In the world of growth stocks, NYSE:CIVI shines as a value proposition.

Last update: Oct 16, 2023

Consider CIVITAS RESOURCES INC (NYSE:CIVI) as an affordable growth stock, identified by our stock screening tool. NYSE:CIVI is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Examination for NYSE:CIVI

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:CIVI was assigned a score of 7 for growth:

The Earnings Per Share has grown by an nice 18.37% over the past year.
Measured over the past years, CIVI shows a very strong growth in Earnings Per Share. The EPS has been growing by 57.99% on average per year.
CIVI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.57%.
CIVI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 81.57% yearly.
Based on estimates for the next years, CIVI will show a quite strong growth in Revenue. The Revenue will grow by 11.49% on average per year.

Understanding NYSE:CIVI's Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:CIVI scores a 6 out of 10:

A Price/Earnings ratio of 7.18 indicates a rather cheap valuation of CIVI.
CIVI's Price/Earnings ratio is a bit cheaper when compared to the industry. CIVI is cheaper than 65.60% of the companies in the same industry.
CIVI is valuated cheaply when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.16, the valuation of CIVI can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CIVI indicates a rather cheap valuation: CIVI is cheaper than 88.07% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CIVI to the average of the S&P500 Index (18.74), we can say CIVI is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, CIVI is valued cheaply inside the industry as 80.73% of the companies are valued more expensively.
The decent profitability rating of CIVI may justify a higher PE ratio.

Assessing Health Metrics for NYSE:CIVI

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CIVI was assigned a score of 6 for health:

CIVI has a Current Ratio of 2.80. This indicates that CIVI is financially healthy and has no problem in meeting its short term obligations.
CIVI's Current ratio of 2.80 is amongst the best of the industry. CIVI outperforms 80.73% of its industry peers.
CIVI has a Quick Ratio of 2.80. This indicates that CIVI is financially healthy and has no problem in meeting its short term obligations.
CIVI has a better Quick ratio (2.80) than 81.65% of its industry peers.

A Closer Look at Profitability for NYSE:CIVI

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:CIVI was assigned a score of 7 for profitability:

The 3 year average ROIC (11.44%) for CIVI is below the current ROIC(13.21%), indicating increased profibility in the last year.
CIVI has a better Profit Margin (32.80%) than 66.51% of its industry peers.
In the last couple of years the Profit Margin of CIVI has grown nicely.
CIVI's Operating Margin of 51.42% is amongst the best of the industry. CIVI outperforms 81.65% of its industry peers.
In the last couple of years the Operating Margin of CIVI has grown nicely.
Looking at the Gross Margin, with a value of 92.63%, CIVI belongs to the top of the industry, outperforming 94.95% of the companies in the same industry.
CIVI's Gross Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of CIVI for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.