Latest news with #EPSN
Yahoo
10-06-2025
- Business
- Yahoo
Investors Could Be Concerned With Epsilon Energy's (NASDAQ:EPSN) Returns On Capital
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after briefly looking over the numbers, we don't think Epsilon Energy (NASDAQ:EPSN) has the makings of a multi-bagger going forward, but let's have a look at why that may be. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Epsilon Energy, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.064 = US$7.4m ÷ (US$126m - US$9.3m) (Based on the trailing twelve months to March 2025). Thus, Epsilon Energy has an ROCE of 6.4%. Ultimately, that's a low return and it under-performs the Oil and Gas industry average of 9.8%. View our latest analysis for Epsilon Energy In the above chart we have measured Epsilon Energy's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Epsilon Energy for free. When we looked at the ROCE trend at Epsilon Energy, we didn't gain much confidence. Around five years ago the returns on capital were 11%, but since then they've fallen to 6.4%. Although, given both revenue and the amount of assets employed in the business have increased, it could suggest the company is investing in growth, and the extra capital has led to a short-term reduction in ROCE. And if the increased capital generates additional returns, the business, and thus shareholders, will benefit in the long run. Even though returns on capital have fallen in the short term, we find it promising that revenue and capital employed have both increased for Epsilon Energy. And the stock has done incredibly well with a 198% return over the last five years, so long term investors are no doubt ecstatic with that result. So should these growth trends continue, we'd be optimistic on the stock going forward. Epsilon Energy does have some risks, we noticed 2 warning signs (and 1 which can't be ignored) we think you should know about. While Epsilon Energy may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Connectez-vous pour accéder à votre portefeuille
Yahoo
02-06-2025
- Business
- Yahoo
What Makes Epsilon Energy (EPSN) a Good Fit for 'Trend Investing'
While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive. Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness. There are several stocks that passed through the screen and (EPSN) is one of them. Here are the key reasons why this stock is a solid choice for "trend" investing. A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. EPSN is quite a good fit in this regard, gaining 7.9% over this period. However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 2.6% over the past four weeks ensures that the trend is still in place for the stock of this company. Moreover, EPSN is currently trading at 90.7% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout. Looking at the fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance. So, the price trend in EPSN may not reverse anytime soon. In addition to EPSN, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria. This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies. Click here to sign up for a free trial to the Research Wizard today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Epsilon Energy Ltd. (EPSN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
29-05-2025
- Business
- Yahoo
Are Oils-Energy Stocks Lagging Epsilon Energy (EPSN) This Year?
Investors interested in Oils-Energy stocks should always be looking to find the best-performing companies in the group. Has Epsilon Energy Ltd. (EPSN) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Epsilon Energy Ltd. is a member of the Oils-Energy sector. This group includes 245 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Epsilon Energy Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy). Over the past 90 days, the Zacks Consensus Estimate for EPSN's full-year earnings has moved 29.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Our latest available data shows that EPSN has returned about 14% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of -3.9%. This means that Epsilon Energy Ltd. is outperforming the sector as a whole this year. Another Oils-Energy stock, which has outperformed the sector so far this year, is Global Partners LP (GLP). The stock has returned 12.8% year-to-date. For Global Partners LP, the consensus EPS estimate for the current year has increased 13.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, Epsilon Energy Ltd. belongs to the Oil and Gas - Integrated - United States industry, which includes 15 individual stocks and currently sits at #191 in the Zacks Industry Rank. Stocks in this group have lost about 10.6% so far this year, so EPSN is performing better this group in terms of year-to-date returns. In contrast, Global Partners LP falls under the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry. Currently, this industry has 6 stocks and is ranked #208. Since the beginning of the year, the industry has moved -4.2%. Epsilon Energy Ltd. and Global Partners LP could continue their solid performance, so investors interested in Oils-Energy stocks should continue to pay close attention to these stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Epsilon Energy Ltd. (EPSN) : Free Stock Analysis Report Global Partners LP (GLP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Epsilon Energy (EPSN) was Among the Energy Stocks That Gained the Most This Week
The share price of Epsilon Energy Ltd. (NASDAQ:EPSN) surged by 4.55% between May 14 and May 21, 2025, putting it among the Energy Stocks that Gained the Most This Week. Let's shed some light on the development. A pipeline of natural gas cutting through a rural landscape. Epsilon Energy Ltd. (NASDAQ:EPSN) is a North American on-shore focused independent natural gas and oil company engaged in the acquisition, development, gathering, and production of natural gas and oil reserves. The share price of Epsilon Energy Ltd. (NASDAQ:EPSN) surged after the company reported strong results for its Q1 2025 last week, posting an adjusted EPS of $0.22 against estimates of $0.14. The energy firm's revenue also grew by a massive 102% YoY to $16.16 million, beating expectations by $4.45 million. Moreover, Epsilon's Marcellus business performed very well during the quarter, with all delayed turn-in-line wells now on production and the lifting of the curtailments it sustained for most of last year. As a result, the company's total production rose by 43% compared to the previous quarter, with a noticeable surge in its gas output. EPSN revealed that its Marcellus upstream cash flows were up sequentially by over 200% due to a 58% increase in production and a 70% increase in realized pricing, significantly contributing to its strong performance during the quarter. While we acknowledge the potential of EPSN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EPSN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds Disclosure: None. Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Epsilon Energy (EPSN) was Among the Energy Stocks That Gained the Most This Week
The share price of Epsilon Energy Ltd. (NASDAQ:EPSN) surged by 4.55% between May 14 and May 21, 2025, putting it among the Energy Stocks that Gained the Most This Week. Let's shed some light on the development. A pipeline of natural gas cutting through a rural landscape. Epsilon Energy Ltd. (NASDAQ:EPSN) is a North American on-shore focused independent natural gas and oil company engaged in the acquisition, development, gathering, and production of natural gas and oil reserves. The share price of Epsilon Energy Ltd. (NASDAQ:EPSN) surged after the company reported strong results for its Q1 2025 last week, posting an adjusted EPS of $0.22 against estimates of $0.14. The energy firm's revenue also grew by a massive 102% YoY to $16.16 million, beating expectations by $4.45 million. Moreover, Epsilon's Marcellus business performed very well during the quarter, with all delayed turn-in-line wells now on production and the lifting of the curtailments it sustained for most of last year. As a result, the company's total production rose by 43% compared to the previous quarter, with a noticeable surge in its gas output. EPSN revealed that its Marcellus upstream cash flows were up sequentially by over 200% due to a 58% increase in production and a 70% increase in realized pricing, significantly contributing to its strong performance during the quarter. While we acknowledge the potential of EPSN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EPSN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks to Buy According to Hedge Funds Disclosure: None.
