CIVITAS RESOURCES INC (CIVI) Stock Fundamental Analysis
NYSE:CIVI - New York Stock Exchange, Inc. - US17888H1032 - Common Stock - Currency: USD
CIVI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 213 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. CIVI may be a bit undervalued, certainly considering the very reasonable score on growth
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.
CIVI had positive earnings in each of the past 5 years.
CIVI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CIVI has a better Return On Assets (5.54%) than 62.44% of its industry peers.
CIVI has a Return On Equity of 12.66%. This is in the better half of the industry: CIVI outperforms 64.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.10%, CIVI is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CIVI is significantly below the industry average of 25.87%.
The 3 year average ROIC (16.04%) for CIVI is well above the current ROIC(10.10%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 12.66% | ||
| ROIC | 10.1% |
ROA(3y)8.94%
ROA(5y)7.65%
ROE(3y)16.19%
ROE(5y)12.46%
ROIC(3y)16.04%
ROIC(5y)11.52%
1.3 Margins
CIVI has a better Profit Margin (16.74%) than 68.08% of its industry peers.
CIVI's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 34.56%, CIVI is doing good in the industry, outperforming 76.06% of the companies in the same industry.
CIVI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 86.81%, CIVI belongs to the top of the industry, outperforming 93.90% of the companies in the same industry.
In the last couple of years the Gross Margin of CIVI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.56% | ||
| PM (TTM) | 16.74% | ||
| GM | 86.81% |
OM growth 3Y-12.18%
OM growth 5Y-4.42%
PM growth 3Y-5.72%
PM growth 5Y-5.54%
GM growth 3Y-1.66%
GM growth 5Y-0.03%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CIVI is creating some value.
The number of shares outstanding for CIVI remains at a similar level compared to 1 year ago.
Compared to 5 years ago, CIVI has more shares outstanding
Compared to 1 year ago, CIVI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.97, we must say that CIVI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.97, CIVI perfoms like the industry average, outperforming 44.13% of the companies in the same industry.
The Debt to FCF ratio of CIVI is 5.79, which is a neutral value as it means it would take CIVI, 5.79 years of fcf income to pay off all of its debts.
CIVI has a better Debt to FCF ratio (5.79) than 61.97% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that CIVI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, CIVI is doing worse than 64.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 0.97 |
ROIC/WACC1
WACC10.15%
2.3 Liquidity
CIVI has a Current Ratio of 0.52. This is a bad value and indicates that CIVI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CIVI (0.52) is worse than 81.69% of its industry peers.
A Quick Ratio of 0.52 indicates that CIVI may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, CIVI is not doing good in the industry: 78.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for CIVI have decreased strongly by -25.49% in the last year.
The Earnings Per Share has been growing slightly by 7.79% on average over the past years.
CIVI shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.14%.
CIVI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 75.45% yearly.
EPS 1Y (TTM)-25.49%
EPS 3Y30.46%
EPS 5Y7.79%
EPS Q2Q%-35.4%
Revenue 1Y (TTM)22.14%
Revenue growth 3Y77.53%
Revenue growth 5Y75.45%
Sales Q2Q%-10.17%
3.2 Future
CIVI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.89% yearly.
The Revenue is expected to decrease by -1.78% on average over the next years.
EPS Next Y-30.76%
EPS Next 2Y-21.3%
EPS Next 3Y-9.32%
EPS Next 5Y-3.89%
Revenue Next Year-9.95%
Revenue Next 2Y-4.66%
Revenue Next 3Y-1.78%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 3.64, which indicates a rather cheap valuation of CIVI.
Based on the Price/Earnings ratio, CIVI is valued cheaply inside the industry as 93.90% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CIVI to the average of the S&P500 Index (25.82), we can say CIVI is valued rather cheaply.
CIVI is valuated cheaply with a Price/Forward Earnings ratio of 5.21.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CIVI indicates a rather cheap valuation: CIVI is cheaper than 92.96% of the companies listed in the same industry.
CIVI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.64 | ||
| Fwd PE | 5.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIVI is valued cheaper than 94.84% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CIVI indicates a rather cheap valuation: CIVI is cheaper than 93.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.91 | ||
| EV/EBITDA | 2.02 |
4.3 Compensation for Growth
CIVI has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CIVI's earnings are expected to decrease with -9.32% in the coming years.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-21.3%
EPS Next 3Y-9.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.26%, CIVI is a good candidate for dividend investing.
The stock price of CIVI dropped by -43.64% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CIVI's Dividend Yield is a higher than the industry average which is at 6.84.
CIVI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.26% |
5.2 History
CIVI has been paying a dividend for over 5 years, so it has already some track record.
The dividend of CIVI decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CIVI pays out 46.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP46.58%
EPS Next 2Y-21.3%
EPS Next 3Y-9.32%
27.65
+0.02 (+0.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners99.7%
Inst Owner Change3.79%
Ins Owners0.66%
Ins Owner Change8.07%
Market Cap2.56B
Analysts77.27
Price Target49.4 (78.66%)
Short Float %9.33%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.26% |
Yearly Dividend5.26
Dividend Growth(5Y)N/A
DP46.58%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.85%
Min EPS beat(2)-11.77%
Max EPS beat(2)6.06%
EPS beat(4)1
Avg EPS beat(4)-9.02%
Min EPS beat(4)-28.25%
Max EPS beat(4)6.06%
EPS beat(8)3
Avg EPS beat(8)-3.08%
EPS beat(12)5
Avg EPS beat(12)2.12%
EPS beat(16)6
Avg EPS beat(16)-4.51%
Revenue beat(2)0
Avg Revenue beat(2)-2.43%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-2.21%
Revenue beat(4)0
Avg Revenue beat(4)-3.83%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)-2.21%
Revenue beat(8)3
Avg Revenue beat(8)-2.5%
Revenue beat(12)6
Avg Revenue beat(12)2.78%
Revenue beat(16)10
Avg Revenue beat(16)7.3%
PT rev (1m)-18.51%
PT rev (3m)-32.56%
EPS NQ rev (1m)-26.94%
EPS NQ rev (3m)-46.24%
EPS NY rev (1m)-3.87%
EPS NY rev (3m)-39.94%
Revenue NQ rev (1m)-7.46%
Revenue NQ rev (3m)-11.03%
Revenue NY rev (1m)-2.96%
Revenue NY rev (3m)-9.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.64 | ||
| Fwd PE | 5.21 | ||
| P/S | 0.5 | ||
| P/FCF | 2.91 | ||
| P/OCF | 0.92 | ||
| P/B | 0.38 | ||
| P/tB | 0.38 | ||
| EV/EBITDA | 2.02 |
EPS(TTM)7.6
EY27.49%
EPS(NY)5.31
Fwd EY19.2%
FCF(TTM)9.5
FCFY34.35%
OCF(TTM)29.94
OCFY108.28%
SpS54.78
BVpS72.42
TBVpS72.42
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 12.66% | ||
| ROCE | 12.96% | ||
| ROIC | 10.1% | ||
| ROICexc | 10.12% | ||
| ROICexgc | 10.12% | ||
| OM | 34.56% | ||
| PM (TTM) | 16.74% | ||
| GM | 86.81% | ||
| FCFM | 17.34% |
ROA(3y)8.94%
ROA(5y)7.65%
ROE(3y)16.19%
ROE(5y)12.46%
ROIC(3y)16.04%
ROIC(5y)11.52%
ROICexc(3y)17.54%
ROICexc(5y)12.5%
ROICexgc(3y)17.54%
ROICexgc(5y)12.5%
ROCE(3y)20.58%
ROCE(5y)14.78%
ROICexcg growth 3Y17.11%
ROICexcg growth 5Y2.69%
ROICexc growth 3Y17.11%
ROICexc growth 5Y2.69%
OM growth 3Y-12.18%
OM growth 5Y-4.42%
PM growth 3Y-5.72%
PM growth 5Y-5.54%
GM growth 3Y-1.66%
GM growth 5Y-0.03%
F-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 93.01% | ||
| Cap/Sales | 37.31% | ||
| Interest Coverage | 4.25 | ||
| Cash Conversion | 73.18% | ||
| Profit Quality | 103.59% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.97 |
F-Score7
WACC10.15%
ROIC/WACC1
Cap/Depr(3y)134.44%
Cap/Depr(5y)108.13%
Cap/Sales(3y)40.46%
Cap/Sales(5y)33.41%
Profit Quality(3y)89.88%
Profit Quality(5y)85.9%
High Growth Momentum
Growth
EPS 1Y (TTM)-25.49%
EPS 3Y30.46%
EPS 5Y7.79%
EPS Q2Q%-35.4%
EPS Next Y-30.76%
EPS Next 2Y-21.3%
EPS Next 3Y-9.32%
EPS Next 5Y-3.89%
Revenue 1Y (TTM)22.14%
Revenue growth 3Y77.53%
Revenue growth 5Y75.45%
Sales Q2Q%-10.17%
Revenue Next Year-9.95%
Revenue Next 2Y-4.66%
Revenue Next 3Y-1.78%
Revenue Next 5YN/A
EBIT growth 1Y-0.27%
EBIT growth 3Y55.9%
EBIT growth 5Y67.69%
EBIT Next Year99.81%
EBIT Next 3Y26.97%
EBIT Next 5Y20.81%
FCF growth 1Y-37.93%
FCF growth 3Y94.29%
FCF growth 5YN/A
OCF growth 1Y11.61%
OCF growth 3Y118.52%
OCF growth 5Y66.4%