EPSILON ENERGY LTD (EPSN)
CA2943752097 - Common Stock
We assign a fundamental rating of 4 out of 10 to EPSN. EPSN was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While EPSN has a great health rating, its profitability is only average at the moment. EPSN is valued expensive and it does not seem to be growing.
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.
In the past 5 years EPSN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.60%, EPSN is in line with its industry, outperforming 43.93% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.90%, EPSN is doing worse than 70.09% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.23%, EPSN is doing worse than 72.90% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EPSN is significantly below the industry average of 44.55%.
The 3 year average ROIC (16.11%) for EPSN is well above the current ROIC(4.23%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 6.9% | ||
| ROIC | 4.23% |
ROA(3y)15.27%
ROA(5y)11.15%
ROE(3y)18.5%
ROE(5y)13.63%
ROIC(3y)16.11%
ROIC(5y)10.88%
1.3 Margins
EPSN's Profit Margin of 22.60% is in line compared to the rest of the industry. EPSN outperforms 59.81% of its industry peers.
In the last couple of years the Profit Margin of EPSN has remained more or less at the same level.
The Operating Margin of EPSN (22.36%) is comparable to the rest of the industry.
EPSN's Operating Margin has declined in the last couple of years.
EPSN has a Gross Margin of 71.15%. This is in the better half of the industry: EPSN outperforms 75.23% of its industry peers.
EPSN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.36% | ||
| PM (TTM) | 22.6% | ||
| GM | 71.15% |
OM growth 3Y91.3%
OM growth 5Y-7.16%
PM growth 3Y84.44%
PM growth 5Y0.14%
GM growth 3Y2.93%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EPSN is creating some value.
EPSN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EPSN has less shares outstanding
EPSN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
EPSN has an Altman-Z score of 3.32. This indicates that EPSN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.32, EPSN is in the better half of the industry, outperforming 75.70% of the companies in the same industry.
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 | N/A | ||
| Altman-Z | 3.32 |
ROIC/WACC0.46
WACC9.27%
2.3 Liquidity
EPSN has a Current Ratio of 5.21. This indicates that EPSN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EPSN (5.21) is better than 89.25% of its industry peers.
A Quick Ratio of 5.21 indicates that EPSN has no problem at all paying its short term obligations.
The Quick ratio of EPSN (5.21) is better than 90.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.21 | ||
| Quick Ratio | 5.21 |
3. Growth
3.1 Past
EPSN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -79.92%.
Measured over the past 5 years, EPSN shows a small growth in Earnings Per Share. The EPS has been growing by 5.15% on average per year.
Looking at the last year, EPSN shows a very negative growth in Revenue. The Revenue has decreased by -56.07% in the last year.
The Revenue has been growing slightly by 0.70% on average over the past years.
EPS 1Y (TTM)-79.92%
EPS 3Y117.46%
EPS 5Y5.15%
EPS growth Q2Q-70.73%
Revenue 1Y (TTM)-56.07%
Revenue growth 3Y7.95%
Revenue growth 5Y0.7%
Revenue growth Q2Q-43.74%
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 YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
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
EPSN is valuated rather expensively with a Price/Earnings ratio of 17.42.
Compared to the rest of the industry, the Price/Earnings ratio of EPSN indicates a slightly more expensive valuation: EPSN is more expensive than 69.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.06, EPSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPSN is valued a bit cheaper than the industry average as 67.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.54 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.38
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.59%, EPSN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.75, EPSN pays a bit more dividend than its industry peers.
EPSN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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 Years1
5.3 Sustainability
80.63% of the earnings are spent on dividend by EPSN. This is not a sustainable payout ratio.
DP80.63%
EPS Next 2YN/A
EPS Next 3YN/A
EPSILON ENERGY LTD
NASDAQ:EPSN (5/2/2024, 7:00:01 PM)
5.4
+0.06 (+1.12%)
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 Cap118.37M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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Revenue beat(2)
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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 | 17.42 | ||
| Fwd PE | N/A | ||
| 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)3.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.6% | ||
| ROE | 6.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.36% | ||
| PM (TTM) | 22.6% | ||
| GM | 71.15% | ||
| 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 Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.21 | ||
| Quick Ratio | 5.21 | ||
| 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)-79.92%
EPS 3Y117.46%
EPS 5Y
EPS growth Q2Q
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-56.07%
Revenue growth 3Y7.95%
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