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EARTHSTONE ENERGY INC - A (ESTE) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:ESTE - US27032D3044 - Common Stock

21.17 USD
+0.1 (+0.47%)
Last: 10/31/2023, 8:07:45 PM
20.85 USD
-0.32 (-1.51%)
After Hours: 10/31/2023, 8:07:45 PM
Fundamental Rating

4

Taking everything into account, ESTE scores 4 out of 10 in our fundamental rating. ESTE was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of ESTE while its profitability can be described as average. ESTE has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year ESTE was profitable.
  • ESTE had a positive operating cash flow in the past year.
ESTE Yearly Net Income VS EBIT VS OCF VS FCFESTE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M -500M 1B

1.2 Ratios

  • ESTE's Return On Assets of 11.16% is in line compared to the rest of the industry. ESTE outperforms 58.82% of its industry peers.
  • ESTE's Return On Equity of 26.16% is fine compared to the rest of the industry. ESTE outperforms 64.71% of its industry peers.
  • With a decent Return On Invested Capital value of 19.77%, ESTE is doing good in the industry, outperforming 76.47% of the companies in the same industry.
Industry RankSector Rank
ROA 11.16%
ROE 26.16%
ROIC 19.77%
ROA(3y)4.14%
ROA(5y)3.34%
ROE(3y)10.01%
ROE(5y)8.58%
ROIC(3y)N/A
ROIC(5y)N/A
ESTE Yearly ROA, ROE, ROICESTE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20 -20

1.3 Margins

  • ESTE has a Profit Margin of 25.40%. This is comparable to the rest of the industry: ESTE outperforms 57.47% of its industry peers.
  • ESTE's Profit Margin has improved in the last couple of years.
  • The Operating Margin of ESTE (45.11%) is better than 76.02% of its industry peers.
  • ESTE's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 73.78%, ESTE is in the better half of the industry, outperforming 77.38% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ESTE has remained more or less at the same level.
Industry RankSector Rank
OM 45.11%
PM (TTM) 25.4%
GM 73.78%
OM growth 3Y26.93%
OM growth 5Y27.89%
PM growth 3Y317.83%
PM growth 5YN/A
GM growth 3Y0.15%
GM growth 5Y0.75%
ESTE Yearly Profit, Operating, Gross MarginsESTE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 50 -50 -100

More info and screens

2

2. Health

2.1 Basic Checks

  • ESTE 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 ESTE has been increased compared to 1 year ago.
  • Compared to 1 year ago, ESTE has a worse debt to assets ratio.
ESTE Yearly Shares OutstandingESTE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
ESTE Yearly Total Debt VS Total AssetsESTE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 1.94 indicates that ESTE is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of ESTE (1.94) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.58 indicates that ESTE is somewhat dependend on debt financing.
  • ESTE's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. ESTE outperforms 45.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF N/A
Altman-Z 1.94
ROIC/WACC2.52
WACC7.83%
ESTE Yearly LT Debt VS Equity VS FCFESTE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M -500M 1B 1.5B

2.3 Liquidity

  • ESTE has a Current Ratio of 0.55. This is a bad value and indicates that ESTE is not financially healthy enough and could expect problems in meeting its short term obligations.
  • ESTE has a Current ratio of 0.55. This is amonst the worse of the industry: ESTE underperforms 84.16% of its industry peers.
  • ESTE has a Quick Ratio of 0.55. This is a bad value and indicates that ESTE is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.55, ESTE is not doing good in the industry: 80.09% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.55
Quick Ratio 0.55
ESTE Yearly Current Assets VS Current LiabilitesESTE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

More info and screens

6

3. Growth

3.1 Past

  • ESTE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.39%, which is quite impressive.
  • The Earnings Per Share has been growing by 15.89% on average over the past years. This is quite good.
  • Looking at the last year, ESTE shows a very strong growth in Revenue. The Revenue has grown by 96.03%.
  • The Revenue has been growing by 73.41% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)26.39%
EPS 3Y35.82%
EPS 5Y15.89%
EPS Q2Q%-58.91%
Revenue 1Y (TTM)96.03%
Revenue growth 3Y106.93%
Revenue growth 5Y73.41%
Sales Q2Q%-21.7%

3.2 Future

  • The Earnings Per Share is expected to decrease by -4.86% on average over the next years.
  • Based on estimates for the next years, ESTE will show a small growth in Revenue. The Revenue will grow by 6.43% on average per year.
EPS Next Y-28.42%
EPS Next 2Y-0.91%
EPS Next 3Y-4.86%
EPS Next 5YN/A
Revenue Next Year5.14%
Revenue Next 2Y13.54%
Revenue Next 3Y6.43%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ESTE Yearly Revenue VS EstimatesESTE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
ESTE Yearly EPS VS EstimatesESTE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 2 3 4

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 5.82, which indicates a rather cheap valuation of ESTE.
  • Compared to the rest of the industry, the Price/Earnings ratio of ESTE indicates a somewhat cheap valuation: ESTE is cheaper than 74.21% of the companies listed in the same industry.
  • ESTE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.32.
  • With a Price/Forward Earnings ratio of 4.89, the valuation of ESTE can be described as very cheap.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ESTE indicates a rather cheap valuation: ESTE is cheaper than 87.78% of the companies listed in the same industry.
  • ESTE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.30.
Industry RankSector Rank
PE 5.82
Fwd PE 4.89
ESTE Price Earnings VS Forward Price EarningsESTE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ESTE is valued a bit cheaper than the industry average as 79.64% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.19
ESTE Per share dataESTE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • A cheap valuation may be justified as ESTE's earnings are expected to decrease with -4.86% in the coming years.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-0.91%
EPS Next 3Y-4.86%

More info and screens

0

5. Dividend

5.1 Amount

  • No dividends for ESTE!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

EARTHSTONE ENERGY INC - A

NYSE:ESTE (10/31/2023, 8:07:45 PM)

After market: 20.85 -0.32 (-1.51%)

21.17

+0.1 (+0.47%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-08
Earnings (Next)03-06
Inst Owners0%
Inst Owner Change0%
Ins Owners21.5%
Ins Owner Change0%
Market Cap2.98B
Revenue(TTM)1.81B
Net Income(TTM)459.67M
Analysts80
Price Target26.23 (23.9%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.56%
Min EPS beat(2)1.4%
Max EPS beat(2)3.71%
EPS beat(4)2
Avg EPS beat(4)-2.8%
Min EPS beat(4)-13.3%
Max EPS beat(4)3.71%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)0.91%
Revenue beat(4)3
Avg Revenue beat(4)5.35%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)17.68%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.56%
PT rev (3m)4.42%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)16.39%
EPS NY rev (1m)4.88%
EPS NY rev (3m)8.89%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)9.14%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)4.17%
Valuation
Industry RankSector Rank
PE 5.82
Fwd PE 4.89
P/S 1.64
P/FCF N/A
P/OCF 2.57
P/B 1.69
P/tB 1.69
EV/EBITDA 3.19
EPS(TTM)3.64
EY17.19%
EPS(NY)4.33
Fwd EY20.45%
FCF(TTM)-0.54
FCFYN/A
OCF(TTM)8.24
OCFY38.91%
SpS12.87
BVpS12.5
TBVpS12.5
PEG (NY)N/A
PEG (5Y)0.37
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 11.16%
ROE 26.16%
ROCE 21.84%
ROIC 19.77%
ROICexc 20.03%
ROICexgc 20.03%
OM 45.11%
PM (TTM) 25.4%
GM 73.78%
FCFM N/A
ROA(3y)4.14%
ROA(5y)3.34%
ROE(3y)10.01%
ROE(5y)8.58%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y71.65%
ROICexgc growth 5Y61.31%
ROICexc growth 3Y72.66%
ROICexc growth 5Y62.09%
OM growth 3Y26.93%
OM growth 5Y27.89%
PM growth 3Y317.83%
PM growth 5YN/A
GM growth 3Y0.15%
GM growth 5Y0.75%
F-Score6
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF N/A
Debt/EBITDA 0.83
Cap/Depr 292.7%
Cap/Sales 68.22%
Interest Coverage 17.71
Cash Conversion 93.53%
Profit Quality N/A
Current Ratio 0.55
Quick Ratio 0.55
Altman-Z 1.94
F-Score6
WACC7.83%
ROIC/WACC2.52
Cap/Depr(3y)289.67%
Cap/Depr(5y)296.1%
Cap/Sales(3y)69.23%
Cap/Sales(5y)81.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.39%
EPS 3Y35.82%
EPS 5Y15.89%
EPS Q2Q%-58.91%
EPS Next Y-28.42%
EPS Next 2Y-0.91%
EPS Next 3Y-4.86%
EPS Next 5YN/A
Revenue 1Y (TTM)96.03%
Revenue growth 3Y106.93%
Revenue growth 5Y73.41%
Sales Q2Q%-21.7%
Revenue Next Year5.14%
Revenue Next 2Y13.54%
Revenue Next 3Y6.43%
Revenue Next 5YN/A
EBIT growth 1Y48.12%
EBIT growth 3Y162.66%
EBIT growth 5Y121.78%
EBIT Next Year23.96%
EBIT Next 3Y14.17%
EBIT Next 5YN/A
FCF growth 1Y-10.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y589.91%
OCF growth 3Y100.61%
OCF growth 5Y82.02%

EARTHSTONE ENERGY INC - A / ESTE FAQ

What is the fundamental rating for ESTE stock?

ChartMill assigns a fundamental rating of 4 / 10 to ESTE.


What is the valuation status for ESTE stock?

ChartMill assigns a valuation rating of 6 / 10 to EARTHSTONE ENERGY INC - A (ESTE). This can be considered as Fairly Valued.


What is the profitability of ESTE stock?

EARTHSTONE ENERGY INC - A (ESTE) has a profitability rating of 6 / 10.


What is the expected EPS growth for EARTHSTONE ENERGY INC - A (ESTE) stock?

The Earnings per Share (EPS) of EARTHSTONE ENERGY INC - A (ESTE) is expected to decline by -28.42% in the next year.