Fundamental analysis: Civitas Resources, Inc. (CIVI)

Awarener score: 7.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Excellent), the business stability (Bottom) and growth (Superb), and the company's inclination to return cash to the stockholders (Very poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

Business has been growing at an extremely fast pace. It's been top tier when measured against peer companies.
Civitas Resources, Inc. business varies wildly, ups and downs could be very frequent. It's very risky. It looks bottom tier against rivals.

Margins score: 9.2

CIVI profit margins -on goods and services sold- are usually good. They stand well ranked against rival companies.
Business profit on sales tends to be huge. It's top tier when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain excellent in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still better than most similar companies.
Profits -before income taxes- are usually excellent considering total sales, and remain great when measured against rivals.
Total net profit tends to be huge when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 6.1

Civitas Resources, Inc. profit -on goods and services sold- has been growing at an extremely fast pace. It's been excellent in relation to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
Profits -available to repay debt and purchase properties- have been growing at an extremely fast pace, which compares top tier when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, growth trend on total net profit has been extremely high, and encouraging in relation to peer companies.
Earnings per share have grown at an extremely fast rhythm in past years. It's been rather normal in relation to industry peers.

Miscellaneous score: 6.0

CIVI had to pay sparse income taxes in relation to profits made in the past years. It's been somewhat better than peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.5

Civitas Resources, Inc. usually gets excellent returns on the resources it controls. It proves more than average in relation to peer firms.
The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain a slight improvement compared to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks more than average in relation to competitors.
In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 6.4

CIVI usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands more than average in relation to rival firms.
The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is encouraging in relation to industry peers.
In the past twelve months it paid outstanding dividends, considering the current stock price. It came better than most competitors.
Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved a slight improvement compared to similar firms.
Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks slightly worse than comparable companies.
The company has heavily enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains in a very weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
The company uses a moderate portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn very sour. It still looks similar to competitors.

Balance Sheet score: 6.4

Civitas Resources, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be close to average when compared to similar firms.
Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains somewhat better than rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks almost average when measured against rivals.
For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's lacking compared to peer firms.
For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is somewhat better than similar enterprises.
Usually, sales are mostly on cash. It still ranks great when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes less than one month from the purchase to charging customers. It happens to be top-notch against peers.
Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's close to average when compared to similar companies.
Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands better than most rival firms.
Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks great when measured against comparable enterprises.
Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks in a weak position compared to similar firms.
Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 7.9

Civitas Resources, Inc. looks extremely cheap in relation to profits and financial position. It happens to be encouraging in relation to competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a slight improvement compared to peers.
In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands better than most similar companies.
The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still more than average in relation to industry firms.
In the past twelve months, the company has largely enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among a lot more stockholders. It came up in a very weak position compared to peer ventures.
The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks well ranked against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks similar to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat better than peer firms.
In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still excellent in relation to peer companies.

Total score: 7.0

Company at a glance: Civitas Resources, Inc. (CIVI)

Sector, industry: Energy, Oil & Gas E&P

Market Cap: 5.74 billions

Revenues TTM: 3.63 billions

Civitas Resources, Inc., an exploration and production company, focuses on the acquisition, development, and production of oil and natural gas in the Rocky Mountain region, primarily in the Wattenberg Field of the Denver-Julesburg Basin of Colorado. As of December 31,2021, it had proved reserves 397.7 MMBoe comprising 143.6 MMbbls of crude oil, 106.0 MMbbls of natural gas liquids, and 888.5 Bcf of natural gas. The company was formerly known as Bonanza Creek Energy, Inc. Civitas Resources, Inc. was founded in 1999 and is based in Denver, Colorado.