CIVITAS RESOURCES INC (CIVI) Stock Fundamental Analysis
NYSE:CIVI - New York Stock Exchange, Inc. - US17888H1032 - Common Stock - Currency: USD
CIVI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 212 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.
CIVI had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 5.61%, CIVI is in the better half of the industry, outperforming 61.32% of the companies in the same industry.
CIVI's Return On Equity of 12.65% is fine compared to the rest of the industry. CIVI outperforms 63.21% of its industry peers.
With a decent Return On Invested Capital value of 11.56%, CIVI is doing good in the industry, outperforming 77.83% 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 27.42%.
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
The Profit Margin of CIVI (16.11%) is better than 64.62% of its industry peers.
In the last couple of years the Profit Margin of CIVI has declined.
The Operating Margin of CIVI (36.26%) is better than 77.36% of its industry peers.
CIVI's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 87.98%, CIVI belongs to the best of the industry, outperforming 93.87% 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 | 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
CIVI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CIVI remains at a similar level compared to 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 an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.01, we must say that CIVI is in the distress zone and has some risk of bankruptcy.
CIVI has a Altman-Z score (1.01) which is in line with its industry peers.
CIVI has a debt to FCF ratio of 5.03. This is a neutral value as CIVI would need 5.03 years to pay back of all of its debts.
The Debt to FCF ratio of CIVI (5.03) is better than 66.98% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that CIVI is somewhat dependend on debt financing.
CIVI's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. CIVI is outperformed by 64.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 5.03 | ||
| Altman-Z | 1.01 |
ROIC/WACC1.13
WACC10.2%
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.
The Current ratio of CIVI (0.45) is worse than 88.21% of its industry peers.
A Quick Ratio of 0.45 indicates that CIVI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.45, CIVI is doing worse than 85.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for CIVI have decreased strongly by -17.44% 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.
Looking at the last year, CIVI shows a very strong growth in Revenue. The Revenue has grown by 49.66%.
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)-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
Based on estimates for the next years, CIVI will show a decrease in Earnings Per Share. The EPS will decrease by -3.89% on average per year.
CIVI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.24% yearly.
EPS Next Y-13.88%
EPS Next 2Y-1.67%
EPS Next 3Y0%
EPS Next 5Y-3.89%
Revenue Next Year-5.5%
Revenue Next 2Y-2.3%
Revenue Next 3Y-2.24%
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.
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
With a Price/Earnings ratio of 3.38, the valuation of CIVI can be described as very cheap.
93.87% of the companies in the same industry are more expensive than CIVI, based on the Price/Earnings ratio.
CIVI is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 3.92, the valuation of CIVI can be described as very cheap.
Based on the Price/Forward Earnings ratio, CIVI is valued cheaper than 92.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, CIVI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.38 | ||
| Fwd PE | 3.92 |
4.2 Price Multiples
96.70% 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 93.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.02 | ||
| EV/EBITDA | 1.8 |
4.3 Compensation for Growth
The decent profitability rating of CIVI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-1.67%
EPS Next 3Y0%
5. Dividend
5.1 Amount
CIVI has a Yearly Dividend Yield of 7.52%, which is a nice return.
In the last 3 months the price of CIVI has falen by -45.88%. 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 7.82, CIVI pays a bit more dividend than its industry peers.
CIVI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.52% |
5.2 History
CIVI has been paying a dividend for over 5 years, so it has already some track record.
The dividend of CIVI decreased 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 2Y-1.67%
EPS Next 3Y0%
28.96
+0.98 (+3.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners99.7%
Inst Owner Change0%
Ins Owners0.66%
Ins Owner Change3.59%
Market Cap2.69B
Analysts79.09
Price Target60.62 (109.32%)
Short Float %6.57%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.52% |
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)-13.69%
PT rev (3m)-18.29%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-19.63%
EPS NY rev (1m)-25.3%
EPS NY rev (3m)-20.9%
Revenue NQ rev (1m)2.1%
Revenue NQ rev (3m)-5.23%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-4.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.38 | ||
| Fwd PE | 3.92 | ||
| P/S | 0.52 | ||
| P/FCF | 3.02 | ||
| P/OCF | 0.94 | ||
| P/B | 0.41 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 1.8 |
EPS(TTM)8.57
EY29.59%
EPS(NY)7.38
Fwd EY25.49%
FCF(TTM)9.6
FCFY33.16%
OCF(TTM)30.8
OCFY106.36%
SpS55.98
BVpS71.26
TBVpS71.26
PEG (NY)N/A
PEG (5Y)0.43
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 | 1.01 |
F-Score7
WACC10.2%
ROIC/WACC1.13
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 Y-13.88%
EPS Next 2Y-1.67%
EPS Next 3Y0%
EPS Next 5Y-3.89%
Revenue 1Y (TTM)49.66%
Revenue growth 3Y77.53%
Revenue growth 5Y75.45%
Sales Q2Q%14.74%
Revenue Next Year-5.5%
Revenue Next 2Y-2.3%
Revenue Next 3Y-2.24%
Revenue Next 5YN/A
EBIT growth 1Y25.85%
EBIT growth 3Y55.9%
EBIT growth 5Y67.69%
EBIT Next Year113.25%
EBIT Next 3Y28.27%
EBIT Next 5Y20.81%
FCF growth 1Y57.18%
FCF growth 3Y94.29%
FCF growth 5YN/A
OCF growth 1Y27.98%
OCF growth 3Y118.52%
OCF growth 5Y66.4%