MATADOR RESOURCES CO (MTDR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MTDR - US5764852050 - Common Stock
42.94 USD
-0.21 (-0.49%)
43.12 USD
+0.18 (+0.42%)
MTDR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. MTDR has an excellent profitability rating, 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.
- 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 6.71% is fine compared to the rest of the industry. MTDR outperforms 76.33% of its industry peers.
- Looking at the Return On Equity, with a value of 14.19%, MTDR is in the better half of the industry, outperforming 77.29% of the companies in the same industry.
- The Return On Invested Capital of MTDR (10.34%) is better than 85.02% of its industry peers.
- MTDR had an Average Return On Invested Capital over the past 3 years of 17.87%. This is below the industry average of 21.94%.
- The 3 year average ROIC (17.87%) for MTDR is well above the current ROIC(10.34%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.71% | ||
| ROE | 14.19% | ||
| ROIC | 10.34% |
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 20.46% is fine compared to the rest of the industry. MTDR outperforms 75.36% of its industry peers.
- In the last couple of years the Profit Margin of MTDR has grown nicely.
- MTDR has a Operating Margin of 35.19%. This is amongst the best in the industry. MTDR outperforms 82.13% of its industry peers.
- MTDR's Operating Margin has improved in the last couple of years.
- MTDR has a better Gross Margin (70.13%) than 79.23% of its industry peers.
- MTDR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.19% | ||
| PM (TTM) | 20.46% | ||
| GM | 70.13% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MTDR is creating value.
- MTDR has more shares outstanding than it did 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
- MTDR has an Altman-Z score of 1.56. This is a bad value and indicates that MTDR is not financially healthy and even has some risk of bankruptcy.
- MTDR's Altman-Z score of 1.56 is in line compared to the rest of the industry. MTDR outperforms 57.49% of its industry peers.
- MTDR has a debt to FCF ratio of 3.98. This is a good value and a sign of high solvency as MTDR would need 3.98 years to pay back of all of its debts.
- MTDR has a Debt to FCF ratio of 3.98. This is in the better half of the industry: MTDR outperforms 69.57% of its industry peers.
- A Debt/Equity ratio of 0.58 indicates that MTDR is somewhat dependend on debt financing.
- The Debt to Equity ratio of MTDR (0.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 3.98 | ||
| Altman-Z | 1.56 |
ROIC/WACC1.26
WACC8.23%
2.3 Liquidity
- A Current Ratio of 0.73 indicates that MTDR may have some problems paying its short term obligations.
- MTDR has a Current ratio of 0.73. This is in the lower half of the industry: MTDR underperforms 72.46% of its industry peers.
- MTDR has a Quick Ratio of 0.73. This is a bad value and indicates that MTDR is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.69, MTDR is not doing good in the industry: 67.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- MTDR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.17%.
- MTDR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.19% yearly.
- MTDR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.29%.
- MTDR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.93% yearly.
EPS 1Y (TTM)-12.17%
EPS 3Y20.83%
EPS 5Y44.19%
EPS Q2Q%-28.04%
Revenue 1Y (TTM)13.29%
Revenue growth 3Y28.21%
Revenue growth 5Y28.93%
Sales Q2Q%4.36%
3.2 Future
- MTDR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.29% yearly.
- MTDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.35% yearly.
EPS Next Y-21.47%
EPS Next 2Y-20.25%
EPS Next 3Y-5.64%
EPS Next 5Y6.29%
Revenue Next Year5.91%
Revenue Next 2Y2.66%
Revenue Next 3Y4.37%
Revenue Next 5Y5.35%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 6.40 indicates a rather cheap valuation of MTDR.
- Compared to the rest of the industry, the Price/Earnings ratio of MTDR indicates a rather cheap valuation: MTDR is cheaper than 90.34% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of MTDR to the average of the S&P500 Index (27.21), we can say MTDR is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.02, the valuation of MTDR can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, MTDR is valued cheaper than 83.57% 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 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.4 | ||
| Fwd PE | 9.02 |
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 88.41% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, MTDR is valued cheaply inside the industry as 89.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.6 | ||
| EV/EBITDA | 3.39 |
4.3 Compensation for Growth
- MTDR has an outstanding profitability rating, which may justify a higher PE ratio.
- MTDR's earnings are expected to decrease with -5.64% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-20.25%
EPS Next 3Y-5.64%
5. Dividend
5.1 Amount
- MTDR has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.75, MTDR has a dividend in line with its industry peers.
- MTDR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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
- 18.96% of the earnings are spent on dividend by MTDR. This is a low number and sustainable payout ratio.
DP18.96%
EPS Next 2Y-20.25%
EPS Next 3Y-5.64%
MATADOR RESOURCES CO / MTDR FAQ
Can you provide the ChartMill fundamental rating for MATADOR RESOURCES CO?
ChartMill assigns a fundamental rating of 6 / 10 to MTDR.
What is the valuation status for MTDR stock?
ChartMill assigns a valuation rating of 8 / 10 to MATADOR RESOURCES CO (MTDR). This can be considered as Undervalued.
Can you provide the profitability details for MATADOR RESOURCES CO?
MATADOR RESOURCES CO (MTDR) has a profitability rating of 8 / 10.
What is the expected EPS growth for MATADOR RESOURCES CO (MTDR) stock?
The Earnings per Share (EPS) of MATADOR RESOURCES CO (MTDR) is expected to decline by -21.47% in the next year.
Is the dividend of MATADOR RESOURCES CO sustainable?
The dividend rating of MATADOR RESOURCES CO (MTDR) is 5 / 10 and the dividend payout ratio is 18.96%.