(EPSN) Epsilon Energy - Ratings and Ratios

Epsilon Energy Ltd. (NASDAQ:EPSN) is a North American onshore independent oil and natural gas company focused on the acquisition, development, and production of hydrocarbon reserves. The company operates through two primary segments: Upstream and Gathering System. Its core operations are concentrated in the Marcellus Shale in Pennsylvania for natural gas production and the Permian Basin in Texas and New Mexico, as well as the Anadarko Basin in Oklahoma, where it produces oil, natural gas liquids (NGLs), and natural gas. Epsilon Energy Ltd. was incorporated in 2005 and is headquartered in Calgary, Canada.

The companys strategic focus is on developing its asset base in the Permian Basin and Marcellus Shale, which are among the most prolific hydrocarbon-producing regions in North America. The Permian Basin is known for its high-quality oil reserves and long-life assets, while the Marcellus Shale is a leading natural gas-producing area due to its extensive shale formations. Epsilon Energy Ltd. also benefits from its gathering system infrastructure, which enhances operational efficiency and cost management. The companys financial profile reflects its operational focus, with a market capitalization of $122.84 million USD and a price-to-earnings (P/E) ratio of 23.42, indicating a premium valuation relative to its earnings. The forward P/E of 17.89 suggests expectations of future earnings growth.

3-Month Forecast: Based on and , Epsilon Energy Ltd. is expected to experience moderate price appreciation over the next three months. The stock is trading above its 20-day and 50-day simple moving averages (SMA), with the SMA 20 at $6.29 and SMA 50 at $6.25, suggesting a bullish trend. The SMA 200 of $5.65 indicates longer-term upside potential. The average true range (ATR) of 0.25 reflects relatively low volatility, which could support stable price movement. On the fundamental side, the P/E ratio of 23.42 and forward P/E of 17.89 suggest that investors expect improved earnings performance, potentially driven by higher energy prices and increased production from its core basins. The price-to-book (P/B) ratio of 1.47 indicates that the stock is fairly valued relative to its book value, while the price-to-sales (P/S) ratio of 4.63 highlights its premium valuation relative to revenue. The return on equity (RoE) of 5.37% is modest but reflects the companys focus on reinvesting profits into growth initiatives. Overall, the stock is likely to see upward momentum, supported by technical strength and expectations of improved fundamentals.