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Evolution Petroleum (AMEX:EPM) Beneish M-Score

: -3.43 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.43 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Evolution Petroleum's Beneish M-Score or its related term are showing as below:

EPM' s Beneish M-Score Range Over the Past 10 Years
Min: -5.05   Med: -2.65   Max: 5.25
Current: -3.43

During the past 13 years, the highest Beneish M-Score of Evolution Petroleum was 5.25. The lowest was -5.05. And the median was -2.65.


Evolution Petroleum Beneish M-Score Historical Data

The historical data trend for Evolution Petroleum's Beneish M-Score 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.

Evolution Petroleum Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.98 -1.90 -2.11 - -3.32

Evolution Petroleum Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only - -3.17 -3.32 -3.22 -3.43

Competitive Comparison

For the Oil & Gas E&P subindustry, Evolution Petroleum's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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.


Evolution Petroleum Beneish M-Score Distribution

For the Oil & Gas industry and Energy sector, Evolution Petroleum's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Evolution Petroleum's Beneish M-Score falls into.



Evolution Petroleum Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Evolution Petroleum for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8245+0.528 * 1.4047+0.404 * 1.0524+0.892 * 0.6847+0.115 * 0.7747
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.7319+4.679 * -0.146643-0.327 * 0.717
=-3.43

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $10.49 Mil.
Revenue was 21.024 + 20.601 + 18.174 + 36.867 = $96.67 Mil.
Gross Profit was 4.068 + 4.456 + 3.653 + 19.914 = $32.09 Mil.
Total Current Assets was $21.15 Mil.
Total Assets was $125.97 Mil.
Property, Plant and Equipment(Net PPE) was $103.66 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.08 Mil.
Selling, General, & Admin. Expense(SGA) was $9.64 Mil.
Total Current Liabilities was $14.53 Mil.
Long-Term Debt & Capital Lease Obligation was $0.10 Mil.
Net Income was 1.082 + 1.474 + 0.166 + 13.957 = $16.68 Mil.
Non Operating Income was 0 + 0 + 0 + 0.27 = $0.27 Mil.
Cash Flow from Operations was 7.054 + 4.324 + -0.447 + 23.95 = $34.88 Mil.
Total Receivables was $18.58 Mil.
Revenue was 33.676 + 39.797 + 42.02 + 25.688 = $141.18 Mil.
Gross Profit was 15.177 + 17.083 + 21.71 + 11.867 = $65.84 Mil.
Total Current Assets was $24.08 Mil.
Total Assets was $131.66 Mil.
Property, Plant and Equipment(Net PPE) was $106.44 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.36 Mil.
Selling, General, & Admin. Expense(SGA) was $8.13 Mil.
Total Current Liabilities was $21.17 Mil.
Long-Term Debt & Capital Lease Obligation was $0.15 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(10.487 / 96.666) / (18.577 / 141.181)
=0.108487 / 0.131583
=0.8245

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(65.837 / 141.181) / (32.091 / 96.666)
=0.46633 / 0.331978
=1.4047

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (21.148 + 103.66) / 125.966) / (1 - (24.075 + 106.435) / 131.66)
=0.009193 / 0.008735
=1.0524

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=96.666 / 141.181
=0.6847

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(12.357 / (12.357 + 106.435)) / (16.077 / (16.077 + 103.66))
=0.104022 / 0.134269
=0.7747

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(9.635 / 96.666) / (8.125 / 141.181)
=0.099673 / 0.05755
=1.7319

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0.101 + 14.527) / 125.966) / ((0.149 + 21.174) / 131.66)
=0.116127 / 0.161955
=0.717

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(16.679 - 0.27 - 34.881) / 125.966
=-0.146643

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Evolution Petroleum has a M-score of -3.43 suggests that the company is unlikely to be a manipulator.


Evolution Petroleum Beneish M-Score Related Terms

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Evolution Petroleum (AMEX:EPM) Business Description

Traded in Other Exchanges
Address
1155 Dairy Ashford Road, Suite 425, Houston, TX, USA, 77079
Evolution Petroleum Corp is an independent oil and gas company operating in the US. It is engaged primarily in the acquisition, exploitation, and development of properties for the production of crude oil and natural gas, onshore in the United States. The company's revenues are primarily generated from its crude oil, natural gas and NGL production from the Jonah Field in Sublette County, Wyoming; the Williston Basin in North Dakota; the Barnett Shale located in North Texas; the Hamilton Dome Field in Wyoming; and the Delhi Field in Northeast Louisiana. The revenue generated by the company includes royalty, mineral and working interests.
Executives
John Mark Bunch officer: COO 1155 DAIRY ASHFORD RD., SUITE 425, HOUSTON TX 77079
Kelly Beatty officer: Principal Accounting Officer 1155 DAIRY ASHFORD RD., SUITE 425, HOUSTON TX 77079
Myra C Bierria director 1155 DAIRY ASHFORD, SUITE 425, HOUSTON TX 77079
Ryan Stash officer: SVP & CFO 1155 DAIRY ASHFORD ROAD, SUITE 425, HOUSTON TX 77079
Roderick A. Schultz officer: Chief Accounting Officer 4621 PINERIDGE STREET, HOUSTON TX 77009
Marjorie Anne Hargrave director 999 18TH STREET, SUITE 1925N, DENVER CO 80202
Jason E. Brown officer: President & CEO 1000 LOUISIANA, SUITE 6700, HOUSTON TX 77002
Marran H. Ogilvie director 599 LEXINGTON AVENUE, NEW YORK NY 10022
David Joe officer: VP, Chief Admin. Officer 2500 CITYWEST BLVD., SUITE 1300, HOUSTON TX 77042
Jvl Advisors, L.l.c. 10 percent owner 10,000 MEMORIAL DRIVE, SUITE 550, HOUSTON TX 77024
Randall D Keys officer: President, CFO & Treasurer 3 HICKORY SHADOWS DR, HOUSTON TX 77055
Peninsula Capital Management Inc director 235 PINE STREET, SUITE 1600, SAN FRANCISCO CA 94104
Kelly William Loyd director 10000 MEMORIAL DRIVE, SUITE 550, HOUSTON TX 77024
William Dozier director 3000 SAGE #1312, HOUSTON TX 77056
Gene G Stoever director 5415 GRAYSTONE LANE, HOUSTON TX 77069