EPSILON ENERGY LTD (EPSN) Stock Fundamental Analysis
USA - NASDAQ:EPSN - CA2943752097 - Common Stock
5.18 USD
+0.03 (+0.58%)
5.33 USD
+0.15 (+2.9%)
EPSN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. EPSN has an excellent financial health rating, but there are some minor concerns on its profitability. EPSN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year EPSN was profitable.
EPSN had a positive operating cash flow in the past year.
In the past 5 years EPSN has always been profitable.
EPSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.18%, EPSN perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
EPSN has a Return On Equity of 5.16%. This is comparable to the rest of the industry: EPSN outperforms 43.81% of its industry peers.
EPSN has a Return On Invested Capital of 6.85%. This is in the better half of the industry: EPSN outperforms 60.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EPSN is significantly below the industry average of 21.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 5.16% | ||
| ROIC | 6.85% |
ROA(3y)11.91%
ROA(5y)9.69%
ROE(3y)14.27%
ROE(5y)11.75%
ROIC(3y)10.21%
ROIC(5y)8.94%
1.3 Margins
With a decent Profit Margin value of 11.75%, EPSN is doing good in the industry, outperforming 61.43% of the companies in the same industry.
In the last couple of years the Profit Margin of EPSN has declined.
The Operating Margin of EPSN (29.48%) is better than 72.38% of its industry peers.
EPSN's Operating Margin has declined in the last couple of years.
The Gross Margin of EPSN (74.34%) is better than 86.67% of its industry peers.
EPSN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.48% | ||
| PM (TTM) | 11.75% | ||
| GM | 74.34% |
OM growth 3Y-31.37%
OM growth 5Y-9.53%
PM growth 3Y-39.36%
PM growth 5Y-28.44%
GM growth 3Y-4.33%
GM growth 5Y-0.17%
2. Health
2.1 Basic Checks
EPSN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
EPSN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EPSN has been reduced compared to 5 years ago.
There is no outstanding debt for EPSN. 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
EPSN has an Altman-Z score of 3.26. This indicates that EPSN is financially healthy and has little risk of bankruptcy at the moment.
EPSN has a Altman-Z score of 3.26. This is amongst the best in the industry. EPSN outperforms 83.81% of its industry peers.
EPSN 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 | 3.26 |
ROIC/WACC0.78
WACC8.82%
2.3 Liquidity
EPSN has a Current Ratio of 2.23. This indicates that EPSN is financially healthy and has no problem in meeting its short term obligations.
EPSN has a Current ratio of 2.23. This is in the better half of the industry: EPSN outperforms 79.05% of its industry peers.
EPSN has a Quick Ratio of 2.23. This indicates that EPSN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.23, EPSN belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 68.00% over the past year.
Measured over the past years, EPSN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.77% on average per year.
The Revenue has grown by 45.91% in the past year. This is a very strong growth!
Measured over the past years, EPSN shows a small growth in Revenue. The Revenue has been growing by 3.38% on average per year.
EPS 1Y (TTM)68%
EPS 3Y-43.6%
EPS 5Y-22.77%
EPS Q2Q%375%
Revenue 1Y (TTM)45.91%
Revenue growth 3Y-9.41%
Revenue growth 5Y3.38%
Sales Q2Q%59.03%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y206%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year38.2%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.33, EPSN is valued correctly.
EPSN's Price/Earnings ratio is a bit cheaper when compared to the industry. EPSN is cheaper than 65.71% of the companies in the same industry.
EPSN is valuated cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.58 indicates a reasonable valuation of EPSN.
EPSN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EPSN is cheaper than 68.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EPSN to the average of the S&P500 Index (22.89), we can say EPSN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPSN is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as EPSN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.27 | ||
| EV/EBITDA | 4.08 |
4.3 Compensation for Growth
EPSN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
EPSN has a Yearly Dividend Yield of 4.81%, which is a nice return.
The stock price of EPSN dropped by -30.75% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
EPSN's Dividend Yield is a higher than the industry average which is at 6.00.
Compared to an average S&P500 Dividend Yield of 2.38, EPSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
5.2 History
EPSN has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
EPSN pays out 106.25% of its income as dividend. This is not a sustainable payout ratio.
DP106.25%
EPS Next 2YN/A
EPS Next 3YN/A
5.18
+0.03 (+0.58%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners63.82%
Inst Owner Change17.94%
Ins Owners4.76%
Ins Owner Change0.49%
Market Cap114.27M
Analysts82.86
Price Target8.57 (65.44%)
Short Float %2.16%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP106.25%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)79.45%
Min EPS beat(2)26.05%
Max EPS beat(2)132.84%
EPS beat(4)2
Avg EPS beat(4)16.68%
Min EPS beat(4)-50.98%
Max EPS beat(4)132.84%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)15.75%
Min Revenue beat(2)-3.78%
Max Revenue beat(2)35.29%
Revenue beat(4)2
Avg Revenue beat(4)8.04%
Min Revenue beat(4)-3.78%
Max Revenue beat(4)35.29%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-70%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 10.58 | ||
| P/S | 2.6 | ||
| P/FCF | 18.27 | ||
| P/OCF | 4.63 | ||
| P/B | 1.14 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 4.08 |
EPS(TTM)0.42
EY8.11%
EPS(NY)0.49
Fwd EY9.45%
FCF(TTM)0.28
FCFY5.47%
OCF(TTM)1.12
OCFY21.6%
SpS2
BVpS4.54
TBVpS4.54
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 5.16% | ||
| ROCE | 11.17% | ||
| ROIC | 6.85% | ||
| ROICexc | 7.49% | ||
| ROICexgc | 7.49% | ||
| OM | 29.48% | ||
| PM (TTM) | 11.75% | ||
| GM | 74.34% | ||
| FCFM | 14.21% |
ROA(3y)11.91%
ROA(5y)9.69%
ROE(3y)14.27%
ROE(5y)11.75%
ROIC(3y)10.21%
ROIC(5y)8.94%
ROICexc(3y)15.79%
ROICexc(5y)13.41%
ROICexgc(3y)15.79%
ROICexgc(5y)13.41%
ROCE(3y)16.64%
ROCE(5y)14.58%
ROICexcg growth 3Y-47.2%
ROICexcg growth 5Y-12.62%
ROICexc growth 3Y-47.2%
ROICexc growth 5Y-12.62%
OM growth 3Y-31.37%
OM growth 5Y-9.53%
PM growth 3Y-39.36%
PM growth 5Y-28.44%
GM growth 3Y-4.33%
GM growth 5Y-0.17%
F-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 148.22% | ||
| Cap/Sales | 41.87% | ||
| Interest Coverage | 491.49 | ||
| Cash Conversion | 97.15% | ||
| Profit Quality | 120.94% | ||
| Current Ratio | 2.23 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 3.26 |
F-Score7
WACC8.82%
ROIC/WACC0.78
Cap/Depr(3y)242.3%
Cap/Depr(5y)173.79%
Cap/Sales(3y)62.73%
Cap/Sales(5y)45.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68%
EPS 3Y-43.6%
EPS 5Y-22.77%
EPS Q2Q%375%
EPS Next Y206%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)45.91%
Revenue growth 3Y-9.41%
Revenue growth 5Y3.38%
Sales Q2Q%59.03%
Revenue Next Year38.2%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y158.31%
EBIT growth 3Y-37.82%
EBIT growth 5Y-6.47%
EBIT Next Year539.19%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-60.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.93%
OCF growth 3Y-5.61%
OCF growth 5Y5.32%