EVOLUTION PETROLEUM CORP (EPM) Stock Fundamental Analysis
NYSEARCA:EPM - NYSE Arca - US30049A1079 - Common Stock - Currency: USD
Overall EPM gets a fundamental rating of 3 out of 10. We evaluated EPM against 211 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. While showing a medium growth rate, EPM is valued expensive at the moment. Finally EPM also has an excellent dividend rating.
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.
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's Return On Assets of -0.62% is on the low side compared to the rest of the industry. EPM is outperformed by 70.14% of its industry peers.
With a Return On Equity value of -1.35%, EPM is not doing good in the industry: 66.82% of the companies in the same industry are doing better.
The Return On Invested Capital of EPM (2.97%) is worse than 67.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EPM is below the industry average of 23.79%.
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.
EPM has a Operating Margin of 6.09%. This is in the lower half of the industry: EPM underperforms 66.35% of its industry peers.
EPM's Operating Margin has declined in the last couple of years.
EPM has a Gross Margin of 42.56%. This is comparable to the rest of the industry: EPM outperforms 49.29% of its industry peers.
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.
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
EPM has an Altman-Z score of 2.04. This is not the best score and indicates that EPM is in the grey zone with still only limited risk for bankruptcy at the moment.
EPM has a better Altman-Z score (2.04) than 67.77% of its industry peers.
EPM has a debt to FCF ratio of 1.43. This is a very positive value and a sign of high solvency as it would only need 1.43 years to pay back of all of its debts.
EPM has a Debt to FCF ratio of 1.43. This is amongst the best in the industry. EPM outperforms 86.26% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that EPM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, EPM is in line with its industry, outperforming 47.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 2.04 |
ROIC/WACC0.32
WACC9.28%
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.
EPM has a worse Current ratio (0.88) than 64.45% of its industry peers.
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 has a Quick ratio (0.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for EPM have decreased strongly by -137.50% in the last year.
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 quite strong growth in Earnings Per Share. The EPS will grow by 16.05% on average per year.
Based on estimates for the next years, EPM will show a small growth in Revenue. The Revenue will grow by 1.15% on average per year.
EPS Next Y5.21%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.11%
Revenue Next 2Y1.15%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EPM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 29.83, EPM can be considered very expensive at the moment.
63.98% 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 valuation a bit more expensive than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 29.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EPM indicates a somewhat cheap valuation: EPM is cheaper than 60.19% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EPM indicates a rather cheap valuation: EPM is cheaper than 86.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.66 | ||
| EV/EBITDA | 7.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
EPM's earnings are expected to grow with 16.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.98%, EPM is a good candidate for dividend investing.
EPM's Dividend Yield is rather good when compared to the industry average which is at 6.51. EPM pays more dividend than 87.20% of the companies in the same industry.
EPM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.98% |
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.
EPM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-1681.55%
EPS Next 2Y16.05%
EPS Next 3YN/A
4.82
+0.01 (+0.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.16%
Inst Owner Change0.01%
Ins Owners10.04%
Ins Owner Change-0.75%
Market Cap165.37M
Analysts80
Price Target6.27 (30.08%)
Short Float %3.87%
Short Ratio6.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.98% |
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)-7.17%
PT rev (3m)-16.61%
EPS NQ rev (1m)-50.38%
EPS NQ rev (3m)-105%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.61%
Revenue NQ rev (3m)-8.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 29.83 | ||
| P/S | 1.92 | ||
| P/FCF | 6.66 | ||
| P/OCF | 5.41 | ||
| P/B | 2.31 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 7.3 |
EPS(TTM)-0.03
EYN/A
EPS(NY)0.16
Fwd EY3.35%
FCF(TTM)0.72
FCFY15.02%
OCF(TTM)0.89
OCFY18.49%
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 | 2.04 |
F-Score5
WACC9.28%
ROIC/WACC0.32
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 Y5.21%
EPS Next 2Y16.05%
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-2.11%
Revenue Next 2Y1.15%
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%