Earthstone Energy, Inc.
Earthstone Energy, Inc. Fundamental Analysis
Earthstone Energy, Inc. (ESTE) shows strong financial fundamentals with a PE ratio of 3.05, profit margin of 38.38%, and ROE of 59.21%. The company generates $2.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ESTE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentESTE demonstrates superior asset utilization.
Valuation Score
ExcellentESTE trades at attractive valuation levels.
Growth Score
ModerateESTE shows steady but slowing expansion.
Financial Health Score
ModerateESTE shows balanced financial health with some risks.
Profitability Score
ModerateESTE maintains healthy but balanced margins.
Key Financial Metrics
Is ESTE Expensive or Cheap?
P/E Ratio
ESTE trades at 3.05 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ESTE's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Earthstone Energy, Inc. at 1.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.68 times EBITDA. This is generally considered low.
How Well Does ESTE Make Money?
Net Profit Margin
For every $100 in sales, Earthstone Energy, Inc. keeps $38.38 as profit after all expenses.
Operating Margin
Core operations generate 56.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $59.21 in profit for every $100 of shareholder equity.
ROA
Earthstone Energy, Inc. generates $16.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Earthstone Energy, Inc. generates strong operating cash flow of $1.53B, reflecting robust business health.
Free Cash Flow
Earthstone Energy, Inc. generates weak or negative free cash flow of $-1.50B, restricting financial flexibility.
FCF Per Share
Each share generates $-10.65 in free cash annually.
FCF Yield
ESTE converts -33.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.59
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How ESTE Stacks Against Its Sector Peers
| Metric | ESTE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.05 | 20.10 | Better (Cheaper) |
| ROE | 59.21% | 1093.00% | Weak |
| Net Margin | 38.38% | -30344.00% (disorted) | Strong |
| Debt/Equity | 0.65 | -0.69 (disorted) | Distorted |
| Current Ratio | 0.65 | 4.79 | Weak Liquidity |
| ROA | 16.52% | -1.00% (disorted) | Strong |
ESTE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Earthstone Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity