CIVITAS RESOURCES INC (CIVI)
US17888H1032 - Common Stock
Overall CIVI gets a fundamental rating of 5 out of 10. We evaluated CIVI against 210 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. CIVI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year CIVI was profitable.
In the past year CIVI had a positive cash flow from operations.
Each year in the past 5 years CIVI has been profitable.
CIVI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CIVI's Return On Assets of 5.02% is in line compared to the rest of the industry. CIVI outperforms 46.19% of its industry peers.
The Return On Equity of CIVI (11.42%) is comparable to the rest of the industry.
CIVI's Return On Invested Capital of 10.82% is fine compared to the rest of the industry. CIVI outperforms 63.33% 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 30.77%.
| 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
CIVI's Profit Margin of 18.25% is fine compared to the rest of the industry. CIVI outperforms 61.90% of its industry peers.
In the last couple of years the Profit Margin of CIVI has declined.
The Operating Margin of CIVI (42.32%) is better than 80.00% of its industry peers.
In the last couple of years the Operating Margin of CIVI has declined.
CIVI has a Gross Margin of 89.51%. This is amongst the best in the industry. CIVI outperforms 94.76% of its industry peers.
CIVI's Gross Margin has improved in the last couple of years.
| 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
CIVI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CIVI has been increased 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 a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.14, we must say that CIVI is in the distress zone and has some risk of bankruptcy.
CIVI has a Altman-Z score (1.14) which is comparable to the rest of the industry.
CIVI has a debt to FCF ratio of 8.03. This is a slightly negative value and a sign of low solvency as CIVI would need 8.03 years to pay back of all of its debts.
CIVI has a Debt to FCF ratio (8.03) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.67 indicates that CIVI is somewhat dependend on debt financing.
CIVI's Debt to Equity ratio of 0.67 is on the low side compared to the rest of the industry. CIVI is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.03 | ||
| Altman-Z | 1.14 |
ROIC/WACC1.59
WACC6.82%
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 91.43% 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 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
CIVI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.00%.
The Earnings Per Share has been growing by 16.34% on average over the past years. This is quite good.
The Revenue has grown by 14.40% in the past year. This is quite good.
CIVI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 65.92% yearly.
EPS 1Y (TTM)-25%
EPS 3Y19.91%
EPS 5Y16.34%
EPS Q2Q%-6.16%
Revenue 1Y (TTM)14.4%
Revenue growth 3Y151.74%
Revenue growth 5Y65.92%
Sales Q2Q%102.62%
3.2 Future
CIVI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.94% yearly.
The Revenue is expected to grow by 16.29% on average over the next years. This is quite good.
EPS Next Y22.13%
EPS Next 2Y18.64%
EPS Next 3Y8.5%
EPS Next 5Y1.94%
Revenue Next Year57.28%
Revenue Next 2Y28.1%
Revenue Next 3Y16.29%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.94 indicates a rather cheap valuation of CIVI.
79.52% of the companies in the same industry are more expensive than CIVI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CIVI to the average of the S&P500 Index (24.41), we can say CIVI is valued rather cheaply.
CIVI is valuated cheaply with a Price/Forward Earnings ratio of 4.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CIVI indicates a rather cheap valuation: CIVI is cheaper than 90.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.59. CIVI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.94 | ||
| Fwd PE | 4.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIVI is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CIVI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.83 | ||
| EV/EBITDA | 3.57 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CIVI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.31
PEG (5Y)0.42
EPS Next 2Y18.64%
EPS Next 3Y8.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.78%, CIVI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.93, CIVI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, CIVI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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
CIVI pays out 83.85% of its income as dividend. This is not a sustainable payout ratio.
DP83.85%
EPS Next 2Y18.64%
EPS Next 3Y8.5%
CIVITAS RESOURCES INC
NYSE:CIVI (7/26/2024, 7:22:21 PM)
After market: 70.5 -0.33 (-0.47%)70.83
+0.71 (+1.01%)
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 Cap7.09B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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(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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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 | 6.94 | ||
| Fwd PE | 4.85 | ||
| 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)0.31
PEG (5Y)0.42
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)
High Growth Momentum
Growth
EPS 1Y (TTM)-25%
EPS 3Y19.91%
EPS 5Y
EPS Q2Q%
EPS Next Y22.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.4%
Revenue growth 3Y151.74%
Revenue growth 5Y
Sales 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