EVOLUTION PETROLEUM CORP (EPM)
US30049A1079 - Common Stock
EPM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. EPM has an excellent financial health rating, but there are some minor concerns on its profitability. EPM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
EPM had positive 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.
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 13.20%, EPM is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
The Return On Equity of EPM (19.02%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 15.03%, EPM is doing good in the industry, outperforming 75.59% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EPM is significantly below the industry average of 45.80%.
The last Return On Invested Capital (15.03%) for EPM is well below the 3 year average (21.83%), which needs to be investigated, but indicates that EPM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.2% | ||
| ROE | 19.02% | ||
| ROIC | 15.03% |
ROA(3y)9.35%
ROA(5y)10.11%
ROE(3y)17.11%
ROE(5y)15.71%
ROIC(3y)21.83%
ROIC(5y)16.98%
1.3 Margins
With a Profit Margin value of 17.20%, EPM perfoms like the industry average, outperforming 52.11% of the companies in the same industry.
In the last couple of years the Profit Margin of EPM has declined.
The Operating Margin of EPM (22.06%) is comparable to the rest of the industry.
EPM's Operating Margin has declined in the last couple of years.
EPM has a Gross Margin (48.66%) which is in line with its industry peers.
In the last couple of years the Gross Margin of EPM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.06% | ||
| PM (TTM) | 17.2% | ||
| GM | 48.66% |
OM growth 3Y27%
OM growth 5Y-2.46%
PM growth 3Y10.96%
PM growth 5Y-10.65%
GM growth 3Y-0.43%
GM growth 5Y-5.53%
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.
EPM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EPM has more shares outstanding
There is no outstanding debt for EPM. 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
EPM has an Altman-Z score of 4.88. This indicates that EPM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.88, EPM belongs to the top of the industry, outperforming 88.26% of the companies in the same industry.
EPM 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 | 0 | ||
| Altman-Z | 4.88 |
ROIC/WACC1.68
WACC8.97%
2.3 Liquidity
A Current Ratio of 1.46 indicates that EPM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, EPM is in the better half of the industry, outperforming 64.32% of the companies in the same industry.
EPM has a Quick Ratio of 1.46. This is a normal value and indicates that EPM is financially healthy and should not expect problems in meeting its short term obligations.
EPM's Quick ratio of 1.46 is fine compared to the rest of the industry. EPM outperforms 69.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The earnings per share for EPM have decreased strongly by -61.29% in the last year.
Measured over the past years, EPM shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.46% on average per year.
EPM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -31.53%.
The Revenue has been growing by 25.81% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-61.29%
EPS 3Y100%
EPS 5Y20.46%
EPS growth Q2Q-90.32%
Revenue 1Y (TTM)-31.53%
Revenue growth 3Y63.14%
Revenue growth 5Y25.81%
Revenue growth Q2Q-37.57%
3.2 Future
EPM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -31.02% yearly.
EPM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.30% yearly.
EPS Next Y-83%
EPS Next 2Y-31.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-31.59%
Revenue Next 2Y-7.3%
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 11.90, the valuation of EPM can be described as reasonable.
EPM's Price/Earnings is on the same level as the industry average.
EPM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.20.
A Price/Forward Earnings ratio of 11.54 indicates a reasonable valuation of EPM.
60.56% of the companies in the same industry are more expensive than EPM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EPM to the average of the S&P500 Index (21.60), we can say EPM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 11.54 |
4.2 Price Multiples
EPM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EPM is cheaper than 65.26% of the companies in the same industry.
74.65% of the companies in the same industry are more expensive than EPM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.61 | ||
| EV/EBITDA | 4.88 |
4.3 Compensation for Growth
EPM's earnings are expected to decrease with -31.02% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-31.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EPM has a Yearly Dividend Yield of 8.53%, which is a nice return.
EPM's Dividend Yield is rather good when compared to the industry average which is at 5.79. EPM pays more dividend than 84.98% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, EPM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.53% |
5.2 History
The dividend of EPM is nicely growing with an annual growth rate of 6.61%!
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)6.61%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
EPM pays out 96.55% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of EPM has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP96.55%
EPS Next 2Y-31.02%
EPS Next 3YN/A
EVOLUTION PETROLEUM CORP
NYSEARCA:EPM (4/23/2024, 7:04:00 PM)
After market: 5.7 -0.01 (-0.18%)5.71
-0.03 (-0.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap191.06M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 11.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.2% | ||
| ROE | 19.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.06% | ||
| PM (TTM) | 17.2% | ||
| GM | 48.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-61.29%
EPS 3Y100%
EPS 5Y
EPS growth Q2Q
EPS Next Y-83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-31.53%
Revenue growth 3Y63.14%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y