MATADOR RESOURCES CO (MTDR) Stock Fundamental Analysis
NYSE:MTDR - US5764852050 - Common Stock
50.36 USD
+0.2 (+0.4%)
49.9 USD
-0.46 (-0.91%)
We assign a fundamental rating of 6 out of 10 to MTDR. MTDR was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. While MTDR belongs to the best of the industry regarding profitability, 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
MTDR had positive earnings in the past year.
MTDR had a positive operating cash flow in the past year.
MTDR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MTDR had a positive operating cash flow.
1.2 Ratios
MTDR has a better Return On Assets (7.56%) than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 15.90%, MTDR is in the better half of the industry, outperforming 75.96% of the companies in the same industry.
MTDR's Return On Invested Capital of 11.20% is amongst the best of the industry. MTDR outperforms 84.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTDR is significantly below the industry average of 23.39%.
The last Return On Invested Capital (11.20%) for MTDR is well below the 3 year average (17.87%), which needs to be investigated, but indicates that MTDR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 15.9% | ||
| ROIC | 11.2% |
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
The Profit Margin of MTDR (22.57%) is better than 76.44% of its industry peers.
In the last couple of years the Profit Margin of MTDR has grown nicely.
The Operating Margin of MTDR (37.83%) is better than 84.62% of its industry peers.
MTDR's Operating Margin has improved in the last couple of years.
MTDR has a better Gross Margin (71.26%) than 83.17% of its industry peers.
In the last couple of years the Gross Margin of MTDR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.83% | ||
| PM (TTM) | 22.57% | ||
| GM | 71.26% |
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
MTDR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MTDR has been increased compared to 1 year ago.
MTDR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MTDR is higher compared to a year ago.
2.2 Solvency
MTDR has an Altman-Z score of 1.73. This is a bad value and indicates that MTDR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MTDR (1.73) is better than 61.06% of its industry peers.
MTDR has a debt to FCF ratio of 4.30. This is a neutral value as MTDR would need 4.30 years to pay back of all of its debts.
MTDR's Debt to FCF ratio of 4.30 is fine compared to the rest of the industry. MTDR outperforms 68.75% of its industry peers.
MTDR has a Debt/Equity ratio of 0.61. This is a neutral value indicating MTDR is somewhat dependend on debt financing.
MTDR has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.24
WACC9.04%
2.3 Liquidity
A Current Ratio of 0.85 indicates that MTDR may have some problems paying its short term obligations.
The Current ratio of MTDR (0.85) is worse than 63.94% of its industry peers.
MTDR has a Quick Ratio of 0.85. This is a bad value and indicates that MTDR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.81, MTDR perfoms like the industry average, outperforming 41.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for MTDR have decreased by -4.86% in the last 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 16.53% in the past year. This is quite good.
Measured over the past years, MTDR shows a very strong growth in Revenue. The Revenue has been growing by 28.93% on average per year.
EPS 1Y (TTM)-4.86%
EPS 3Y20.83%
EPS 5Y44.19%
EPS Q2Q%-25.37%
Revenue 1Y (TTM)16.53%
Revenue growth 3Y28.21%
Revenue growth 5Y28.93%
Sales Q2Q%5.69%
3.2 Future
Based on estimates for the next years, MTDR will show a small growth in Earnings Per Share. The EPS will grow by 2.01% on average per year.
MTDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y-11.93%
EPS Next 2Y-8.94%
EPS Next 3Y-0.06%
EPS Next 5Y2.01%
Revenue Next Year8.34%
Revenue Next 2Y5.99%
Revenue Next 3Y6%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.96, the valuation of MTDR can be described as very cheap.
MTDR's Price/Earnings ratio is rather cheap when compared to the industry. MTDR is cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of MTDR to the average of the S&P500 Index (27.08), we can say MTDR is valued rather cheaply.
MTDR is valuated reasonably with a Price/Forward Earnings ratio of 8.12.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTDR indicates a somewhat cheap valuation: MTDR is cheaper than 79.81% of the companies listed in the same industry.
MTDR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.96 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTDR is valued cheaply inside the industry as 82.69% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTDR indicates a rather cheap valuation: MTDR is cheaper than 82.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.2 | ||
| EV/EBITDA | 3.73 |
4.3 Compensation for Growth
The excellent profitability rating of MTDR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-8.94%
EPS Next 3Y-0.06%
5. Dividend
5.1 Amount
MTDR has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.29, MTDR has a dividend in line with its industry peers.
MTDR's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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
15.74% of the earnings are spent on dividend by MTDR. This is a low number and sustainable payout ratio.
DP15.74%
EPS Next 2Y-8.94%
EPS Next 3Y-0.06%
50.36
+0.2 (+0.4%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.59%
Inst Owner Change-1.16%
Ins Owners7%
Ins Owner Change1.68%
Market Cap6.27B
Analysts83.08
Price Target67.32 (33.68%)
Short Float %6.45%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend0.86
Dividend Growth(5Y)N/A
DP15.74%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.6%
Min EPS beat(2)6.56%
Max EPS beat(2)8.64%
EPS beat(4)4
Avg EPS beat(4)6.77%
Min EPS beat(4)4.08%
Max EPS beat(4)8.64%
EPS beat(8)8
Avg EPS beat(8)9.14%
EPS beat(12)12
Avg EPS beat(12)8.37%
EPS beat(16)16
Avg EPS beat(16)10.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)2.74%
Revenue beat(4)2
Avg Revenue beat(4)0.42%
Min Revenue beat(4)-3.5%
Max Revenue beat(4)4.08%
Revenue beat(8)6
Avg Revenue beat(8)2.32%
Revenue beat(12)9
Avg Revenue beat(12)2.99%
Revenue beat(16)13
Avg Revenue beat(16)6.14%
PT rev (1m)1.71%
PT rev (3m)0.59%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)-30.76%
EPS NY rev (1m)-1.4%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)1.49%
Revenue NQ rev (3m)-12.98%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.96 | ||
| Fwd PE | 8.12 | ||
| P/S | 1.66 | ||
| P/FCF | 8.2 | ||
| P/OCF | 2.6 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 3.73 |
EPS(TTM)7.24
EY14.38%
EPS(NY)6.2
Fwd EY12.32%
FCF(TTM)6.14
FCFY12.19%
OCF(TTM)19.39
OCFY38.51%
SpS30.36
BVpS43.11
TBVpS43.11
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 15.9% | ||
| ROCE | 14.01% | ||
| ROIC | 11.2% | ||
| ROICexc | 11.21% | ||
| ROICexgc | 11.21% | ||
| OM | 37.83% | ||
| PM (TTM) | 22.57% | ||
| GM | 71.26% | ||
| FCFM | 20.23% |
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-Score4
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.3 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 147.23% | ||
| Cap/Sales | 43.65% | ||
| Interest Coverage | 8.8 | ||
| Cash Conversion | 94.66% | ||
| Profit Quality | 89.61% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.73 |
F-Score4
WACC9.04%
ROIC/WACC1.24
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)-4.86%
EPS 3Y20.83%
EPS 5Y44.19%
EPS Q2Q%-25.37%
EPS Next Y-11.93%
EPS Next 2Y-8.94%
EPS Next 3Y-0.06%
EPS Next 5Y2.01%
Revenue 1Y (TTM)16.53%
Revenue growth 3Y28.21%
Revenue growth 5Y28.93%
Sales Q2Q%5.69%
Revenue Next Year8.34%
Revenue Next 2Y5.99%
Revenue Next 3Y6%
Revenue Next 5YN/A
EBIT growth 1Y3.01%
EBIT growth 3Y21.85%
EBIT growth 5Y43.53%
EBIT Next Year70.23%
EBIT Next 3Y22.66%
EBIT Next 5Y12.63%
FCF growth 1Y-2.29%
FCF growth 3Y9.56%
FCF growth 5YN/A
OCF growth 1Y34.73%
OCF growth 3Y28.72%
OCF growth 5Y32.41%