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Epsilon Energy (Epsilon Energy) ROE % : 10.38% (As of Dec. 2023)


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What is Epsilon Energy ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Epsilon Energy's annualized net income for the quarter that ended in Dec. 2023 was $10.38 Mil. Epsilon Energy's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $100.03 Mil. Therefore, Epsilon Energy's annualized ROE % for the quarter that ended in Dec. 2023 was 10.38%.

The historical rank and industry rank for Epsilon Energy's ROE % or its related term are showing as below:

EPSN' s ROE % Range Over the Past 10 Years
Min: -32.06   Med: 8.58   Max: 38.53
Current: 6.78

During the past 13 years, Epsilon Energy's highest ROE % was 38.53%. The lowest was -32.06%. And the median was 8.58%.

EPSN's ROE % is ranked worse than
51.92% of 1017 companies
in the Oil & Gas industry
Industry Median: 7.82 vs EPSN: 6.78

Epsilon Energy ROE % Historical Data

The historical data trend for Epsilon Energy's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Epsilon Energy ROE % Chart

Epsilon Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.89 1.20 15.68 38.53 6.78

Epsilon Energy Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.36 13.49 1.66 1.54 10.38

Competitive Comparison of Epsilon Energy's ROE %

For the Oil & Gas E&P subindustry, Epsilon Energy's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Epsilon Energy's ROE % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Epsilon Energy's ROE % distribution charts can be found below:

* The bar in red indicates where Epsilon Energy's ROE % falls into.



Epsilon Energy ROE % Calculation

Epsilon Energy's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=6.945/( (104.245+100.613)/ 2 )
=6.945/102.429
=6.78 %

Epsilon Energy's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=10.384/( (99.456+100.613)/ 2 )
=10.384/100.0345
=10.38 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Epsilon Energy  (NAS:EPSN) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=10.384/100.0345
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(10.384 / 34.252)*(34.252 / 121.909)*(121.909 / 100.0345)
=Net Margin %*Asset Turnover*Equity Multiplier
=30.32 %*0.281*1.2187
=ROA %*Equity Multiplier
=8.52 %*1.2187
=10.38 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=10.384/100.0345
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (10.384 / 14.052) * (14.052 / 6.804) * (6.804 / 34.252) * (34.252 / 121.909) * (121.909 / 100.0345)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.739 * 2.0653 * 19.86 % * 0.281 * 1.2187
=10.38 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Epsilon Energy ROE % Related Terms

Thank you for viewing the detailed overview of Epsilon Energy's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Epsilon Energy (Epsilon Energy) Business Description

Traded in Other Exchanges
N/A
Address
500 Dallas Street, Suite 1250, Houston, TX, USA, 77002
Epsilon Energy Ltd is engaged in the acquisition, development, gathering, and production of natural gas and oil reserves. The operating segments of the company include Upstream segment activities include acquisition, development, and production of natural gas reserves on properties within the United States. The Gas Gathering segment partners with two other companies to operate a natural gas gathering system, and the corporate segment activities include corporate listing and governance functions of the corporation. The company generates revenue from the sale of crude oil and natural gas.
Executives
Jason Stabell director, officer: Chief Executive Officer 16945 NORTHCHASE DR., SUITE 1610, HOUSTON TX 77060
Solas Capital Management, Llc 10 percent owner 1063 POST ROAD, 2ND FLOOR, DARIEN CT 06820
Jason Stankowski director 3160 COLLEGE AVE, SUITE 203, BERKELEY CA 94705
Nicola L Maddox director 6331 CONCHO BAY DR, HOUSTON TX 77041
Andrew Williamson officer: Chief Financial Officer 16945 NORTHCHASE DR., SUITE 1610, HOUSTON TX 77060
John Lovoi director 3505 W SAM HOUSTON PKWY NORTH, SUITE 400, HOUSTON TX 77043
David W Winn director 5217 HOLLY ST., BELLAIRE TX 77401
Tucker Golden Frederick 10 percent owner C/O SOLAS CAPITAL MANAGEMENT, LLC, 1063 POST ROAD, 2ND FLOOR, DARIEN CT 06820
Bruce Lane Bond officer: Chief Financial Officer 6206 CORAL RIDGE RD., HOUSTON TX 77069
Stephen Finlayson director 3621 TIMBERSIDE CIRCLE DR., HOUSTON TX 77025
Ryan Roebuck director 16701 GREENSPOINT PARK DR., SUITE 195, HOUSTON TX 77060
Oakview Capital Management, L.p. 10 percent owner 3879 MAPLE AVE., SUITE 300, DALLAS TX 75219
Azvalor Asset Management Sgiic Sa 10 percent owner PASEO DE LA CASTELLANA 110, MADRID U3 28046
Matthew Dougherty director 180 N. STETSON AVE, SUITE 5500, CHICAGO IL 60601
Adrian Montgomery director 16701 GREENSPOINT PARK DRIVE, SUITE 195, HOUSTON TX 77060

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