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 204 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
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.
ESTE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ESTE has a Return On Assets (11.16%) which is comparable to the rest of the industry.
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.
ESTE has a better Return On Invested Capital (19.77%) 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
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.
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'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
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.
Compared to 5 years ago, ESTE has more shares outstanding
ESTE has a worse debt/assets ratio than last year.
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.
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 of 0.58. This is comparable 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 worse Current ratio (0.55) 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.
ESTE's Quick ratio of 0.55 is on the low side compared to the rest of the industry. ESTE is outperformed by 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
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
ESTE's Price/Earnings ratio is a bit cheaper when compared to the industry. ESTE is cheaper than 74.21% of the companies in the same industry.
ESTE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 4.89 indicates a rather cheap valuation of ESTE.
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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| 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.
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%
5. Dividend
5.1 Amount
ESTE does not give a dividend.
| 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 Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 4.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 26.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 45.11% | ||
| PM (TTM) | 25.4% | ||
| GM | 73.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)26.39%
EPS 3Y35.82%
EPS 5Y
EPS Q2Q%
EPS Next Y-28.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)96.03%
Revenue growth 3Y106.93%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y