MATADOR RESOURCES CO (MTDR) Stock Fundamental Analysis
NYSE:MTDR - New York Stock Exchange, Inc. - US5764852050 - Common Stock - Currency: USD
MTDR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 213 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year MTDR was profitable.
In the past year MTDR had a positive cash flow from operations.
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 Return On Assets of 8.41%. This is in the better half of the industry: MTDR outperforms 77.46% of its industry peers.
MTDR's Return On Equity of 17.62% is fine compared to the rest of the industry. MTDR outperforms 74.65% of its industry peers.
MTDR's Return On Invested Capital of 12.09% is amongst the best of the industry. MTDR outperforms 81.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTDR is significantly below the industry average of 25.70%.
The last Return On Invested Capital (12.09%) 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 | 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 better Profit Margin (24.97%) than 77.00% of its industry peers.
MTDR's Profit Margin has improved in the last couple of years.
The Operating Margin of MTDR (40.33%) is better than 84.51% of its industry peers.
MTDR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 72.01%, MTDR belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
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
MTDR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MTDR has more shares outstanding than it did 1 year ago.
MTDR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MTDR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that MTDR is in the distress zone and has some risk of bankruptcy.
MTDR has a Altman-Z score (1.62) which is in line with its industry peers.
The Debt to FCF ratio of MTDR is 3.60, which is a good value as it means it would take MTDR, 3.60 years of fcf income to pay off all of its debts.
MTDR has a better Debt to FCF ratio (3.60) than 73.71% of its industry peers.
MTDR has a Debt/Equity ratio of 0.60. This is a neutral value indicating MTDR is somewhat dependend on debt financing.
The Debt to Equity ratio of MTDR (0.60) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 3.6 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.19
WACC10.17%
2.3 Liquidity
A Current Ratio of 0.79 indicates that MTDR may have some problems paying its short term obligations.
The Current ratio of MTDR (0.79) is worse than 68.08% of its industry peers.
MTDR has a Quick Ratio of 0.79. This is a bad value and indicates that MTDR is not financially healthy enough and could expect problems in meeting its short term obligations.
MTDR has a Quick ratio of 0.76. This is in the lower half of the industry: MTDR underperforms 62.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
MTDR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.17%, which is quite good.
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 very strong growth in Revenue. The Revenue has grown by 22.97%.
The Revenue has been growing by 28.93% on average over the past years. This is a very strong growth!
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%28.73%
3.2 Future
Based on estimates for the next years, MTDR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.12% on average per year.
The Revenue is expected to grow by 6.95% on average over the next years.
EPS Next Y-2.5%
EPS Next 2Y0.38%
EPS Next 3Y3.19%
EPS Next 5Y8.12%
Revenue Next Year16.71%
Revenue Next 2Y10.13%
Revenue Next 3Y6.95%
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
Based on the Price/Earnings ratio of 5.20, 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 85.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.10, MTDR is valued rather cheaply.
A Price/Forward Earnings ratio of 5.35 indicates a rather cheap valuation of MTDR.
89.67% of the companies in the same industry are more expensive than MTDR, based on the Price/Forward Earnings ratio.
MTDR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.2 | ||
| Fwd PE | 5.35 |
4.2 Price Multiples
83.10% of the companies in the same industry are more expensive than MTDR, based on the Enterprise Value to EBITDA ratio.
MTDR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MTDR is cheaper than 86.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.72 | ||
| EV/EBITDA | 3.19 |
4.3 Compensation for Growth
The excellent profitability rating of MTDR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.12
EPS Next 2Y0.38%
EPS Next 3Y3.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, MTDR has a reasonable but not impressive dividend return.
In the last 3 months the price of MTDR has falen by -28.85%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.27, MTDR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, MTDR pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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
12.90% of the earnings are spent on dividend by MTDR. This is a low number and sustainable payout ratio.
DP12.9%
EPS Next 2Y0.38%
EPS Next 3Y3.19%
40.33
+0.68 (+1.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.67%
Inst Owner Change-1.68%
Ins Owners7.32%
Ins Owner Change2.92%
Market Cap5.05B
Analysts82.31
Price Target70.27 (74.24%)
Short Float %7.04%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)5.61%
Min EPS beat(2)4.08%
Max EPS beat(2)7.15%
EPS beat(4)4
Avg EPS beat(4)8.35%
Min EPS beat(4)4.08%
Max EPS beat(4)14.39%
EPS beat(8)8
Avg EPS beat(8)8.94%
EPS beat(12)12
Avg EPS beat(12)8.43%
EPS beat(16)16
Avg EPS beat(16)11.51%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)2.01%
Revenue beat(4)3
Avg Revenue beat(4)1.27%
Min Revenue beat(4)-1.65%
Max Revenue beat(4)4.08%
Revenue beat(8)6
Avg Revenue beat(8)2.47%
Revenue beat(12)10
Avg Revenue beat(12)4.49%
Revenue beat(16)13
Avg Revenue beat(16)6.26%
PT rev (1m)-8.58%
PT rev (3m)-9.91%
EPS NQ rev (1m)-21.23%
EPS NQ rev (3m)-23.85%
EPS NY rev (1m)-9.21%
EPS NY rev (3m)-14.81%
Revenue NQ rev (1m)-8.22%
Revenue NQ rev (3m)-9.91%
Revenue NY rev (1m)-1.68%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.2 | ||
| Fwd PE | 5.35 | ||
| P/S | 1.35 | ||
| P/FCF | 5.72 | ||
| P/OCF | 2.01 | ||
| P/B | 0.95 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 3.19 |
EPS(TTM)7.76
EY19.24%
EPS(NY)7.54
Fwd EY18.69%
FCF(TTM)7.06
FCFY17.5%
OCF(TTM)20.02
OCFY49.63%
SpS29.8
BVpS42.23
TBVpS42.23
PEG (NY)N/A
PEG (5Y)0.12
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 | 250 | ||
| Cash Conversion | 98.33% | ||
| Profit Quality | 94.83% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.62 |
F-Score3
WACC10.17%
ROIC/WACC1.19
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-2.5%
EPS Next 2Y0.38%
EPS Next 3Y3.19%
EPS Next 5Y8.12%
Revenue 1Y (TTM)22.97%
Revenue growth 3Y28.21%
Revenue growth 5Y28.93%
Sales Q2Q%28.73%
Revenue Next Year16.71%
Revenue Next 2Y10.13%
Revenue Next 3Y6.95%
Revenue Next 5YN/A
EBIT growth 1Y17.86%
EBIT growth 3Y21.85%
EBIT growth 5Y43.53%
EBIT Next Year89.8%
EBIT Next 3Y20.88%
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%