Earthstone Energy Stock Analysis, Valuation (NYSE:ESTE)

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$10.25 $0.34 (3.21%) ESTE stock closing price Apr 19, 2018 (Closing)
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Earthstone Energy
Updated on : Apr 19, 2018
previous close
ESTE 10.3 (0%)
S&P 500 2693.1 (0%)
Closing Price On: Apr 19, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil and Gas-US exploration and production
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
58.6%
Operating Profit
Operating Margin:
-46.1%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Debt/Equity Ratio
Debt:
25M
Debt/Equity Ratio:
 0.03
Compared to the industry
Cash Flow
Operating cash flow:
$26.8M
Net Income:
$2.3M
PROS      CONS
Recent Growth
Long Term Growth
Low Debt Burden
PE Valuation
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ESTE PS :
2.5
Industry PS :
1.8
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-6.7%
Return on Equity:
-2.4%
Free Cash Flow Margin:
-96.7%
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Earthstone Energy Stock Analysis

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Investors can watch the Amigobulls Earthstone Energy stock analysis video here. Our ESTE analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Earthstone Energy Inc Stock Rating 2.2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for ESTE stock analysis. Earthstone Energy valuation forms a crucial part of our stock analysis. Our Earthstone Energy stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy ESTE stock?

  • Earthstone Energy's revenue growth came in at 135.5% in 2017 Q4.
  • Revenue growth has been tremendous with a compounded annual growth of 58.6% over the last 5 years.
  • With a debt/equity ratio of  0.03, Earthstone Energy is comparatively less leveraged than its peers in the Oils-Energy sector.
  • The price to earnings multiple of 7.3 is attractive when compared with the industry average PE ratio of 24.2.

Should you sell ESTE stock?

  • Earthstone Energy registered a negative operating margin of -46.1% (average) over the Trailing Twelve Months (TTM).
  • Earthstone Energy posted an average Net loss of -11.6% in the last twelve months.
  • Earthstone Energy's negative ROIC of -6.7% indicates operational inefficiency.
  • Earthstone Energy has a negative ROE (Return On Equity) of -2.4%, indicating the company is not profitable.
  • Earthstone Energy has a negative FCF (Free Cash Flow) margin of -96.7%.

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Comments on this video and Earthstone Energy stock

Investors can make use of the Amigobulls Earthstone Energy stock analysis to ascertain how ESTE stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Earthstone Energy revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.