Evolution Petroleum Corporation Fundamental Analysis
Evolution Petroleum Corporation Fundamental Analysis
Evolution Petroleum Corporation (EPM) shows weak financial fundamentals with a PE ratio of -41.50, profit margin of -4.36%, and ROE of -5.44%. The company generates $0.1B in annual revenue with weak year-over-year growth of -0.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 14.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EPM's fundamental strength across five key dimensions:
Efficiency Score
WeakEPM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEPM trades at attractive valuation levels.
Growth Score
WeakEPM faces weak or negative growth trends.
Financial Health Score
ModerateEPM shows balanced financial health with some risks.
Profitability Score
WeakEPM struggles to sustain strong margins.
Key Financial Metrics
Is EPM Expensive or Cheap?
P/E Ratio
EPM trades at -41.50 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EPM's PEG of -0.04 indicates potential undervaluation.
Price to Book
The market values Evolution Petroleum Corporation at 2.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.96 times EBITDA. This is generally considered low.
How Well Does EPM Make Money?
Net Profit Margin
For every $100 in sales, Evolution Petroleum Corporation keeps $-4.36 as profit after all expenses.
Operating Margin
Core operations generate 1.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.44 in profit for every $100 of shareholder equity.
ROA
Evolution Petroleum Corporation generates $-2.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Evolution Petroleum Corporation generates strong operating cash flow of $28.65M, reflecting robust business health.
Free Cash Flow
Evolution Petroleum Corporation produces free cash flow of $8.29M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.23 in free cash annually.
FCF Yield
EPM converts 4.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-41.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.006
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.05
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.010
vs 25 benchmark
How EPM Stacks Against Its Sector Peers
| Metric | EPM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -41.50 | 21.16 | Better (Cheaper) |
| ROE | -5.44% | 984.00% | Weak |
| Net Margin | -4.36% | -59500.00% (disorted) | Weak |
| Debt/Equity | 0.01 | -0.48 (disorted) | Distorted |
| Current Ratio | 0.61 | 4.98 | Weak Liquidity |
| ROA | -2.14% | -11018321.00% (disorted) | Weak |
EPM outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Evolution Petroleum Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
188.90%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-75.28%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
165.60%
Industry Style: Cyclical, Value, Commodity
High Growth