MATADOR RESOURCES CO (MTDR) Stock Fundamental Analysis
NYSE:MTDR - New York Stock Exchange, Inc. - US5764852050 - Common Stock - Currency: USD
Overall MTDR gets a fundamental rating of 6 out of 10. We evaluated MTDR 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
In the past year MTDR was profitable.
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
Looking at the Return On Assets, with a value of 8.41%, MTDR is in the better half of the industry, outperforming 79.62% of the companies in the same industry.
MTDR's Return On Equity of 17.62% is fine compared to the rest of the industry. MTDR outperforms 77.25% of its industry peers.
MTDR's Return On Invested Capital of 12.09% is amongst the best of the industry. MTDR outperforms 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 23.70%.
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's Profit Margin of 24.97% is fine compared to the rest of the industry. MTDR outperforms 77.25% of its industry peers.
In the last couple of years the Profit Margin of MTDR has grown nicely.
The Operating Margin of MTDR (40.33%) is better than 84.83% of its industry peers.
In the last couple of years the Operating Margin of MTDR has grown nicely.
The Gross Margin of MTDR (72.01%) is better 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MTDR is creating value.
MTDR has more shares outstanding than it did 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
Based on the Altman-Z score of 1.76, we must say that MTDR is in the distress zone and has some risk of bankruptcy.
MTDR has a better Altman-Z score (1.76) than 61.61% of its industry peers.
The Debt to FCF ratio of MTDR is 3.60, which is a good value as it means it would take MTDR, 3.60 years of fcf income to pay off all of its debts.
MTDR's Debt to FCF ratio of 3.60 is fine compared to the rest of the industry. MTDR outperforms 72.99% of its industry peers.
MTDR has a Debt/Equity ratio of 0.60. This is a neutral value indicating MTDR is somewhat dependend on debt financing.
MTDR's Debt to Equity ratio of 0.60 is in line compared to the rest of the industry. MTDR outperforms 42.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 1.76 |
ROIC/WACC1.34
WACC8.99%
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's Current ratio of 0.79 is on the low side compared to the rest of the industry. MTDR is outperformed by 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.
The Quick ratio of MTDR (0.76) is worse than 65.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.17% over the past year.
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%.
MTDR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.93% yearly.
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.
Based on estimates for the next years, MTDR will show a small growth in Revenue. The Revenue will grow by 4.58% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 6.50, the valuation of MTDR can be described as very cheap.
Based on the Price/Earnings ratio, MTDR is valued cheaper than 85.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. MTDR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.24, the valuation of MTDR can be described as reasonable.
Based on the Price/Forward Earnings ratio, MTDR is valued a bit cheaper than 75.83% of the companies in the same industry.
MTDR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 8.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTDR indicates a rather cheap valuation: MTDR is cheaper than 81.52% of the companies listed in the same industry.
MTDR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MTDR is cheaper than 83.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.15 | ||
| EV/EBITDA | 3.72 |
4.3 Compensation for Growth
The excellent profitability rating of MTDR may justify a higher PE ratio.
A cheap valuation may be justified as MTDR's earnings are expected to decrease with -2.93% in the coming years.
PEG (NY)N/A
PEG (5Y)0.15
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 2.38, 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%
50.47
-0.18 (-0.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.07%
Inst Owner Change-55.24%
Ins Owners6.92%
Ins Owner Change3.74%
Market Cap6.32B
Analysts83.08
Price Target65.68 (30.14%)
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 | 6.5 | ||
| Fwd PE | 8.24 | ||
| P/S | 1.69 | ||
| P/FCF | 7.15 | ||
| P/OCF | 2.52 | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 3.72 |
EPS(TTM)7.76
EY15.38%
EPS(NY)6.13
Fwd EY12.14%
FCF(TTM)7.06
FCFY13.98%
OCF(TTM)20.02
OCFY39.66%
SpS29.8
BVpS42.23
TBVpS42.23
PEG (NY)N/A
PEG (5Y)0.15
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 | 1.76 |
F-Score3
WACC8.99%
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%