EPSN (Epsilon Energy) Interest Coverage: 5.03 (As of Jun. 2026) — 92% Below Median

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EPSN Epsilon Energy Ltd EPSN
68 GF Score
Price $5.68
GF Value $8.09
Valuation Possible Value Trap
! 3 Warning Signs
View Full Analysis

What is Epsilon Energy Interest Coverage?

Epsilon Energy EPSN +0.71% 68 Interest Coverage is 5.03 as of Jun. 2026, which is 92% below its 10-year median of 63.73. GuruFocus rates EPSN with a GF Score™ of 68/100 and a GF Value™ of $8.09 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 747 Oil & Gas companies, Epsilon Energy ranks better than 57.83% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Epsilon Energy's Operating Income for the three months ended in Jun. 2026 was $4.41 Mil. Epsilon Energy's Interest Expense for the three months ended in Jun. 2026 was $-0.88 Mil. Epsilon Energy's interest coverage for the quarter that ended in Jun. 2026 was 5.03. The higher the ratio, the stronger the company's financial strength is.

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

EPSN' s Interest Coverage Range Over the Past 10 Years
Min: 0.6   Med: 63.73   Max: 916.71
Current: 8.39


EPSN's Interest Coverage is ranked better than
57.83% of 747 companies
in the Oil & Gas industry
Industry Median: 6.4 vs EPSN: 8.39

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Epsilon Energy  (NAS:EPSN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Epsilon Energy Interest Coverage Related Terms


Epsilon Energy Interest Coverage Historical Data

* Premium members only.

The historical data trend for Epsilon Energy's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Epsilon Energy Interest Coverage Chart

Epsilon Energy Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 200.79 916.71 85.85 105.98 25.04

Epsilon Energy Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Interest Coverage 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 174.95 50.50 7.49 11.55 5.03

EPSN vs AMPY, PED, EPM: Interest Coverage Comparison

For the Oil & Gas E&P subindustry, Epsilon Energy's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Oil & Gas Industry

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

* The bar in red indicates where Epsilon Energy's Interest Coverage falls into.


EPSN
68GF Score
Epsilon Energy Ltd EPSN
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Epsilon Energy Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Epsilon Energy's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Epsilon Energy's Interest Expense was $-0.62 Mil. Its Operating Income was $15.62 Mil. And its Long-Term Debt & Capital Lease Obligation was $50.84 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*15.624/-0.624
=25.04

Epsilon Energy's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Epsilon Energy's Interest Expense was $-0.88 Mil. Its Operating Income was $4.41 Mil. And its Long-Term Debt & Capital Lease Obligation was $40.70 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*4.407/-0.877
=5.03

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 5.03 mean?
Epsilon Energy (EPSN) has a Interest Coverage of 5.03 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Epsilon Energy and its competitors. This is 92% below median its historical median of 63.73. Over the past decade, Epsilon Energy's Interest Coverage has ranged from 0.60 to 916.71. According to the industry distribution chart, Epsilon Energy ranks #315 out of 747 companies in the Oil & Gas industry, placing it in the top 42.2%.
Is Epsilon Energy's Interest Coverage too high?
Epsilon Energy's current Interest Coverage of 5.03 is 92% below median its 10-year median of 63.73. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 916.71. The Oil & Gas industry median Interest Coverage is 6.40. Epsilon Energy's value of 5.03 is 21.4% below this industry median. Based on the distribution chart, Epsilon Energy ranks #315 out of 747 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Epsilon Energy has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Epsilon Energy's Interest Coverage compare to AMPY and PED?
According to the Oil & Gas industry distribution chart, Epsilon Energy ranks #315 out of 747 companies for Interest Coverage. This puts Epsilon Energy in the upper half of its industry. The industry median Interest Coverage is 6.40. Epsilon Energy's value of 5.03 is 21.4% below this benchmark. Historically, Epsilon Energy's own Interest Coverage has ranged from 0.60 to 916.71 over the past decade. While the company's 10-year median is 63.73 vs. the industry median of 6.40, Epsilon Energy has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 6.40, based on 747 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Epsilon Energy's current Interest Coverage of 5.03 is 21.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Epsilon Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 6.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Epsilon Energy's current Interest Coverage is 5.03, which is 92% below median its own 10-year median of 63.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Epsilon Energy stock overvalued right now?
Based on GuruFocus' analysis, Epsilon Energy (EPSN) is currently considered Possible Value Trap. The stock's GF Value™ is $8.09, compared to a current price of $5.68 — trading 29.8% below its estimated fair value. The current Interest Coverage is 5.03, which is 92% below median its 10-year median of 63.73 and 21.4% below the Oil & Gas industry median of 6.40. Epsilon Energy's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Epsilon Energy (EPSN), the current Interest Coverage is 5.03 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Epsilon Energy (EPSN) Overvalued in 2026?

Based on GuruFocus' analysis, Epsilon Energy stock appears to be undervalued. The current stock price of $5.68 is trading 29.8% below its estimated GF Value™ of $8.09. GuruFocus considers Epsilon Energy to be Possible Value Trap.

Key valuation signals for EPSN:

  • Interest Coverage: 5.03 (92% below median its 10-year median of 63.73)
  • GF Value™: $8.09 vs. price of $5.68 (29.8% below fair value)
  • GF Score™: 68/100 with 3 warning signs
  • Industry Position: 21.4% below the Oil & Gas median (#315 of 747)

No single metric tells the full story. See the EPSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Epsilon Energy Business Description

Industry EnergyOil & Gas
Address 500 Dallas Street, Suite 1250, Houston, TX, USA, 77002
Epsilon Energy Ltd 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. Its properties include Appalachian Basin-Pennsylvania, Permian Basin-Texas and New Mexico, Anadarko Basin-Oklahoma, Powder River Basin-Wyoming, Western Canadian Sedimentary Basin-Alberta, Canada. Its segments include The Upstream segment activities include acquisition, development and production of natural gas and oil reserves on properties within the United States and Canada; and The Gas Gathering segment partners with two other companies to operate a natural gas gathering system. The Upstream segment derives the majority of the revenue.
68GF Score

Get the complete analysis for EPSN

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$5.68
Price
$8.09
GF Value