Earthstone Energy Stock Analysis, Valuation (NYSE:ESTE)

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$8.11 $0.11 (1.37%) ESTE stock closing price Aug 17, 2018 (Closing)

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 2.8/5

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?

  • The Year Over Year (YoY) revenue growth for Earthstone Energy was 166.6% in 2018-03.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 63.7.
  • With its debt/equity ratio of 0.04, Earthstone Energy has a lower debt burden when compared to the Oils-Energy average.
  • The Earthstone Energy stock currently trades at a price to earnings ratio of 12.1, compared to the sector average of 20.8. We rate this as a positive.

Should you sell ESTE stock?

  • Earthstone Energy registered a negative operating margin of -21.03 (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Earthstone Energy had an average Net loss of -5.9%.
  • The company has a negative Return on Invested Capital of -2.9, which is a red flag.
  • A negative ROE of -1.3 indicates that the company is not able to generate profits with the money shareholders have invested.
  • The company has a negative free cash flow margin of -40.2.

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.