Epsilon Energy Ltd.
EPSN Energy Oil & Gas E&P
Epsilon Energy Ltd.’s revenue for fiscal 2025 (year ended December 2025) was $51.6 million, up 63.7% from fiscal 2024. In the quarter to June 2026, revenue grew 57.1%, EPS grew 242.9% and free cash flow grew 123.8%, each against the same quarter a year earlier. Dividend growth for five consecutive years; insiders bought in the last twelve months.
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Epsilon Energy Ltd. (EPSN) Altman Z-score
Epsilon Energy Ltd.'s Altman Z-score for fiscal 2025 is 0.41, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 0.41 | (2.98) |
| FY2024 | 3.39 | 0.18 |
| FY2023 | 3.21 | (3.37) |
| FY2022 | 6.58 | 2.15 |
| FY2021 | 4.43 | 2.14 |
| FY2020 | 2.30 | 0.21 |
| FY2019 | 2.09 | (1.37) |
| FY2018 | 3.45 | 2.88 |
| FY2017 | 0.58 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.03 | — | 0.04 | |
| Retained earnings / total assets | (0.23) | — | −0.33 | |
| EBIT / total assets | (0.05) | — | −0.15 | |
| Market value of equity / total liabilities | 1.03 | — | 0.62 | |
| Sales / total assets | 0.23 | — | 0.23 | |
| Altman Z-score | Distress zone | 0.41 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | 0.41 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| AMPY Amplify Energy Corp. compare | 1.8× |
| EPM Evolution Petroleum Corporation, Inc. compare | 1.3× |
| KGEI Kolibri Global Energy Inc. compare | 0.8× |
| EPSN Epsilon Energy Ltd. | 0.4× |
| PED Pedevco Corp. compare | −0.3× |
| ANNA AleAnna Inc. compare | −0.4× |
| EP Empire Petroleum Corporation compare | −5.7× |
| GLND Greenland Energy Company compare | — |
| SJT San Juan Basin Royalty Trust compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets