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.

4

1. ESTE Profitability Analysis

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 Yearly Net Income VS EBIT VS OCF VS FCFESTE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M -500M 1B

1.2 Ratios

  • ESTE has a Return On Assets (11.16%) which is comparable to the rest of the industry.
  • With a decent Return On Equity value of 26.16%, ESTE is doing good in the industry, outperforming 64.71% of the companies in the same industry.
  • ESTE has a better Return On Invested Capital (19.77%) than 76.47% of its industry peers.
Industry RankSector 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
ESTE Yearly ROA, ROE, ROICESTE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20 -20

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 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.
  • ESTE's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ESTE Yearly Profit, Operating, Gross MarginsESTE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 50 -50 -100

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2

2. ESTE Health Analysis

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.
  • 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.
ESTE Yearly Shares OutstandingESTE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
ESTE Yearly Total Debt VS Total AssetsESTE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

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.
  • 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.
  • A Debt/Equity ratio of 0.58 indicates that ESTE is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.58, ESTE perfoms like the industry average, outperforming 45.70% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF N/A
Altman-Z 1.94
ROIC/WACC2.52
WACC7.83%
ESTE Yearly LT Debt VS Equity VS FCFESTE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M -500M 1B 1.5B

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.
  • A Quick Ratio of 0.55 indicates that ESTE may have some problems paying 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 RankSector Rank
Current Ratio 0.55
Quick Ratio 0.55
ESTE Yearly Current Assets VS Current LiabilitesESTE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ESTE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 26.39% over the past year.
  • ESTE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.89% yearly.
  • 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

  • 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

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ESTE Yearly Revenue VS EstimatesESTE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
ESTE Yearly EPS VS EstimatesESTE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 2 3 4

More info and screens

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5

4. ESTE Valuation Analysis

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 the industry average as 74.21% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.61, 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.
  • ESTE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 5.82
Fwd PE 4.89
ESTE Price Earnings VS Forward Price EarningsESTE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF N/A
EV/EBITDA 3.19
ESTE Per share dataESTE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • 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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ESTE Dividend Analysis

5.1 Amount

  • No dividends for ESTE!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

ESTE Fundamentals: All Metrics, Ratios and Statistics

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)11-08
Earnings (Next)03-06
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.


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.