VIPER ENERGY INC (VNOM) Stock Fundamental Analysis
NASDAQ:VNOM - Nasdaq - US9279591062 - Common Stock
VNOM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. VNOM has an excellent financial health rating, but there are some minor concerns on its profitability. VNOM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VNOM was profitable.
In the past year VNOM had a positive cash flow from operations.
Of the past 5 years VNOM 4 years were profitable.
Each year in the past 5 years VNOM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VNOM (4.89%) is comparable to the rest of the industry.
With a decent Return On Equity value of 14.69%, VNOM is doing good in the industry, outperforming 62.62% of the companies in the same industry.
The Return On Invested Capital of VNOM (10.74%) is better than 69.90% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VNOM is significantly below the industry average of 28.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 14.69% | ||
| ROIC | 10.75% |
ROA(3y)4.04%
ROA(5y)1.2%
ROE(3y)16.26%
ROE(5y)4.69%
ROIC(3y)13.49%
ROIC(5y)10%
1.3 Margins
VNOM has a Profit Margin of 24.61%. This is in the better half of the industry: VNOM outperforms 72.33% of its industry peers.
In the last couple of years the Profit Margin of VNOM has declined.
The Operating Margin of VNOM (67.68%) is better than 93.69% of its industry peers.
In the last couple of years the Operating Margin of VNOM has remained more or less at the same level.
VNOM has a Gross Margin of 93.15%. This is amongst the best in the industry. VNOM outperforms 98.06% of its industry peers.
VNOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 67.68% | ||
| PM (TTM) | 24.61% | ||
| GM | 93.15% |
OM growth 3Y15.43%
OM growth 5Y1.29%
PM growth 3YN/A
PM growth 5Y-13.51%
GM growth 3Y0.65%
GM growth 5Y0.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VNOM is creating some value.
Compared to 1 year ago, VNOM has more shares outstanding
The number of shares outstanding for VNOM has been increased compared to 5 years ago.
VNOM has a worse debt/assets ratio than last year.
2.2 Solvency
VNOM has an Altman-Z score of 2.74. This is not the best score and indicates that VNOM is in the grey zone with still only limited risk for bankruptcy at the moment.
VNOM has a Altman-Z score of 2.74. This is in the better half of the industry: VNOM outperforms 72.33% of its industry peers.
The Debt to FCF ratio of VNOM is 1.35, which is an excellent value as it means it would take VNOM, only 1.35 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.35, VNOM belongs to the top of the industry, outperforming 83.01% of the companies in the same industry.
VNOM has a Debt/Equity ratio of 0.59. This is a neutral value indicating VNOM is somewhat dependend on debt financing.
VNOM's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. VNOM outperforms 40.29% of its industry peers.
Even though the debt/equity ratio score it not favorable for VNOM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.22
WACC8.81%
2.3 Liquidity
VNOM has a Current Ratio of 7.24. This indicates that VNOM is financially healthy and has no problem in meeting its short term obligations.
VNOM's Current ratio of 7.24 is amongst the best of the industry. VNOM outperforms 91.75% of its industry peers.
VNOM has a Quick Ratio of 7.24. This indicates that VNOM is financially healthy and has no problem in meeting its short term obligations.
VNOM has a Quick ratio of 7.24. This is amongst the best in the industry. VNOM outperforms 92.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.24 | ||
| Quick Ratio | 7.24 |
3. Growth
3.1 Past
VNOM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.78%.
Measured over the past years, VNOM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.85% on average per year.
The Revenue has been growing slightly by 1.19% in the past year.
Measured over the past years, VNOM shows a very strong growth in Revenue. The Revenue has been growing by 23.44% on average per year.
EPS 1Y (TTM)-3.78%
EPS 3Y112.91%
EPS 5Y19.85%
EPS Q2Q%-55.45%
Revenue 1Y (TTM)1.19%
Revenue growth 3Y48.92%
Revenue growth 5Y23.44%
Sales Q2Q%-28.53%
3.2 Future
VNOM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.45% yearly.
The Revenue is expected to grow by 12.39% on average over the next years. This is quite good.
EPS Next Y-27.1%
EPS Next 2Y-15.7%
EPS Next 3Y-2.45%
EPS Next 5YN/A
Revenue Next Year5.66%
Revenue Next 2Y7.8%
Revenue Next 3Y12.39%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.08, the valuation of VNOM can be described as rather expensive.
Based on the Price/Earnings ratio, VNOM is valued a bit more expensive than the industry average as 62.62% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of VNOM to the average of the S&P500 Index (28.29), we can say VNOM is valued slightly cheaper.
The Price/Forward Earnings ratio is 25.68, which means the current valuation is very expensive for VNOM.
Based on the Price/Forward Earnings ratio, VNOM is valued a bit more expensive than 66.50% of the companies in the same industry.
VNOM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.08 | ||
| Fwd PE | 25.68 |
4.2 Price Multiples
VNOM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. VNOM is more expensive than 67.48% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VNOM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.68 | ||
| EV/EBITDA | 13.29 |
4.3 Compensation for Growth
The decent profitability rating of VNOM may justify a higher PE ratio.
VNOM's earnings are expected to decrease with -2.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y-15.7%
EPS Next 3Y-2.45%
5. Dividend
5.1 Amount
VNOM has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.39, VNOM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, VNOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
The dividend of VNOM decreases each year by -2.20%.
VNOM has paid a dividend for at least 10 years, which is a reliable track record.
VNOM has decreased its dividend recently.
Dividend Growth(5Y)-2.2%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VNOM pays out 224.00% of its income as dividend. This is not a sustainable payout ratio.
VNOM's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP224%
EPS Next 2Y-15.7%
EPS Next 3Y-2.45%
VIPER ENERGY INC
NASDAQ:VNOM (1/22/2025, 11:36:35 AM)
50.557
+0.36 (+0.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners82.13%
Inst Owner Change-0.14%
Ins Owners0.33%
Ins Owner Change0%
Market Cap9.53B
Analysts84
Price Target59.31 (17.31%)
Short Float %6.16%
Short Ratio7.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend1.91
Dividend Growth(5Y)-2.2%
DP224%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.35%
Min EPS beat(2)1.56%
Max EPS beat(2)7.13%
EPS beat(4)4
Avg EPS beat(4)10.19%
Min EPS beat(4)1.56%
Max EPS beat(4)17.1%
EPS beat(8)7
Avg EPS beat(8)20.26%
EPS beat(12)9
Avg EPS beat(12)17.98%
EPS beat(16)11
Avg EPS beat(16)99.97%
Revenue beat(2)0
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)-1.75%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)0.25%
Revenue beat(8)3
Avg Revenue beat(8)7.08%
Revenue beat(12)7
Avg Revenue beat(12)9.52%
Revenue beat(16)11
Avg Revenue beat(16)13.33%
PT rev (1m)1.46%
PT rev (3m)15.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.08 | ||
| Fwd PE | 25.68 | ||
| P/S | 11.39 | ||
| P/FCF | 15.68 | ||
| P/OCF | 15.68 | ||
| P/B | 6.8 | ||
| P/tB | 6.8 | ||
| EV/EBITDA | 13.29 |
EPS(TTM)2.29
EY4.53%
EPS(NY)1.97
Fwd EY3.89%
FCF(TTM)3.22
FCFY6.38%
OCF(TTM)3.22
OCFY6.38%
SpS4.44
BVpS7.44
TBVpS7.44
PEG (NY)N/A
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.89% | ||
| ROE | 14.69% | ||
| ROCE | 13.6% | ||
| ROIC | 10.75% | ||
| ROICexc | 11.2% | ||
| ROICexgc | 11.2% | ||
| OM | 67.68% | ||
| PM (TTM) | 24.61% | ||
| GM | 93.15% | ||
| FCFM | 72.63% |
ROA(3y)4.04%
ROA(5y)1.2%
ROE(3y)16.26%
ROE(5y)4.69%
ROIC(3y)13.49%
ROIC(5y)10%
ROICexc(3y)13.6%
ROICexc(5y)10.07%
ROICexgc(3y)13.6%
ROICexgc(5y)10.07%
ROCE(3y)17.08%
ROCE(5y)12.65%
ROICexcg growth 3Y45.98%
ROICexcg growth 5Y4.87%
ROICexc growth 3Y45.98%
ROICexc growth 5Y4.87%
OM growth 3Y15.43%
OM growth 5Y1.29%
PM growth 3YN/A
PM growth 5Y-13.51%
GM growth 3Y0.65%
GM growth 5Y0.1%
F-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.86% | ||
| Profit Quality | 295.16% | ||
| Current Ratio | 7.24 | ||
| Quick Ratio | 7.24 | ||
| Altman-Z | 2.74 |
F-Score5
WACC8.81%
ROIC/WACC1.22
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)437.05%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.78%
EPS 3Y112.91%
EPS 5Y19.85%
EPS Q2Q%-55.45%
EPS Next Y-27.1%
EPS Next 2Y-15.7%
EPS Next 3Y-2.45%
EPS Next 5YN/A
Revenue 1Y (TTM)1.19%
Revenue growth 3Y48.92%
Revenue growth 5Y23.44%
Sales Q2Q%-28.53%
Revenue Next Year5.66%
Revenue Next 2Y7.8%
Revenue Next 3Y12.39%
Revenue Next 5YN/A
EBIT growth 1Y-11.03%
EBIT growth 3Y71.9%
EBIT growth 5Y25.03%
EBIT Next Year21.23%
EBIT Next 3Y20.36%
EBIT Next 5YN/A
FCF growth 1Y-2.11%
FCF growth 3Y48.07%
FCF growth 5Y21.62%
OCF growth 1Y-2.11%
OCF growth 3Y48.07%
OCF growth 5Y21.15%