CIVITAS RESOURCES INC (CIVI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIVI - US17888H1032 - Common Stock
27.25 USD
+0.03 (+0.11%)
27.25 USD
0 (0%)
CIVI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 207 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 has a bad growth rate and is valued cheaply.
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.
- In the past 5 years CIVI has always been profitable.
- Each year in the past 5 years CIVI had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.22%, CIVI is in line with its industry, outperforming 58.94% of the companies in the same industry.
- The Return On Equity of CIVI (9.55%) is better than 63.28% of its industry peers.
- CIVI has a better Return On Invested Capital (8.28%) than 75.36% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CIVI is significantly below the industry average of 21.94%.
- The 3 year average ROIC (16.04%) for CIVI is well above the current ROIC(8.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.22% | ||
| ROE | 9.55% | ||
| ROIC | 8.28% |
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
- Looking at the Profit Margin, with a value of 13.54%, CIVI is in the better half of the industry, outperforming 64.73% of the companies in the same industry.
- CIVI's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 30.24%, CIVI is in the better half of the industry, outperforming 75.36% of the companies in the same industry.
- CIVI's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 84.86%, CIVI belongs to the best of the industry, outperforming 92.75% of the companies in the same industry.
- CIVI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.24% | ||
| PM (TTM) | 13.54% | ||
| GM | 84.86% |
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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CIVI is still creating some value.
- CIVI has about the same amout of shares outstanding than it did 1 year ago.
- CIVI has more shares outstanding than it did 5 years ago.
- CIVI has a better debt/assets ratio than last year.
2.2 Solvency
- CIVI has an Altman-Z score of 0.92. 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 of 0.92. This is comparable to the rest of the industry: CIVI outperforms 43.48% of its industry peers.
- The Debt to FCF ratio of CIVI is 5.50, which is a neutral value as it means it would take CIVI, 5.50 years of fcf income to pay off all of its debts.
- CIVI has a better Debt to FCF ratio (5.50) than 62.80% of its industry peers.
- CIVI has a Debt/Equity ratio of 0.77. This is a neutral value indicating CIVI is somewhat dependend on debt financing.
- The Debt to Equity ratio of CIVI (0.77) is worse than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.87
WACC9.55%
2.3 Liquidity
- A Current Ratio of 0.56 indicates that CIVI may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.56, CIVI is doing worse than 81.16% of the companies in the same industry.
- CIVI has a Quick Ratio of 0.56. 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 worse Quick ratio (0.56) than 77.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
- CIVI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.03%.
- Measured over the past 5 years, CIVI shows a small growth in Earnings Per Share. The EPS has been growing by 7.79% on average per year.
- CIVI shows a decrease in Revenue. In the last year, the revenue decreased by -6.52%.
- The Revenue has been growing by 75.45% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-28.03%
EPS 3Y30.46%
EPS 5Y7.79%
EPS Q2Q%-3.02%
Revenue 1Y (TTM)-6.52%
Revenue growth 3Y77.53%
Revenue growth 5Y75.45%
Sales Q2Q%-8.18%
3.2 Future
- CIVI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.15% yearly.
- The Revenue is expected to decrease by -1.26% on average over the next years.
EPS Next Y-27.14%
EPS Next 2Y-25.26%
EPS Next 3Y-9.95%
EPS Next 5Y3.15%
Revenue Next Year-11.66%
Revenue Next 2Y-8.51%
Revenue Next 3Y-3.25%
Revenue Next 5Y-1.26%
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
- With a Price/Earnings ratio of 4.21, the valuation of CIVI can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of CIVI indicates a rather cheap valuation: CIVI is cheaper than 96.14% of the companies listed in the same industry.
- CIVI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.32.
- The Price/Forward Earnings ratio is 5.69, which indicates a rather cheap valuation of CIVI.
- 94.20% of the companies in the same industry are more expensive than CIVI, based on the Price/Forward Earnings ratio.
- CIVI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.21 | ||
| Fwd PE | 5.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CIVI is valued cheaper than 98.07% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CIVI is valued cheaper than 97.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.49 | ||
| EV/EBITDA | 2.17 |
4.3 Compensation for Growth
- The decent profitability rating of CIVI may justify a higher PE ratio.
- CIVI's earnings are expected to decrease with -9.95% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y-25.26%
EPS Next 3Y-9.95%
5. Dividend
5.1 Amount
- CIVI has a Yearly Dividend Yield of 7.53%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.75, CIVI pays a better dividend. On top of this CIVI pays more dividend than 81.64% of the companies listed in the same industry.
- CIVI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.53% |
5.2 History
- CIVI has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- CIVI pays out 29.56% of its income as dividend. This is a sustainable payout ratio.
DP29.56%
EPS Next 2Y-25.26%
EPS Next 3Y-9.95%
CIVITAS RESOURCES INC / CIVI FAQ
What is the fundamental rating for CIVI stock?
ChartMill assigns a fundamental rating of 5 / 10 to CIVI.
Can you provide the valuation status for CIVITAS RESOURCES INC?
ChartMill assigns a valuation rating of 8 / 10 to CIVITAS RESOURCES INC (CIVI). This can be considered as Undervalued.
How profitable is CIVITAS RESOURCES INC (CIVI) stock?
CIVITAS RESOURCES INC (CIVI) has a profitability rating of 6 / 10.
How financially healthy is CIVITAS RESOURCES INC?
The financial health rating of CIVITAS RESOURCES INC (CIVI) is 3 / 10.
Can you provide the dividend sustainability for CIVI stock?
The dividend rating of CIVITAS RESOURCES INC (CIVI) is 6 / 10 and the dividend payout ratio is 29.56%.