VIPER ENERGY INC (VNOM) Stock Fundamental Analysis
NASDAQ:VNOM - Nasdaq - US9279591062 - Common Stock - Currency: USD
Overall VNOM gets a fundamental rating of 6 out of 10. We evaluated VNOM against 208 industry peers in the Oil, Gas & Consumable Fuels industry. While VNOM has a great profitability rating, there are some minor concerns on its financial health. VNOM is valued quite expensively, but it does show have an excellent growth rating. These ratings could make VNOM a good candidate for growth investing.
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.
In the past 5 years VNOM always reported a positive cash flow from operatings.
1.2 Ratios
VNOM has a better Return On Assets (6.26%) than 67.31% of its industry peers.
VNOM has a better Return On Equity (14.60%) than 72.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.49%, VNOM is in the better half of the industry, outperforming 64.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VNOM is significantly below the industry average of 23.92%.
The 3 year average ROIC (13.30%) for VNOM is well above the current ROIC(7.49%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.26% | ||
| ROE | 14.6% | ||
| ROIC | 7.49% |
ROA(3y)5.77%
ROA(5y)2.28%
ROE(3y)20.97%
ROE(5y)7.95%
ROIC(3y)13.3%
ROIC(5y)10.68%
1.3 Margins
Looking at the Profit Margin, with a value of 43.37%, VNOM belongs to the top of the industry, outperforming 91.35% of the companies in the same industry.
VNOM's Profit Margin has improved in the last couple of years.
VNOM has a better Operating Margin (64.72%) than 93.75% of its industry peers.
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 92.95%, VNOM belongs to the top of the industry, outperforming 97.12% of the companies in the same industry.
VNOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.72% | ||
| PM (TTM) | 43.37% | ||
| GM | 92.95% |
OM growth 3Y-2.77%
OM growth 5Y0.3%
PM growth 3Y53.76%
PM growth 5Y21.85%
GM growth 3Y-0.23%
GM growth 5Y-0.14%
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.
VNOM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VNOM has more shares outstanding
The debt/assets ratio for VNOM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.43 indicates that VNOM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.43, VNOM is doing good in the industry, outperforming 75.48% of the companies in the same industry.
The Debt to FCF ratio of VNOM is 92.11, which is on the high side as it means it would take VNOM, 92.11 years of fcf income to pay off all of its debts.
VNOM has a Debt to FCF ratio of 92.11. This is comparable to the rest of the industry: VNOM outperforms 40.38% of its industry peers.
VNOM has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VNOM (0.31) is better than 62.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 92.11 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.84
WACC8.89%
2.3 Liquidity
A Current Ratio of 8.70 indicates that VNOM has no problem at all paying its short term obligations.
VNOM has a better Current ratio (8.70) than 95.67% of its industry peers.
A Quick Ratio of 8.70 indicates that VNOM has no problem at all paying its short term obligations.
VNOM has a better Quick ratio (8.70) than 96.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 |
3. Growth
3.1 Past
The earnings per share for VNOM have decreased strongly by -36.21% in the last year.
Measured over the past years, VNOM shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.17% on average per year.
VNOM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.95%.
The Revenue has been growing by 23.60% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-36.21%
EPS 3Y51.83%
EPS 5Y20.17%
EPS Q2Q%-32.79%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y19.44%
Revenue growth 5Y23.6%
Sales Q2Q%37.05%
3.2 Future
VNOM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.70% yearly.
VNOM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 35.03% yearly.
EPS Next Y-17.23%
EPS Next 2Y-4.55%
EPS Next 3Y4.7%
EPS Next 5YN/A
Revenue Next Year54.81%
Revenue Next 2Y45.93%
Revenue Next 3Y35.03%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.24, the valuation of VNOM can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VNOM is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.03. VNOM is valued slightly cheaper when compared to this.
VNOM is valuated rather expensively with a Price/Forward Earnings ratio of 20.24.
VNOM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. VNOM is more expensive than 60.10% of the companies in the same industry.
VNOM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNOM is valued a bit more expensive than 62.50% of the companies in the same industry.
60.58% of the companies in the same industry are cheaper than VNOM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1210.51 | ||
| EV/EBITDA | 13.56 |
4.3 Compensation for Growth
VNOM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-4.55%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
VNOM has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
VNOM's Dividend Yield is comparable with the industry average which is at 6.33.
Compared to an average S&P500 Dividend Yield of 2.40, VNOM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
On average, the dividend of VNOM grows each year by 8.80%, which is quite nice.
VNOM has paid a dividend for at least 10 years, which is a reliable track record.
VNOM has decreased its dividend recently.
Dividend Growth(5Y)8.8%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
129.82% of the earnings are spent on dividend by VNOM. This is not a sustainable payout ratio.
VNOM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP129.82%
EPS Next 2Y-4.55%
EPS Next 3Y4.7%
37.44
-0.06 (-0.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner Change0.23%
Ins Owners0.3%
Ins Owner Change0.21%
Market Cap10.80B
Analysts83.81
Price Target56.1 (49.84%)
Short Float %9.11%
Short Ratio7.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Yearly Dividend2.59
Dividend Growth(5Y)8.8%
DP129.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.08%
Min EPS beat(2)-9.78%
Max EPS beat(2)21.94%
EPS beat(4)3
Avg EPS beat(4)5.21%
Min EPS beat(4)-9.78%
Max EPS beat(4)21.94%
EPS beat(8)7
Avg EPS beat(8)22.01%
EPS beat(12)9
Avg EPS beat(12)18.02%
EPS beat(16)11
Avg EPS beat(16)17.47%
Revenue beat(2)2
Avg Revenue beat(2)0.64%
Min Revenue beat(2)0.6%
Max Revenue beat(2)0.68%
Revenue beat(4)2
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)0.68%
Revenue beat(8)4
Avg Revenue beat(8)6.27%
Revenue beat(12)7
Avg Revenue beat(12)5.46%
Revenue beat(16)11
Avg Revenue beat(16)10.33%
PT rev (1m)0%
PT rev (3m)-0.36%
EPS NQ rev (1m)3.45%
EPS NQ rev (3m)-24.94%
EPS NY rev (1m)1.77%
EPS NY rev (3m)-10.02%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-8.84%
Revenue NY rev (1m)2.66%
Revenue NY rev (3m)8.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 20.24 | ||
| P/S | 12 | ||
| P/FCF | 1210.51 | ||
| P/OCF | 15.32 | ||
| P/B | 4.04 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 13.56 |
EPS(TTM)1.85
EY4.94%
EPS(NY)1.85
Fwd EY4.94%
FCF(TTM)0.03
FCFY0.08%
OCF(TTM)2.44
OCFY6.53%
SpS3.12
BVpS9.27
TBVpS9.27
PEG (NY)N/A
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.26% | ||
| ROE | 14.6% | ||
| ROCE | 9.48% | ||
| ROIC | 7.49% | ||
| ROICexc | 8.24% | ||
| ROICexgc | 8.24% | ||
| OM | 64.72% | ||
| PM (TTM) | 43.37% | ||
| GM | 92.95% | ||
| FCFM | 0.99% |
ROA(3y)5.77%
ROA(5y)2.28%
ROE(3y)20.97%
ROE(5y)7.95%
ROIC(3y)13.3%
ROIC(5y)10.68%
ROICexc(3y)13.38%
ROICexc(5y)10.76%
ROICexgc(3y)13.38%
ROICexgc(5y)10.76%
ROCE(3y)16.83%
ROCE(5y)13.51%
ROICexcg growth 3Y-2.33%
ROICexcg growth 5Y10.17%
ROICexc growth 3Y-2.33%
ROICexc growth 5Y10.17%
OM growth 3Y-2.77%
OM growth 5Y0.3%
PM growth 3Y53.76%
PM growth 5Y21.85%
GM growth 3Y-0.23%
GM growth 5Y-0.14%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 92.11 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.32% | ||
| Profit Quality | 2.29% | ||
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 | ||
| Altman-Z | 2.43 |
F-Score6
WACC8.89%
ROIC/WACC0.84
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-36.21%
EPS 3Y51.83%
EPS 5Y20.17%
EPS Q2Q%-32.79%
EPS Next Y-17.23%
EPS Next 2Y-4.55%
EPS Next 3Y4.7%
EPS Next 5YN/A
Revenue 1Y (TTM)3.95%
Revenue growth 3Y19.44%
Revenue growth 5Y23.6%
Sales Q2Q%37.05%
Revenue Next Year54.81%
Revenue Next 2Y45.93%
Revenue Next 3Y35.03%
Revenue Next 5YN/A
EBIT growth 1Y-8.54%
EBIT growth 3Y16.14%
EBIT growth 5Y23.96%
EBIT Next Year87.17%
EBIT Next 3Y36.71%
EBIT Next 5YN/A
FCF growth 1Y-98.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.06%
OCF growth 3Y26.36%
OCF growth 5Y21.22%