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%)
20.85 USD
-0.32 (-1.51%)
We assign a fundamental rating of 4 out of 10 to ESTE. ESTE was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. ESTE has a medium profitability rating, but doesn't score so well on its financial health evaluation. ESTE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ESTE was profitable.
- ESTE had a positive operating cash flow in the past year.
1.2 Ratios
- ESTE has a Return On Assets (11.16%) which is in line with its industry peers.
- Looking at the Return On Equity, with a value of 26.16%, ESTE is in the better half of 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 (25.40%) which is in line with its industry peers.
- ESTE's Profit Margin has improved in the last couple of years.
- ESTE has a Operating Margin of 45.11%. This is in the better half of the industry: ESTE outperforms 76.02% of its industry peers.
- ESTE's Operating Margin has improved in the last couple of years.
- 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.
- ESTE's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
2.2 Solvency
- ESTE has an Altman-Z score of 1.94. This is not the best score and indicates that ESTE is in the grey zone with still 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.
- A Debt/Equity ratio of 0.58 indicates that ESTE is somewhat dependend on debt financing.
- ESTE's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. ESTE outperforms 45.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.94 |
ROIC/WACC2.52
WACC7.83%
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.
- ESTE has a Quick ratio of 0.55. This is amonst the worse of the industry: ESTE underperforms 80.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
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.
- 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
- Based on estimates for the next years, ESTE will show a decrease in Earnings Per Share. The EPS will decrease by -4.86% on average per year.
- The Revenue is expected to grow by 6.43% on average over the next years.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- 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 74.21% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, ESTE is valued rather cheaply.
- A Price/Forward Earnings ratio of 4.89 indicates a rather cheap valuation of ESTE.
- Based on the Price/Forward Earnings ratio, ESTE is valued cheaper than 87.78% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ESTE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 4.89 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.19 |
4.3 Compensation for Growth
- 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
- ESTE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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.