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 213 industry peers in the Oil, Gas & Consumable Fuels industry. MTDR scores excellent on profitability, but there are concerns on its financial health. MTDR may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year MTDR was profitable.
MTDR had a positive operating cash flow in the past year.
MTDR had positive earnings in 4 of the past 5 years.
In the past 5 years MTDR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 8.41%, MTDR is doing good in the industry, outperforming 78.40% of the companies in the same industry.
With a decent Return On Equity value of 17.62%, MTDR is doing good in the industry, outperforming 77.00% of the companies in the same industry.
The Return On Invested Capital of MTDR (12.09%) is better than 84.51% 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 25.73%.
The 3 year average ROIC (17.87%) for MTDR is well above the current ROIC(12.09%). The reason for the recent decline needs to be investigated.
| 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
MTDR has a Profit Margin of 24.97%. This is in the better half of the industry: MTDR outperforms 76.06% of its industry peers.
MTDR's Profit Margin has improved in the last couple of years.
MTDR has a better Operating Margin (40.33%) than 84.04% of its industry peers.
MTDR's Operating Margin has improved in the last couple of years.
MTDR has a Gross Margin of 72.01%. This is amongst the best in the industry. MTDR outperforms 82.16% of its industry peers.
MTDR's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MTDR is creating value.
Compared to 1 year ago, MTDR has more shares outstanding
Compared to 5 years ago, MTDR has more shares outstanding
MTDR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that MTDR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.68, MTDR is in line with its industry, outperforming 59.62% of the companies in the same industry.
MTDR has a debt to FCF ratio of 3.60. This is a good value and a sign of high solvency as MTDR would need 3.60 years to pay back of all of its debts.
The Debt to FCF ratio of MTDR (3.60) is better than 71.83% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that MTDR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, MTDR perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.22
WACC9.92%
2.3 Liquidity
A Current Ratio of 0.79 indicates that MTDR may have some problems paying its short term obligations.
With a Current ratio value of 0.79, MTDR is not doing good in the industry: 69.01% of the companies in the same industry are doing better.
A Quick Ratio of 0.76 indicates that MTDR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, MTDR is doing worse than 62.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.17% over the past year.
Measured over the past years, MTDR shows a very strong growth in Earnings Per Share. The EPS has been growing by 44.19% on average per year.
The Revenue has grown by 22.97% in the past year. This is a very strong growth!
MTDR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.93% yearly.
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 8.12% on average over the next years. This is quite good.
MTDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y-13.12%
EPS Next 2Y-10.01%
EPS Next 3Y-3.56%
EPS Next 5Y8.12%
Revenue Next Year8.63%
Revenue Next 2Y4.63%
Revenue Next 3Y4.34%
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
With a Price/Earnings ratio of 5.54, the valuation of MTDR can be described as very cheap.
Based on the Price/Earnings ratio, MTDR is valued cheaply inside the industry as 87.79% of the companies are valued more expensively.
MTDR is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.10, the valuation of MTDR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTDR indicates a rather cheap valuation: MTDR is cheaper than 80.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, MTDR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 7.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTDR indicates a rather cheap valuation: MTDR is cheaper than 82.63% of the companies listed in the same industry.
MTDR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MTDR is cheaper than 84.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.09 | ||
| EV/EBITDA | 3.4 |
4.3 Compensation for Growth
MTDR has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MTDR's earnings are expected to decrease with -3.56% in the coming years.
PEG (NY)N/A
PEG (5Y)0.13
EPS Next 2Y-10.01%
EPS Next 3Y-3.56%
5. Dividend
5.1 Amount
MTDR has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.81, MTDR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, MTDR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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-10.01%
EPS Next 3Y-3.56%
43.01
-1.03 (-2.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.67%
Inst Owner Change2.87%
Ins Owners7.32%
Ins Owner Change3.06%
Market Cap5.38B
Analysts82.31
Price Target66.92 (55.59%)
Short Float %8.26%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)-4.76%
PT rev (3m)-14.92%
EPS NQ rev (1m)-26.15%
EPS NQ rev (3m)-29.3%
EPS NY rev (1m)-10.89%
EPS NY rev (3m)-24.63%
Revenue NQ rev (1m)-10.45%
Revenue NQ rev (3m)-12.18%
Revenue NY rev (1m)-6.93%
Revenue NY rev (3m)-10.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 7.1 | ||
| P/S | 1.44 | ||
| P/FCF | 6.09 | ||
| P/OCF | 2.15 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 3.4 |
EPS(TTM)7.76
EY18.04%
EPS(NY)6.06
Fwd EY14.08%
FCF(TTM)7.06
FCFY16.41%
OCF(TTM)20.02
OCFY46.54%
SpS29.8
BVpS42.23
TBVpS42.23
PEG (NY)N/A
PEG (5Y)0.13
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 | 1.68 |
F-Score3
WACC9.92%
ROIC/WACC1.22
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-13.12%
EPS Next 2Y-10.01%
EPS Next 3Y-3.56%
EPS Next 5Y8.12%
Revenue 1Y (TTM)22.97%
Revenue growth 3Y28.21%
Revenue growth 5Y28.93%
Sales Q2Q%28.72%
Revenue Next Year8.63%
Revenue Next 2Y4.63%
Revenue Next 3Y4.34%
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 5Y22.46%
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%