EVOLUTION PETROLEUM CORP (EPM) Stock Fundamental Analysis
NYSEARCA:EPM - US30049A1079 - Common Stock
5.16 USD
+0.03 (+0.58%)
5.16 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to EPM. EPM was compared to 209 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. EPM has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
EPM had negative earnings in the past year.
EPM had a positive operating cash flow in the past year.
Of the past 5 years EPM 4 years were profitable.
Each year in the past 5 years EPM had a positive operating cash flow.
1.2 Ratios
EPM has a Return On Assets of -0.62%. This is in the lower half of the industry: EPM underperforms 69.86% of its industry peers.
With a Return On Equity value of -1.35%, EPM is not doing good in the industry: 67.94% of the companies in the same industry are doing better.
EPM's Return On Invested Capital of 2.97% is on the low side compared to the rest of the industry. EPM is outperformed by 66.03% of its industry peers.
EPM had an Average Return On Invested Capital over the past 3 years of 20.97%. This is in line with the industry average of 21.91%.
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
EPM's Profit Margin has declined in the last couple of years.
The Operating Margin of EPM (6.09%) is worse than 66.51% of its industry peers.
In the last couple of years the Operating Margin of EPM has declined.
With a Gross Margin value of 42.56%, EPM perfoms like the industry average, outperforming 51.20% of the companies in the same industry.
EPM's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for EPM has been increased compared to 1 year ago.
Compared to 5 years ago, EPM has more shares outstanding
Compared to 1 year ago, EPM has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.12 indicates that EPM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EPM (2.12) is better than 69.86% of its industry peers.
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.
The Debt to FCF ratio of EPM (1.43) is better than 87.56% 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's Debt to Equity ratio of 0.50 is in line compared to the rest of the industry. EPM outperforms 48.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.33
WACC9%
2.3 Liquidity
EPM has a Current 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 Current ratio value of 0.88, EPM is not doing good in the industry: 62.68% of the companies in the same industry are doing better.
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.
EPM's Quick ratio of 0.88 is in line compared to the rest of the industry. EPM outperforms 45.93% of its industry peers.
| 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.
EPM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.79%.
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
Based on estimates for the next years, EPM will show a very negative growth in Earnings Per Share. The EPS will decrease by -74.05% on average per year.
The Revenue is expected to decrease by -1.64% on average over the next years.
EPS Next Y-137.87%
EPS Next 2Y-74.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.79%
Revenue Next 2Y-1.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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.
A Price/Forward Earnings ratio of 638.61 indicates a quite expensive valuation of EPM.
69.86% 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 expensive valuation when compared to the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 638.61 |
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 86.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.13 | ||
| EV/EBITDA | 7.75 |
4.3 Compensation for Growth
A cheap valuation may be justified as EPM's earnings are expected to decrease with -74.05% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-74.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EPM has a Yearly Dividend Yield of 9.36%, which is a nice return.
Compared to an average industry Dividend Yield of 6.06, EPM pays a better dividend. On top of this EPM pays more dividend than 88.04% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, EPM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.36% |
5.2 History
The dividend of EPM has a limited annual growth rate of 3.76%.
EPM has paid a dividend for at least 10 years, which is 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
The earnings of EPM are negative and hence is the payout ratio. EPM will probably not be able to sustain this dividend level.
DP-1681.55%
EPS Next 2Y-74.05%
EPS Next 3YN/A
5.16
+0.03 (+0.58%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.16%
Inst Owner Change4.8%
Ins Owners10.04%
Ins Owner Change-0.55%
Market Cap177.04M
Analysts77.14
Price Target5.2 (0.78%)
Short Float %4.33%
Short Ratio7.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.36% |
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)-17.07%
PT rev (3m)-23.02%
EPS NQ rev (1m)300%
EPS NQ rev (3m)851.88%
EPS NY rev (1m)-136%
EPS NY rev (3m)-136%
Revenue NQ rev (1m)-0.79%
Revenue NQ rev (3m)-3.84%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 638.61 | ||
| P/S | 2.06 | ||
| P/FCF | 7.13 | ||
| P/OCF | 5.79 | ||
| P/B | 2.47 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 7.75 |
EPS(TTM)-0.03
EYN/A
EPS(NY)0.01
Fwd EY0.16%
FCF(TTM)0.72
FCFY14.03%
OCF(TTM)0.89
OCFY17.27%
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 | 2.12 |
F-Score5
WACC9%
ROIC/WACC0.33
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 Y-137.87%
EPS Next 2Y-74.05%
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-3.79%
Revenue Next 2Y-1.64%
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%