EARTHSTONE ENERGY INC - A (ESTE)
US27032D3044 - Common Stock
Taking everything into account, ESTE scores 4 out of 10 in our fundamental rating. ESTE was compared to 205 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ESTE had positive earnings in the past year.
ESTE had a positive operating cash flow in the past year.
Of the past 5 years ESTE 4 years were profitable.
Each year in the past 5 years ESTE had a positive operating cash flow.
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.
ESTE has a Return On Equity of 26.16%. This is in the better half of the industry: ESTE outperforms 64.71% of its industry peers.
The Return On Invested Capital of ESTE (19.77%) is better than 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
Looking at the Profit Margin, with a value of 25.40%, ESTE is in line with its industry, outperforming 57.47% of the companies in the same industry.
ESTE's Profit Margin has improved in the last couple of years.
ESTE has a better Operating Margin (45.11%) than 76.02% of its industry peers.
In the last couple of years the Operating Margin of ESTE has grown nicely.
ESTE's Gross Margin of 73.78% is fine compared to the rest 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 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.
ESTE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ESTE has a worse debt to assets ratio.
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.
With a Altman-Z score value of 1.94, ESTE perfoms like the industry average, outperforming 55.66% of the companies in the same 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
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.
With a Current ratio value of 0.55, ESTE is not doing good in the industry: 84.16% of the companies in the same industry are doing better.
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.
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%.
ESTE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 73.41% yearly.
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.
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
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
With a Price/Earnings ratio of 5.82, the valuation of ESTE can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of ESTE indicates a somewhat cheap valuation: ESTE is cheaper than 74.21% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ESTE to the average of the S&P500 Index (27.20), we can say ESTE is valued rather cheaply.
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 (23.73), we can say ESTE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 4.89 |
4.2 Price Multiples
79.64% of the companies in the same industry are more expensive than ESTE, based on the Enterprise Value to EBITDA ratio.
| 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 |
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)
Earnings (Next)
Inst Owners0%
Inst Owner Change-100%
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 |
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%