Epsilon Energy Ltd. (EPSN) shares are trading at higher $3.45.
To add more color to this target, the company’s high over the last year is $3.88 and the low is $2.32. Over the last 52 weeks, EPSN is up 4.03% while the S&P 500 is up 19.82%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, EPSN reported a profit of $-0.64 million. Epsilon Energy Ltd. also saw revenues decrease to $6.28 million. In addition, EPSN has free cash flow of $4.18 million as of 06-2020. The company’s EBITDA came in at $1.94 million which compares well with its peers.
EPSN booked profit margins of 13.10%, its Return on Equity (ROE) is 4.30%, and its Return on Assets is 3.40%. All told, it is clear that, EPSN needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. EPSN has a short ratio of 0.22 and outstanding shares of 26.15M.
EPSN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 19330.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.12. Epsilon Energy Ltd. EPSN also noted assets of $93.78 million at the end of the last quarter. Investors should also keep an eye on sector updates as EPSN has historically followed its peers on positive news.
All told, Epsilon Energy Ltd. EPSN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, EPSN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Epsilon Energy Ltd. EPSN is now commanding a market cap of 77.38M and a float of 23.34M. EPSN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of EPSN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in EPSN, either long or short, and we have not been compensated for this article.