CIVITAS RESOURCES INC (CIVI)
US17888H1032 - Common Stock
Overall CIVI gets a fundamental rating of 5 out of 10. We evaluated CIVI against 205 industry peers in the Oil, Gas & Consumable Fuels industry. CIVI has a medium profitability rating, but doesn't score so well on its financial health evaluation. CIVI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year CIVI was profitable.
In the past year CIVI had a positive cash flow from operations.
CIVI had positive earnings in each of the past 5 years.
Each year in the past 5 years CIVI had a positive operating cash flow.
1.2 Ratios
CIVI has a Return On Assets (6.60%) which is in line with its industry peers.
CIVI has a Return On Equity of 14.85%. This is in the better half of the industry: CIVI outperforms 62.25% of its industry peers.
With a decent Return On Invested Capital value of 11.52%, CIVI is doing good in the industry, outperforming 74.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CIVI is significantly below the industry average of 29.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 14.85% | ||
| ROIC | 11.52% |
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
The Profit Margin of CIVI (19.65%) is better than 66.18% of its industry peers.
In the last couple of years the Profit Margin of CIVI has declined.
CIVI has a better Operating Margin (38.28%) than 76.47% of its industry peers.
In the last couple of years the Operating Margin of CIVI has declined.
CIVI has a better Gross Margin (88.87%) than 94.12% of its industry peers.
In the last couple of years the Gross Margin of CIVI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.28% | ||
| PM (TTM) | 19.65% | ||
| GM | 88.87% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CIVI is creating value.
CIVI has more shares outstanding than it did 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 1.10, we must say that CIVI is in the distress zone and has some risk of bankruptcy.
CIVI has a Altman-Z score (1.10) which is in line with its industry peers.
The Debt to FCF ratio of CIVI is 1.20, which is an excellent value as it means it would take CIVI, only 1.20 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CIVI (1.20) is better than 83.82% of its industry peers.
CIVI has a Debt/Equity ratio of 0.73. This is a neutral value indicating CIVI is somewhat dependend on debt financing.
CIVI has a Debt to Equity ratio of 0.73. This is in the lower half of the industry: CIVI underperforms 66.67% of its industry peers.
Although CIVI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 1.1 |
ROIC/WACC1.73
WACC6.64%
2.3 Liquidity
A Current Ratio of 0.45 indicates that CIVI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.45, CIVI is doing worse than 89.22% of the companies in the same industry.
CIVI has a Quick 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's Quick ratio of 0.45 is on the low side compared to the rest of the industry. CIVI is outperformed by 87.25% 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 -15.75%.
The Earnings Per Share has been growing by 16.34% on average over the past years. This is quite good.
The Revenue has grown by 59.18% in the past year. This is a very strong growth!
Measured over the past years, CIVI shows a very strong growth in Revenue. The Revenue has been growing by 65.92% on average per year.
EPS 1Y (TTM)-15.75%
EPS 3Y19.91%
EPS 5Y16.34%
EPS Q2Q%-45.63%
Revenue 1Y (TTM)59.18%
Revenue growth 3Y151.74%
Revenue growth 5Y65.92%
Sales Q2Q%22.79%
3.2 Future
CIVI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.56% yearly.
Based on estimates for the next years, CIVI will show a quite strong growth in Revenue. The Revenue will grow by 14.92% on average per year.
EPS Next Y-14.54%
EPS Next 2Y-9.08%
EPS Next 3Y-1.42%
EPS Next 5Y-5.56%
Revenue Next Year49.19%
Revenue Next 2Y21.58%
Revenue Next 3Y14.92%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.76, which indicates a rather cheap valuation of CIVI.
CIVI's Price/Earnings ratio is rather cheap when compared to the industry. CIVI is cheaper than 86.76% of the companies in the same industry.
CIVI is valuated cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.99, which indicates a rather cheap valuation of CIVI.
Based on the Price/Forward Earnings ratio, CIVI is valued cheaply inside the industry as 84.80% of the companies are valued more expensively.
CIVI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.76 | ||
| Fwd PE | 4.99 |
4.2 Price Multiples
93.63% of the companies in the same industry are more expensive than CIVI, based on the Enterprise Value to EBITDA ratio.
CIVI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CIVI is cheaper than 99.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.03 | ||
| EV/EBITDA | 2.32 |
4.3 Compensation for Growth
The decent profitability rating of CIVI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-9.08%
EPS Next 3Y-1.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, CIVI is a good candidate for dividend investing.
In the last 3 months the price of CIVI has falen by -21.14%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.08, CIVI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, CIVI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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
60.13% of the earnings are spent on dividend by CIVI. This is not a sustainable payout ratio.
DP60.13%
EPS Next 2Y-9.08%
EPS Next 3Y-1.42%
CIVITAS RESOURCES INC
NYSE:CIVI (12/20/2024, 8:04:00 PM)
After market: 42.83 0 (0%)42.83
+0.04 (+0.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners94.31%
Inst Owner Change-0.21%
Ins Owners2.63%
Ins Owner Change-0.19%
Market Cap4.16B
Analysts83.81
Price Target75.68 (76.7%)
Short Float %5.37%
Short Ratio4.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Dividend Growth(5Y)N/A
DP60.13%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.18%
Min EPS beat(2)-28.25%
Max EPS beat(2)-2.11%
EPS beat(4)1
Avg EPS beat(4)-11.1%
Min EPS beat(4)-28.25%
Max EPS beat(4)6.92%
EPS beat(8)3
Avg EPS beat(8)1.96%
EPS beat(12)4
Avg EPS beat(12)-5.77%
EPS beat(16)7
Avg EPS beat(16)18.07%
Revenue beat(2)0
Avg Revenue beat(2)-5.22%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)-4.39%
Revenue beat(4)1
Avg Revenue beat(4)-3.91%
Min Revenue beat(4)-6.26%
Max Revenue beat(4)1.08%
Revenue beat(8)4
Avg Revenue beat(8)-1.13%
Revenue beat(12)8
Avg Revenue beat(12)7.52%
Revenue beat(16)11
Avg Revenue beat(16)8.24%
PT rev (1m)-4.63%
PT rev (3m)-17.69%
EPS NQ rev (1m)-44.83%
EPS NQ rev (3m)-44.83%
EPS NY rev (1m)-3.16%
EPS NY rev (3m)-16.46%
Revenue NQ rev (1m)-8.47%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)-1.43%
Revenue NY rev (3m)-4.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.76 | ||
| Fwd PE | 4.99 | ||
| P/S | 0.82 | ||
| P/FCF | 1.03 | ||
| P/OCF | 1.46 | ||
| P/B | 0.62 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 2.32 |
EPS(TTM)8.99
EY20.99%
EPS(NY)8.58
Fwd EY20.04%
FCF(TTM)41.39
FCFY96.64%
OCF(TTM)29.36
OCFY68.54%
SpS51.92
BVpS68.68
TBVpS68.68
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 14.85% | ||
| ROCE | 14.97% | ||
| ROIC | 11.52% | ||
| ROICexc | 11.56% | ||
| ROICexgc | 11.56% | ||
| OM | 38.28% | ||
| PM (TTM) | 19.65% | ||
| GM | 88.87% | ||
| FCFM | 79.73% |
ROA(3y)7.96%
ROA(5y)7.64%
ROE(3y)13.25%
ROE(5y)11.36%
ROIC(3y)14.31%
ROIC(5y)11.08%
ROICexc(3y)15.87%
ROICexc(5y)12.05%
ROICexgc(3y)15.87%
ROICexgc(5y)12.05%
ROCE(3y)18.59%
ROCE(5y)14.4%
ROICexcg growth 3Y58.52%
ROICexcg growth 5Y-1.3%
ROICexc growth 3Y58.52%
ROICexc growth 5Y-1.3%
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%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 60.59% | ||
| Cap/Sales | 23.18% | ||
| Interest Coverage | 5.44 | ||
| Cash Conversion | 73.88% | ||
| Profit Quality | 405.74% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.1 |
F-Score6
WACC6.64%
ROIC/WACC1.73
Cap/Depr(3y)124.93%
Cap/Depr(5y)156.11%
Cap/Sales(3y)33.31%
Cap/Sales(5y)42.24%
Profit Quality(3y)77.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.75%
EPS 3Y19.91%
EPS 5Y16.34%
EPS Q2Q%-45.63%
EPS Next Y-14.54%
EPS Next 2Y-9.08%
EPS Next 3Y-1.42%
EPS Next 5Y-5.56%
Revenue 1Y (TTM)59.18%
Revenue growth 3Y151.74%
Revenue growth 5Y65.92%
Sales Q2Q%22.79%
Revenue Next Year49.19%
Revenue Next 2Y21.58%
Revenue Next 3Y14.92%
Revenue Next 5YN/A
EBIT growth 1Y29.67%
EBIT growth 3Y244.49%
EBIT growth 5Y61.47%
EBIT Next Year204.9%
EBIT Next 3Y44.68%
EBIT Next 5Y32.15%
FCF growth 1Y338.92%
FCF growth 3Y81.54%
FCF growth 5YN/A
OCF growth 1Y39.22%
OCF growth 3Y141.57%
OCF growth 5Y80.58%