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EPN

Epsilon HealthcareASX:EPN Stock Report

Market Cap

AU$27.0m

7D

18.2%

1Y

-43.5%

Updated

19 Oct, 2021

Data

Company Financials
EPN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends0/6

EPN Overview

Epsilon Healthcare Limited operates as a healthcare and pharmaceuticals company primarily in Australia and Canada.

Price History & Performance

Summary of all time highs, changes and price drops for Epsilon Healthcare
Historical stock prices
Current Share PriceAU$0.13
52 Week HighAU$0.10
52 Week LowAU$0.33
Beta1.32
1 Month Change-13.33%
3 Month Change-10.35%
1 Year Change-43.48%
3 Year Change-76.36%
5 Year Changen/a
Change since IPO-67.90%

Recent News & Updates

Sep 26
We Think Epsilon Healthcare (ASX:EPN) Has A Fair Chunk Of Debt

We Think Epsilon Healthcare (ASX:EPN) Has A Fair Chunk Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jun 13
Is Epsilon Healthcare (ASX:EPN) Weighed On By Its Debt Load?

Is Epsilon Healthcare (ASX:EPN) Weighed On By Its Debt Load?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

EPNAU PharmaceuticalsAU Market
7D18.2%2.8%1.7%
1Y-43.5%4.9%20.3%

Return vs Industry: EPN underperformed the Australian Pharmaceuticals industry which returned 4.9% over the past year.

Return vs Market: EPN underperformed the Australian Market which returned 20.3% over the past year.

Price Volatility

Is EPN's price volatile compared to industry and market?
EPN volatility
EPN Beta1.32
Industry Beta1.3
Market Beta1

Stable Share Price: EPN is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: EPN's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2016n/aJarrod Whitehttps://www.epsilonhealthcare.com.au

Epsilon Healthcare Limited operates as a healthcare and pharmaceuticals company primarily in Australia and Canada. It engages in the manufacture and distribution of hydroponics equipment, materials, and nutrients; and development and delivery of medicinal cannabis, as well as provides turnkey cultivation solutions. The company was formerly known as THC Global Group Limited and changed its name to Epsilon Healthcare Limited in February 2021.

Epsilon Healthcare Fundamentals Summary

How do Epsilon Healthcare's earnings and revenue compare to its market cap?
EPN fundamental statistics
Market CapAU$26.98m
Earnings (TTM)-AU$9.12m
Revenue (TTM)AU$6.72m

3.7x

P/S Ratio

-2.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EPN income statement (TTM)
RevenueAU$6.72m
Cost of RevenueAU$4.43m
Gross ProfitAU$2.29m
ExpensesAU$11.40m
Earnings-AU$9.12m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.047
Gross Margin34.03%
Net Profit Margin-135.71%
Debt/Equity Ratio15.4%

How did EPN perform over the long term?

See historical performance and comparison

Valuation

Is Epsilon Healthcare undervalued compared to its fair value and its price relative to the market?

1.13x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate EPN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate EPN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: EPN is unprofitable, so we can't compare its PE Ratio to the Oceanic Pharmaceuticals industry average.

PE vs Market: EPN is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EPN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EPN is good value based on its PB Ratio (1.1x) compared to the AU Pharmaceuticals industry average (3.5x).


Future Growth

How is Epsilon Healthcare forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

67.4%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Epsilon Healthcare has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Epsilon Healthcare performed over the past 5 years?

-27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EPN is currently unprofitable.

Growing Profit Margin: EPN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EPN is unprofitable, and losses have increased over the past 5 years at a rate of 27.1% per year.

Accelerating Growth: Unable to compare EPN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EPN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (17.4%).


Return on Equity

High ROE: EPN has a negative Return on Equity (-41.23%), as it is currently unprofitable.


Financial Health

How is Epsilon Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: EPN's short term assets (A$7.4M) exceed its short term liabilities (A$6.7M).

Long Term Liabilities: EPN's short term assets (A$7.4M) exceed its long term liabilities (A$4.1M).


Debt to Equity History and Analysis

Debt Level: EPN's debt to equity ratio (15.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if EPN's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EPN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: EPN has less than a year of cash runway if free cash flow continues to reduce at historical rates of 22.7% each year


Dividend

What is Epsilon Healthcare current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EPN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EPN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EPN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EPN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EPN's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Jarrod White

1.08yrs

Tenure

AU$198,750

Compensation

Mr. Jarrod Travers White, B.Bus, CA, CTA, serves as Chief Financial Officer at High Peak Royalties Limited and serves as the Company Secretary since June 18, 2021 and served as Joint Company Secretary unti...


CEO Compensation Analysis

Compensation vs Market: Jarrod's total compensation ($USD147.30K) is below average for companies of similar size in the Australian market ($USD301.95K).

Compensation vs Earnings: Jarrod's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: EPN's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: EPN's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.5%.


Top Shareholders

Company Information

Epsilon Healthcare Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Epsilon Healthcare Limited
  • Ticker: EPN
  • Exchange: ASX
  • Founded: 2016
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$26.979m
  • Shares outstanding: 192.71m
  • Website: https://www.epsilonhealthcare.com.au

Location

  • Epsilon Healthcare Limited
  • 35 Lime Street
  • Suite 305
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 07:02
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.