Empire Petroleum Corporation — Earnings Quality Grade F
EP · Energy
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 55 days, change -13 days YoY
AR growth -37.2% vs revenue growth -22.3%
Revenue -22.3%, CFFO -164.1%. Cash follows revenue
Expense Quality
Inventory -3.3% vs COGS -4.7%. Normal
CapEx growth -90.3% vs revenue -22.3%. Normal
SG&A/Gross Profit = -300.2%, excellent (<30%)
Gross margin swung -20.9pp (7.9% → -13.1%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -103.4%. Low accruals
Cash $0.0B covers only 7% of debt $0.0B
Balance Sheet Health
No goodwill. Clean balance sheet
Interest coverage = -12.9x (<2x). Financial stress
Other assets -2.2% vs revenue -22.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
No goodwill
Manipulation Score
M-Score = -8.71 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25