EVOLUTION PETROLEUM CORP (EPM) Stock Fundamental Analysis
USA - NYSEARCA:EPM - US30049A1079 - Common Stock
4.26 USD
-0.08 (-1.84%)
4.26 USD
0 (0%)
EPM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 210 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 is valied quite expensively at the moment, while it does show a decent growth rate. 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.
Of the past 5 years EPM 4 years were profitable.
In the past 5 years EPM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.71%, EPM is doing worse than 65.71% of the companies in the same industry.
The Return On Equity of EPM (1.59%) is worse than 65.24% of its industry peers.
The Return On Invested Capital of EPM (2.30%) is worse than 67.62% of its industry peers.
EPM had an Average Return On Invested Capital over the past 3 years of 12.05%. This is significantly below the industry average of 21.85%.
The 3 year average ROIC (12.05%) for EPM is well above the current ROIC(2.30%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 1.59% | ||
| ROIC | 2.3% |
ROA(3y)10.2%
ROA(5y)6.24%
ROE(3y)14.9%
ROE(5y)11.56%
ROIC(3y)12.05%
ROIC(5y)14.05%
1.3 Margins
The Profit Margin of EPM (1.33%) is worse than 62.86% of its industry peers.
In the last couple of years the Profit Margin of EPM has declined.
The Operating Margin of EPM (4.86%) is worse than 65.71% of its industry peers.
EPM's Operating Margin has declined in the last couple of years.
The Gross Margin of EPM (42.52%) is comparable to the rest of the industry.
EPM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.86% | ||
| PM (TTM) | 1.33% | ||
| GM | 42.52% |
OM growth 3Y-51.13%
OM growth 5Y-22.27%
PM growth 3Y-64.96%
PM growth 5Y-42.25%
GM growth 3Y-8.4%
GM growth 5Y-4.8%
2. Health
2.1 Basic Checks
EPM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, EPM has more shares outstanding
EPM has more shares outstanding than it did 5 years ago.
EPM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.82 indicates that EPM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.82, EPM is in the better half of the industry, outperforming 63.81% of the companies in the same industry.
The Debt to FCF ratio of EPM is 3.29, which is a good value as it means it would take EPM, 3.29 years of fcf income to pay off all of its debts.
EPM has a Debt to FCF ratio of 3.29. This is in the better half of the industry: EPM outperforms 75.71% of its industry peers.
EPM has a Debt/Equity ratio of 0.52. This is a neutral value indicating EPM is somewhat dependend on debt financing.
EPM has a Debt to Equity ratio of 0.52. This is comparable to the rest of the industry: EPM outperforms 45.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.28
WACC8.34%
2.3 Liquidity
A Current Ratio of 0.81 indicates that EPM may have some problems paying its short term obligations.
EPM has a worse Current ratio (0.81) than 64.29% of its industry peers.
A Quick Ratio of 0.81 indicates that EPM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, EPM is in line with its industry, outperforming 41.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for EPM have decreased strongly by -121.43% in the last year.
The earnings per share for EPM have been decreasing by -25.42% on average. This is quite bad
EPM shows a decrease in Revenue. In the last year, the revenue decreased by -0.04%.
EPM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.73% yearly.
EPS 1Y (TTM)-121.43%
EPS 3Y-68.61%
EPS 5Y-25.42%
EPS Q2Q%-100%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y-7.63%
Revenue growth 5Y23.73%
Sales Q2Q%-2.77%
3.2 Future
The Earnings Per Share is expected to grow by 50.19% on average over the next years. This is a very strong growth
EPM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.41% yearly.
EPS Next Y-201%
EPS Next 2Y50.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.92%
Revenue Next 2Y-0.41%
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
The Price/Earnings Ratio is negative for EPM. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 62.95, which means the current valuation is very expensive for EPM.
EPM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. EPM is more expensive than 65.24% of the companies in the same industry.
EPM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 62.95 |
4.2 Price Multiples
EPM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EPM is cheaper than 64.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EPM is valued a bit cheaper than the industry average as 69.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.83 | ||
| EV/EBITDA | 7.04 |
4.3 Compensation for Growth
A more expensive valuation may be justified as EPM's earnings are expected to grow with 50.19% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y50.19%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EPM has a Yearly Dividend Yield of 11.06%, which is a nice return.
Compared to an average industry Dividend Yield of 5.89, EPM pays a better dividend. On top of this EPM pays more dividend than 93.33% of the companies listed in the same industry.
EPM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.06% |
5.2 History
The dividend of EPM is nicely growing with an annual growth rate of 8.26%!
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)8.26%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
1428.93% 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.
DP1428.93%
EPS Next 2Y50.19%
EPS Next 3YN/A
4.26
-0.08 (-1.84%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.23%
Inst Owner Change-1.95%
Ins Owners9.87%
Ins Owner Change2.87%
Market Cap146.37M
Revenue(TTM)85.84M
Net Income(TTM)1.14M
Analysts76.67
Price Target5.48 (28.64%)
Short Float %5.13%
Short Ratio6.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.06% |
Yearly Dividend0.48
Dividend Growth(5Y)8.26%
DP1428.93%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)202.53%
Min EPS beat(2)-485.04%
Max EPS beat(2)890.1%
EPS beat(4)2
Avg EPS beat(4)-10.12%
Min EPS beat(4)-494.06%
Max EPS beat(4)890.1%
EPS beat(8)2
Avg EPS beat(8)-30.95%
EPS beat(12)4
Avg EPS beat(12)-16.28%
EPS beat(16)6
Avg EPS beat(16)-13.42%
Revenue beat(2)0
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-0.13%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-3.68%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-3.41%
Revenue beat(12)4
Avg Revenue beat(12)-0.36%
Revenue beat(16)8
Avg Revenue beat(16)1.39%
PT rev (1m)0%
PT rev (3m)-12.6%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)-100%
EPS NY rev (1m)0%
EPS NY rev (3m)-118.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 62.95 | ||
| P/S | 1.71 | ||
| P/FCF | 12.83 | ||
| P/OCF | 4.43 | ||
| P/B | 2.04 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 7.04 |
EPS(TTM)-0.03
EYN/A
EPS(NY)0.07
Fwd EY1.59%
FCF(TTM)0.33
FCFY7.8%
OCF(TTM)0.96
OCFY22.58%
SpS2.5
BVpS2.09
TBVpS2.09
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| ROE | 1.59% | ||
| ROCE | 3.01% | ||
| ROIC | 2.3% | ||
| ROICexc | 2.34% | ||
| ROICexgc | 2.34% | ||
| OM | 4.86% | ||
| PM (TTM) | 1.33% | ||
| GM | 42.52% | ||
| FCFM | 13.29% |
ROA(3y)10.2%
ROA(5y)6.24%
ROE(3y)14.9%
ROE(5y)11.56%
ROIC(3y)12.05%
ROIC(5y)14.05%
ROICexc(3y)13.17%
ROICexc(5y)15.24%
ROICexgc(3y)13.17%
ROICexgc(5y)15.24%
ROCE(3y)15.75%
ROCE(5y)18.36%
ROICexgc growth 3Y-58.04%
ROICexgc growth 5Y-16.28%
ROICexc growth 3Y-58.04%
ROICexc growth 5Y-16.27%
OM growth 3Y-51.13%
OM growth 5Y-22.27%
PM growth 3Y-64.96%
PM growth 5Y-42.25%
GM growth 3Y-8.4%
GM growth 5Y-4.8%
F-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 1.43 | ||
| Cap/Depr | 98.4% | ||
| Cap/Sales | 25.21% | ||
| Interest Coverage | 1.35 | ||
| Cash Conversion | 126.31% | ||
| Profit Quality | 997.38% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.82 |
F-Score5
WACC8.34%
ROIC/WACC0.28
Cap/Depr(3y)131.6%
Cap/Depr(5y)287.89%
Cap/Sales(3y)29.48%
Cap/Sales(5y)39.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-121.43%
EPS 3Y-68.61%
EPS 5Y-25.42%
EPS Q2Q%-100%
EPS Next Y-201%
EPS Next 2Y50.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y-7.63%
Revenue growth 5Y23.73%
Sales Q2Q%-2.77%
Revenue Next Year-1.92%
Revenue Next 2Y-0.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-47.19%
EBIT growth 3Y-54.86%
EBIT growth 5Y-3.82%
EBIT Next Year771.36%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y142.41%
FCF growth 3YN/A
FCF growth 5Y53.61%
OCF growth 1Y45.42%
OCF growth 3Y-14.27%
OCF growth 5Y21.67%
EVOLUTION PETROLEUM CORP / EPM FAQ
What is the fundamental rating for EPM stock?
ChartMill assigns a fundamental rating of 3 / 10 to EPM.
What is the valuation status for EPM stock?
ChartMill assigns a valuation rating of 2 / 10 to EVOLUTION PETROLEUM CORP (EPM). This can be considered as Overvalued.
What is the profitability of EPM stock?
EVOLUTION PETROLEUM CORP (EPM) has a profitability rating of 2 / 10.
How financially healthy is EVOLUTION PETROLEUM CORP?
The financial health rating of EVOLUTION PETROLEUM CORP (EPM) is 4 / 10.
What is the expected EPS growth for EVOLUTION PETROLEUM CORP (EPM) stock?
The Earnings per Share (EPS) of EVOLUTION PETROLEUM CORP (EPM) is expected to decline by -201% in the next year.