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EARTHSTONE ENERGY INC - A (ESTE) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:ESTE - US27032D3044 - Common Stock

21.17 USD
+0.1 (+0.47%)
Last: 10/31/2023, 8:07:45 PM
20.85 USD
-0.32 (-1.51%)
After Hours: 10/31/2023, 8:07:45 PM
Fundamental Rating

4

Taking everything into account, ESTE scores 4 out of 10 in our fundamental rating. ESTE was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. While ESTE is still in line with the averages on profitability rating, there are concerns on its financial health. ESTE has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • ESTE had positive earnings in the past year.
  • In the past year ESTE had a positive cash flow from operations.
ESTE Yearly Net Income VS EBIT VS OCF VS FCFESTE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M -500M 1B

1.2 Ratios

  • ESTE has a Return On Assets (11.16%) which is in line with its industry peers.
  • The Return On Equity of ESTE (26.16%) is better than 64.71% of its industry peers.
  • ESTE has a Return On Invested Capital of 19.77%. This is in the better half of the industry: ESTE outperforms 76.47% of its industry peers.
Industry RankSector Rank
ROA 11.16%
ROE 26.16%
ROIC 19.77%
ROA(3y)4.14%
ROA(5y)3.34%
ROE(3y)10.01%
ROE(5y)8.58%
ROIC(3y)N/A
ROIC(5y)N/A
ESTE Yearly ROA, ROE, ROICESTE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20 -20

1.3 Margins

  • ESTE has a Profit Margin (25.40%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of ESTE has grown nicely.
  • ESTE's Operating Margin of 45.11% is fine compared to the rest of the industry. ESTE outperforms 76.02% of its industry peers.
  • In the last couple of years the Operating Margin of ESTE has grown nicely.
  • ESTE has a Gross Margin of 73.78%. This is in the better half of the industry: ESTE outperforms 77.38% of its industry peers.
  • In the last couple of years the Gross Margin of ESTE has remained more or less at the same level.
Industry RankSector Rank
OM 45.11%
PM (TTM) 25.4%
GM 73.78%
OM growth 3Y26.93%
OM growth 5Y27.89%
PM growth 3Y317.83%
PM growth 5YN/A
GM growth 3Y0.15%
GM growth 5Y0.75%
ESTE Yearly Profit, Operating, Gross MarginsESTE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 50 -50 -100

More info and screens

2

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ESTE is creating value.
  • The number of shares outstanding for ESTE has been increased compared to 1 year ago.
  • ESTE has a worse debt/assets ratio than last year.
ESTE Yearly Shares OutstandingESTE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
ESTE Yearly Total Debt VS Total AssetsESTE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 1.94 indicates that ESTE is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 1.94, ESTE is in line with its industry, outperforming 55.66% of the companies in the same industry.
  • A Debt/Equity ratio of 0.58 indicates that ESTE is somewhat dependend on debt financing.
  • ESTE has a Debt to Equity ratio (0.58) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF N/A
Altman-Z 1.94
ROIC/WACC2.52
WACC7.83%
ESTE Yearly LT Debt VS Equity VS FCFESTE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M -500M 1B 1.5B

2.3 Liquidity

  • ESTE has a Current Ratio of 0.55. This is a bad value and indicates that ESTE is not financially healthy enough and could expect problems in meeting its short term obligations.
  • ESTE has a Current ratio of 0.55. This is amonst the worse of the industry: ESTE underperforms 84.16% of its industry peers.
  • A Quick Ratio of 0.55 indicates that ESTE may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.55, ESTE is not doing good in the industry: 80.09% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.55
Quick Ratio 0.55
ESTE Yearly Current Assets VS Current LiabilitesESTE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

More info and screens

6

3. Growth

3.1 Past

  • ESTE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.39%, which is quite impressive.
  • The Earnings Per Share has been growing by 15.89% on average over the past years. This is quite good.
  • The Revenue has grown by 96.03% in the past year. This is a very strong growth!
  • The Revenue has been growing by 73.41% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)26.39%
EPS 3Y35.82%
EPS 5Y15.89%
EPS Q2Q%-58.91%
Revenue 1Y (TTM)96.03%
Revenue growth 3Y106.93%
Revenue growth 5Y73.41%
Sales Q2Q%-21.7%

3.2 Future

  • The Earnings Per Share is expected to decrease by -4.86% on average over the next years.
  • Based on estimates for the next years, ESTE will show a small growth in Revenue. The Revenue will grow by 6.43% on average per year.
EPS Next Y-28.42%
EPS Next 2Y-0.91%
EPS Next 3Y-4.86%
EPS Next 5YN/A
Revenue Next Year5.14%
Revenue Next 2Y13.54%
Revenue Next 3Y6.43%
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.
ESTE Yearly Revenue VS EstimatesESTE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
ESTE Yearly EPS VS EstimatesESTE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 2 3 4

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

  • ESTE is valuated cheaply with a Price/Earnings ratio of 5.82.
  • Based on the Price/Earnings ratio, ESTE is valued a bit cheaper than the industry average as 74.21% of the companies are valued more expensively.
  • ESTE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.47.
  • ESTE is valuated cheaply with a Price/Forward Earnings ratio of 4.89.
  • 87.78% of the companies in the same industry are more expensive than ESTE, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of ESTE to the average of the S&P500 Index (24.26), we can say ESTE is valued rather cheaply.
Industry RankSector Rank
PE 5.82
Fwd PE 4.89
ESTE Price Earnings VS Forward Price EarningsESTE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESTE indicates a somewhat cheap valuation: ESTE is cheaper than 79.64% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.19
ESTE Per share dataESTE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • A cheap valuation may be justified as ESTE's earnings are expected to decrease with -4.86% in the coming years.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-0.91%
EPS Next 3Y-4.86%

More info and screens

0

5. Dividend

5.1 Amount

  • ESTE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

EARTHSTONE ENERGY INC - A

NYSE:ESTE (10/31/2023, 8:07:45 PM)

After market: 20.85 -0.32 (-1.51%)

21.17

+0.1 (+0.47%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-08
Earnings (Next)03-06
Inst Owners0%
Inst Owner Change0%
Ins Owners21.5%
Ins Owner Change0%
Market Cap2.98B
Revenue(TTM)1.81B
Net Income(TTM)459.67M
Analysts80
Price Target26.23 (23.9%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.56%
Min EPS beat(2)1.4%
Max EPS beat(2)3.71%
EPS beat(4)2
Avg EPS beat(4)-2.8%
Min EPS beat(4)-13.3%
Max EPS beat(4)3.71%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)0.91%
Revenue beat(4)3
Avg Revenue beat(4)5.35%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)17.68%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.56%
PT rev (3m)4.42%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)16.39%
EPS NY rev (1m)4.88%
EPS NY rev (3m)8.89%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)9.14%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)4.17%
Valuation
Industry RankSector Rank
PE 5.82
Fwd PE 4.89
P/S 1.64
P/FCF N/A
P/OCF 2.57
P/B 1.69
P/tB 1.69
EV/EBITDA 3.19
EPS(TTM)3.64
EY17.19%
EPS(NY)4.33
Fwd EY20.45%
FCF(TTM)-0.54
FCFYN/A
OCF(TTM)8.24
OCFY38.91%
SpS12.87
BVpS12.5
TBVpS12.5
PEG (NY)N/A
PEG (5Y)0.37
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 11.16%
ROE 26.16%
ROCE 21.84%
ROIC 19.77%
ROICexc 20.03%
ROICexgc 20.03%
OM 45.11%
PM (TTM) 25.4%
GM 73.78%
FCFM N/A
ROA(3y)4.14%
ROA(5y)3.34%
ROE(3y)10.01%
ROE(5y)8.58%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y71.65%
ROICexgc growth 5Y61.31%
ROICexc growth 3Y72.66%
ROICexc growth 5Y62.09%
OM growth 3Y26.93%
OM growth 5Y27.89%
PM growth 3Y317.83%
PM growth 5YN/A
GM growth 3Y0.15%
GM growth 5Y0.75%
F-Score6
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF N/A
Debt/EBITDA 0.83
Cap/Depr 292.7%
Cap/Sales 68.22%
Interest Coverage 17.71
Cash Conversion 93.53%
Profit Quality N/A
Current Ratio 0.55
Quick Ratio 0.55
Altman-Z 1.94
F-Score6
WACC7.83%
ROIC/WACC2.52
Cap/Depr(3y)289.67%
Cap/Depr(5y)296.1%
Cap/Sales(3y)69.23%
Cap/Sales(5y)81.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.39%
EPS 3Y35.82%
EPS 5Y15.89%
EPS Q2Q%-58.91%
EPS Next Y-28.42%
EPS Next 2Y-0.91%
EPS Next 3Y-4.86%
EPS Next 5YN/A
Revenue 1Y (TTM)96.03%
Revenue growth 3Y106.93%
Revenue growth 5Y73.41%
Sales Q2Q%-21.7%
Revenue Next Year5.14%
Revenue Next 2Y13.54%
Revenue Next 3Y6.43%
Revenue Next 5YN/A
EBIT growth 1Y48.12%
EBIT growth 3Y162.66%
EBIT growth 5Y121.78%
EBIT Next Year23.96%
EBIT Next 3Y14.17%
EBIT Next 5YN/A
FCF growth 1Y-10.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y589.91%
OCF growth 3Y100.61%
OCF growth 5Y82.02%

EARTHSTONE ENERGY INC - A / ESTE FAQ

What is the fundamental rating for ESTE stock?

ChartMill assigns a fundamental rating of 4 / 10 to ESTE.


What is the valuation status for ESTE stock?

ChartMill assigns a valuation rating of 6 / 10 to EARTHSTONE ENERGY INC - A (ESTE). This can be considered as Fairly Valued.


What is the profitability of ESTE stock?

EARTHSTONE ENERGY INC - A (ESTE) has a profitability rating of 6 / 10.


What is the expected EPS growth for EARTHSTONE ENERGY INC - A (ESTE) stock?

The Earnings per Share (EPS) of EARTHSTONE ENERGY INC - A (ESTE) is expected to decline by -28.42% in the next year.