Is CIVI a high-quality business?

AlphaMadera's AlphaQuality grade scores Civitas Resources, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how CIVI compares to a Buffett-style quality bar.

What is Civitas Resources, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to CIVI based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes CIVI a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

CIVI - Civitas Resources, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $31.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

C+ 57.9 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

D- 29.9

5yr Avg ROIC 6.5% 43/100
Operating Margin Trend -6.60 pp/yr 0/100

Capital Efficiency

Weight: 10%

D 37.4

5yr Avg ROE 9.5% 58/100
5yr Share-Count CAGR 47.6% 0/100

Growth Quality

Weight: 5%

A 87.3

5yr Revenue CAGR 121.0% 100/100
5yr EPS CAGR 14.3% 87/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 25%

A+ 95.7

5yr FCF Margin 26.5% 96/100
5yr FCF/NI Conversion 0.95x 95/100

Balance Sheet

Weight: 25%

C 54.6

Net Debt / EBITDA 1.23x 82/100
Interest Coverage (EBIT/Int) 3.37x 49/100
Altman Z-Score 0.89 13/100

Stability

Weight: 20%

D 38.3

EPS Volatility (σ/μ) 1.28 0/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 2/5 60/100

0 of 5 gurus held; 5 full exits.

Holders: 0 -5
Avg Δ position: —
New buys: 0
Full exits: 5

Cooperman sold -100%
Dalio sold -100%
Greenblatt sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.