Epsilon Energy Ltd. Common Share (EPSN)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Epsilon Energy as a small, asset-heavy natural gas and oil producer with a gathering system. In fiscal 2025, the year ended 2025-12-31, it reported revenue of $51.6 million and a net loss of $5.8 million, or diluted EPS of -$0.25, a sharp reversal from fiscal 2023, when it earned $6.9 million, or $0.31 per diluted share. But the latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $18.3 million and net income of $7.1 million, or $0.23 per diluted share. That swing is why the Lynch category is TURNAROUND. The business has some moat-like features through its gathering infrastructure, but commodity prices rule the upstream results. Financial health is mixed: debt-to-equity is 0.32, free cash flow is $11.8 million, a 6.5% FCF yield, yet the Altman Z-Score is 0.86 and Piotroski is 5/9. Valuation is not obvious: FairStock calculates a P/B of 1.40 and EV/EBITDA of 21.67; the trailing P/E is -25.00 because of the fiscal 2025 loss. At the 2026-10-13 close of $6.00, the market pays about $181.7 million for a company with volatile earnings, negative beta, and a 4.13% dividend yield. Mr. Market may be pricing a recovery, but I want sustained free cash flow and a stronger balance sheet before calling it a bargain.

In plain English: Epsilon Energy is a small oil and natural gas producer and gas gathering company in the U.S. and Canada. The business lost money in fiscal 2025 but has swung back to profit in the latest reported quarter, so it looks volatile rather than steadily strong. At $6.00, the price looks roughly fair against its assets and cash flow, not a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer