📊 EPM Key Takeaways
Is EPM a Good Investment? Thesis Analysis
Evolution Petroleum demonstrates severe financial stress with deteriorating profitability, weak liquidity position (0.90x current ratio), and minimal interest coverage (1.0x) indicating elevated financial risk. Despite strong free cash flow conversion (31.5% FCF margin), flat year-over-year revenue and sharply declining earnings per share (-75% YoY) signal operational challenges that outweigh current cash generation capacity.
Why Buy EPM? Key Strengths
- Strong free cash flow conversion at 31.5% FCF margin relative to revenue
- Positive operating cash flow of $13.2M provides near-term liquidity buffer
- Zero long-term debt eliminates debt service obligations
EPM Investment Risks to Consider
- Critical liquidity concern: current ratio of 0.90x indicates insufficient current assets to cover short-term liabilities
- Severely compressed profitability with operating margin of only 1.4% and ROE/ROA both below 3%
- Flat revenue growth (-0.0% YoY) combined with 75% earnings per share decline suggests operational deterioration and possible non-recurring charges
- Inadequate interest coverage ratio of 1.0x indicates minimal margin of safety for debt obligations
- Total liabilities ($101.7M) represent 60% of total assets, creating balance sheet stress
Key Metrics to Watch
- Revenue trend and operating income stability - flat revenues with minimal margins are unsustainable
- Current ratio and cash position - liquidity depletion would trigger financial distress
- Free cash flow sustainability - confirm if 31.5% FCF margin is repeatable or anomalous
EPM Financial Metrics
💡 AI Analyst Insight
The 31.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
EPM Profitability Ratios
EPM vs Energy Sector
How EVOLUTION PETROLEUM CORP compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EPM Overvalued or Undervalued?
Based on fundamental analysis, EVOLUTION PETROLEUM CORP has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
EPM Balance Sheet & Liquidity
EPM 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: EVOLUTION PETROLEUM CORP's revenue has grown significantly by 163% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.12 reflects profitable operations.
EPM Growth Metrics (YoY)
EPM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $20.3M | $240.0K | $0.03 |
| Q1 2026 | $21.3M | $824.0K | $0.02 |
| Q3 2025 | $22.6M | $289.0K | $0.01 |
| Q2 2025 | $20.3M | $240.0K | $0.03 |
| Q1 2025 | $20.6M | $1.5M | $0.04 |
| Q3 2024 | $23.0M | $289.0K | $0.01 |
| Q2 2024 | $21.0M | $1.1M | $0.03 |
| Q1 2024 | $20.6M | $1.5M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EPM Capital Allocation
EPM SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for EVOLUTION PETROLEUM CORP (CIK: 0001006655)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EPM
What is the AI rating for EPM?
EVOLUTION PETROLEUM CORP (EPM) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are EPM's key strengths?
Claude: Strong free cash flow conversion at 31.5% FCF margin relative to revenue. Positive operating cash flow of $13.2M provides near-term liquidity buffer.
What are the risks of investing in EPM?
Claude: Critical liquidity concern: current ratio of 0.90x indicates insufficient current assets to cover short-term liabilities. Severely compressed profitability with operating margin of only 1.4% and ROE/ROA both below 3%.
What is EPM's revenue and growth?
EVOLUTION PETROLEUM CORP reported revenue of $42.0M.
Does EPM pay dividends?
EVOLUTION PETROLEUM CORP pays dividends, with $143.1M distributed to shareholders in the trailing twelve months.
Where can I find EPM SEC filings?
Official SEC filings for EVOLUTION PETROLEUM CORP (CIK: 0001006655) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EPM's EPS?
EVOLUTION PETROLEUM CORP has a diluted EPS of $0.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EPM a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, EVOLUTION PETROLEUM CORP has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EPM stock overvalued or undervalued?
Valuation metrics for EPM: ROE of 2.8% (sector avg: 14%), net margin of 4.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EPM stock in 2026?
Our dual AI analysis gives EVOLUTION PETROLEUM CORP a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EPM's free cash flow?
EVOLUTION PETROLEUM CORP's operating cash flow is $13.2M, with capital expenditures of N/A. FCF margin is 31.5%.
How does EPM compare to other Energy stocks?
Vs Energy sector averages: Net margin 4.5% (avg: 12%), ROE 2.8% (avg: 14%), current ratio 0.90 (avg: 1.3).