3.79 USD
+0.06 (+1.61%)
3.73 USD
-0.06 (-1.58%)
Overall EPM gets a fundamental rating of 3 out of 10. We evaluated EPM against 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of EPM have multiple concerns. EPM is valied quite expensively at the moment, while it does show a decent growth rate. 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.
- 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
- EPM has a worse Return On Assets (0.71%) than 65.22% of its industry peers.
- EPM has a Return On Equity of 1.59%. This is in the lower half of the industry: EPM underperforms 65.22% of its industry peers.
- EPM has a Return On Invested Capital of 2.30%. This is in the lower half of the industry: EPM underperforms 67.63% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EPM is significantly below the industry average of 21.94%.
- 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
- With a Profit Margin value of 1.33%, EPM is not doing good in the industry: 62.80% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of EPM has declined.
- Looking at the Operating Margin, with a value of 4.86%, EPM is doing worse than 64.73% of the companies in the same industry.
- EPM's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 42.52%, EPM is in line with its industry, outperforming 52.17% of the companies in the same industry.
- In the last couple of years the Gross Margin of EPM has declined.
| 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.
- The number of shares outstanding for EPM has been increased compared to 1 year ago.
- EPM has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for EPM has been reduced compared to a year ago.
2.2 Solvency
- EPM has an Altman-Z score of 1.69. This is a bad value and indicates that EPM is not financially healthy and even has some risk of bankruptcy.
- EPM's Altman-Z score of 1.69 is in line compared to the rest of the industry. EPM outperforms 59.90% 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.
- Looking at the Debt to FCF ratio, with a value of 3.29, EPM is in the better half of the industry, outperforming 75.36% of the companies in the same industry.
- 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 (0.52) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.26
WACC8.73%
2.3 Liquidity
- EPM has a Current 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 Current ratio of 0.81. This is in the lower half of the industry: EPM underperforms 67.15% of its industry peers.
- A Quick Ratio of 0.81 indicates that EPM may have some problems paying its short term obligations.
- EPM has a Quick ratio (0.81) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- EPM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -107.14%.
- The earnings per share for EPM have been decreasing by -25.42% on average. This is quite bad
- The Revenue has decreased by -0.04% in the past year.
- Measured over the past years, EPM shows a very strong growth in Revenue. The Revenue has been growing by 23.73% on average per year.
EPS 1Y (TTM)-107.14%
EPS 3Y-68.61%
EPS 5Y-25.42%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y-7.63%
Revenue growth 5Y23.73%
Sales Q2Q%-2.78%
3.2 Future
- Based on estimates for the next years, EPM will show a very strong growth in Earnings Per Share. The EPS will grow by 65.61% on average per year.
- Based on estimates for the next years, EPM will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
EPS Next Y-77.54%
EPS Next 2Y-66.52%
EPS Next 3Y82.32%
EPS Next 5Y65.61%
Revenue Next Year-1.34%
Revenue Next 2Y-0.07%
Revenue Next 3YN/A
Revenue Next 5Y3.33%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- The Price/Earnings Ratio is negative for EPM. In the last year negative earnings were reported.
- The Price/Forward Earnings ratio is 1126.87, which means the current valuation is very expensive for EPM.
- Based on the Price/Forward Earnings ratio, EPM is valued a bit more expensive than the industry average as 67.15% of the companies are valued more cheaply.
- EPM is valuated expensively when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1126.87 |
4.2 Price Multiples
- 67.63% of the companies in the same industry are more expensive than EPM, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EPM indicates a somewhat cheap valuation: EPM is cheaper than 74.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.52 | ||
| EV/EBITDA | 6.28 |
4.3 Compensation for Growth
- EPM's earnings are expected to grow with 82.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-66.52%
EPS Next 3Y82.32%
5. Dividend
5.1 Amount
- EPM has a Yearly Dividend Yield of 13.01%, which is a nice return.
- EPM's Dividend Yield is rather good when compared to the industry average which is at 3.73. EPM pays more dividend than 97.58% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, EPM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.01% |
5.2 History
- On average, the dividend of EPM grows each year by 8.26%, which is quite nice.
- 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)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 2Y-66.52%
EPS Next 3Y82.32%
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 of EVOLUTION PETROLEUM CORP (EPM) stock?
ChartMill assigns a valuation rating of 2 / 10 to EVOLUTION PETROLEUM CORP (EPM). This can be considered as Overvalued.
Can you provide the profitability details for EVOLUTION PETROLEUM CORP?
EVOLUTION PETROLEUM CORP (EPM) has a profitability rating of 2 / 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 -77.54% in the next year.
Can you provide the dividend sustainability for EPM stock?
The dividend rating of EVOLUTION PETROLEUM CORP (EPM) is 7 / 10 and the dividend payout ratio is 1428.93%.