CIVITAS RESOURCES INC (CIVI)

US17888H1032 - Common Stock

73.56  +0.27 (+0.37%)

After market: 73.44 -0.12 (-0.16%)

Fundamental Rating

5

CIVI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 214 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



6

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

With a Return On Assets value of 5.56%, CIVI perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
CIVI has a Return On Equity (12.69%) which is in line with its industry peers.
With a Return On Invested Capital value of 9.43%, CIVI perfoms like the industry average, outperforming 53.99% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CIVI is significantly below the industry average of 45.80%.
The last Return On Invested Capital (9.43%) for CIVI is well below the 3 year average (14.31%), which needs to be investigated, but indicates that CIVI had better years and this may not be a problem.
Industry RankSector Rank
ROA 5.56%
ROE 12.69%
ROIC 9.43%
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 22.54% is in line compared to the rest of the industry. CIVI outperforms 58.69% of its industry peers.
In the last couple of years the Profit Margin of CIVI has declined.
CIVI's Operating Margin of 43.12% is amongst the best of the industry. CIVI outperforms 80.28% of its industry peers.
In the last couple of years the Operating Margin of CIVI has declined.
With an excellent Gross Margin value of 90.05%, CIVI belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.
In the last couple of years the Gross Margin of CIVI has grown nicely.
Industry RankSector Rank
OM 43.12%
PM (TTM) 22.54%
GM 90.05%
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%

3

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 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 1.30, we must say that CIVI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.30, CIVI perfoms like the industry average, outperforming 46.95% of the companies in the same industry.
CIVI has a debt to FCF ratio of 8.42. This is a slightly negative value and a sign of low solvency as CIVI would need 8.42 years to pay back of all of its debts.
CIVI has a Debt to FCF ratio (8.42) which is comparable to the rest of the industry.
CIVI has a Debt/Equity ratio of 0.77. This is a neutral value indicating CIVI is somewhat dependend on debt financing.
CIVI has a worse Debt to Equity ratio (0.77) than 64.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF 8.42
Altman-Z 1.3
ROIC/WACC1.32
WACC7.14%

2.3 Liquidity

CIVI has a Current Ratio of 1.16. This is a normal value and indicates that CIVI is financially healthy and should not expect problems in meeting its short term obligations.
CIVI's Current ratio of 1.16 is in line compared to the rest of the industry. CIVI outperforms 49.77% of its industry peers.
CIVI has a Quick Ratio of 1.16. This is a normal value and indicates that CIVI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.16, CIVI is in the better half of the industry, outperforming 61.03% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 1.16

5

3. Growth

3.1 Past

The earnings per share for CIVI have decreased strongly by -21.30% in the last year.
Measured over the past years, CIVI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.34% on average per year.
CIVI shows a decrease in Revenue. In the last year, the revenue decreased by -8.24%.
The Revenue has been growing by 65.92% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-21.3%
EPS 3Y19.91%
EPS 5Y16.34%
EPS growth Q2Q-11.65%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y151.74%
Revenue growth 5Y65.92%
Revenue growth Q2Q38.37%

3.2 Future

The Earnings Per Share is expected to grow by 7.02% on average over the next years.
CIVI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.12% yearly.
EPS Next Y18.22%
EPS Next 2Y16.56%
EPS Next 3Y7.02%
EPS Next 5YN/A
Revenue Next Year55.55%
Revenue Next 2Y29.61%
Revenue Next 3Y19.12%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

7

4. Valuation

4.1 Price/Earnings Ratio

CIVI is valuated cheaply with a Price/Earnings ratio of 7.09.
Based on the Price/Earnings ratio, CIVI is valued a bit cheaper than the industry average as 75.12% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.25. CIVI is valued rather cheaply when compared to this.
CIVI is valuated cheaply with a Price/Forward Earnings ratio of 5.99.
Based on the Price/Forward Earnings ratio, CIVI is valued cheaper than 87.79% of the companies in the same industry.
CIVI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 7.09
Fwd PE 5.99

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIVI indicates a somewhat cheap valuation: CIVI is cheaper than 77.00% of the companies listed in the same industry.
CIVI's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 13.07
EV/EBITDA 4.14

4.3 Compensation for Growth

CIVI's 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)0.39
PEG (5Y)0.43
EPS Next 2Y16.56%
EPS Next 3Y7.02%

2

5. Dividend

5.1 Amount

CIVI has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.79, CIVI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, CIVI has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.78%

5.2 History

CIVI has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2

5.3 Sustainability

CIVI pays out 84.18% of its income as dividend. This is not a sustainable payout ratio.
DP84.18%
EPS Next 2Y16.56%
EPS Next 3Y7.02%

CIVITAS RESOURCES INC

NYSE:CIVI (4/24/2024, 6:00:00 PM)

After market: 73.44 -0.12 (-0.16%)

73.56

+0.27 (+0.37%)

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 Cap7.43B
Analysts
Price Target
Dividend
Industry RankSector 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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 7.09
Fwd PE 5.99
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)0.39
PEG (5Y)0.43
Profitability
Industry RankSector Rank
ROA 5.56%
ROE 12.69%
ROCE
ROIC
ROICexc
ROICexgc
OM 43.12%
PM (TTM) 22.54%
GM 90.05%
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 Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 0.77
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.16
Quick Ratio 1.16
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)
Growth
EPS 1Y (TTM)-21.3%
EPS 3Y19.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y151.74%
Revenue growth 5Y
Revenue growth 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