CIVITAS RESOURCES INC (CIVI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIVI - US17888H1032 - Common Stock
27.78 USD
+0.73 (+2.7%)
27.72 USD
-0.06 (-0.22%)
Taking everything into account, CIVI scores 5 out of 10 in our fundamental rating. CIVI was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of CIVI while its profitability can be described as average. CIVI is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year CIVI was profitable.
- 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.
- With a decent Return On Equity value of 9.55%, CIVI is doing good in the industry, outperforming 63.28% of the companies in the same industry.
- CIVI's Return On Invested Capital of 8.28% is fine compared to the rest of the industry. CIVI outperforms 75.36% of its industry peers.
- CIVI had an Average Return On Invested Capital over the past 3 years of 16.04%. This 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
- CIVI's Profit Margin of 13.54% is fine compared to the rest of the industry. CIVI outperforms 64.73% of its industry peers.
- CIVI's Profit Margin has declined in the last couple of years.
- CIVI's Operating Margin of 30.24% is fine compared to the rest of the industry. CIVI outperforms 75.36% of its industry peers.
- CIVI's Operating Margin has declined in the last couple of years.
- The Gross Margin of CIVI (84.86%) is better than 92.75% 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 | 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.
- Compared to 5 years ago, CIVI has more shares outstanding
- Compared to 1 year ago, CIVI has an improved debt to assets ratio.
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.
- The Altman-Z score of CIVI (0.92) is comparable to the rest of the industry.
- 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.
- A Debt/Equity ratio of 0.77 indicates that 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/WACC0.86
WACC9.66%
2.3 Liquidity
- CIVI has a Current 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.
- With a Current ratio value of 0.56, CIVI is not doing good in the industry: 81.16% of the companies in the same industry are doing better.
- A Quick Ratio of 0.56 indicates that CIVI may have some problems paying its short term obligations.
- CIVI's Quick ratio of 0.56 is on the low side compared to the rest of the industry. CIVI is outperformed by 77.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
- The earnings per share for CIVI have decreased strongly by -28.03% in the last year.
- 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%.
- Measured over the past years, CIVI shows a very strong growth in Revenue. The Revenue has been growing by 75.45% on average per year.
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.
- Based on estimates for the next years, CIVI will show a decrease in Revenue. The Revenue will decrease by -1.26% on average per year.
EPS Next Y-27.14%
EPS Next 2Y-25.26%
EPS Next 3Y-9.95%
EPS Next 5Y3.15%
Revenue Next Year-11.76%
Revenue Next 2Y-9.16%
Revenue Next 3Y-3.98%
Revenue Next 5Y-1.26%
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.
- 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 4.29 indicates a rather cheap valuation of CIVI.
- Based on the Price/Earnings ratio, CIVI is valued cheaply inside the industry as 96.14% of the companies are valued more expensively.
- CIVI is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- CIVI is valuated cheaply with a Price/Forward Earnings ratio of 5.80.
- 95.65% of the companies in the same industry are more expensive than CIVI, based on the Price/Forward Earnings ratio.
- CIVI is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.29 | ||
| Fwd PE | 5.8 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CIVI is valued cheaply inside the industry as 98.07% of the companies are valued more expensively.
- 97.10% of the companies in the same industry are more expensive than CIVI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.54 | ||
| EV/EBITDA | 2.17 |
4.3 Compensation for Growth
- CIVI has a very decent profitability rating, which 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)0.55
EPS Next 2Y-25.26%
EPS Next 3Y-9.95%
5. Dividend
5.1 Amount
- CIVI has a Yearly Dividend Yield of 7.34%, which is a nice return.
- CIVI's Dividend Yield is rather good when compared to the industry average which is at 3.73. CIVI pays more dividend than 81.64% of the companies in the same industry.
- CIVI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.34% |
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
- 29.56% of the earnings are spent on dividend by CIVI. This is a low number and 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%.