EARTHSTONE ENERGY INC - A (ESTE) Fundamental Analysis & Valuation
NYSE:ESTE • US27032D3044
Current stock price
21.17 USD
+0.1 (+0.47%)
At close:
20.85 USD
-0.32 (-1.51%)
After Hours:
This ESTE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ESTE Profitability Analysis
1.1 Basic Checks
- In the past year ESTE was profitable.
- In the past year ESTE had a positive cash flow from operations.
1.2 Ratios
- ESTE has a Return On Assets (11.16%) which is in line with its industry peers.
- ESTE has a better Return On Equity (26.16%) than 64.71% of its industry peers.
- 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
- 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.
- In the last couple of years the Operating Margin of ESTE has grown nicely.
- Looking at the Gross Margin, with a value of 73.78%, ESTE is in the better half of 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. ESTE Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ESTE is creating value.
- The number of shares outstanding for ESTE has been increased compared to 1 year 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.
- ESTE has a Altman-Z score (1.94) which is in line with its industry peers.
- A Debt/Equity ratio of 0.58 indicates that 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.
- A Quick Ratio of 0.55 indicates that ESTE may have some problems paying its short term obligations.
- ESTE has a worse Quick ratio (0.55) than 80.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. ESTE Growth Analysis
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.
- The Revenue has grown by 96.03% in the past year. This is a very strong growth!
- 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.
- 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
- 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. ESTE Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 5.82, which indicates a rather cheap valuation of ESTE.
- 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 is valuated cheaply when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
- ESTE is valuated cheaply with a Price/Forward Earnings ratio of 4.89.
- Based on the Price/Forward Earnings ratio, ESTE is valued cheaply inside the industry as 87.78% of the companies are valued more expensively.
- ESTE is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, 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
- 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. ESTE Dividend Analysis
5.1 Amount
- No dividends for ESTE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ESTE Fundamentals: All Metrics, Ratios and Statistics
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 Fundamental Analysis 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.
How profitable is EARTHSTONE ENERGY INC - A (ESTE) stock?
EARTHSTONE ENERGY INC - A (ESTE) has a profitability rating of 6 / 10.
What is the valuation of EARTHSTONE ENERGY INC - A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EARTHSTONE ENERGY INC - A (ESTE) is 5.82 and the Price/Book (PB) ratio is 1.69.
Can you provide the financial health for ESTE stock?
The financial health rating of EARTHSTONE ENERGY INC - A (ESTE) is 2 / 10.