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 212 industry peers in the Oil, Gas & Consumable Fuels industry. MTDR has an excellent profitability rating, but there are concerns on its financial health. An interesting combination arises when we look at growth and value: MTDR is growing strongly while it also seems undervalued.
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.
MTDR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MTDR's Return On Assets of 8.71% is fine compared to the rest of the industry. MTDR outperforms 71.84% of its industry peers.
The Return On Equity of MTDR (19.00%) is better than 70.87% of its industry peers.
The Return On Invested Capital of MTDR (11.88%) is better than 74.76% of its industry peers.
MTDR had an Average Return On Invested Capital over the past 3 years of 19.49%. This is significantly below the industry average of 28.73%.
The 3 year average ROIC (19.49%) for MTDR is well above the current ROIC(11.88%). The reason for the recent decline needs to be investigated.
| 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
MTDR's Profit Margin of 27.45% is fine compared to the rest of the industry. MTDR outperforms 75.73% of its industry peers.
MTDR's Profit Margin has been stable in the last couple of years.
MTDR's Operating Margin of 42.73% is amongst the best of the industry. MTDR outperforms 83.50% of its industry peers.
MTDR's Operating Margin has been stable in the last couple of years.
The Gross Margin of MTDR (73.06%) is better than 81.07% of its industry peers.
In the last couple of years the Gross Margin of MTDR has remained more or less at the same level.
| 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.
Compared to 1 year ago, MTDR has more shares outstanding
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
An Altman-Z score of 1.81 indicates that MTDR is not a great score, but indicates only limited risk for bankruptcy at the moment.
MTDR has a Altman-Z score (1.81) which is in line with 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.
With a decent Debt to FCF ratio value of 4.90, MTDR is doing good in the industry, outperforming 60.68% of the companies in the same industry.
MTDR has a Debt/Equity ratio of 0.74. This is a neutral value indicating MTDR is somewhat dependend on debt financing.
MTDR has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: MTDR underperforms 68.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 1.81 |
ROIC/WACC1.41
WACC8.45%
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.
The Current ratio of MTDR (0.88) is worse than 70.87% 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 has a worse Quick ratio (0.84) than 64.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
MTDR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.37%, 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 33.11% on average per year.
The Revenue has grown by 25.86% in the past year. This is a very strong growth!
MTDR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.55% yearly.
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
MTDR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.03% yearly.
The Revenue is expected to grow by 16.05% on average over the next years. This is quite good.
EPS Next Y11.57%
EPS Next 2Y12.45%
EPS Next 3Y8.89%
EPS Next 5Y8.03%
Revenue Next Year26.39%
Revenue Next 2Y22.53%
Revenue Next 3Y16.05%
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.
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
With a Price/Earnings ratio of 7.64, 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 76.21% of the companies in the same industry.
When comparing the Price/Earnings ratio of MTDR to the average of the S&P500 Index (28.47), we can say MTDR is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.82, the valuation of MTDR can be described as very cheap.
MTDR's Price/Forward Earnings ratio is rather cheap when compared to the industry. MTDR is cheaper than 83.01% of the companies in the same industry.
MTDR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 6.82 |
4.2 Price Multiples
MTDR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTDR is cheaper than 69.42% 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 67.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.93 | ||
| EV/EBITDA | 4.59 |
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)0.66
PEG (5Y)0.23
EPS Next 2Y12.45%
EPS Next 3Y8.89%
5. Dividend
5.1 Amount
MTDR has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.57, MTDR is paying slightly less dividend.
MTDR's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of MTDR is nicely growing with an annual growth rate of 224.49%!
MTDR has been paying a dividend for less than 5 years, so it still needs to build a track record.
MTDR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)224.49%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
10.51% of the earnings are spent on dividend by MTDR. This is a low number and sustainable payout ratio.
The dividend of MTDR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP10.51%
EPS Next 2Y12.45%
EPS Next 3Y8.89%
MATADOR RESOURCES CO
NYSE:MTDR (2/4/2025, 8:04:00 PM)
After market: 58.37 0 (0%)58.37
+0.83 (+1.44%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.74%
Inst Owner Change0.58%
Ins Owners7.2%
Ins Owner Change2.73%
Market Cap7.28B
Analysts82.61
Price Target78 (33.63%)
Short Float %6.1%
Short Ratio6.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend0.65
Dividend Growth(5Y)224.49%
DP10.51%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.09%
Min EPS beat(2)7.79%
Max EPS beat(2)14.39%
EPS beat(4)4
Avg EPS beat(4)10.75%
Min EPS beat(4)7.79%
Max EPS beat(4)14.39%
EPS beat(8)8
Avg EPS beat(8)9.45%
EPS beat(12)12
Avg EPS beat(12)9.87%
EPS beat(16)16
Avg EPS beat(16)22.7%
Revenue beat(2)2
Avg Revenue beat(2)2.36%
Min Revenue beat(2)0.63%
Max Revenue beat(2)4.08%
Revenue beat(4)4
Avg Revenue beat(4)2.86%
Min Revenue beat(4)0.63%
Max Revenue beat(4)4.86%
Revenue beat(8)7
Avg Revenue beat(8)3.82%
Revenue beat(12)11
Avg Revenue beat(12)6.84%
Revenue beat(16)12
Avg Revenue beat(16)5.52%
PT rev (1m)2.14%
PT rev (3m)1.06%
EPS NQ rev (1m)-6.02%
EPS NQ rev (3m)-7.26%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-7.84%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 6.82 | ||
| P/S | 2.16 | ||
| P/FCF | 9.93 | ||
| P/OCF | 3.18 | ||
| P/B | 1.5 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 4.59 |
EPS(TTM)7.64
EY13.09%
EPS(NY)8.56
Fwd EY14.67%
FCF(TTM)5.88
FCFY10.07%
OCF(TTM)18.36
OCFY31.45%
SpS27.02
BVpS39.04
TBVpS39.04
PEG (NY)0.66
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 19% | ||
| ROCE | 14.91% | ||
| ROIC | 11.88% | ||
| ROICexc | 11.91% | ||
| ROICexgc | 11.91% | ||
| OM | 42.73% | ||
| PM (TTM) | 27.45% | ||
| GM | 73.06% | ||
| FCFM | 21.76% |
ROA(3y)15.51%
ROA(5y)6.52%
ROE(3y)30.45%
ROE(5y)10%
ROIC(3y)19.49%
ROIC(5y)13.48%
ROICexc(3y)20.66%
ROICexc(5y)14.21%
ROICexgc(3y)20.66%
ROICexgc(5y)14.21%
ROCE(3y)24.47%
ROCE(5y)16.92%
ROICexcg growth 3Y52.4%
ROICexcg growth 5Y7.84%
ROICexc growth 3Y52.4%
ROICexc growth 5Y7.84%
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%
F-Score3
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.9 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 172.75% | ||
| Cap/Sales | 46.18% | ||
| Interest Coverage | 12.13 | ||
| Cash Conversion | 97.82% | ||
| Profit Quality | 79.27% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.81 |
F-Score3
WACC8.45%
ROIC/WACC1.41
Cap/Depr(3y)172.17%
Cap/Depr(5y)195.25%
Cap/Sales(3y)35.4%
Cap/Sales(5y)56.48%
Profit Quality(3y)82.65%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.37%
EPS 3Y132.31%
EPS 5Y33.11%
EPS Q2Q%1.61%
EPS Next Y11.57%
EPS Next 2Y12.45%
EPS Next 3Y8.89%
EPS Next 5Y8.03%
Revenue 1Y (TTM)25.86%
Revenue growth 3Y48.21%
Revenue growth 5Y25.55%
Sales Q2Q%16.51%
Revenue Next Year26.39%
Revenue Next 2Y22.53%
Revenue Next 3Y16.05%
Revenue Next 5YN/A
EBIT growth 1Y18.5%
EBIT growth 3Y94.96%
EBIT growth 5Y27.2%
EBIT Next Year93.64%
EBIT Next 3Y32.62%
EBIT Next 5Y19.04%
FCF growth 1Y-35.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.68%
OCF growth 3Y57.55%
OCF growth 5Y25.15%