EVOLUTION PETROLEUM CORP (EPM) Stock Fundamental Analysis
USA - NYSEARCA:EPM - US30049A1079 - Common Stock
4.83 USD
+0.02 (+0.42%)
4.83 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to EPM. EPM was compared to 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. EPM has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
EPM had positive earnings in the past year.
In the past year EPM had a positive cash flow from operations.
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 64.45% of the companies in the same industry.
Looking at the Return On Equity, with a value of 1.59%, EPM is doing worse than 63.03% of the companies in the same industry.
The Return On Invested Capital of EPM (2.30%) is worse than 68.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EPM is significantly below the industry average of 21.55%.
The last Return On Invested Capital (2.30%) for EPM is well below the 3 year average (12.05%), which needs to be investigated, but indicates that EPM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.71% | ||
| 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
EPM has a Profit Margin of 1.33%. This is in the lower half of the industry: EPM underperforms 60.66% of its industry peers.
EPM's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.86%, EPM is not doing good in the industry: 66.35% of the companies in the same industry are doing better.
EPM's Operating Margin has declined in the last couple of years.
EPM has a Gross Margin (42.52%) which 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EPM is still creating some value.
Compared to 1 year ago, EPM has more shares outstanding
The number of shares outstanding for EPM has been increased compared to 5 years ago.
Compared to 1 year ago, EPM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.93 indicates that EPM is not a great score, but indicates only limited risk for bankruptcy at the moment.
EPM has a better Altman-Z score (1.93) than 63.51% of its industry peers.
EPM has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as EPM would need 3.29 years to pay back of 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 75.83% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that EPM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, EPM perfoms like the industry average, outperforming 47.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.26
WACC8.72%
2.3 Liquidity
A Current Ratio of 0.81 indicates that EPM may have some problems paying its short term obligations.
EPM has a Current ratio of 0.81. This is in the lower half of the industry: EPM underperforms 66.35% of its industry peers.
EPM has a Quick Ratio of 0.81. 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 of 0.81. This is comparable to the rest of the industry: EPM outperforms 42.18% of its industry peers.
| 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 -75.00% 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%.
The Revenue has been growing by 23.73% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-75%
EPS 3Y-68.61%
EPS 5Y-25.42%
EPS Q2Q%150%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y-7.63%
Revenue growth 5Y23.73%
Sales Q2Q%-0.56%
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 -97.11% on average per year.
EPM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.30% yearly.
EPS Next Y-201%
EPS Next 2Y-97.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.92%
Revenue Next 2Y-5.3%
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
Based on the Price/Earnings ratio of 161.00, the valuation of EPM can be described as expensive.
69.19% of the companies in the same industry are cheaper than EPM, based on the Price/Earnings ratio.
EPM is valuated expensively when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
EPM is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPM is valued a bit cheaper than 60.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EPM indicates a somewhat cheap valuation: EPM is cheaper than 63.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.55 | ||
| EV/EBITDA | 7.65 |
4.3 Compensation for Growth
EPM's earnings are expected to decrease with -97.11% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-97.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.92%, EPM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.08, EPM pays a better dividend. On top of this EPM pays more dividend than 89.57% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.92% |
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
EPM pays out 1428.93% of its income as dividend. This is not a sustainable payout ratio.
EPM's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP1428.93%
EPS Next 2Y-97.11%
EPS Next 3YN/A
4.83
+0.02 (+0.42%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.23%
Inst Owner Change0%
Ins Owners9.87%
Ins Owner Change3.03%
Market Cap165.96M
Analysts76.67
Price Target5.48 (13.46%)
Short Float %4.83%
Short Ratio7.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.92% |
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)5.39%
PT rev (3m)-12.6%
EPS NQ rev (1m)-100%
EPS NQ rev (3m)-100%
EPS NY rev (1m)-475%
EPS NY rev (3m)-118.75%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)-2.47%
Revenue NY rev (3m)-7.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161 | ||
| Fwd PE | N/A | ||
| P/S | 1.93 | ||
| P/FCF | 14.55 | ||
| P/OCF | 5.02 | ||
| P/B | 2.31 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 7.65 |
EPS(TTM)0.03
EY0.62%
EPS(NY)-0.03
Fwd EYN/A
FCF(TTM)0.33
FCFY6.88%
OCF(TTM)0.96
OCFY19.92%
SpS2.5
BVpS2.09
TBVpS2.09
PEG (NY)N/A
PEG (5Y)N/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%
ROICexcg growth 3Y-58.04%
ROICexcg 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 | 1.93 |
F-Score5
WACC8.72%
ROIC/WACC0.26
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)-75%
EPS 3Y-68.61%
EPS 5Y-25.42%
EPS Q2Q%150%
EPS Next Y-201%
EPS Next 2Y-97.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y-7.63%
Revenue growth 5Y23.73%
Sales Q2Q%-0.56%
Revenue Next Year-1.92%
Revenue Next 2Y-5.3%
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%