MATADOR RESOURCES CO (MTDR)
US5764852050 - Common Stock
We assign a fundamental rating of 6 out of 10 to MTDR. MTDR was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. MTDR scores excellent on profitability, but there are concerns on its financial health. MTDR has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare 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.
Each year in the past 5 years MTDR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.71%, MTDR is doing good in the industry, outperforming 71.57% of the companies in the same industry.
The Return On Equity of MTDR (19.00%) is better than 70.10% of its industry peers.
MTDR's Return On Invested Capital of 11.88% is fine compared to the rest of the industry. MTDR outperforms 75.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTDR is significantly below the industry average of 29.03%.
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 has a better Profit Margin (27.45%) than 74.02% of its industry peers.
In the last couple of years the Profit Margin of MTDR has remained more or less at the same level.
MTDR's Operating Margin of 42.73% is amongst the best of the industry. MTDR outperforms 82.35% of its industry peers.
In the last couple of years the Operating Margin of MTDR has remained more or less at the same level.
MTDR has a better Gross Margin (73.06%) than 81.86% of its industry peers.
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.
The number of shares outstanding for MTDR has been increased compared to 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 1.77, we must say that MTDR is in the distress zone and has some risk of bankruptcy.
MTDR has a Altman-Z score of 1.77. This is comparable to the rest of the industry: MTDR outperforms 53.43% of its industry peers.
MTDR has a debt to FCF ratio of 4.90. This is a neutral value as MTDR would need 4.90 years to pay back of all of its debts.
The Debt to FCF ratio of MTDR (4.90) is better than 60.29% of its industry peers.
MTDR has a Debt/Equity ratio of 0.74. This is a neutral value indicating MTDR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, MTDR is doing worse than 68.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 4.9 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.42
WACC8.39%
2.3 Liquidity
A Current Ratio of 0.88 indicates that MTDR may have some problems paying its short term obligations.
MTDR's Current ratio of 0.88 is on the low side compared to the rest of the industry. MTDR is outperformed by 69.61% of its industry peers.
A Quick Ratio of 0.84 indicates that MTDR may have some problems paying its short term obligations.
MTDR has a Quick ratio of 0.84. This is in the lower half of the industry: MTDR underperforms 63.24% 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.
The Earnings Per Share has been growing by 33.11% on average over the past years. This is a very strong growth
MTDR shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.86%.
Measured over the past years, MTDR shows a very strong growth in Revenue. The Revenue has been growing by 25.55% on average per year.
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.
Based on estimates for the next years, MTDR will show a quite strong growth in Revenue. The Revenue will grow by 15.66% on average per year.
EPS Next Y12.51%
EPS Next 2Y9.98%
EPS Next 3Y8.55%
EPS Next 5Y8.03%
Revenue Next Year26%
Revenue Next 2Y22.82%
Revenue Next 3Y15.66%
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
A Price/Earnings ratio of 7.09 indicates a rather cheap valuation of MTDR.
Based on the Price/Earnings ratio, MTDR is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MTDR to the average of the S&P500 Index (27.54), we can say MTDR is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.61, the valuation of MTDR can be described as very cheap.
Based on the Price/Forward Earnings ratio, MTDR is valued a bit cheaper than the industry average as 78.92% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MTDR to the average of the S&P500 Index (23.99), we can say MTDR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 6.61 |
4.2 Price Multiples
MTDR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTDR is cheaper than 69.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTDR is valued a bit cheaper than the industry average as 68.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 4.41 |
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)0.57
PEG (5Y)0.21
EPS Next 2Y9.98%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.90%, MTDR has a reasonable but not impressive dividend return.
MTDR's Dividend Yield is slightly below the industry average, which is at 7.14.
Compared to an average S&P500 Dividend Yield of 2.36, MTDR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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.
MTDR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.51%
EPS Next 2Y9.98%
EPS Next 3Y8.55%
MATADOR RESOURCES CO
NYSE:MTDR (12/24/2024, 7:26:54 PM)
After market: 54.16 0 (0%)54.16
+0.8 (+1.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.74%
Inst Owner Change-4.44%
Ins Owners7.2%
Ins Owner Change0.28%
Market Cap6.76B
Analysts82.61
Price Target76.16 (40.62%)
Short Float %6.17%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Dividend Growth(5Y)224.49%
DP10.51%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)-1.32%
PT rev (3m)-6.58%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-13.58%
EPS NY rev (1m)-0.68%
EPS NY rev (3m)-7.06%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)7.18%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.09 | ||
| Fwd PE | 6.61 | ||
| P/S | 2 | ||
| P/FCF | 9.21 | ||
| P/OCF | 2.95 | ||
| P/B | 1.39 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 4.41 |
EPS(TTM)7.64
EY14.11%
EPS(NY)8.19
Fwd EY15.12%
FCF(TTM)5.88
FCFY10.85%
OCF(TTM)18.36
OCFY33.89%
SpS27.02
BVpS39.04
TBVpS39.04
PEG (NY)0.57
PEG (5Y)0.21
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 | 1.77 |
F-Score3
WACC8.39%
ROIC/WACC1.42
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 Y12.51%
EPS Next 2Y9.98%
EPS Next 3Y8.55%
EPS Next 5Y8.03%
Revenue 1Y (TTM)25.86%
Revenue growth 3Y48.21%
Revenue growth 5Y25.55%
Sales Q2Q%16.51%
Revenue Next Year26%
Revenue Next 2Y22.82%
Revenue Next 3Y15.66%
Revenue Next 5YN/A
EBIT growth 1Y18.5%
EBIT growth 3Y94.96%
EBIT growth 5Y27.2%
EBIT Next Year93.23%
EBIT Next 3Y32.53%
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%