Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Evolution Petroleum Valuation at a Premium, Amidst Declining Earnings and Revenues

EditorVenkatesh Jartarkar
Published 20/10/2023, 08:12
© Reuters.
EPM
-

Evolution Petroleum (NYSE:EPM) saw a slight boost in its share price on Friday, with a 0.78% increase to $6.49, outpacing the losses experienced by the S&P 500, Dow, and Nasdaq. Over the past month, the company's shares have seen a 7.6% depreciation, lagging behind the Oils-Energy sector and S&P 500's results. This is in line with InvestingPro's real-time metrics, which show a 1-month price total return of -5.26% and a 1-year price total return of -11.98%.

The forthcoming earnings report for Evolution Petroleum is projected to show a year-on-year (YoY) decline of 76.67%, with earnings expected at $0.07 per share and revenue anticipated to fall by 45.67% to $21.63 million. The annual Zacks Consensus Estimates predict YoY declines of -47.52% and -24.87% in earnings and revenue respectively, with earnings forecasted at $0.53 per share and revenue at $96.55 million. Interestingly, InvestingPro Data reveals that the company's revenue growth has slowed down recently, with a quarterly revenue growth of -56.75%.

Evolution Petroleum's current valuation stands at a premium compared to its industry peers. The company's Forward P/E ratio of 12.27 exceeds the industry average of 9.91. According to InvestingPro Data, the company's P/E ratio is 6.13, which is lower than the forward P/E ratio, indicating a potential undervaluation. The company operates within the Oil and Gas - Exploration and Production - United States industry, which holds a Zacks Industry Rank of 14, placing it in the top 6% of over 250 industries.

Analysts' optimism plays a crucial role given these shifts in projections for Evolution Petroleum. The firm currently holds a Zacks Rank of #4 (Sell), with the Zacks Rank system being recognized for its average return of +25%. According to InvestingPro Tips, analysts predict that the company will be profitable this year. Additionally, the company has maintained dividend payments for 11 consecutive years, with a current dividend yield of 7.4% according to InvestingPro Data.

For more insights and tips like these, investors can check out InvestingPro, which offers 12 additional tips for EPM and real-time metrics for a multitude of companies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.