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Evolution Petroleum (Evolution Petroleum) Altman Z-Score

: 4.85 (As of Today)
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The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 4.84 is strong.

Evolution Petroleum has a Altman Z-Score of 4.85, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

EPM' s Altman Z-Score Range Over the Past 10 Years
Min: 3.54   Med: 7.35   Max: 20.78
Current: 4.84

During the past 13 years, Evolution Petroleum's highest Altman Z-Score was 20.78. The lowest was 3.54. And the median was 7.35.


Evolution Petroleum Altman Z-Score Historical Data

The historical data trend for Evolution Petroleum's Altman Z-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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.17 4.31 4.42 3.54 7.27

Evolution Petroleum Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-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 6.54 6.29 7.27 6.04 4.95

Competitive Comparison

For the Oil & Gas E&P subindustry, Evolution Petroleum's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score Distribution

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

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



Evolution Petroleum Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Evolution Petroleum's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0526+1.4*0.369+3.3*0.174+0.6*4.889+1.0*0.7674
=4.85

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Dec. 2023:
Total Assets was $125.97 Mil.
Total Current Assets was $21.15 Mil.
Total Current Liabilities was $14.53 Mil.
Retained Earnings was $46.49 Mil.
Pre-Tax Income was 1.636 + 1.937 + 0.3 + 17.898 = $21.77 Mil.
Interest Expense was -0.034 + -0.032 + -0.054 + -0.032 = $-0.15 Mil.
Revenue was 21.024 + 20.601 + 18.174 + 36.867 = $96.67 Mil.
Market Cap (Today) was $188.36 Mil.
Total Liabilities was $38.53 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(21.148 - 14.527)/125.966
=0.0526

X2=Retained Earnings/Total Assets
=46.485/125.966
=0.369

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(21.771 - -0.152)/125.966
=0.174

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=188.357/38.527
=4.889

X5=Revenue/Total Assets
=96.666/125.966
=0.7674

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Evolution Petroleum has a Altman Z-Score of 4.85 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Evolution Petroleum  (AMEX:EPM) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Evolution Petroleum Altman Z-Score Related Terms

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Evolution Petroleum (Evolution Petroleum) 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