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 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of CIVI while its profitability can be described as average. 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.
In the past year CIVI had a positive cash flow from operations.
Each year in the past 5 years CIVI has been profitable.
In the past 5 years CIVI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.54%, CIVI is in the better half of the industry, outperforming 63.03% of the companies in the same industry.
CIVI has a better Return On Equity (12.66%) than 65.88% of its industry peers.
CIVI has a better Return On Invested Capital (10.10%) than 76.30% of its industry peers.
CIVI had an Average Return On Invested Capital over the past 3 years of 16.04%. This is significantly below the industry average of 23.70%.
The last Return On Invested Capital (10.10%) for CIVI is well below the 3 year average (16.04%), which needs to be investigated, but indicates that CIVI had better years and this may not be a problem.
| 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
The Profit Margin of CIVI (16.74%) is better than 68.72% of its industry peers.
CIVI's Profit Margin has declined in the last couple of years.
CIVI has a better Operating Margin (34.56%) than 76.78% of its industry peers.
In the last couple of years the Operating Margin of CIVI has declined.
The Gross Margin of CIVI (86.81%) is better than 93.84% of its industry peers.
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.
The number of shares outstanding for CIVI has been increased compared to 5 years ago.
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.
The Altman-Z score of CIVI (0.97) is comparable to the rest of the industry.
CIVI has a debt to FCF ratio of 5.79. This is a neutral value as CIVI would need 5.79 years to pay back of all of its debts.
The Debt to FCF ratio of CIVI (5.79) is better than 61.14% of its industry peers.
CIVI has a Debt/Equity ratio of 0.76. This is a neutral value indicating 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 63.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 0.97 |
ROIC/WACC1.05
WACC9.62%
2.3 Liquidity
A Current Ratio of 0.52 indicates that CIVI may have some problems paying its short term obligations.
The Current ratio of CIVI (0.52) is worse than 83.89% of its industry peers.
CIVI has a Quick 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 Quick ratio of CIVI (0.52) is worse than 80.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
CIVI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.49%.
The Earnings Per Share has been growing slightly by 7.79% on average over the past years.
The Revenue has grown by 22.14% in the past year. This is a very strong growth!
The Revenue has been growing by 75.45% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, CIVI will show a very negative growth in Earnings Per Share. The EPS will decrease by -15.08% on average per year.
Based on estimates for the next years, CIVI will show a decrease in Revenue. The Revenue will decrease by -2.54% on average per year.
EPS Next Y-28.55%
EPS Next 2Y-22.42%
EPS Next 3Y-10.1%
EPS Next 5Y-15.08%
Revenue Next Year-10.37%
Revenue Next 2Y-5.77%
Revenue Next 3Y-2.54%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 3.62, which indicates a rather cheap valuation of CIVI.
Based on the Price/Earnings ratio, CIVI is valued cheaper than 94.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of CIVI to the average of the S&P500 Index (27.15), we can say CIVI is valued rather cheaply.
A Price/Forward Earnings ratio of 5.34 indicates a rather cheap valuation of CIVI.
Based on the Price/Forward Earnings ratio, CIVI is valued cheaper than 91.00% of the companies 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 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.62 | ||
| Fwd PE | 5.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIVI indicates a rather cheap valuation: CIVI is cheaper than 95.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CIVI is valued cheaper than 93.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.9 | ||
| EV/EBITDA | 2.01 |
4.3 Compensation for Growth
CIVI has a very decent profitability rating, which may justify a higher PE ratio.
CIVI's earnings are expected to decrease with -10.10% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-22.42%
EPS Next 3Y-10.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.02%, CIVI is a good candidate for dividend investing.
CIVI's Dividend Yield is a higher than the industry average which is at 6.66.
CIVI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
5.2 History
CIVI has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
46.58% of the earnings are spent on dividend by CIVI. This is a bit on the high side, but may be sustainable.
DP46.58%
EPS Next 2Y-22.42%
EPS Next 3Y-10.1%
27.52
-0.48 (-1.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners108.41%
Inst Owner Change3.79%
Ins Owners0.94%
Ins Owner Change11.06%
Market Cap2.55B
Analysts75.24
Price Target42.45 (54.25%)
Short Float %8.95%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
Yearly Dividend5.26
Dividend Growth(5Y)N/A
DP46.58%
Div Incr Years0
Div Non Decr Years0
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)-14.07%
PT rev (3m)-39.56%
EPS NQ rev (1m)4.8%
EPS NQ rev (3m)-23.74%
EPS NY rev (1m)3.19%
EPS NY rev (3m)-38.03%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)-7.11%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-5.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.62 | ||
| Fwd PE | 5.34 | ||
| P/S | 0.5 | ||
| P/FCF | 2.9 | ||
| P/OCF | 0.92 | ||
| P/B | 0.38 | ||
| P/tB | 0.38 | ||
| EV/EBITDA | 2.01 |
EPS(TTM)7.6
EY27.62%
EPS(NY)5.16
Fwd EY18.74%
FCF(TTM)9.5
FCFY34.52%
OCF(TTM)29.94
OCFY108.79%
SpS54.78
BVpS72.42
TBVpS72.42
PEG (NY)N/A
PEG (5Y)0.46
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
WACC9.62%
ROIC/WACC1.05
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-28.55%
EPS Next 2Y-22.42%
EPS Next 3Y-10.1%
EPS Next 5Y-15.08%
Revenue 1Y (TTM)22.14%
Revenue growth 3Y77.53%
Revenue growth 5Y75.45%
Sales Q2Q%-10.17%
Revenue Next Year-10.37%
Revenue Next 2Y-5.77%
Revenue Next 3Y-2.54%
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 5Y18.05%
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%