MATADOR RESOURCES CO (MTDR) Stock Fundamental Analysis
NYSE:MTDR - New York Stock Exchange, Inc. - US5764852050 - Common Stock - Currency: USD
Taking everything into account, MTDR scores 6 out of 10 in our fundamental rating. MTDR was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While MTDR has a great profitability rating, there are quite some concerns on its financial health. MTDR scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
MTDR had positive earnings in 4 of the past 5 years.
MTDR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MTDR has a better Return On Assets (8.41%) than 79.05% of its industry peers.
MTDR has a Return On Equity of 17.62%. This is in the better half of the industry: MTDR outperforms 77.14% of its industry peers.
MTDR has a better Return On Invested Capital (12.09%) than 86.19% 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 23.80%.
The last Return On Invested Capital (12.09%) for MTDR is well below the 3 year average (17.87%), which needs to be investigated, but indicates that MTDR had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 24.97%, MTDR is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
MTDR's Profit Margin has improved in the last couple of years.
MTDR has a better Operating Margin (40.33%) than 84.76% of its industry peers.
In the last couple of years the Operating Margin of MTDR has grown nicely.
Looking at the Gross Margin, with a value of 72.01%, MTDR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of MTDR has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MTDR is creating value.
Compared to 1 year ago, MTDR has more shares outstanding
Compared to 5 years ago, MTDR has more shares outstanding
The debt/assets ratio for MTDR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that MTDR is in the distress zone and has some risk of bankruptcy.
MTDR has a Altman-Z score of 1.78. This is in the better half of the industry: MTDR outperforms 60.95% 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.
With a decent Debt to FCF ratio value of 3.60, MTDR is doing good in the industry, outperforming 72.38% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that MTDR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, MTDR is in line with its industry, outperforming 42.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 1.78 |
ROIC/WACC1.33
WACC9.07%
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 has a Current ratio of 0.79. This is in the lower half of the industry: MTDR underperforms 70.00% of its industry peers.
A Quick Ratio of 0.76 indicates that MTDR may have some problems paying its short term obligations.
MTDR has a worse Quick ratio (0.76) than 65.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
MTDR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.17%, which is quite good.
The Earnings Per Share has been growing by 44.19% on average over the past years. This is a very strong growth
Looking at the last year, MTDR shows a very strong growth in Revenue. The Revenue has grown by 22.97%.
Measured over the past years, MTDR shows a very strong growth in Revenue. The Revenue has been growing by 28.93% on average per year.
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.
MTDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.88% yearly.
EPS Next Y-10.68%
EPS Next 2Y-7.2%
EPS Next 3Y-1.96%
EPS Next 5Y4.57%
Revenue Next Year8.97%
Revenue Next 2Y5.19%
Revenue Next 3Y4.88%
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
MTDR is valuated cheaply with a Price/Earnings ratio of 6.62.
85.71% of the companies in the same industry are more expensive than MTDR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.50, MTDR is valued rather cheaply.
A Price/Forward Earnings ratio of 7.97 indicates a rather cheap valuation of MTDR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTDR indicates a somewhat cheap valuation: MTDR is cheaper than 75.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, MTDR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.62 | ||
| Fwd PE | 7.97 |
4.2 Price Multiples
MTDR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTDR is cheaper than 80.00% of the companies in the same industry.
82.86% of the companies in the same industry are more expensive than MTDR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.28 | ||
| EV/EBITDA | 3.78 |
4.3 Compensation for Growth
The excellent profitability rating of MTDR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y-7.2%
EPS Next 3Y-1.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, MTDR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.41, MTDR has a dividend in line with its industry peers.
MTDR's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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-7.2%
EPS Next 3Y-1.96%
51.34
-0.42 (-0.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.07%
Inst Owner Change0%
Ins Owners6.92%
Ins Owner Change1.28%
Market Cap6.43B
Analysts83.08
Price Target65.68 (27.93%)
Short Float %7.69%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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)0.26%
PT rev (3m)-12.99%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-27.29%
EPS NY rev (1m)2.81%
EPS NY rev (3m)-16.83%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-9.81%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)-8.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.62 | ||
| Fwd PE | 7.97 | ||
| P/S | 1.72 | ||
| P/FCF | 7.28 | ||
| P/OCF | 2.56 | ||
| P/B | 1.22 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 3.78 |
EPS(TTM)7.76
EY15.11%
EPS(NY)6.44
Fwd EY12.55%
FCF(TTM)7.06
FCFY13.75%
OCF(TTM)20.02
OCFY38.99%
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 | 1.78 |
F-Score3
WACC9.07%
ROIC/WACC1.33
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-10.68%
EPS Next 2Y-7.2%
EPS Next 3Y-1.96%
EPS Next 5Y4.57%
Revenue 1Y (TTM)22.97%
Revenue growth 3Y28.21%
Revenue growth 5Y28.93%
Sales Q2Q%28.72%
Revenue Next Year8.97%
Revenue Next 2Y5.19%
Revenue Next 3Y4.88%
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%