VIPER ENERGY INC (VNOM) Stock Fundamental Analysis
NASDAQ:VNOM - Nasdaq - US9279591062 - Common Stock - Currency: USD
Taking everything into account, VNOM scores 6 out of 10 in our fundamental rating. VNOM was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. While VNOM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VNOM is valued quite expensive, but it does show an excellent growth. 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.
VNOM had a positive operating cash flow in the past year.
VNOM had positive earnings in 4 of the past 5 years.
VNOM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VNOM has a Return On Assets of 7.08%. This is in the better half of the industry: VNOM outperforms 71.83% of its industry peers.
VNOM's Return On Equity of 21.26% is amongst the best of the industry. VNOM outperforms 85.45% of its industry peers.
With a decent Return On Invested Capital value of 8.91%, VNOM is doing good in the industry, outperforming 70.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VNOM is significantly below the industry average of 25.73%.
The last Return On Invested Capital (8.91%) for VNOM is well below the 3 year average (13.30%), which needs to be investigated, but indicates that VNOM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 21.26% | ||
| ROIC | 8.91% |
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
VNOM has a better Profit Margin (41.69%) than 91.08% of its industry peers.
VNOM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 65.83%, VNOM belongs to the top of the industry, outperforming 94.84% of the companies in the same industry.
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 92.92%, VNOM belongs to the top of the industry, outperforming 97.18% 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 | 65.83% | ||
| PM (TTM) | 41.69% | ||
| GM | 92.92% |
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
VNOM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for VNOM has been increased compared to 1 year ago.
The number of shares outstanding for VNOM has been increased compared to 5 years ago.
Compared to 1 year ago, VNOM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.68 indicates that VNOM is not a great score, but indicates only limited risk for bankruptcy at the moment.
VNOM's Altman-Z score of 2.68 is fine compared to the rest of the industry. VNOM outperforms 79.34% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that VNOM is somewhat dependend on debt financing.
VNOM has a worse Debt to Equity ratio (0.64) than 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.68 |
ROIC/WACC0.87
WACC10.29%
2.3 Liquidity
A Current Ratio of 4.89 indicates that VNOM has no problem at all paying its short term obligations.
VNOM's Current ratio of 4.89 is amongst the best of the industry. VNOM outperforms 91.55% of its industry peers.
A Quick Ratio of 4.89 indicates that VNOM has no problem at all paying its short term obligations.
VNOM has a Quick ratio of 4.89. This is amongst the best in the industry. VNOM outperforms 92.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.89 | ||
| Quick Ratio | 4.89 |
3. Growth
3.1 Past
VNOM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.72%.
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.
The Revenue has been growing slightly by 3.95% in the past year.
Measured over the past years, VNOM shows a very strong growth in Revenue. The Revenue has been growing by 23.60% on average per year.
EPS 1Y (TTM)-25.72%
EPS 3Y51.83%
EPS 5Y20.17%
EPS Q2Q%3.85%
Revenue 1Y (TTM)3.95%
Revenue growth 3Y19.44%
Revenue growth 5Y23.6%
Sales Q2Q%19.28%
3.2 Future
The Earnings Per Share is expected to grow by 9.32% on average over the next years. This is quite good.
VNOM is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.33% yearly.
EPS Next Y-22.78%
EPS Next 2Y-4.83%
EPS Next 3Y9.32%
EPS Next 5YN/A
Revenue Next Year41.17%
Revenue Next 2Y31.07%
Revenue Next 3Y24.33%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.55, VNOM is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of VNOM is on the same level as its industry peers.
VNOM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.20.
The Price/Forward Earnings ratio is 21.80, which indicates a rather expensive current valuation of VNOM.
Based on the Price/Forward Earnings ratio, VNOM is valued a bit more expensive than 61.50% of the companies in the same industry.
VNOM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.55 | ||
| Fwd PE | 21.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VNOM indicates a slightly more expensive valuation: VNOM is more expensive than 66.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.26 |
4.3 Compensation for Growth
VNOM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y-4.83%
EPS Next 3Y9.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.97%, VNOM has a reasonable but not impressive dividend return.
VNOM's Dividend Yield is comparable with the industry average which is at 6.81.
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 | 2.97% |
5.2 History
The dividend of VNOM is nicely growing with an annual growth rate of 8.80%!
VNOM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of VNOM decreased recently.
Dividend Growth(5Y)8.8%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VNOM pays out 132.07% of its income as dividend. This is not a sustainable payout ratio.
The dividend of VNOM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP132.07%
EPS Next 2Y-4.83%
EPS Next 3Y9.32%
40.07
-0.27 (-0.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners79.38%
Inst Owner Change28.16%
Ins Owners0.26%
Ins Owner Change0.21%
Market Cap11.56B
Analysts83.64
Price Target56.1 (40%)
Short Float %4.75%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend2.59
Dividend Growth(5Y)8.8%
DP132.07%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.11%
Min EPS beat(2)-9.78%
Max EPS beat(2)1.56%
EPS beat(4)3
Avg EPS beat(4)4%
Min EPS beat(4)-9.78%
Max EPS beat(4)17.1%
EPS beat(8)7
Avg EPS beat(8)22.95%
EPS beat(12)8
Avg EPS beat(12)12.15%
EPS beat(16)10
Avg EPS beat(16)4.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.72%
Min Revenue beat(2)-2.13%
Max Revenue beat(2)0.68%
Revenue beat(4)2
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)0.68%
Revenue beat(8)3
Avg Revenue beat(8)5.94%
Revenue beat(12)7
Avg Revenue beat(12)7.14%
Revenue beat(16)11
Avg Revenue beat(16)11.29%
PT rev (1m)-6.33%
PT rev (3m)-7.26%
EPS NQ rev (1m)-1.92%
EPS NQ rev (3m)-4.66%
EPS NY rev (1m)-16.05%
EPS NY rev (3m)-20.85%
Revenue NQ rev (1m)1.32%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)-6.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.55 | ||
| Fwd PE | 21.8 | ||
| P/S | 13.44 | ||
| P/FCF | N/A | ||
| P/OCF | 18.66 | ||
| P/B | 6.85 | ||
| P/tB | 6.85 | ||
| EV/EBITDA | 16.26 |
EPS(TTM)2.05
EY5.12%
EPS(NY)1.84
Fwd EY4.59%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)2.15
OCFY5.36%
SpS2.98
BVpS5.85
TBVpS5.85
PEG (NY)N/A
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 21.26% | ||
| ROCE | 11.28% | ||
| ROIC | 8.91% | ||
| ROICexc | 8.96% | ||
| ROICexgc | 8.96% | ||
| OM | 65.83% | ||
| PM (TTM) | 41.69% | ||
| GM | 92.92% | ||
| FCFM | N/A |
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 Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 324.72% | ||
| Cap/Sales | 80.92% | ||
| Interest Coverage | 7.67 | ||
| Cash Conversion | 79.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.89 | ||
| Quick Ratio | 4.89 | ||
| Altman-Z | 2.68 |
F-Score6
WACC10.29%
ROIC/WACC0.87
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)-25.72%
EPS 3Y51.83%
EPS 5Y20.17%
EPS Q2Q%3.85%
EPS Next Y-22.78%
EPS Next 2Y-4.83%
EPS Next 3Y9.32%
EPS Next 5YN/A
Revenue 1Y (TTM)3.95%
Revenue growth 3Y19.44%
Revenue growth 5Y23.6%
Sales Q2Q%19.28%
Revenue Next Year41.17%
Revenue Next 2Y31.07%
Revenue Next 3Y24.33%
Revenue Next 5YN/A
EBIT growth 1Y-8.68%
EBIT growth 3Y16.14%
EBIT growth 5Y23.96%
EBIT Next Year87.17%
EBIT Next 3Y36.71%
EBIT Next 5YN/A
FCF growth 1Y-112.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.91%
OCF growth 3Y26.36%
OCF growth 5Y21.22%