CIVITAS RESOURCES INC (CIVI) Stock Fundamental Analysis
NYSE:CIVI - New York Stock Exchange, Inc. - US17888H1032 - Common Stock - Currency: USD
Taking everything into account, CIVI scores 5 out of 10 in our fundamental rating. CIVI was compared to 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.
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
CIVI has a better Return On Assets (5.54%) than 62.91% of its industry peers.
CIVI has a Return On Equity of 12.66%. This is in the better half of the industry: CIVI outperforms 66.20% of its industry peers.
CIVI's Return On Invested Capital of 10.10% is fine compared to the rest of the industry. CIVI outperforms 76.06% 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 23.55%.
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
Looking at the Profit Margin, with a value of 16.74%, CIVI is in the better half of the industry, outperforming 68.54% of the companies in the same industry.
In the last couple of years the Profit Margin of CIVI has declined.
CIVI's Operating Margin of 34.56% is fine compared to the rest of the industry. CIVI outperforms 76.53% of its industry peers.
In the last couple of years the Operating Margin of CIVI has declined.
Looking at the Gross Margin, with a value of 86.81%, CIVI belongs to the top of the industry, outperforming 93.43% 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) well above the Cost of Capital (WACC), CIVI is creating 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.
CIVI has a better debt/assets ratio than last year.
2.2 Solvency
CIVI has an Altman-Z score of 1.01. This is a bad value and indicates that CIVI is not financially healthy and even has some risk of bankruptcy.
CIVI has a Altman-Z score (1.01) which is in line with its industry peers.
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.
With a decent Debt to FCF ratio value of 5.79, CIVI is doing good in the industry, outperforming 61.03% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that CIVI is somewhat dependend on debt financing.
CIVI's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. CIVI is outperformed by 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 1.01 |
ROIC/WACC1.29
WACC7.85%
2.3 Liquidity
A Current Ratio of 0.52 indicates that CIVI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.52, CIVI is doing worse than 83.57% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that CIVI may have some problems paying its short term obligations.
CIVI has a worse Quick ratio (0.52) than 79.81% of its industry peers.
| 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.
The Revenue has grown by 22.14% in the past year. This is a very strong growth!
Measured over the past years, CIVI shows a very strong growth in Revenue. The Revenue has been growing by 75.45% on average per year.
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 very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.08% yearly.
The Revenue is expected to decrease by -2.54% on average over the next years.
EPS Next Y-30.76%
EPS Next 2Y-21.3%
EPS Next 3Y-9.32%
EPS Next 5Y-15.08%
Revenue Next Year-9.94%
Revenue Next 2Y-5.56%
Revenue Next 3Y-2.54%
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
With a Price/Earnings ratio of 4.34, the valuation of CIVI can be described as very cheap.
Based on the Price/Earnings ratio, CIVI is valued cheaper than 93.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of CIVI to the average of the S&P500 Index (26.57), we can say CIVI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.21, the valuation of CIVI can be described as very cheap.
87.79% of the companies in the same industry are more expensive than CIVI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.41, CIVI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 6.21 |
4.2 Price Multiples
94.84% of the companies in the same industry are more expensive than CIVI, based on the Enterprise Value to EBITDA ratio.
92.49% of the companies in the same industry are more expensive than CIVI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.47 | ||
| EV/EBITDA | 2.15 |
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)0.56
EPS Next 2Y-21.3%
EPS Next 3Y-9.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.38%, CIVI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.56, CIVI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, CIVI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
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
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%
32.95
-0.4 (-1.2%)
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 Change11.43%
Market Cap3.05B
Analysts75.24
Price Target42.68 (29.53%)
Short Float %10.23%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
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)-13.59%
PT rev (3m)-39.23%
EPS NQ rev (1m)11.24%
EPS NQ rev (3m)-38.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-39.94%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-9.48%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-5.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 6.21 | ||
| P/S | 0.6 | ||
| P/FCF | 3.47 | ||
| P/OCF | 1.1 | ||
| P/B | 0.45 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | 2.15 |
EPS(TTM)7.6
EY23.07%
EPS(NY)5.31
Fwd EY16.11%
FCF(TTM)9.5
FCFY28.83%
OCF(TTM)29.94
OCFY90.86%
SpS54.78
BVpS72.42
TBVpS72.42
PEG (NY)N/A
PEG (5Y)0.56
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 | 1.01 |
F-Score7
WACC7.85%
ROIC/WACC1.29
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-15.08%
Revenue 1Y (TTM)22.14%
Revenue growth 3Y77.53%
Revenue growth 5Y75.45%
Sales Q2Q%-10.17%
Revenue Next Year-9.94%
Revenue Next 2Y-5.56%
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%