.21% |
ROA(3y)11.91%
ROA(5y)9.69%
ROE(3y)14.27%
ROE(5y)11.75%
ROIC(3y)10.21%
ROIC(5y)8.94%
ROICexc(3y)15.79%
ROICexc(5y)13.41%
ROICexgc(3y)15.79%
ROICexgc(5y)13.41%
ROCE(3y)16.64%
ROCE(5y)14.58%
ROICexgc growth 3Y-47.2%
ROICexgc growth 5Y-12.62%
ROICexc growth 3Y-47.2%
ROICexc growth 5Y-12.62%
OM growth 3Y-31.37%
OM growth 5Y-9.53%
PM growth 3Y-39.36%
PM growth 5Y-28.44%
GM growth 3Y-4.33%
GM growth 5Y-0.17%
F-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 148.22% | ||
| Cap/Sales | 41.87% | ||
| Interest Coverage | 491.49 | ||
| Cash Conversion | 97.15% | ||
| Profit Quality | 120.94% | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 3.03 |
F-Score7
WACC8.72%
ROIC/WACC0.79
Cap/Depr(3y)242.3%
Cap/Depr(5y)173.79%
Cap/Sales(3y)62.73%
Cap/Sales(5y)45.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68%
EPS 3Y-43.6%
EPS 5Y-22.77%
EPS Q2Q%375%
EPS Next Y206%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)45.91%
Revenue growth 3Y-9.41%
Revenue growth 5Y3.38%
Sales Q2Q%59.03%
Revenue Next Year38.2%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y158.31%
EBIT growth 3Y-37.82%
EBIT growth 5Y-6.47%
EBIT Next Year539.19%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-60.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.93%
OCF growth 3Y-5.61%
OCF growth 5Y5.32%
EPSILON ENERGY LTD / EPSN FAQ
What is the ChartMill fundamental rating of EPSILON ENERGY LTD (EPSN) stock?
ChartMill assigns a fundamental rating of 6 / 10 to EPSN.
What is the valuation status of EPSILON ENERGY LTD (EPSN) stock?
ChartMill assigns a valuation rating of 6 / 10 to EPSILON ENERGY LTD (EPSN). This can be considered as Fairly Valued.
Can you provide the profitability details for EPSILON ENERGY LTD?
EPSILON ENERGY LTD (EPSN) has a profitability rating of 5 / 10.
What are the PE and PB ratios of EPSILON ENERGY LTD (EPSN) stock?
The Price/Earnings (PE) ratio for EPSILON ENERGY LTD (EPSN) is 11.19 and the Price/Book (PB) ratio is 1.03.
What is the financial health of EPSILON ENERGY LTD (EPSN) stock?
The financial health rating of EPSILON ENERGY LTD (EPSN) is 9 / 10.