Epsilon Energy (EPSN) AI Stock Analysis

• Market Cap: $165.13M
• Dividend Yield: 3.33%
• Average Volume (3M): 284.89K
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.39
• Revenue Growth: 35.21%
• EPS Growth: -9.18%
• Country: US
• Employees: 10
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.20
• Shares Outstanding: 22,017,405
• 10 Day Avg. Volume: 443,694
• 30 Day Avg. Volume: 284,895
• PEG Ratio: 0.02
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.16
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 1.65
• 1Y Price Target: $8.40
• Price Target Upside: 12.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $8.50 ▲(13.33%Upside)

Epsilon Energy's stock score is driven by strong financial performance and positive earnings call highlights, offset by valuation concerns and potential overbought technical indicators. The company's robust balance sheet and revenue growth are significant strengths, while challenges in profitability and market volatility pose risks.

Epsilon Energy Business Overview & Revenue Model

Company Description

Epsilon Energy (EPSN) is an independent oil and gas company engaged in the exploration and production of natural gas and oil. Operating primarily in the United States, the company focuses on the development of conventional and unconventional reserves. Epsilon Energy's core operations are concentrated in the Marcellus Shale of Pennsylvania and the Anadarko Basin in Oklahoma, where it leverages its expertise to enhance production efficiency and maximize resource recovery.

How the Company Makes Money

Epsilon Energy primarily generates revenue through the sale of natural gas, oil, and natural gas liquids (NGLs) extracted from its wells. The company sells these commodities to various customers, including utility companies, industrial users, and other energy marketers. Epsilon Energy also benefits from partnerships and joint ventures, which help in sharing costs and risks associated with exploration and production activities. Additionally, the company may engage in hedging activities to manage commodity price risks, which can also impact its earnings. Revenue is influenced by factors such as commodity prices, production volumes, and operational efficiency.

Epsilon Energy Financial Statement Overview

Summary

Epsilon Energy shows strong revenue growth and effective cost management with a healthy gross profit margin. The balance sheet is robust with minimal leverage, though declining returns on equity and net profit margins pose concerns. Cash flow management needs improvement to ensure sustainable free cash flow.

Income Statement

Epsilon Energy has demonstrated strong revenue growth over the years, with a notable rise from $24.4M in 2020 to $39.7M in TTM (Trailing-Twelve-Months). The gross profit margin is healthy at 45.1%, indicating effective cost management. However, net profit margins have seen fluctuations, currently at 11.2% in TTM, down from previous years. EBIT and EBITDA margins are solid, reflecting operational efficiency, but the decline in net income from 2022 indicates potential challenges in profitability.

Balance Sheet

The company's balance sheet is robust, characterized by a very low debt-to-equity ratio of 0.004, implying minimal leverage and financial risk. The equity ratio is strong at 79.5%, suggesting a stable capital structure. However, the return on equity has seen a decline, with a ROE of 4.45% in TTM, which could indicate inefficiencies in generating profits from equity.

Cash Flow

Cash flow analysis reveals a mixed picture. While operating cash flow remains strong at $21.7M in TTM, the free cash flow is negative at -$2.06M, primarily due to high capital expenditures. The operating cash flow to net income ratio is favorable, suggesting good cash generation relative to net profits, but the negative free cash flow indicates a need for better capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.70M	31.52M	30.73M	69.96M	42.40M	24.43M
Gross Profit	17.90M	11.81M	14.18M	54.11M	27.15M	6.39M
EBITDA	19.01M	13.79M	17.91M	53.43M	22.80M	11.12M
Net Income	4.44M	1.93M	6.95M	35.35M	11.63M	875.17K
Balance Sheet
Total Assets	125.51M	120.45M	124.04M	123.86M	99.46M	86.68M
Cash, Cash Equivalents and Short-Term Investments	6.89M	6.52M	32.18M	45.24M	26.50M	13.27M
Total Debt	447.82K	476.91K	563.38K	35.30K	0.00	0.00
Total Liabilities	25.80M	23.73M	23.43M	19.62M	20.20M	17.66M
Stockholders Equity	99.70M	96.73M	100.61M	104.25M	79.26M	69.02M
Cash Flow
Free Cash Flow	-2.06M	-19.73M	-457.78K	29.94M	15.12M	8.29M
Operating Cash Flow	21.72M	16.83M	18.19M	38.01M	20.01M	14.82M
Investing Cash Flow	-11.66M	-16.66M	-38.38M	-7.87M	-4.44M	-6.52M
Financing Cash Flow	-6.09M	-7.32M	-11.73M	-11.35M	-2.34M	-9.08M

Epsilon Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPSN, the sentiment is Neutral. The current price of 7.5 is below the 20-day moving average (MA) of 7.81, above the 50-day MA of 7.29, and above the 200-day MA of 6.38, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 40.55 is Neutral, neither overbought nor oversold. The STOCH value of 17.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EPSN.

Epsilon Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$15.14B	9.95	6.38%	5.21%	4.16%	-67.19%
EPSN	65 Neutral	$165.13M	37.39	4.45%	3.33%	35.21%	-9.18%
REI	59 Neutral	$163.36M	2.23	8.52%	―	-4.51%	-10.09%
REI	59 Neutral	$163.36M	2.23	8.52%	―	-4.51%	-10.09%
EPM	51 Neutral	$171.54M	89.30	-1.24%	9.60%	3.79%	-131.01%
EPM	51 Neutral	$171.54M	89.30	-1.24%	9.60%	3.79%	-131.01%
GTE	51 Neutral	$172.41M	21.67	-4.07%	―	-2.39%	-425.29%
GTE	51 Neutral	$172.41M	21.67	-4.07%	―	-2.39%	-425.29%
WTI	50 Neutral	$261.34M	―	203.83%	2.26%	-5.05%	-383.38%
WTI	50 Neutral	$261.34M	―	203.83%	2.26%	-5.05%	-383.38%

Epsilon Energy Corporate Events

Epsilon Energy Holds 2025 Annual General Meeting

Epsilon Energy held its 2025 Annual General Meeting on May 21, 2025, with 67% of its common shares represented. During the meeting, shareholders voted to set the number of directors at six, elected six directors for a term expiring in 2026, re-appointed BDO USA, P.C. as auditors for the fiscal year ending December 31, 2025, and approved the compensation for the company’s named executive officers for 2024.

The most recent analyst rating on (EPSN) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Epsilon Energy stock, see the EPSN Stock Forecast page.