Evolution Petroleum Corp

Find Ratings Reports
EPM : AMEX : Basic Materials
$6.59 | %
Today's Range: 6.44 - 6.82
Avg. Daily Volume: 55,600
09/23/16 - 4:02 PM ET

Financial Analysis


EVOLUTION PETROLEUM CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. EVOLUTION PETROLEUM CORP is extremely liquid. Currently, the Quick Ratio is 4.30 which clearly shows the ability to cover any short-term cash needs. EPM managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 57.11% 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 FY16 Q4 FY15
Net Sales ($mil)7.249.06
EBITDA ($mil)2.184.54
EBIT ($mil)0.963.34
Net Income ($mil)20.871.89


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)34.0820.12
Total Assets ($mil)97.4569.88
Total Debt ($mil)0.00.0
Equity ($mil)76.3248.58


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin71.9468.56
EBITDA Margin30.0550.06
Operating Margin13.236.83
Sales Turnover0.270.4
Return on Assets25.37.14
Return on Equity31.428.88
Debt Q4 FY16 Q4 FY15
Current Ratio4.352.54
Debt/Capital0.00.0
Interest Expense0.020.02
Interest Coverage47.8175.68


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)32.9132.85
Div / share0.050.05
EPS0.630.05
Book value / share2.321.48
Institutional Own % n/a n/a
Avg Daily Volume56023.045905.0

Valuation


BUY. EVOLUTION PETROLEUM CORP's P/E ratio indicates a significant discount compared to an average of 80.60 for the Oil, Gas & Consumable Fuels industry and a significant discount compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 2.82 indicates valuation on par with the S&P 500 average of 2.82 and a significant discount versus the industry average of 15.56. 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 8.97 Peers 80.60   EPM 7.03 Peers 10.97

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.

 

Discount. 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 significant discount 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 19.85 Peers 49.84   EPM NM Peers 3.87

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EPM 2.82 Peers 15.56   EPM 461.53 Peers -227.20

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.

 

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

EPM is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EPM 8.18 Peers 2.58   EPM -5.36 Peers -26.14

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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