CIVITAS RESOURCES INC (CIVI)
US17888H1032 - Common Stock
We assign a fundamental rating of 4 out of 10 to CIVI. CIVI was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. While CIVI is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on CIVI.
1. Profitability
1.1 Basic Checks
CIVI had positive earnings in the past year.
CIVI had a positive operating cash flow in the past year.
Each year in the past 5 years CIVI has been profitable.
Each year in the past 5 years CIVI had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 5.02%, CIVI perfoms like the industry average, outperforming 41.12% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.42%, CIVI is in line with its industry, outperforming 42.99% of the companies in the same industry.
The Return On Invested Capital of CIVI (10.82%) is better than 60.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIVI is significantly below the industry average of 44.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | 11.42% | ||
| ROIC | 10.82% |
ROA(3y)7.96%
ROA(5y)7.64%
ROE(3y)13.25%
ROE(5y)11.36%
ROIC(3y)14.31%
ROIC(5y)11.08%
1.3 Margins
The Profit Margin of CIVI (18.25%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CIVI has declined.
Looking at the Operating Margin, with a value of 42.32%, CIVI is in the better half of the industry, outperforming 79.44% of the companies in the same industry.
CIVI's Operating Margin has declined in the last couple of years.
The Gross Margin of CIVI (89.51%) is better than 94.39% of its industry peers.
In the last couple of years the Gross Margin of CIVI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.32% | ||
| PM (TTM) | 18.25% | ||
| GM | 89.51% |
OM growth 3Y36.85%
OM growth 5Y-2.68%
PM growth 3Y-21.97%
PM growth 5Y-18%
GM growth 3Y2.72%
GM growth 5Y1.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CIVI is creating value.
Compared to 1 year ago, CIVI has more shares outstanding
The number of shares outstanding for CIVI has been increased compared to 5 years ago.
Compared to 1 year ago, CIVI has a worse debt to assets ratio.
2.2 Solvency
CIVI has an Altman-Z score of 1.19. This is a bad value and indicates that CIVI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.19, CIVI is in line with its industry, outperforming 45.79% of the companies in the same industry.
The Debt to FCF ratio of CIVI is 8.03, which is on the high side as it means it would take CIVI, 8.03 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.03, CIVI perfoms like the industry average, outperforming 47.66% of the companies in the same industry.
CIVI has a Debt/Equity ratio of 0.67. This is a neutral value indicating CIVI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, CIVI is not doing good in the industry: 62.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 1.19 |
ROIC/WACC1.52
WACC7.13%
2.3 Liquidity
CIVI has a Current Ratio of 0.37. This is a bad value and indicates that CIVI is not financially healthy enough and could expect problems in meeting its short term obligations.
CIVI's Current ratio of 0.37 is on the low side compared to the rest of the industry. CIVI is outperformed by 93.46% of its industry peers.
A Quick Ratio of 0.37 indicates that CIVI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.37, CIVI is doing worse than 90.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for CIVI have decreased strongly by -32.35% in the last year.
Measured over the past years, CIVI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.34% on average per year.
Looking at the last year, CIVI shows a quite strong growth in Revenue. The Revenue has grown by 14.40% in the last year.
Measured over the past years, CIVI shows a very strong growth in Revenue. The Revenue has been growing by 65.92% on average per year.
EPS 1Y (TTM)-32.35%
EPS 3Y19.91%
EPS 5Y16.34%
EPS growth Q2Q-40.41%
Revenue 1Y (TTM)14.4%
Revenue growth 3Y151.74%
Revenue growth 5Y65.92%
Revenue growth Q2Q102.62%
3.2 Future
The Earnings Per Share is expected to grow by 7.02% on average over the next years.
Based on estimates for the next years, CIVI will show a quite strong growth in Revenue. The Revenue will grow by 19.12% on average per year.
EPS Next Y18.22%
EPS Next 2Y16.56%
EPS Next 3Y7.02%
EPS Next 5YN/A
Revenue Next Year55.55%
Revenue Next 2Y29.61%
Revenue Next 3Y19.12%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.50 indicates a reasonable valuation of CIVI.
Compared to the rest of the industry, the Price/Earnings ratio of CIVI indicates a somewhat cheap valuation: CIVI is cheaper than 69.63% of the companies listed in the same industry.
CIVI is valuated cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
CIVI is valuated cheaply with a Price/Forward Earnings ratio of 5.54.
91.12% of the companies in the same industry are more expensive than CIVI, based on the Price/Forward Earnings ratio.
CIVI is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 5.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIVI is valued cheaper than 81.31% of the companies in the same industry.
CIVI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.16 | ||
| EV/EBITDA | 3.78 |
4.3 Compensation for Growth
CIVI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.47
PEG (5Y)0.52
EPS Next 2Y16.56%
EPS Next 3Y7.02%
5. Dividend
5.1 Amount
CIVI has a Yearly Dividend Yield of 2.64%. Purely for dividend investing, there may be better candidates out there.
CIVI's Dividend Yield is comparable with the industry average which is at 5.86.
CIVI's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
CIVI has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
83.85% of the earnings are spent on dividend by CIVI. This is not a sustainable payout ratio.
DP83.85%
EPS Next 2Y16.56%
EPS Next 3Y7.02%
CIVITAS RESOURCES INC
NYSE:CIVI (5/9/2024, 3:39:35 PM)
After market: 78.16 0 (0%)78.16
+1.19 (+1.55%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 5.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.47
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | 11.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.32% | ||
| PM (TTM) | 18.25% | ||
| GM | 89.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-32.35%
EPS 3Y19.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.4%
Revenue growth 3Y151.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y