EARTHSTONE ENERGY INC - A (ESTE) Stock Fundamental Analysis
NYSE:ESTE - New York Stock Exchange, Inc. - US27032D3044 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ESTE. ESTE was compared to 212 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 decent growth rate and is not valued too expensively.
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 had positive earnings in 4 of the past 5 years.
In the past 5 years ESTE always reported a positive cash flow from operatings.
1.2 Ratios
ESTE's Return On Assets of 11.16% is in line compared to the rest of the industry. ESTE outperforms 58.82% of its industry peers.
With a decent Return On Equity value of 26.16%, ESTE is doing good in the industry, outperforming 64.71% of the companies in the same industry.
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 Rank | Sector 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
1.3 Margins
ESTE has a Profit Margin of 25.40%. This is comparable to the rest of the industry: ESTE outperforms 57.47% of its industry peers.
ESTE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 45.11%, ESTE is doing good in the industry, outperforming 76.02% of the companies in the same industry.
ESTE's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 73.78%, ESTE is doing good in the industry, outperforming 77.38% of the companies in the same industry.
In the last couple of years the Gross Margin of ESTE has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
ESTE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ESTE has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, ESTE has a worse debt to assets ratio.
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.
ESTE has a Altman-Z score (1.94) which is comparable to the rest of the industry.
ESTE has a Debt/Equity ratio of 0.58. This is a neutral value indicating ESTE is somewhat dependend on debt financing.
ESTE has a Debt to Equity ratio (0.58) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.94 |
ROIC/WACC2.52
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.55 indicates that ESTE may have some problems paying its short term obligations.
The Current ratio of ESTE (0.55) is worse than 84.16% of its industry peers.
ESTE has a Quick 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.39% over the past year.
The Earnings Per Share has been growing by 15.89% on average over the past years. This is quite good.
Looking at the last year, ESTE shows a very strong growth in Revenue. The Revenue has grown by 96.03%.
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
ESTE is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.86% yearly.
ESTE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.43% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.82, the valuation of ESTE can be described as very cheap.
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.
The average S&P500 Price/Earnings ratio is at 28.29. ESTE is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 4.89, which indicates a rather cheap valuation of ESTE.
87.78% of the companies in the same industry are more expensive than ESTE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, ESTE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 4.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ESTE is valued a bit cheaper than 79.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.19 |
4.3 Compensation for Growth
ESTE has a very decent profitability rating, which may justify a higher PE ratio.
ESTE's earnings are expected to decrease with -4.86% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-0.91%
EPS Next 3Y-4.86%
5. Dividend
5.1 Amount
No dividends for ESTE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.17
+0.1 (+0.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners21.5%
Ins Owner Change0%
Market Cap2.98B
Analysts80
Price Target26.23 (23.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Profitability
| Industry Rank | Sector 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
ROICexcg growth 3Y71.65%
ROICexcg 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 Rank | Sector 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%