MATADOR RESOURCES CO (MTDR) Stock Fundamental Analysis
NYSE:MTDR - New York Stock Exchange, Inc. - US5764852050 - Common Stock - Currency: USD
MTDR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. While MTDR belongs to the best of the industry regarding profitability, there are concerns on its financial health. MTDR may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
MTDR had positive earnings in the past year.
MTDR had a positive operating cash flow in the past year.
MTDR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MTDR had a positive operating cash flow.
1.2 Ratios
MTDR's Return On Assets of 8.41% is fine compared to the rest of the industry. MTDR outperforms 79.62% of its industry peers.
MTDR has a better Return On Equity (17.62%) than 77.25% of its industry peers.
MTDR has a better Return On Invested Capital (12.09%) than 86.26% of its industry peers.
MTDR had an Average Return On Invested Capital over the past 3 years of 17.87%. This is significantly below the industry average of 23.79%.
The 3 year average ROIC (17.87%) for MTDR is well above the current ROIC(12.09%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 17.62% | ||
| ROIC | 12.09% |
ROA(3y)13.66%
ROA(5y)7.72%
ROE(3y)26.02%
ROE(5y)12.53%
ROIC(3y)17.87%
ROIC(5y)14.83%
1.3 Margins
MTDR has a better Profit Margin (24.97%) than 77.25% of its industry peers.
MTDR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 40.33%, MTDR belongs to the top of the industry, outperforming 84.83% of the companies in the same industry.
MTDR's Operating Margin has improved in the last couple of years.
MTDR has a better Gross Margin (72.01%) than 83.41% of its industry peers.
MTDR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.33% | ||
| PM (TTM) | 24.97% | ||
| GM | 72.01% |
OM growth 3Y-4.97%
OM growth 5Y11.32%
PM growth 3Y-10.45%
PM growth 5Y23.13%
GM growth 3Y-0.29%
GM growth 5Y2.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MTDR is creating value.
MTDR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MTDR has been increased compared to 5 years ago.
Compared to 1 year ago, MTDR has a worse debt to assets ratio.
2.2 Solvency
MTDR has an Altman-Z score of 1.74. This is a bad value and indicates that MTDR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.74, MTDR is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
MTDR has a debt to FCF ratio of 3.60. This is a good value and a sign of high solvency as MTDR would need 3.60 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.60, MTDR is doing good in the industry, outperforming 72.99% of the companies in the same industry.
MTDR has a Debt/Equity ratio of 0.60. This is a neutral value indicating MTDR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, MTDR is in line with its industry, outperforming 42.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.34
WACC9.02%
2.3 Liquidity
MTDR has a Current Ratio of 0.79. This is a bad value and indicates that MTDR is not financially healthy enough and could expect problems in meeting its short term obligations.
MTDR has a worse Current ratio (0.79) than 70.14% of its industry peers.
MTDR has a Quick Ratio of 0.79. This is a bad value and indicates that MTDR is not financially healthy enough and could expect problems in meeting its short term obligations.
MTDR has a worse Quick ratio (0.76) than 65.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
MTDR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.17%, which is quite good.
Measured over the past years, MTDR shows a very strong growth in Earnings Per Share. The EPS has been growing by 44.19% on average per year.
MTDR shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.97%.
The Revenue has been growing by 28.93% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)11.17%
EPS 3Y20.83%
EPS 5Y44.19%
EPS Q2Q%16.37%
Revenue 1Y (TTM)22.97%
Revenue growth 3Y28.21%
Revenue growth 5Y28.93%
Sales Q2Q%28.72%
3.2 Future
The Earnings Per Share is expected to grow by 4.57% on average over the next years.
MTDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.58% yearly.
EPS Next Y-13.59%
EPS Next 2Y-9.51%
EPS Next 3Y-2.93%
EPS Next 5Y4.57%
Revenue Next Year8.25%
Revenue Next 2Y4.72%
Revenue Next 3Y4.58%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.32, the valuation of MTDR can be described as very cheap.
85.78% of the companies in the same industry are more expensive than MTDR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.29. MTDR is valued rather cheaply when compared to this.
MTDR is valuated reasonably with a Price/Forward Earnings ratio of 8.01.
MTDR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MTDR is cheaper than 75.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.74. MTDR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.32 | ||
| Fwd PE | 8.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTDR is valued cheaper than 81.99% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTDR is valued cheaper than 83.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.95 | ||
| EV/EBITDA | 3.65 |
4.3 Compensation for Growth
The excellent profitability rating of MTDR may justify a higher PE ratio.
MTDR's earnings are expected to decrease with -2.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-9.51%
EPS Next 3Y-2.93%
5. Dividend
5.1 Amount
MTDR has a Yearly Dividend Yield of 2.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.51, MTDR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, MTDR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
MTDR has been paying a dividend for over 5 years, so it has already some track record.
MTDR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
MTDR pays out 12.90% of its income as dividend. This is a sustainable payout ratio.
DP12.9%
EPS Next 2Y-9.51%
EPS Next 3Y-2.93%
49.05
-1.42 (-2.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.07%
Inst Owner Change0%
Ins Owners6.92%
Ins Owner Change1.28%
Market Cap6.14B
Analysts83.08
Price Target65.68 (33.9%)
Short Float %7.83%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend0.86
Dividend Growth(5Y)N/A
DP12.9%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.36%
Min EPS beat(2)4.08%
Max EPS beat(2)8.64%
EPS beat(4)4
Avg EPS beat(4)8.73%
Min EPS beat(4)4.08%
Max EPS beat(4)14.39%
EPS beat(8)8
Avg EPS beat(8)9.13%
EPS beat(12)12
Avg EPS beat(12)8.56%
EPS beat(16)16
Avg EPS beat(16)11.61%
Revenue beat(2)1
Avg Revenue beat(2)0.55%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)2.74%
Revenue beat(4)3
Avg Revenue beat(4)1.45%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)4.08%
Revenue beat(8)6
Avg Revenue beat(8)2.56%
Revenue beat(12)10
Avg Revenue beat(12)4.56%
Revenue beat(16)13
Avg Revenue beat(16)6.3%
PT rev (1m)-1.86%
PT rev (3m)-12.99%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)-26.35%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-19.53%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-9.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.32 | ||
| Fwd PE | 8.01 | ||
| P/S | 1.65 | ||
| P/FCF | 6.95 | ||
| P/OCF | 2.45 | ||
| P/B | 1.16 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 3.65 |
EPS(TTM)7.76
EY15.82%
EPS(NY)6.13
Fwd EY12.49%
FCF(TTM)7.06
FCFY14.39%
OCF(TTM)20.02
OCFY40.81%
SpS29.8
BVpS42.23
TBVpS42.23
PEG (NY)N/A
PEG (5Y)0.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 17.62% | ||
| ROCE | 15.12% | ||
| ROIC | 12.09% | ||
| ROICexc | 12.11% | ||
| ROICexgc | 12.11% | ||
| OM | 40.33% | ||
| PM (TTM) | 24.97% | ||
| GM | 72.01% | ||
| FCFM | 23.68% |
ROA(3y)13.66%
ROA(5y)7.72%
ROE(3y)26.02%
ROE(5y)12.53%
ROIC(3y)17.87%
ROIC(5y)14.83%
ROICexc(3y)18.98%
ROICexc(5y)15.55%
ROICexgc(3y)18.98%
ROICexgc(5y)15.55%
ROCE(3y)22.36%
ROCE(5y)18.55%
ROICexcg growth 3Y-11.64%
ROICexcg growth 5Y17.6%
ROICexc growth 3Y-11.64%
ROICexc growth 5Y17.6%
OM growth 3Y-4.97%
OM growth 5Y11.32%
PM growth 3Y-10.45%
PM growth 5Y23.13%
GM growth 3Y-0.29%
GM growth 5Y2.02%
F-Score3
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.6 | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 155.45% | ||
| Cap/Sales | 43.49% | ||
| Interest Coverage | 10.01 | ||
| Cash Conversion | 98.33% | ||
| Profit Quality | 94.83% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.74 |
F-Score3
WACC9.02%
ROIC/WACC1.34
Cap/Depr(3y)176.08%
Cap/Depr(5y)173.46%
Cap/Sales(3y)39.86%
Cap/Sales(5y)46.28%
Profit Quality(3y)78.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.17%
EPS 3Y20.83%
EPS 5Y44.19%
EPS Q2Q%16.37%
EPS Next Y-13.59%
EPS Next 2Y-9.51%
EPS Next 3Y-2.93%
EPS Next 5Y4.57%
Revenue 1Y (TTM)22.97%
Revenue growth 3Y28.21%
Revenue growth 5Y28.93%
Sales Q2Q%28.72%
Revenue Next Year8.25%
Revenue Next 2Y4.72%
Revenue Next 3Y4.58%
Revenue Next 5YN/A
EBIT growth 1Y17.86%
EBIT growth 3Y21.85%
EBIT growth 5Y43.53%
EBIT Next Year69.06%
EBIT Next 3Y17.19%
EBIT Next 5Y13.53%
FCF growth 1Y-20.83%
FCF growth 3Y9.56%
FCF growth 5YN/A
OCF growth 1Y25.99%
OCF growth 3Y28.72%
OCF growth 5Y32.41%