VIPER ENERGY INC (VNOM)
US9279591062 - Common Stock
Taking everything into account, VNOM scores 5 out of 10 in our fundamental rating. VNOM was compared to 204 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making VNOM a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, VNOM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
VNOM had positive earnings in the past year.
VNOM had a positive operating cash flow in the past year.
VNOM had positive earnings in 4 of the past 5 years.
In the past 5 years VNOM always reported a positive cash flow from operatings.
1.2 Ratios
VNOM has a Return On Assets of 6.04%. This is comparable to the rest of the industry: VNOM outperforms 53.69% of its industry peers.
VNOM's Return On Equity of 21.61% is fine compared to the rest of the industry. VNOM outperforms 74.38% of its industry peers.
VNOM has a Return On Invested Capital of 13.74%. This is amongst the best in the industry. VNOM outperforms 80.79% of its industry peers.
VNOM had an Average Return On Invested Capital over the past 3 years of 13.49%. This is significantly below the industry average of 22.54%.
The 3 year average ROIC (13.49%) for VNOM is below the current ROIC(13.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.04% | ||
| ROE | 21.61% | ||
| ROIC | 13.74% |
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 better Profit Margin (25.60%) than 73.40% of its industry peers.
VNOM's Profit Margin has declined in the last couple of years.
The Operating Margin of VNOM (73.18%) is better than 94.09% of its industry peers.
In the last couple of years the Operating Margin of VNOM has remained more or less at the same level.
Looking at the Gross Margin, with a value of 94.09%, VNOM belongs to the top of the industry, outperforming 99.01% of the companies in the same industry.
In the last couple of years the Gross Margin of VNOM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 73.18% | ||
| PM (TTM) | 25.6% | ||
| GM | 94.09% |
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.
VNOM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VNOM has more shares outstanding
The debt/assets ratio for VNOM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.03 indicates that VNOM is not in any danger for bankruptcy at the moment.
VNOM's Altman-Z score of 3.03 is fine compared to the rest of the industry. VNOM outperforms 72.91% of its industry peers.
The Debt to FCF ratio of VNOM is 1.55, which is an excellent value as it means it would take VNOM, only 1.55 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VNOM (1.55) is better than 80.79% of its industry peers.
VNOM has a Debt/Equity ratio of 0.92. This is a neutral value indicating VNOM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.92, VNOM is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
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 | 0.92 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 3.03 |
ROIC/WACC1.59
WACC8.66%
2.3 Liquidity
A Current Ratio of 7.06 indicates that VNOM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.06, VNOM belongs to the top of the industry, outperforming 91.63% of the companies in the same industry.
VNOM has a Quick Ratio of 7.06. This indicates that VNOM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 7.06, VNOM belongs to the best of the industry, outperforming 92.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.06 | ||
| Quick Ratio | 7.06 |
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%.
The Earnings Per Share has been growing by 19.85% on average over the past years. This is quite good.
Looking at the last year, VNOM shows a decrease in Revenue. The Revenue has decreased by -4.48% in the last 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)-4.48%
Revenue growth 3Y48.92%
Revenue growth 5Y23.44%
Sales Q2Q%-28.53%
3.2 Future
Based on estimates for the next years, VNOM will show a decrease in Earnings Per Share. The EPS will decrease by -2.86% on average per year.
VNOM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.73% yearly.
EPS Next Y-24.76%
EPS Next 2Y-12.69%
EPS Next 3Y-2.86%
EPS Next 5YN/A
Revenue Next Year6.01%
Revenue Next 2Y7.32%
Revenue Next 3Y9.73%
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 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
The Price/Earnings ratio is 23.88, which indicates a rather expensive current valuation of VNOM.
66.01% of the companies in the same industry are cheaper than VNOM, based on the Price/Earnings ratio.
VNOM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.90, 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 67.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VNOM to the average of the S&P500 Index (23.82), we can say VNOM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 25.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VNOM indicates a slightly more expensive valuation: VNOM is more expensive than 68.97% of the companies listed 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 | 15.99 | ||
| EV/EBITDA | 13.11 |
4.3 Compensation for Growth
The decent profitability rating of VNOM may justify a higher PE ratio.
A cheap valuation may be justified as VNOM's earnings are expected to decrease with -2.86% in the coming years.
PEG (NY)N/A
PEG (5Y)1.2
EPS Next 2Y-12.69%
EPS Next 3Y-2.86%
5. Dividend
5.1 Amount
VNOM has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.45, VNOM has a dividend in line with its industry peers.
VNOM's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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.
The dividend of VNOM decreased recently.
Dividend Growth(5Y)-2.2%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
171.08% of the earnings are spent on dividend by VNOM. 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.
DP171.08%
EPS Next 2Y-12.69%
EPS Next 3Y-2.86%
VIPER ENERGY INC
NASDAQ:VNOM (11/21/2024, 8:00:16 PM)
After market: 57.42 +2.73 (+4.99%)54.69
+0.68 (+1.26%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 25.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.04% | ||
| ROE | 21.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 73.18% | ||
| PM (TTM) | 25.6% | ||
| GM | 94.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.06 | ||
| Quick Ratio | 7.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-3.78%
EPS 3Y112.91%
EPS 5Y
EPS Q2Q%
EPS Next Y-24.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.48%
Revenue growth 3Y48.92%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
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OCF growth 1Y
OCF growth 3Y
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