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%)
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. There are concerns on the financial health of ESTE while its profitability can be described as average. 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.
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.
- 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.
- Looking at the Return On Invested Capital, with a value of 19.77%, ESTE is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
| 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.
- ESTE's Operating Margin has improved in the last couple of years.
- The Gross Margin of ESTE (73.78%) is better than 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ESTE is creating value.
- Compared to 1 year ago, ESTE has more shares outstanding
- The debt/assets ratio for ESTE is higher compared to a year ago.
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.
- 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'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
- A Current Ratio of 0.55 indicates that ESTE may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.55, ESTE is doing worse than 84.16% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 0.55, ESTE is doing worse than 80.09% of the companies in the same industry.
| 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.
- Measured over the past years, ESTE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.89% on average per year.
- The Revenue has grown by 96.03% in the past year. This is a very strong growth!
- Measured over the past years, ESTE shows a very strong growth in Revenue. The Revenue has been growing by 73.41% on average per year.
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.
- 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.
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.
- ESTE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.33.
- ESTE is valuated cheaply with a Price/Forward Earnings ratio of 4.89.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ESTE indicates a rather cheap valuation: ESTE is cheaper than 87.78% of the companies listed in the same industry.
- ESTE is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 4.89 |
4.2 Price Multiples
- ESTE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ESTE is 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'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 |
21.17
+0.1 (+0.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-08 2023-11-08/amc
Earnings (Next)03-06 2024-03-06/amc
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 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
Graham NumberN/A
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
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 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%
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.