VIPER ENERGY INC (VNOM) Stock Fundamental Analysis
NASDAQ:VNOM - Nasdaq - US9279591062 - Common Stock - Currency: USD
VNOM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 211 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
VNOM had positive earnings in the past year.
In the past year VNOM had a positive cash flow from operations.
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
The Return On Assets of VNOM (4.89%) is comparable to the rest of the industry.
VNOM has a better Return On Equity (14.69%) than 61.76% of its industry peers.
With a decent Return On Invested Capital value of 10.74%, VNOM is doing good in the industry, outperforming 71.08% of the companies in the same industry.
VNOM had an Average Return On Invested Capital over the past 3 years of 13.49%. This is significantly below the industry average of 28.75%.
| 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
Looking at the Profit Margin, with a value of 24.61%, VNOM is in the better half of the industry, outperforming 73.04% of the companies in the same industry.
In the last couple of years the Profit Margin of VNOM has declined.
With an excellent Operating Margin value of 67.68%, VNOM belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
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 93.15%, VNOM belongs to the top of the industry, outperforming 98.04% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VNOM is still creating some value.
The number of shares outstanding for VNOM has been increased compared to 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
VNOM has an Altman-Z score of 2.95. 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.
With a decent Altman-Z score value of 2.95, VNOM is doing good in the industry, outperforming 76.47% of the companies in the same industry.
VNOM has a debt to FCF ratio of 1.35. This is a very positive value and a sign of high solvency as it would only need 1.35 years to pay back of all of its debts.
The Debt to FCF ratio of VNOM (1.35) is better than 82.35% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that VNOM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, VNOM perfoms like the industry average, outperforming 40.20% of the companies in the same industry.
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 | 2.95 |
ROIC/WACC1.24
WACC8.68%
2.3 Liquidity
A Current Ratio of 7.24 indicates that VNOM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.24, VNOM belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
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's Quick ratio of 7.24 is amongst the best of the industry. VNOM outperforms 92.65% 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%.
The Earnings Per Share has been growing by 19.85% on average over the past years. This is quite good.
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 -5.37% yearly.
VNOM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.56% yearly.
EPS Next Y-26.62%
EPS Next 2Y-15.44%
EPS Next 3Y-5.37%
EPS Next 5YN/A
Revenue Next Year5.99%
Revenue Next 2Y26.42%
Revenue Next 3Y23.56%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.10, VNOM is valued on the expensive side.
Based on the Price/Earnings ratio, VNOM is valued a bit more expensive than 62.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, VNOM is valued a bit cheaper.
With a Price/Forward Earnings ratio of 24.40, VNOM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, VNOM is valued a bit more expensive than the industry average as 64.22% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of VNOM to the average of the S&P500 Index (22.68), we can say VNOM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 24.4 |
4.2 Price Multiples
70.10% of the companies in the same industry are cheaper than VNOM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VNOM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.24 | ||
| EV/EBITDA | 14.63 |
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 -5.37% in the coming years.
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y-15.44%
EPS Next 3Y-5.37%
5. Dividend
5.1 Amount
VNOM has a Yearly Dividend Yield of 2.39%.
Compared to an average industry Dividend Yield of 6.67, VNOM has a dividend in line with its industry peers.
VNOM's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
The dividend of VNOM decreases each year by -2.20%.
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)-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-15.44%
EPS Next 3Y-5.37%
48.33
-1.85 (-3.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners79.38%
Inst Owner Change-1.8%
Ins Owners0.26%
Ins Owner Change0%
Market Cap10.48B
Analysts83.16
Price Target60.49 (25.16%)
Short Float %5.18%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend1.91
Dividend Growth(5Y)-2.2%
DP224%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)2%
PT rev (3m)7.65%
EPS NQ rev (1m)1.26%
EPS NQ rev (3m)5.45%
EPS NY rev (1m)0.66%
EPS NY rev (3m)-2.47%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 24.4 | ||
| P/S | 12.52 | ||
| P/FCF | 17.24 | ||
| P/OCF | 17.24 | ||
| P/B | 7.48 | ||
| P/tB | 7.48 | ||
| EV/EBITDA | 14.63 |
EPS(TTM)2.29
EY4.74%
EPS(NY)1.98
Fwd EY4.1%
FCF(TTM)2.8
FCFY5.8%
OCF(TTM)2.8
OCFY5.8%
SpS3.86
BVpS6.46
TBVpS6.46
PEG (NY)N/A
PEG (5Y)1.06
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 | 2.95 |
F-Score5
WACC8.68%
ROIC/WACC1.24
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-26.62%
EPS Next 2Y-15.44%
EPS Next 3Y-5.37%
EPS Next 5YN/A
Revenue 1Y (TTM)1.19%
Revenue growth 3Y48.92%
Revenue growth 5Y23.44%
Sales Q2Q%-28.53%
Revenue Next Year5.99%
Revenue Next 2Y26.42%
Revenue Next 3Y23.56%
Revenue Next 5YN/A
EBIT growth 1Y-11.03%
EBIT growth 3Y71.9%
EBIT growth 5Y25.03%
EBIT Next Year21.78%
EBIT Next 3Y26.07%
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%