* Note: Prices are in Million (M) USD.
Description:
Civitas Solutions, Inc. provides health and human services in the home and community to individuals who must care for individuals with intellectual, developmental, behavioral, and / or medically complex challenges in the United States.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $69 M
Debt : $5,388 M
EBITDA : $3,447 M
Net Debt (Debt - Cash): $5,319 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Energy
Industry: Oil & gas e&p
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 5.22
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 14 overlapping fiscal years (max 20).Average Free Cash Flow: $4,147 M
Average Revenue: $1,155 M
Revenue Converted To Free Cash Flow (%): 359.1%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $5,202 M
Revenue 4 Years Ago (2020-12-31): $218 M
Last 5 Years Average Revenue Growth: 457%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $99 M
Share Count 5 Years Ago (2020-12-31): $21 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $5.55
Trailing 12-Month Earnings Per Share (EPS): $8.55
Average Earnings Per Share (EPS): $7.05
Dividend Per Share (DPS): $3
Payout Ratio: 43%
Dividend Yield: 9%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 14 valid ROE years (max 20).Average ROE: -95.5%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $37
52-Week Low: $22
Threshold Price (15% Above 52-Week Low): $26
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $3,101 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 28 points to above Civitas Resources Inc (CIVI) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 4 Years Avg P/E (11.32)
× EPS ($7.05) = $79.81.
Last 4 Years Avg PE 11.32, Fair Value PE 15, Industry Based PE 15, Growth Based PE 11, RCFC Based PE 50, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 18.49. Value-Trades has assined P/E value 18.49. Since an average (Current Year EPS + Next Year EPS) earning per share is $7.05.
The fair value of Civitas Resources Inc (CIVI) stock should be (18.49 x $7.05) = $130.33.
