VIPER ENERGY INC (VNOM) Stock Fundamental Analysis
NASDAQ:VNOM - Nasdaq - US9279591062 - Common Stock - Currency: USD
Overall VNOM gets a fundamental rating of 6 out of 10. We evaluated VNOM against 211 industry peers in the Oil, Gas & Consumable Fuels industry. While VNOM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VNOM is valued quite expensive, but it does show an excellent growth. With these ratings, VNOM could be worth investigating further for growth investing!.
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.
Of the past 5 years VNOM 4 years were profitable.
VNOM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VNOM's Return On Assets of 6.26% is fine compared to the rest of the industry. VNOM outperforms 67.30% of its industry peers.
VNOM's Return On Equity of 14.60% is fine compared to the rest of the industry. VNOM outperforms 71.56% of its industry peers.
The Return On Invested Capital of VNOM (7.49%) is better than 63.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VNOM is significantly below the industry average of 23.70%.
The 3 year average ROIC (13.30%) for VNOM is well above the current ROIC(7.49%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.26% | ||
| ROE | 14.6% | ||
| ROIC | 7.49% |
ROA(3y)5.77%
ROA(5y)2.28%
ROE(3y)20.97%
ROE(5y)7.95%
ROIC(3y)13.3%
ROIC(5y)10.68%
1.3 Margins
VNOM has a Profit Margin of 43.37%. This is amongst the best in the industry. VNOM outperforms 91.47% of its industry peers.
VNOM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 64.72%, VNOM belongs to the best of the industry, outperforming 93.84% of the companies in the same industry.
VNOM's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 92.95%, VNOM belongs to the top of the industry, outperforming 97.16% of the companies in the same industry.
VNOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.72% | ||
| PM (TTM) | 43.37% | ||
| GM | 92.95% |
OM growth 3Y-2.77%
OM growth 5Y0.3%
PM growth 3Y53.76%
PM growth 5Y21.85%
GM growth 3Y-0.23%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
VNOM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
VNOM has more shares outstanding than it did 1 year ago.
VNOM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VNOM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.46 indicates that VNOM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.46, VNOM is in the better half of the industry, outperforming 75.36% of the companies in the same industry.
VNOM has a debt to FCF ratio of 92.11. This is a negative value and a sign of low solvency as VNOM would need 92.11 years to pay back of all of its debts.
VNOM has a Debt to FCF ratio (92.11) which is in line with its industry peers.
VNOM has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.31, VNOM is doing good in the industry, outperforming 61.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 92.11 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.81
WACC9.2%
2.3 Liquidity
A Current Ratio of 8.70 indicates that VNOM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 8.70, VNOM belongs to the top of the industry, outperforming 95.73% of the companies in the same industry.
A Quick Ratio of 8.70 indicates that VNOM has no problem at all paying its short term obligations.
VNOM has a Quick ratio of 8.70. This is amongst the best in the industry. VNOM outperforms 96.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 |
3. Growth
3.1 Past
The earnings per share for VNOM have decreased strongly by -25.72% in the last year.
Measured over the past years, VNOM shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.17% on average per year.
VNOM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.15%.
Measured over the past years, VNOM shows a very strong growth in Revenue. The Revenue has been growing by 23.60% on average per year.
EPS 1Y (TTM)-25.72%
EPS 3Y51.83%
EPS 5Y20.17%
EPS Q2Q%3.85%
Revenue 1Y (TTM)4.15%
Revenue growth 3Y19.44%
Revenue growth 5Y23.6%
Sales Q2Q%19.28%
3.2 Future
The Earnings Per Share is expected to grow by 7.18% on average over the next years.
The Revenue is expected to grow by 32.82% on average over the next years. This is a very strong growth
EPS Next Y-18.67%
EPS Next 2Y-4.7%
EPS Next 3Y7.18%
EPS Next 5YN/A
Revenue Next Year50.8%
Revenue Next 2Y42.11%
Revenue Next 3Y32.82%
Revenue Next 5YN/A
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.56, the valuation of VNOM can be described as rather expensive.
VNOM's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, VNOM is valued a bit cheaper.
VNOM is valuated rather expensively with a Price/Forward Earnings ratio of 20.64.
VNOM's Price/Forward Earnings ratio is in line with the industry average.
VNOM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.56 | ||
| Fwd PE | 20.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNOM is valued a bit more expensive than the industry average as 63.03% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, VNOM is valued a bit more expensive than the industry average as 60.19% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1230.27 | ||
| EV/EBITDA | 13.76 |
4.3 Compensation for Growth
VNOM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y-4.7%
EPS Next 3Y7.18%
5. Dividend
5.1 Amount
VNOM has a Yearly Dividend Yield of 3.15%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.66, VNOM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, VNOM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
On average, the dividend of VNOM grows each year by 8.80%, which is quite nice.
VNOM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of VNOM decreased recently.
Dividend Growth(5Y)8.8%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
129.82% of the earnings are spent on dividend by VNOM. This is not a sustainable payout ratio.
The dividend of VNOM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP129.82%
EPS Next 2Y-4.7%
EPS Next 3Y7.18%
38.05
-0.71 (-1.83%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner Change28.17%
Ins Owners0.3%
Ins Owner Change0.21%
Market Cap10.98B
Analysts83.81
Price Target56.1 (47.44%)
Short Float %7.19%
Short Ratio7.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend2.59
Dividend Growth(5Y)8.8%
DP129.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.08%
Min EPS beat(2)-9.78%
Max EPS beat(2)21.94%
EPS beat(4)3
Avg EPS beat(4)5.21%
Min EPS beat(4)-9.78%
Max EPS beat(4)21.94%
EPS beat(8)7
Avg EPS beat(8)22.01%
EPS beat(12)9
Avg EPS beat(12)18.02%
EPS beat(16)11
Avg EPS beat(16)17.47%
Revenue beat(2)2
Avg Revenue beat(2)0.64%
Min Revenue beat(2)0.6%
Max Revenue beat(2)0.68%
Revenue beat(4)2
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)0.68%
Revenue beat(8)4
Avg Revenue beat(8)6.27%
Revenue beat(12)7
Avg Revenue beat(12)5.46%
Revenue beat(16)11
Avg Revenue beat(16)10.33%
PT rev (1m)0%
PT rev (3m)-6.33%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-28.56%
EPS NY rev (1m)5.31%
EPS NY rev (3m)-18.3%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-9.71%
Revenue NY rev (1m)6.82%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.56 | ||
| Fwd PE | 20.64 | ||
| P/S | 12.2 | ||
| P/FCF | 1230.27 | ||
| P/OCF | 15.57 | ||
| P/B | 4.11 | ||
| P/tB | 4.11 | ||
| EV/EBITDA | 13.76 |
EPS(TTM)2.05
EY5.39%
EPS(NY)1.84
Fwd EY4.85%
FCF(TTM)0.03
FCFY0.08%
OCF(TTM)2.44
OCFY6.42%
SpS3.12
BVpS9.27
TBVpS9.27
PEG (NY)N/A
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.26% | ||
| ROE | 14.6% | ||
| ROCE | 9.48% | ||
| ROIC | 7.49% | ||
| ROICexc | 8.24% | ||
| ROICexgc | 8.24% | ||
| OM | 64.72% | ||
| PM (TTM) | 43.37% | ||
| GM | 92.95% | ||
| FCFM | 0.99% |
ROA(3y)5.77%
ROA(5y)2.28%
ROE(3y)20.97%
ROE(5y)7.95%
ROIC(3y)13.3%
ROIC(5y)10.68%
ROICexc(3y)13.38%
ROICexc(5y)10.76%
ROICexgc(3y)13.38%
ROICexgc(5y)10.76%
ROCE(3y)16.83%
ROCE(5y)13.51%
ROICexcg growth 3Y-2.33%
ROICexcg growth 5Y10.17%
ROICexc growth 3Y-2.33%
ROICexc growth 5Y10.17%
OM growth 3Y-2.77%
OM growth 5Y0.3%
PM growth 3Y53.76%
PM growth 5Y21.85%
GM growth 3Y-0.23%
GM growth 5Y-0.14%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 92.11 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.32% | ||
| Profit Quality | 2.29% | ||
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 | ||
| Altman-Z | 2.46 |
F-Score6
WACC9.2%
ROIC/WACC0.81
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.72%
EPS 3Y51.83%
EPS 5Y20.17%
EPS Q2Q%3.85%
EPS Next Y-18.67%
EPS Next 2Y-4.7%
EPS Next 3Y7.18%
EPS Next 5YN/A
Revenue 1Y (TTM)4.15%
Revenue growth 3Y19.44%
Revenue growth 5Y23.6%
Sales Q2Q%19.28%
Revenue Next Year50.8%
Revenue Next 2Y42.11%
Revenue Next 3Y32.82%
Revenue Next 5YN/A
EBIT growth 1Y-8.54%
EBIT growth 3Y16.14%
EBIT growth 5Y23.96%
EBIT Next Year87.17%
EBIT Next 3Y36.71%
EBIT Next 5YN/A
FCF growth 1Y-98.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.06%
OCF growth 3Y26.36%
OCF growth 5Y21.22%