MATADOR RESOURCES CO (MTDR) Stock Fundamental Analysis
NYSE:MTDR - New York Stock Exchange, Inc. - US5764852050 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to MTDR. MTDR was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. MTDR scores excellent on profitability, but there are concerns on its financial health. MTDR is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
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
With a decent Return On Assets value of 8.16%, MTDR is doing good in the industry, outperforming 76.89% of the companies in the same industry.
The Return On Equity of MTDR (17.40%) is better than 73.11% of its industry peers.
MTDR has a better Return On Invested Capital (11.64%) than 78.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTDR is significantly below the industry average of 27.42%.
The 3 year average ROIC (17.87%) for MTDR is well above the current ROIC(11.64%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 17.4% | ||
| ROIC | 11.64% |
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
Looking at the Profit Margin, with a value of 25.26%, MTDR is in the better half of the industry, outperforming 76.89% of the companies in the same industry.
In the last couple of years the Profit Margin of MTDR has grown nicely.
MTDR has a better Operating Margin (40.93%) than 84.43% of its industry peers.
MTDR's Operating Margin has improved in the last couple of years.
MTDR has a Gross Margin of 72.54%. This is amongst the best in the industry. MTDR outperforms 81.60% of its industry peers.
In the last couple of years the Gross Margin of MTDR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.93% | ||
| PM (TTM) | 25.26% | ||
| GM | 72.54% |
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
MTDR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MTDR has more shares outstanding
Compared to 5 years ago, MTDR has more shares outstanding
MTDR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that MTDR is in the distress zone and has some risk of bankruptcy.
MTDR's Altman-Z score of 1.62 is in line compared to the rest of the industry. MTDR outperforms 59.43% of its industry peers.
MTDR has a debt to FCF ratio of 4.53. This is a neutral value as MTDR would need 4.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.53, MTDR is in the better half of the industry, outperforming 69.34% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that MTDR is somewhat dependend on debt financing.
MTDR's Debt to Equity ratio of 0.65 is on the low side compared to the rest of the industry. MTDR is outperformed by 60.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.53 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.16
WACC10.02%
2.3 Liquidity
MTDR has a Current Ratio of 0.93. 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 (0.93) is worse than 64.15% of its industry peers.
A Quick Ratio of 0.89 indicates that MTDR may have some problems paying its short term obligations.
With a Quick ratio value of 0.89, MTDR perfoms like the industry average, outperforming 45.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
MTDR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.49%, which is quite good.
MTDR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.19% yearly.
The Revenue has grown by 24.87% 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 28.93% yearly.
EPS 1Y (TTM)10.49%
EPS 3Y20.83%
EPS 5Y44.19%
EPS Q2Q%-8.04%
Revenue 1Y (TTM)24.87%
Revenue growth 3Y28.21%
Revenue growth 5Y28.93%
Sales Q2Q%16.59%
3.2 Future
The Earnings Per Share is expected to grow by 8.12% on average over the next years. This is quite good.
MTDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.76% yearly.
EPS Next Y7.39%
EPS Next 2Y5.52%
EPS Next 3Y2.96%
EPS Next 5Y8.12%
Revenue Next Year18.91%
Revenue Next 2Y11.67%
Revenue Next 3Y5.76%
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
A Price/Earnings ratio of 5.54 indicates a rather cheap valuation of MTDR.
Based on the Price/Earnings ratio, MTDR is valued cheaply inside the industry as 83.96% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MTDR to the average of the S&P500 Index (28.29), we can say MTDR is valued rather cheaply.
The Price/Forward Earnings ratio is 5.16, which indicates a rather cheap valuation of MTDR.
89.62% of the companies in the same industry are more expensive than MTDR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MTDR to the average of the S&P500 Index (21.08), we can say MTDR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 5.16 |
4.2 Price Multiples
MTDR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTDR is cheaper than 78.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTDR is valued cheaper than 81.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.07 | ||
| EV/EBITDA | 3.53 |
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 excellent profitability rating of MTDR may justify a higher PE ratio.
PEG (NY)0.75
PEG (5Y)0.13
EPS Next 2Y5.52%
EPS Next 3Y2.96%
5. Dividend
5.1 Amount
MTDR has a Yearly Dividend Yield of 3.30%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of MTDR has falen by -34.97%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.52, MTDR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, MTDR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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 11.85% of its income as dividend. This is a sustainable payout ratio.
DP11.85%
EPS Next 2Y5.52%
EPS Next 3Y2.96%
41.47
+1.34 (+3.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.67%
Inst Owner Change0.01%
Ins Owners7.32%
Ins Owner Change2.67%
Market Cap5.19B
Analysts83.2
Price Target75.48 (82.01%)
Short Float %5.5%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend0.86
Dividend Growth(5Y)N/A
DP11.85%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.94%
Min EPS beat(2)4.08%
Max EPS beat(2)7.79%
EPS beat(4)4
Avg EPS beat(4)9.34%
Min EPS beat(4)4.08%
Max EPS beat(4)14.39%
EPS beat(8)8
Avg EPS beat(8)9.36%
EPS beat(12)12
Avg EPS beat(12)9.11%
EPS beat(16)16
Avg EPS beat(16)15.13%
Revenue beat(2)1
Avg Revenue beat(2)1.22%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)4.08%
Revenue beat(4)3
Avg Revenue beat(4)1.98%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)4.86%
Revenue beat(8)6
Avg Revenue beat(8)2.66%
Revenue beat(12)10
Avg Revenue beat(12)4.39%
Revenue beat(16)12
Avg Revenue beat(16)5.98%
PT rev (1m)-4.55%
PT rev (3m)-1.16%
EPS NQ rev (1m)-1.52%
EPS NQ rev (3m)-2.43%
EPS NY rev (1m)-6.83%
EPS NY rev (3m)-1.9%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-3.24%
Revenue NY rev (1m)-1.91%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 5.16 | ||
| P/S | 1.48 | ||
| P/FCF | 7.07 | ||
| P/OCF | 2.31 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 3.53 |
EPS(TTM)7.48
EY18.04%
EPS(NY)8.03
Fwd EY19.37%
FCF(TTM)5.87
FCFY14.15%
OCF(TTM)17.94
OCFY43.27%
SpS27.99
BVpS40.64
TBVpS40.64
PEG (NY)0.75
PEG (5Y)0.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 17.4% | ||
| ROCE | 14.56% | ||
| ROIC | 11.64% | ||
| ROICexc | 11.67% | ||
| ROICexgc | 11.67% | ||
| OM | 40.93% | ||
| PM (TTM) | 25.26% | ||
| GM | 72.54% | ||
| FCFM | 20.96% |
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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.53 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 155.23% | ||
| Cap/Sales | 43.15% | ||
| Interest Coverage | 8.95 | ||
| Cash Conversion | 93.27% | ||
| Profit Quality | 82.96% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.62 |
F-Score3
WACC10.02%
ROIC/WACC1.16
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)10.49%
EPS 3Y20.83%
EPS 5Y44.19%
EPS Q2Q%-8.04%
EPS Next Y7.39%
EPS Next 2Y5.52%
EPS Next 3Y2.96%
EPS Next 5Y8.12%
Revenue 1Y (TTM)24.87%
Revenue growth 3Y28.21%
Revenue growth 5Y28.93%
Sales Q2Q%16.59%
Revenue Next Year18.91%
Revenue Next 2Y11.67%
Revenue Next 3Y5.76%
Revenue Next 5YN/A
EBIT growth 1Y18.64%
EBIT growth 3Y21.85%
EBIT growth 5Y43.53%
EBIT Next Year89.8%
EBIT Next 3Y20.88%
EBIT Next 5Y22.46%
FCF growth 1Y45.25%
FCF growth 3Y9.56%
FCF growth 5YN/A
OCF growth 1Y20.29%
OCF growth 3Y28.72%
OCF growth 5Y32.41%