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EPSN

Epsilon EnergyNasdaqGM:EPSN Stock Report

Market Cap

US$133.4m

7D

-2.1%

1Y

77.2%

Updated

21 Oct, 2021

Data

Company Financials
EPSN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends0/6

EPSN Overview

Epsilon Energy Ltd., a natural gas and oil company, engages in the acquisition, development, gathering, and production of oil and gas reserves in the United States.

Rewards

Trading at 12.4% below our estimate of its fair value

Earnings grew by 4.7% over the past year

Risk Analysis

No risks detected for EPSN from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Epsilon Energy
Historical stock prices
Current Share PriceUS$5.67
52 Week HighUS$3.04
52 Week LowUS$6.80
Beta0.35
1 Month Change10.10%
3 Month Change10.74%
1 Year Change77.19%
3 Year Change46.96%
5 Year Change30.04%
Change since IPO-0.87%

Recent News & Updates

Oct 01
What Epsilon Energy Ltd.'s (NASDAQ:EPSN) 26% Share Price Gain Is Not Telling You

What Epsilon Energy Ltd.'s (NASDAQ:EPSN) 26% Share Price Gain Is Not Telling You

Epsilon Energy Ltd. ( NASDAQ:EPSN ) shareholders have had their patience rewarded with a 26% share price jump in the...

Jun 19

Epsilon Energy: Growth In The Cards

Cash balance far exceeds liabilities. Chesapeake Energy operates the leases. The midstream interest lowers the volatility of earnings when compared to pure upstream companies. This company may be too small to attract the interest of institutional buyers. Growth appears assured for the near future.

May 13
We Think You Can Look Beyond Epsilon Energy's (NASDAQ:EPSN) Lackluster Earnings

We Think You Can Look Beyond Epsilon Energy's (NASDAQ:EPSN) Lackluster Earnings

The market for Epsilon Energy Ltd.'s ( NASDAQ:EPSN ) shares didn't move much after it posted weak earnings recently...

Shareholder Returns

EPSNUS Oil and GasUS Market
7D-2.1%3.6%3.8%
1Y77.2%97.5%31.5%

Return vs Industry: EPSN underperformed the US Oil and Gas industry which returned 92.2% over the past year.

Return vs Market: EPSN exceeded the US Market which returned 30.5% over the past year.

Price Volatility

Is EPSN's price volatile compared to industry and market?
EPSN volatility
EPSN Beta0.35
Industry Beta1.74
Market Beta1

Stable Share Price: EPSN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: EPSN's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20059Mike Raleighhttps://www.epsilonenergyltd.com

Epsilon Energy Ltd., a natural gas and oil company, engages in the acquisition, development, gathering, and production of oil and gas reserves in the United States. It operates through Upstream and Gathering System segments. The company primarily focuses on the Marcellus Shale comprising 3,979 net acres located in the Susquehanna County, Pennsylvania; and Anadarko basin comprising 8,594 net acres located in the Oklahoma.

Epsilon Energy Fundamentals Summary

How do Epsilon Energy's earnings and revenue compare to its market cap?
EPSN fundamental statistics
Market CapUS$133.41m
Earnings (TTM)US$3.38m
Revenue (TTM)US$27.25m

39.5x

P/E Ratio

4.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EPSN income statement (TTM)
RevenueUS$27.25m
Cost of RevenueUS$8.00m
Gross ProfitUS$19.25m
ExpensesUS$15.87m
EarningsUS$3.38m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.14
Gross Margin70.65%
Net Profit Margin12.41%
Debt/Equity Ratio0.0%

How did EPSN perform over the long term?

See historical performance and comparison

Valuation

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

13.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EPSN ($5.76) is trading below our estimate of fair value ($6.58)

Significantly Below Fair Value: EPSN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EPSN is poor value based on its PE Ratio (40.1x) compared to the US Oil and Gas industry average (19.3x).

PE vs Market: EPSN is poor value based on its PE Ratio (40.1x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EPSN is good value based on its PB Ratio (1.9x) compared to the US Oil and Gas industry average (2x).


Future Growth

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

13.8%

Forecasted Energy 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 Energy 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 Energy performed over the past 5 years?

48.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EPSN has high quality earnings.

Growing Profit Margin: EPSN's current net profit margins (12.4%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: EPSN has become profitable over the past 5 years, growing earnings by 48.9% per year.

Accelerating Growth: EPSN's earnings growth over the past year (4.7%) is below its 5-year average (48.9% per year).

Earnings vs Industry: EPSN earnings growth over the past year (4.7%) exceeded the Oil and Gas industry -18.6%.


Return on Equity

High ROE: EPSN's Return on Equity (4.8%) is considered low.


Financial Health

How is Epsilon Energy's financial position?


Financial Position Analysis

Short Term Liabilities: EPSN's short term assets ($22.7M) exceed its short term liabilities ($6.7M).

Long Term Liabilities: EPSN's short term assets ($22.7M) exceed its long term liabilities ($13.4M).


Debt to Equity History and Analysis

Debt Level: EPSN is debt free.

Reducing Debt: EPSN has no debt compared to 5 years ago when its debt to equity ratio was 70.7%.

Debt Coverage: EPSN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: EPSN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate EPSN'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 EPSN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EPSN'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 EPSN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Mike Raleigh (63 yo)

8.25yrs

Tenure

US$928,980

Compensation

Mr. Michael P. Raleigh, also known as Mike, P.Eng, M.B.A. has been a Founding Partner of Lobo Baya, LLC., since 2005. Mr. Raleigh has been Chief Executive Officer of Epsilon Energy Ltd. (Canada) since July...


Leadership Team

Experienced Management: EPSN's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: EPSN's board of directors are considered experienced (5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Epsilon Energy Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Epsilon Energy Ltd.
  • Ticker: EPSN
  • Exchange: NasdaqGM
  • Founded: 2005
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$133.414m
  • Shares outstanding: 23.53m
  • Website: https://www.epsilonenergyltd.com

Number of Employees


Location

  • Epsilon Energy Ltd.
  • 16945 Northchase Drive
  • Suite 1610
  • Houston
  • Texas
  • 77060
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 23:03
End of Day Share Price2021/10/21 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.