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 208 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year CIVI was profitable.
CIVI had a positive operating cash flow in the past year.
In the past 5 years CIVI has always been profitable.
In the past 5 years CIVI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CIVI (5.54%) is better than 63.46% of its industry peers.
CIVI's Return On Equity of 12.66% is fine compared to the rest of the industry. CIVI outperforms 66.35% of its industry peers.
CIVI's Return On Invested Capital of 10.10% is fine compared to the rest of the industry. CIVI outperforms 76.44% 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 23.87%.
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
Looking at the Profit Margin, with a value of 16.74%, CIVI is in the better half of the industry, outperforming 68.27% of the companies in the same industry.
CIVI's Profit Margin has declined in the last couple of years.
The Operating Margin of CIVI (34.56%) is better than 76.92% of its industry peers.
In the last couple of years the Operating Margin of CIVI has declined.
CIVI's Gross Margin of 86.81% is amongst the best of the industry. CIVI outperforms 93.75% of its industry peers.
CIVI's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CIVI is still 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 1.01, we must say that CIVI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.01, CIVI is in line with its industry, outperforming 44.71% 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 Debt to FCF ratio (5.79) which is in line with 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 63.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.99
WACC10.2%
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 84.62% 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.
With a Quick ratio value of 0.52, CIVI is not doing good in the industry: 80.77% 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
CIVI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.49%.
CIVI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.79% yearly.
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.
CIVI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.47% yearly.
EPS Next Y-25.13%
EPS Next 2Y-22.17%
EPS Next 3Y-8.77%
EPS Next 5Y-15.08%
Revenue Next Year-10.12%
Revenue Next 2Y-5.68%
Revenue Next 3Y-2.47%
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 4.30, the valuation of CIVI can be described as very cheap.
Based on the Price/Earnings ratio, CIVI is valued cheaply inside the industry as 94.23% of the companies are valued more expensively.
CIVI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.93.
With a Price/Forward Earnings ratio of 6.30, the valuation of CIVI can be described as very cheap.
87.98% of the companies in the same industry are more expensive than CIVI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 37.78. CIVI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.3 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIVI is valued cheaper than 94.23% 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 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.44 | ||
| EV/EBITDA | 2.14 |
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 -8.77% in the coming years.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-22.17%
EPS Next 3Y-8.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.46%, CIVI is a good candidate for dividend investing.
CIVI's Dividend Yield is a higher than the industry average which is at 6.37.
CIVI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
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-22.17%
EPS Next 3Y-8.77%
32.69
-0.19 (-0.58%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners108.41%
Inst Owner Change-0.01%
Ins Owners0.94%
Ins Owner Change11.07%
Market Cap3.03B
Analysts75.24
Price Target43.23 (32.24%)
Short Float %8.75%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
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)1.85%
PT rev (3m)-13.75%
EPS NQ rev (1m)-11.83%
EPS NQ rev (3m)-32.49%
EPS NY rev (1m)4.79%
EPS NY rev (3m)3.95%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-7.38%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)-3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.3 | ||
| Fwd PE | 6.3 | ||
| P/S | 0.6 | ||
| P/FCF | 3.44 | ||
| P/OCF | 1.09 | ||
| P/B | 0.45 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | 2.14 |
EPS(TTM)7.6
EY23.25%
EPS(NY)5.19
Fwd EY15.88%
FCF(TTM)9.5
FCFY29.06%
OCF(TTM)29.94
OCFY91.58%
SpS54.78
BVpS72.42
TBVpS72.42
PEG (NY)N/A
PEG (5Y)0.55
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
WACC10.2%
ROIC/WACC0.99
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-25.13%
EPS Next 2Y-22.17%
EPS Next 3Y-8.77%
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-10.12%
Revenue Next 2Y-5.68%
Revenue Next 3Y-2.47%
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%