AMEX:EPM

Stock Analysis Report

Evolution Petroleum

Executive Summary

Evolution Petroleum Corporation, an oil and gas company, engages in the development, production, ownership, and management of oil and gas properties in the United States.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Evolution Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EPM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.4%

EPM

-1.8%

US Oil and Gas

0.5%

US Market


1 Year Return

-45.1%

EPM

-13.9%

US Oil and Gas

16.1%

US Market

Return vs Industry: EPM underperformed the US Oil and Gas industry which returned -13.9% over the past year.

Return vs Market: EPM underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

EPMIndustryMarket
7 Day-11.4%-1.8%0.5%
30 Day-7.4%0.04%3.9%
90 Day-8.3%1.9%6.6%
1 Year-41.8%-45.1%-10.8%-13.9%18.7%16.1%
3 Year-30.5%-39.5%-10.2%-18.5%47.2%37.7%
5 Year-25.0%-39.5%-23.3%-34.4%61.5%43.7%

Price Volatility Vs. Market

How volatile is Evolution Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Evolution Petroleum undervalued compared to its fair value and its price relative to the market?

25.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EPM ($5.11) is trading below our estimate of fair value ($6.88)

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


Price To Earnings Ratio

PE vs Industry: EPM is poor value based on its PE Ratio (13.7x) compared to the Oil and Gas industry average (10x).

PE vs Market: EPM is good value based on its PE Ratio (13.7x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: EPM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: EPM is overvalued based on its PB Ratio (2.1x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Evolution Petroleum forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EPM's earnings are forecast to decline over the next 3 years (-9.9% per year).

Earnings vs Market: EPM's earnings are forecast to decline over the next 3 years (-9.9% per year).

High Growth Earnings: EPM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: EPM's revenue (1.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: EPM's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EPM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Evolution Petroleum performed over the past 5 years?

21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EPM has high quality earnings.

Growing Profit Margin: EPM's current net profit margins (30.9%) are lower than last year (52.1%).


Past Earnings Growth Analysis

Earnings Trend: EPM's earnings have grown significantly by 21.1% per year over the past 5 years.

Accelerating Growth: EPM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EPM had negative earnings growth (-46.8%) over the past year, making it difficult to compare to the Oil and Gas industry average (-9.9%).


Return on Equity

High ROE: EPM's Return on Equity (15.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Evolution Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: EPM's short term assets ($34.7M) exceeds its short term liabilities ($3.1M)

Long Term Liabilities: EPM's short term assets ($34.7M) exceeds its long term liabilities (13.0M)


Debt to Equity History and Analysis

Debt Level: EPM is debt free.

Reducing Debt: EPM has not had any debt for past 5 years.

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

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


Balance Sheet

Inventory Level: EPM has a high level of physical assets or inventory.

Debt Coverage by Assets: EPM's debt is not covered by short term assets (assets are -1.2515292235712E+18x debt).


Next Steps

Dividend

What is Evolution Petroleum's current dividend yield, its reliability and sustainability?

7.83%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Evolution Petroleum before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company7.8%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: EPM's dividend (7.83%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: EPM's dividend (7.83%) is in the top 25% of dividend payers in the US market (3.65%)


Stability and Growth of Payments

Stable Dividend: EPM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EPM has only been paying a dividend for 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (107.2%), EPM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Evolution Petroleum's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Jason Brown (42yo)

0.3yrs

Tenure

0

Mr. Jason E. Brown has been President and Chief Executive Officer of Evolution Petroleum Corporation since July 10, 2019. He served as Vice President of Corporate Development of Halcón Resources Corporatio ...


Management Age and Tenure

2.6yrs

Average Tenure

53yo

Average Age

Experienced Management: EPM's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

64yo

Average Age

Experienced Board: EPM's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$3,803,08001 Oct 19
JVL Advisors, LLC
EntityCompany
Shares656,820
Max PriceUS$6.02
SellUS$215,04924 Jul 19
JVL Advisors, LLC
EntityCompany
Shares29,875
Max PriceUS$7.20
BuyUS$46,30802 Jan 19
Marran J. Ogilvie
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,800
Max PriceUS$6.81

Ownership Breakdown

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


Management Team

  • Robert Herlin (64yo)

    Co-Founder & Non-Executive Chairman

    • Tenure: 10.8yrs
    • Compensation: US$330.65k
  • David Joe (53yo)

    Senior VP

    • Tenure: 3.8yrs
    • Compensation: US$674.76k
  • Jason Brown (42yo)

    CEO & President

    • Tenure: 0.3yrs
  • Steve Hicks

    Senior Vice President of Engineering & Business Development

    • Tenure: 1.4yrs
  • Rod Schultz

    VP & Chief Accounting Officer

    • Tenure: 3.8yrs

Board Members

  • Bill Dozier (67yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$323.00k
  • Robert Herlin (64yo)

    Co-Founder & Non-Executive Chairman

    • Tenure: 10.8yrs
    • Compensation: US$330.65k
  • Marran J. Ogilvie (51yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$154.00k
  • Jed DiPaolo (66yo)

    Lead Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$151.50k
  • Kelly Loyd (45yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$133.00k

Company Information

Evolution Petroleum Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Evolution Petroleum Corporation
  • Ticker: EPM
  • Exchange: AMEX
  • Founded: 2003
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$167.360m
  • Shares outstanding: 32.75m
  • Website: https://www.evolutionpetroleum.com

Number of Employees


Location

  • Evolution Petroleum Corporation
  • 1155 Dairy Ashford Road
  • Suite 425
  • Houston
  • Texas
  • 77079
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EPMAMEX (NYSE MKT LLC)YesCommon StockUSUSDMay 2004
EP7DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2004

Biography

Evolution Petroleum Corporation, an oil and gas company, engages in the development, production, ownership, and management of oil and gas properties in the United States. The company primarily holds intere ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:09
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.