EPSILON ENERGY LTD (EPSN)
CA2943752097 - Common Stock
EPSN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 205 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 quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years EPSN has always been profitable.
Each year in the past 5 years EPSN had a positive operating cash flow.
1.2 Ratios
EPSN has a Return On Assets of 4.34%. This is comparable to the rest of the industry: EPSN outperforms 43.63% of its industry peers.
Looking at the Return On Equity, with a value of 5.37%, EPSN is doing worse than 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.82%, EPSN is doing worse than 73.04% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EPSN is significantly below the industry average of 29.02%.
The 3 year average ROIC (16.11%) for EPSN is well above the current ROIC(2.82%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 5.37% | ||
| ROIC | 2.82% |
ROA(3y)15.27%
ROA(5y)11.15%
ROE(3y)18.5%
ROE(5y)13.63%
ROIC(3y)16.11%
ROIC(5y)10.88%
1.3 Margins
With a Profit Margin value of 16.97%, EPSN perfoms like the industry average, outperforming 59.31% of the companies in the same industry.
In the last couple of years the Profit Margin of EPSN has remained more or less at the same level.
EPSN's Operating Margin of 14.49% is in line compared to the rest of the industry. EPSN outperforms 42.16% of its industry peers.
In the last couple of years the Operating Margin of EPSN has declined.
EPSN has a Gross Margin of 68.48%. This is in the better half of the industry: EPSN outperforms 75.00% 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 | 14.49% | ||
| PM (TTM) | 16.97% | ||
| GM | 68.48% |
OM growth 3Y91.3%
OM growth 5Y-7.16%
PM growth 3Y84.44%
PM growth 5Y0.14%
GM growth 3Y2.93%
GM growth 5Y-0.58%
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.
Compared to 5 years ago, EPSN has less shares outstanding
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.
2.2 Solvency
An Altman-Z score of 3.16 indicates that EPSN is not in any danger for bankruptcy at the moment.
EPSN has a better Altman-Z score (3.16) than 78.92% of its industry peers.
EPSN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.16 |
ROIC/WACC0.31
WACC9.21%
2.3 Liquidity
EPSN has a Current Ratio of 2.02. This indicates that EPSN is financially healthy and has no problem in meeting its short term obligations.
EPSN has a better Current ratio (2.02) than 74.02% of its industry peers.
A Quick Ratio of 2.02 indicates that EPSN has no problem at all paying its short term obligations.
EPSN's Quick ratio of 2.02 is fine compared to the rest of the industry. EPSN outperforms 75.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
EPSN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.33%.
The Earnings Per Share has been growing slightly by 5.15% on average over the past years.
Looking at the last year, EPSN shows a very negative growth in Revenue. The Revenue has decreased by -16.70% in the last year.
The Revenue has been growing slightly by 0.70% on average over the past years.
EPS 1Y (TTM)-58.33%
EPS 3Y117.46%
EPS 5Y5.15%
EPS Q2Q%0%
Revenue 1Y (TTM)-16.7%
Revenue growth 3Y7.95%
Revenue growth 5Y0.7%
Sales Q2Q%15.5%
3.2 Future
EPSN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.34% yearly.
Based on estimates for the next years, EPSN will show a small growth in Revenue. The Revenue will grow by 6.23% on average per year.
EPS Next Y-34.19%
EPS Next 2Y10.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.41%
Revenue Next 2Y6.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.40, which indicates a rather expensive current valuation of EPSN.
Compared to the rest of the industry, the Price/Earnings ratio of EPSN indicates a slightly more expensive valuation: EPSN is more expensive than 66.67% of the companies listed in the same industry.
EPSN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.50, EPSN is valued correctly.
EPSN's Price/Forward Earnings ratio is in line with the industry average.
EPSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.4 | ||
| Fwd PE | 15.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EPSN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.54
EPS Next 2Y10.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.08%, EPSN is a good candidate for dividend investing.
EPSN's Dividend Yield is comparable with the industry average which is at 6.85.
EPSN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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 Years1
5.3 Sustainability
104.03% of the earnings are spent on dividend by EPSN. This is not a sustainable payout ratio.
DP104.03%
EPS Next 2Y10.34%
EPS Next 3YN/A
EPSILON ENERGY LTD
NASDAQ:EPSN (12/20/2024, 8:07:20 PM)
5.85
+0.21 (+3.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners49.96%
Inst Owner Change-9.42%
Ins Owners39.23%
Ins Owner Change0.41%
Market Cap127.88M
Analysts82.86
Price Target7.14 (22.05%)
Short Float %0.18%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Dividend Growth(5Y)N/A
DP104.03%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)6.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.4 | ||
| Fwd PE | 15.5 | ||
| P/S | 4.11 | ||
| P/FCF | N/A | ||
| P/OCF | 8.17 | ||
| P/B | 1.3 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 7.9 |
EPS(TTM)0.25
EY4.27%
EPS(NY)0.38
Fwd EY6.45%
FCF(TTM)-0.87
FCFYN/A
OCF(TTM)0.72
OCFY12.24%
SpS1.42
BVpS4.5
TBVpS4.5
PEG (NY)N/A
PEG (5Y)4.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.34% | ||
| ROE | 5.37% | ||
| ROCE | 3.94% | ||
| ROIC | 2.82% | ||
| ROICexc | 3.04% | ||
| ROICexgc | 3.04% | ||
| OM | 14.49% | ||
| PM (TTM) | 16.97% | ||
| GM | 68.48% | ||
| FCFM | N/A |
ROA(3y)15.27%
ROA(5y)11.15%
ROE(3y)18.5%
ROE(5y)13.63%
ROIC(3y)16.11%
ROIC(5y)10.88%
ROICexc(3y)24.67%
ROICexc(5y)16.24%
ROICexgc(3y)24.67%
ROICexgc(5y)16.24%
ROCE(3y)22.56%
ROCE(5y)15.24%
ROICexcg growth 3Y93.32%
ROICexcg growth 5Y-10.59%
ROICexc growth 3Y93.32%
ROICexc growth 5Y-10.59%
OM growth 3Y91.3%
OM growth 5Y-7.16%
PM growth 3Y84.44%
PM growth 5Y0.14%
GM growth 3Y2.93%
GM growth 5Y-0.58%
F-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 344.73% | ||
| Cap/Sales | 111.05% | ||
| Interest Coverage | 184.76 | ||
| Cash Conversion | 107.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 3.16 |
F-Score5
WACC9.21%
ROIC/WACC0.31
Cap/Depr(3y)147.23%
Cap/Depr(5y)134.26%
Cap/Sales(3y)27.92%
Cap/Sales(5y)31.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-58.33%
EPS 3Y117.46%
EPS 5Y5.15%
EPS Q2Q%0%
EPS Next Y-34.19%
EPS Next 2Y10.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-16.7%
Revenue growth 3Y7.95%
Revenue growth 5Y0.7%
Sales Q2Q%15.5%
Revenue Next Year-2.41%
Revenue Next 2Y6.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-69.75%
EBIT growth 3Y106.5%
EBIT growth 5Y-6.52%
EBIT Next Year128.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-165.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-56.41%
OCF growth 3Y7.07%
OCF growth 5Y12.02%