Evolution Petroleum Corp

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EPM : AMEX : Basic Materials
$6.85 | %
Today's Range: 6.8 - 6.95
Avg. Daily Volume: 96000.0
09/22/17 - 3:59 PM ET

Financial Analysis


EVOLUTION PETROLEUM CORP's gross profit margin for the fourth quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. EVOLUTION PETROLEUM CORP is extremely liquid. Currently, the Quick Ratio is 9.47 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 10.28% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)8.847.24
EBITDA ($mil)4.222.18
EBIT ($mil)2.590.96
Net Income ($mil)1.520.87


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)23.0334.08
Total Assets ($mil)88.2797.45
Total Debt ($mil)0.00.0
Equity ($mil)68.4776.32


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin61.6771.94
EBITDA Margin47.7930.05
Operating Margin29.2913.2
Sales Turnover0.390.27
Return on Assets9.1125.3
Return on Equity9.9131.42
Debt Q4 FY17 Q4 FY16
Current Ratio9.614.35
Debt/Capital0.00.0
Interest Expense0.020.02
Interest Coverage123.2447.8


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)33.0932.91
Div / share0.070.05
EPS0.050.63
Book value / share2.072.32
Institutional Own % n/a n/a
Avg Daily Volume92159.0113902.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 54.14 for the Oil, Gas & Consumable Fuels industry and a premium compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 3.33 indicates valuation on par with the S&P 500 average of 3.10 and a significant discount versus the industry average of 475.26. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, EVOLUTION PETROLEUM CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EPM 32.86 Peers 54.14   EPM 13.84 Peers 11.41

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

EPM is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

EPM is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EPM 20.60 Peers 53.05   EPM 0.75 Peers 0.57

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

EPM is trading at a significant discount to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

EPM trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EPM 3.33 Peers 475.26   EPM -71.24 Peers 184.28

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

EPM is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, EPM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EPM 6.62 Peers 2.13   EPM 30.87 Peers 21.12

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

EPM is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

EPM has a sales growth rate that significantly exceeds its peers.

 

 

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