Earthstone Story

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ESTE -- USA Stock  

USD 7.04  0.04  0.57%

Earthstone Energy Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 1.06 Billion. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 94.9 M, whereas Earnings before Tax are forecasted to decline to (14.7 M). The basic objective of this story is to give shareholders our perspective on Earthstone for May. We will forecast Earthstone Energy value for shareholders.
Published over two weeks ago
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Are Earthstone (NYSE:ESTE) shareholders starting to hold back?
Earthstone Energy is OVERVALUED at 7.24 per share with modest projections ahead. About 28.0% of Earthstone Energy shares are held by company insiders. Insiders ownership of Earthstone Energy refers to the amount of Earthstone Energy equity owned by Earthstone officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Earthstone, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Earthstone Energy. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Earthstone Energy

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Earthstone Energy's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Earthstone Energy in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Earthstone Energy. Your research has to be compared to or analyzed against Earthstone Energy's peers to derive any actionable benefits. When done correctly, Earthstone Energy's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Earthstone Energy.

How important is Earthstone Energy's Liquidity

Earthstone Energy financial leverage refers to using borrowed capital as a funding source to finance Earthstone Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Earthstone Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Earthstone Energy's total debt and its cash.

How Earthstone utilizes its cash?

To perform a cash flow analysis of Earthstone Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Earthstone Energy is receiving and how much cash it distributes out in a given period. The Earthstone Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Earthstone Energy Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 131.5 Million

Detailed Perspective On Earthstone Energy

Earthstone Energy shows above-average downside volatility for the selected time horizon. We advise investors to inspect Earthstone Energy further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Earthstone Energy future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Earthstone Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Earthstone Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Returns Breakdown

Return on Investment(17.84)
Return on Assets(0.014)
Return on Equity(0.041)
Return Capital(0.007553)
Return on Sales(0.0626)

Are Earthstone Energy technical ratios showing a bounce back?

Downside variance is down to 15.92. It may indicate a possible volatility dip. Earthstone Energy shows above-average downside volatility for the selected time horizon. We advise investors to inspect Earthstone Energy further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Earthstone Energy future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Earthstone Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Earthstone Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Bottom Line On Earthstone Energy

Although many other companies within the oil & gas e&p industry are still a little expensive, even after the recent corrections, Earthstone Energy may offer a potential longer-term growth to shareholders. To summarize, as of the 3rd of April 2021, we believe that at this point, Earthstone Energy is overvalued with below average probability of distress within the next 2 years. Our primary 'Buy-Sell' recommendation on the firm is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Earthstone Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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