MATADOR RESOURCES CO (MTDR)
US5764852050 - Common Stock
We assign a fundamental rating of 6 out of 10 to MTDR. MTDR was compared to 204 industry peers in the Oil, Gas & Consumable Fuels industry. While MTDR has a great profitability rating, there are quite some concerns on its financial health. MTDR is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
MTDR had positive earnings in the past year.
In the past year MTDR had a positive cash flow from operations.
Of the past 5 years MTDR 4 years were profitable.
In the past 5 years MTDR always reported a positive cash flow from operatings.
1.2 Ratios
MTDR's Return On Assets of 8.71% is fine compared to the rest of the industry. MTDR outperforms 70.94% of its industry peers.
MTDR's Return On Equity of 19.00% is fine compared to the rest of the industry. MTDR outperforms 68.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.88%, MTDR is in the better half of the industry, outperforming 71.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MTDR is below the industry average of 22.54%.
The last Return On Invested Capital (11.88%) for MTDR is well below the 3 year average (19.49%), which needs to be investigated, but indicates that MTDR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 19% | ||
| ROIC | 11.88% |
ROA(3y)15.51%
ROA(5y)6.52%
ROE(3y)30.45%
ROE(5y)10%
ROIC(3y)19.49%
ROIC(5y)13.48%
1.3 Margins
Looking at the Profit Margin, with a value of 27.45%, MTDR is in the better half of the industry, outperforming 74.88% of the companies in the same industry.
In the last couple of years the Profit Margin of MTDR has remained more or less at the same level.
With an excellent Operating Margin value of 42.73%, MTDR belongs to the best of the industry, outperforming 82.27% of the companies in the same industry.
MTDR's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 73.06%, MTDR belongs to the best of the industry, outperforming 81.77% of the companies in the same industry.
MTDR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.73% | ||
| PM (TTM) | 27.45% | ||
| GM | 73.06% |
OM growth 3Y31.54%
OM growth 5Y1.31%
PM growth 3YN/A
PM growth 5Y-0.22%
GM growth 3Y1.56%
GM growth 5Y-0.77%
2. Health
2.1 Basic Checks
MTDR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MTDR has been increased compared to 1 year ago.
MTDR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MTDR is higher compared to a year ago.
2.2 Solvency
MTDR has an Altman-Z score of 1.85. This is not the best score and indicates that MTDR is in the grey zone with still only limited risk for bankruptcy at the moment.
MTDR has a Altman-Z score of 1.85. This is comparable to the rest of the industry: MTDR outperforms 53.20% of its industry peers.
The Debt to FCF ratio of MTDR is 4.90, which is a neutral value as it means it would take MTDR, 4.90 years of fcf income to pay off all of its debts.
MTDR has a Debt to FCF ratio of 4.90. This is comparable to the rest of the industry: MTDR outperforms 59.11% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that MTDR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, MTDR is doing worse than 67.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.42
WACC8.36%
2.3 Liquidity
MTDR has a Current Ratio of 0.88. 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 Current ratio of 0.88. This is in the lower half of the industry: MTDR underperforms 69.46% of its industry peers.
MTDR has a Quick Ratio of 0.88. 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's Quick ratio of 0.84 is on the low side compared to the rest of the industry. MTDR is outperformed by 63.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.37% over the past year.
MTDR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.11% yearly.
The Revenue has grown by 25.86% in the past year. This is a very strong growth!
The Revenue has been growing by 25.55% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)11.37%
EPS 3Y132.31%
EPS 5Y33.11%
EPS Q2Q%1.61%
Revenue 1Y (TTM)25.86%
Revenue growth 3Y48.21%
Revenue growth 5Y25.55%
Sales Q2Q%16.51%
3.2 Future
Based on estimates for the next years, MTDR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.54% on average per year.
Based on estimates for the next years, MTDR will show a quite strong growth in Revenue. The Revenue will grow by 16.04% on average per year.
EPS Next Y13.29%
EPS Next 2Y9.79%
EPS Next 3Y8.54%
EPS Next 5YN/A
Revenue Next Year26.21%
Revenue Next 2Y22.8%
Revenue Next 3Y16.04%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.95, the valuation of MTDR can be described as very cheap.
MTDR's Price/Earnings ratio is a bit cheaper when compared to the industry. MTDR is cheaper than 74.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. MTDR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.44, the valuation of MTDR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTDR indicates a somewhat cheap valuation: MTDR is cheaper than 77.83% of the companies listed in the same industry.
MTDR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.95 | ||
| Fwd PE | 7.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTDR is valued a bit cheaper than 68.47% of the companies in the same industry.
MTDR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MTDR is cheaper than 67.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.33 | ||
| EV/EBITDA | 4.73 |
4.3 Compensation for Growth
MTDR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of MTDR may justify a higher PE ratio.
PEG (NY)0.6
PEG (5Y)0.24
EPS Next 2Y9.79%
EPS Next 3Y8.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, MTDR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.45, MTDR is paying slightly less dividend.
MTDR's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of MTDR grows each year by 224.49%, which is quite nice.
MTDR has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)224.49%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
10.51% of the earnings are spent on dividend by MTDR. This is a low number and sustainable payout ratio.
MTDR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.51%
EPS Next 2Y9.79%
EPS Next 3Y8.54%
MATADOR RESOURCES CO
NYSE:MTDR (11/22/2024, 11:24:13 AM)
60.715
+0.56 (+0.92%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.95 | ||
| Fwd PE | 7.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.6
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.73% | ||
| PM (TTM) | 27.45% | ||
| GM | 73.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.37%
EPS 3Y132.31%
EPS 5Y
EPS Q2Q%
EPS Next Y13.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.86%
Revenue growth 3Y48.21%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y