MATADOR RESOURCES CO (MTDR) Stock Fundamental Analysis
NYSE:MTDR - New York Stock Exchange, Inc. - US5764852050 - Common Stock - Currency: USD
Overall MTDR gets a fundamental rating of 6 out of 10. We evaluated MTDR against 208 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
MTDR had positive earnings in the past year.
MTDR had a positive operating cash flow in the past year.
Of the past 5 years MTDR 4 years were profitable.
In the past 5 years MTDR always reported a positive cash flow from operatings.
1.2 Ratios
MTDR has a better Return On Assets (7.56%) than 74.52% of its industry peers.
With a decent Return On Equity value of 15.90%, MTDR is doing good in the industry, outperforming 75.48% of the companies in the same industry.
MTDR has a Return On Invested Capital of 11.20%. This is amongst the best in the industry. MTDR outperforms 83.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MTDR is significantly below the industry average of 23.63%.
The 3 year average ROIC (17.87%) for MTDR is well above the current ROIC(11.20%). The reason for the recent decline needs to be investigated.
| 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
With a decent Profit Margin value of 22.57%, MTDR is doing good in the industry, outperforming 74.04% of the companies in the same industry.
In the last couple of years the Profit Margin of MTDR has grown nicely.
MTDR has a better Operating Margin (37.83%) than 83.65% of its industry peers.
MTDR's Operating Margin has improved in the last couple of years.
The Gross Margin of MTDR (71.26%) is better than 82.21% 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.
MTDR has more shares outstanding than it did 1 year ago.
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 1.67, we must say that MTDR is in the distress zone and has some risk of bankruptcy.
MTDR has a better Altman-Z score (1.67) than 60.58% 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 has a better Debt to FCF ratio (4.30) than 67.31% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that MTDR is somewhat dependend on debt financing.
MTDR has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.3 | ||
| Altman-Z | 1.67 |
ROIC/WACC1.27
WACC8.83%
2.3 Liquidity
MTDR has a Current 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.
The Current ratio of MTDR (0.85) is worse than 67.31% of its industry peers.
A Quick Ratio of 0.81 indicates that MTDR may have some problems paying its short term obligations.
The Quick ratio of MTDR (0.81) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
MTDR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.86%.
MTDR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.19% yearly.
Looking at the last year, MTDR shows a quite strong growth in Revenue. The Revenue has grown by 16.53% in the last year.
MTDR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.93% yearly.
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 4.57% on average per year.
MTDR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.38% yearly.
EPS Next Y-10.68%
EPS Next 2Y-7.2%
EPS Next 3Y-1.96%
EPS Next 5Y4.57%
Revenue Next Year8.91%
Revenue Next 2Y4.97%
Revenue Next 3Y5.38%
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 6.43, the valuation of MTDR can be described as very cheap.
86.06% of the companies in the same industry are more expensive than MTDR, based on the Price/Earnings ratio.
MTDR is valuated cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.23, the valuation of MTDR can be described as very cheap.
MTDR's Price/Forward Earnings ratio is rather cheap when compared to the industry. MTDR is cheaper than 82.21% of the companies in the same industry.
MTDR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.43 | ||
| Fwd PE | 7.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTDR is valued cheaper than 82.69% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTDR indicates a rather cheap valuation: MTDR is cheaper than 83.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 3.53 |
4.3 Compensation for Growth
The excellent profitability rating of MTDR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.15
EPS Next 2Y-7.2%
EPS Next 3Y-1.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.51%, MTDR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.34, MTDR has a dividend in line with its industry peers.
MTDR's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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-7.2%
EPS Next 3Y-1.96%
46.54
+0.46 (+1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.07%
Inst Owner Change-0.08%
Ins Owners6.92%
Ins Owner Change1.32%
Market Cap5.79B
Analysts83.08
Price Target66.19 (42.22%)
Short Float %7.8%
Short Ratio5.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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)0.78%
PT rev (3m)-5.81%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-29.87%
EPS NY rev (1m)3.36%
EPS NY rev (3m)-8.39%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)-12.6%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)-6.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.43 | ||
| Fwd PE | 7.23 | ||
| P/S | 1.53 | ||
| P/FCF | 7.58 | ||
| P/OCF | 2.4 | ||
| P/B | 1.08 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 3.53 |
EPS(TTM)7.24
EY15.56%
EPS(NY)6.44
Fwd EY13.84%
FCF(TTM)6.14
FCFY13.2%
OCF(TTM)19.39
OCFY41.67%
SpS30.36
BVpS43.11
TBVpS43.11
PEG (NY)N/A
PEG (5Y)0.15
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 | 1.67 |
F-Score4
WACC8.83%
ROIC/WACC1.27
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-10.68%
EPS Next 2Y-7.2%
EPS Next 3Y-1.96%
EPS Next 5Y4.57%
Revenue 1Y (TTM)16.53%
Revenue growth 3Y28.21%
Revenue growth 5Y28.93%
Sales Q2Q%5.69%
Revenue Next Year8.91%
Revenue Next 2Y4.97%
Revenue Next 3Y5.38%
Revenue Next 5YN/A
EBIT growth 1Y3.01%
EBIT growth 3Y21.85%
EBIT growth 5Y43.53%
EBIT Next Year69.06%
EBIT Next 3Y17.19%
EBIT Next 5Y13.53%
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%