EARTHSTONE ENERGY INC - A (ESTE)
US27032D3044 - Common Stock
Overall ESTE gets a fundamental rating of 4 out of 10. We evaluated ESTE against 214 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ESTE had positive earnings in the past year.
In the past year ESTE had a positive cash flow from operations.
Of the past 5 years ESTE 4 years were profitable.
In the past 5 years ESTE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.16%, ESTE is in line with its industry, outperforming 58.82% of the companies in the same industry.
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.
ESTE has a better Return On Invested Capital (19.77%) than 76.47% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
ESTE's Profit Margin of 25.40% is in line compared to the rest of the industry. ESTE outperforms 57.47% of its industry peers.
In the last couple of years the Profit Margin of ESTE has grown nicely.
ESTE has a better Operating Margin (45.11%) than 76.02% of its industry peers.
In the last couple of years the Operating Margin of ESTE has grown nicely.
With a decent Gross Margin value of 73.78%, ESTE is doing good in 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 Rank | Sector 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%
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.
Compared to 1 year ago, ESTE has more shares outstanding
ESTE has more shares outstanding than it did 5 years ago.
ESTE has a worse debt/assets ratio than last year.
2.2 Solvency
ESTE has an Altman-Z score of 1.94. This is not the best score and indicates that ESTE is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ESTE (1.94) is comparable to the rest of the industry.
ESTE has a Debt/Equity ratio of 0.58. This is a neutral value indicating ESTE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.58, ESTE perfoms like the industry average, outperforming 45.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.94 |
ROIC/WACC2.52
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.55 indicates that ESTE may have some problems paying its short term obligations.
The Current ratio of ESTE (0.55) is worse than 84.16% of its industry peers.
A Quick Ratio of 0.55 indicates that ESTE may have some problems paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
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.
ESTE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.89% yearly.
The Revenue has grown by 96.03% in the past year. This is a very strong growth!
ESTE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 73.41% yearly.
EPS 1Y (TTM)26.39%
EPS 3Y35.82%
EPS 5Y15.89%
EPS growth Q2Q-58.91%
Revenue 1Y (TTM)96.03%
Revenue growth 3Y106.93%
Revenue growth 5Y73.41%
Revenue growth Q2Q-21.7%
3.2 Future
ESTE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.86% yearly.
ESTE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.43% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.82, which indicates a rather cheap valuation of ESTE.
Based on the Price/Earnings ratio, ESTE is valued a bit cheaper than 74.21% of the companies in the same industry.
ESTE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.55.
Based on the Price/Forward Earnings ratio of 4.89, the valuation of ESTE can be described as very cheap.
87.78% of the companies in the same industry are more expensive than ESTE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ESTE to the average of the S&P500 Index (20.92), we can say ESTE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 4.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESTE indicates a somewhat cheap valuation: ESTE is cheaper than 79.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.19 |
4.3 Compensation for Growth
The decent profitability rating of ESTE may justify a higher PE ratio.
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%
5. Dividend
5.1 Amount
No dividends for ESTE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 4.89 | ||
| 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)N/A
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 26.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 45.11% | ||
| PM (TTM) | 25.4% | ||
| GM | 73.78% | ||
| 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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 | ||
| 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)26.39%
EPS 3Y35.82%
EPS 5Y
EPS growth Q2Q
EPS Next Y-28.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)96.03%
Revenue growth 3Y106.93%
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