📊 EPM Key Takeaways
Is Evolution Petroleum Corp. (EPM) a Good Investment?
Evolution Petroleum faces a critical liquidity crisis with current ratio of 0.61x despite positive operating cash flow, signaling inability to meet near-term obligations. The company is unprofitable with -11.3% net margins and flat revenue growth, though strong FCF generation and absence of long-term debt provide limited downside cushion.
Evolution Petroleum's fundamentals are mixed: the company remains profitable and generates solid operating cash flow relative to revenue, while carrying no meaningful balance-sheet leverage. However, profitability is very thin, returns on capital are weak, EPS deterioration is severe, and sub-1.0 liquidity suggests limited short-term balance-sheet flexibility.
Evolution Petroleum Corp. Key Strengths (EPM)
- Strong positive operating cash flow of $16.7M and FCF margin of 26.9% despite net losses, suggesting non-cash charges rather than operational breakdown
- No long-term debt burden with 0.00x debt-to-equity ratio provides financial flexibility
- Substantial tangible asset base of $169.8M provides liquidation value floor
- Positive net income and operating cash flow generation despite weak earnings quality
- Debt-free capital structure reduces financial risk and refinancing pressure
- Free cash flow margin is strong relative to reported revenue
EPM Stock Risks: Evolution Petroleum Corp. Investment Risks
- Critical liquidity crisis: current ratio of 0.61x indicates inability to cover current liabilities with current assets, posing immediate solvency risk
- Persistent unprofitability with -11.3% net margin and -$7.0M net loss; EPS declined 75% YoY showing deteriorating equity returns (-12.1% ROE)
- Revenue stagnation at $62.1M with zero YoY growth and declining earnings momentum indicate lost competitive position in sector
- Operating margin of 1.4% and ROE of 2.8% indicate very weak underlying profitability
- Diluted EPS fell 75% year over year, pointing to meaningful pressure on per-share earnings
- Current and quick ratios of 0.90x suggest tight near-term liquidity
Key Metrics to Watch
- Current ratio recovery - must return above 1.0x to resolve liquidity stress
- Path to profitability - monitor quarterly net income trend and operating margin expansion
- Operating cash flow sustainability - verify FCF generation continues; assess capital allocation decisions
- Operating margin and net margin trend
- Operating cash flow sustainability versus net income
Evolution Petroleum Corp. (EPM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 26.9% 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 Profit Margin, ROE & Profitability Analysis
EPM vs Energy Sector: How Evolution Petroleum Corp. Compares
How Evolution Petroleum Corp. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Evolution Petroleum Corp. Stock Overvalued? EPM Valuation Analysis 2026
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.
Evolution Petroleum Corp. Balance Sheet: EPM Debt, Cash & Liquidity
EPM Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
EPM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $20.2M | -$1.9M | $-0.07 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Evolution Petroleum Corp. Dividends, Buybacks & Capital Allocation
EPM SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EPM's key strengths?
Claude: Strong positive operating cash flow of $16.7M and FCF margin of 26.9% despite net losses, suggesting non-cash charges rather than operational breakdown. No long-term debt burden with 0.00x debt-to-equity ratio provides financial flexibility. ChatGPT: Positive net income and operating cash flow generation despite weak earnings quality. Debt-free capital structure reduces financial risk and refinancing pressure.
What are the risks of investing in EPM?
Claude: Critical liquidity crisis: current ratio of 0.61x indicates inability to cover current liabilities with current assets, posing immediate solvency risk. Persistent unprofitability with -11.3% net margin and -$7.0M net loss; EPS declined 75% YoY showing deteriorating equity returns (-12.1% ROE). ChatGPT: Operating margin of 1.4% and ROE of 2.8% indicate very weak underlying profitability. Diluted EPS fell 75% year over year, pointing to meaningful pressure on per-share earnings.
What is EPM's revenue and growth?
Evolution Petroleum Corp. reported revenue of $62.1M.
Does EPM pay dividends?
Evolution Petroleum Corp. pays dividends, with $12.6M 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 $-0.22.
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 grade reflects both perspectives for balanced insights.
What is EPM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Evolution Petroleum Corp. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is EPM stock overvalued or undervalued?
Valuation metrics for EPM: ROE of -12.1% (sector avg: 14%), net margin of -11.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is EPM's AI grade for 2026?
Our dual AI analysis gives Evolution Petroleum Corp. a combined C grade 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 $16.7M, with capital expenditures of N/A. FCF margin is 26.9%.
How does EPM compare to other Energy stocks?
Vs Energy sector averages: Net margin -11.3% (avg: 12%), ROE -12.1% (avg: 14%), current ratio 0.61 (avg: 1.3).