CIVITAS RESOURCES INC (CIVI) Stock Fundamental Analysis
NYSE:CIVI - New York Stock Exchange, Inc. - US17888H1032 - Common Stock - Currency: USD
Overall CIVI gets a fundamental rating of 5 out of 10. We evaluated CIVI against 210 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
CIVI had positive earnings in the past year.
CIVI had a positive operating cash flow in the past year.
Each year in the past 5 years CIVI has been profitable.
CIVI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CIVI (5.61%) is comparable to the rest of the industry.
CIVI has a better Return On Equity (12.65%) than 60.95% of its industry peers.
With a decent Return On Invested Capital value of 11.56%, CIVI is doing good in the industry, outperforming 75.71% of the companies in the same industry.
CIVI had an Average Return On Invested Capital over the past 3 years of 16.04%. This is significantly below the industry average of 27.47%.
The 3 year average ROIC (16.04%) for CIVI is well above the current ROIC(11.56%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.61% | ||
| ROE | 12.65% | ||
| ROIC | 11.56% |
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
With a decent Profit Margin value of 16.11%, CIVI is doing good in the industry, outperforming 61.43% of the companies in the same industry.
CIVI's Profit Margin has declined in the last couple of years.
CIVI has a better Operating Margin (36.26%) than 75.71% of its industry peers.
CIVI's Operating Margin has declined in the last couple of years.
The Gross Margin of CIVI (87.98%) is better than 93.81% of its industry peers.
In the last couple of years the Gross Margin of CIVI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.26% | ||
| PM (TTM) | 16.11% | ||
| GM | 87.98% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CIVI is creating some value.
Compared to 1 year ago, CIVI has about the same amount of shares outstanding.
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
CIVI has an Altman-Z score of 1.04. This is a bad value and indicates that CIVI is not financially healthy and even has some risk of bankruptcy.
CIVI has a Altman-Z score (1.04) which is comparable to the rest of the industry.
The Debt to FCF ratio of CIVI is 5.03, which is a neutral value as it means it would take CIVI, 5.03 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.03, CIVI is doing good in the industry, outperforming 65.24% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that CIVI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, CIVI is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 1.04 |
ROIC/WACC1.26
WACC9.16%
2.3 Liquidity
CIVI has a Current Ratio of 0.45. This is a bad value and indicates that CIVI is not financially healthy enough and could expect problems in meeting its short term obligations.
CIVI has a Current ratio of 0.45. This is amonst the worse of the industry: CIVI underperforms 88.57% of its industry peers.
A Quick Ratio of 0.45 indicates that CIVI may have some problems paying its short term obligations.
CIVI has a worse Quick ratio (0.45) than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
CIVI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.44%.
The Earnings Per Share has been growing slightly by 7.79% on average over the past years.
Looking at the last year, CIVI shows a very strong growth in Revenue. The Revenue has grown by 49.66%.
CIVI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 75.45% yearly.
EPS 1Y (TTM)-17.44%
EPS 3Y30.46%
EPS 5Y7.79%
EPS Q2Q%-19.09%
Revenue 1Y (TTM)49.66%
Revenue growth 3Y77.53%
Revenue growth 5Y75.45%
Sales Q2Q%14.74%
3.2 Future
The Earnings Per Share is expected to decrease by -1.23% on average over the next years.
The Revenue is expected to decrease by -1.10% on average over the next years.
EPS Next Y15.29%
EPS Next 2Y13.36%
EPS Next 3Y-1.23%
EPS Next 5YN/A
Revenue Next Year-5.13%
Revenue Next 2Y-0.97%
Revenue Next 3Y-1.1%
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
A Price/Earnings ratio of 3.91 indicates a rather cheap valuation of CIVI.
92.38% of the companies in the same industry are more expensive than CIVI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CIVI to the average of the S&P500 Index (29.35), we can say CIVI is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.39, the valuation of CIVI can be described as very cheap.
96.67% of the companies in the same industry are more expensive than CIVI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CIVI to the average of the S&P500 Index (22.10), we can say CIVI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.91 | ||
| Fwd PE | 3.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIVI is valued cheaply inside the industry as 95.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CIVI is valued cheaper than 92.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.49 | ||
| EV/EBITDA | 1.91 |
4.3 Compensation for Growth
The 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)0.26
PEG (5Y)0.5
EPS Next 2Y13.36%
EPS Next 3Y-1.23%
5. Dividend
5.1 Amount
CIVI has a Yearly Dividend Yield of 6.12%, which is a nice return.
The stock price of CIVI dropped by -28.62% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 7.06, CIVI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, CIVI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.12% |
5.2 History
CIVI has been paying a dividend for over 5 years, so it has already some track record.
CIVI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
58.88% of the earnings are spent on dividend by CIVI. This is a bit on the high side, but may be sustainable.
DP58.88%
EPS Next 2Y13.36%
EPS Next 3Y-1.23%
33.52
+0.84 (+2.57%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners99.7%
Inst Owner Change1.79%
Ins Owners0.66%
Ins Owner Change3.59%
Market Cap3.12B
Analysts81.82
Price Target70.23 (109.52%)
Short Float %6.78%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.12% |
Yearly Dividend5.26
Dividend Growth(5Y)N/A
DP58.88%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.94%
Min EPS beat(2)-11.77%
Max EPS beat(2)-2.11%
EPS beat(4)1
Avg EPS beat(4)-8.8%
Min EPS beat(4)-28.25%
Max EPS beat(4)6.92%
EPS beat(8)3
Avg EPS beat(8)1.4%
EPS beat(12)4
Avg EPS beat(12)1.58%
EPS beat(16)6
Avg EPS beat(16)-3.94%
Revenue beat(2)0
Avg Revenue beat(2)-4.35%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)-2.65%
Revenue beat(4)1
Avg Revenue beat(4)-3%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)1.08%
Revenue beat(8)3
Avg Revenue beat(8)-2.33%
Revenue beat(12)7
Avg Revenue beat(12)5.4%
Revenue beat(16)11
Avg Revenue beat(16)8.44%
PT rev (1m)-4.28%
PT rev (3m)-7.2%
EPS NQ rev (1m)-10.47%
EPS NQ rev (3m)-6.3%
EPS NY rev (1m)2.66%
EPS NY rev (3m)15.14%
Revenue NQ rev (1m)-2.4%
Revenue NQ rev (3m)-4.69%
Revenue NY rev (1m)-4.26%
Revenue NY rev (3m)-4.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.91 | ||
| Fwd PE | 3.39 | ||
| P/S | 0.6 | ||
| P/FCF | 3.49 | ||
| P/OCF | 1.09 | ||
| P/B | 0.47 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 1.91 |
EPS(TTM)8.57
EY25.57%
EPS(NY)9.88
Fwd EY29.48%
FCF(TTM)9.6
FCFY28.65%
OCF(TTM)30.8
OCFY91.89%
SpS55.98
BVpS71.26
TBVpS71.26
PEG (NY)0.26
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.61% | ||
| ROE | 12.65% | ||
| ROCE | 14.82% | ||
| ROIC | 11.56% | ||
| ROICexc | 11.63% | ||
| ROICexgc | 11.63% | ||
| OM | 36.26% | ||
| PM (TTM) | 16.11% | ||
| GM | 87.98% | ||
| FCFM | 17.16% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 5.03 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 95.89% | ||
| Cap/Sales | 37.87% | ||
| Interest Coverage | 4.62 | ||
| Cash Conversion | 72.64% | ||
| Profit Quality | 106.52% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.04 |
F-Score7
WACC9.16%
ROIC/WACC1.26
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)-17.44%
EPS 3Y30.46%
EPS 5Y7.79%
EPS Q2Q%-19.09%
EPS Next Y15.29%
EPS Next 2Y13.36%
EPS Next 3Y-1.23%
EPS Next 5YN/A
Revenue 1Y (TTM)49.66%
Revenue growth 3Y77.53%
Revenue growth 5Y75.45%
Sales Q2Q%14.74%
Revenue Next Year-5.13%
Revenue Next 2Y-0.97%
Revenue Next 3Y-1.1%
Revenue Next 5YN/A
EBIT growth 1Y25.85%
EBIT growth 3Y55.9%
EBIT growth 5Y67.69%
EBIT Next Year129%
EBIT Next 3Y32.63%
EBIT Next 5YN/A
FCF growth 1Y57.18%
FCF growth 3Y94.29%
FCF growth 5YN/A
OCF growth 1Y27.98%
OCF growth 3Y118.52%
OCF growth 5Y66.4%