VIPER ENERGY INC-CL A (VNOM) Stock Fundamental Analysis
USA - NASDAQ:VNOM - US64361Q1013 - Common Stock
36.59 USD
-1.24 (-3.28%)
36.59 USD
0 (0%)
VNOM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 211 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
Of the past 5 years VNOM 4 years had a positive operating cash flow.
1.2 Ratios
VNOM has a Return On Assets (3.79%) which is in line with its industry peers.
VNOM's Return On Equity of 10.84% is fine compared to the rest of the industry. VNOM outperforms 63.98% of its industry peers.
The Return On Invested Capital of VNOM (4.71%) is comparable to the rest of the industry.
VNOM had an Average Return On Invested Capital over the past 3 years of 13.30%. This is significantly below the industry average of 21.57%.
The 3 year average ROIC (13.30%) for VNOM is well above the current ROIC(4.71%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 10.84% | ||
| ROIC | 4.71% |
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
The Profit Margin of VNOM (37.80%) is better than 91.47% of its industry peers.
VNOM's Profit Margin has improved in the last couple of years.
VNOM's Operating Margin of 59.06% is amongst the best of the industry. VNOM outperforms 92.89% of its industry peers.
VNOM's Operating Margin has been stable in the last couple of years.
VNOM has a better Gross Margin (92.93%) than 97.16% of its industry peers.
VNOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.06% | ||
| PM (TTM) | 37.8% | ||
| GM | 92.93% |
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that VNOM is in the distress zone and has some risk of bankruptcy.
VNOM's Altman-Z score of 1.51 is in line compared to the rest of the industry. VNOM outperforms 54.50% of its industry peers.
VNOM has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
VNOM has a better Debt to Equity ratio (0.32) than 60.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.51 |
ROIC/WACC0.55
WACC8.52%
2.3 Liquidity
A Current Ratio of 6.15 indicates that VNOM has no problem at all paying its short term obligations.
The Current ratio of VNOM (6.15) is better than 92.42% of its industry peers.
VNOM has a Quick Ratio of 6.15. This indicates that VNOM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 6.15, VNOM belongs to the top of the industry, outperforming 93.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.15 | ||
| Quick Ratio | 6.15 |
3. Growth
3.1 Past
VNOM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -36.21%.
The Earnings Per Share has been growing by 20.17% on average over the past years. This is a very strong growth
VNOM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.55%.
VNOM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.60% yearly.
EPS 1Y (TTM)-36.21%
EPS 3Y51.83%
EPS 5Y20.17%
EPS Q2Q%-32.79%
Revenue 1Y (TTM)6.55%
Revenue growth 3Y19.44%
Revenue growth 5Y23.6%
Sales Q2Q%37.05%
3.2 Future
Based on estimates for the next years, VNOM will show a small growth in Earnings Per Share. The EPS will grow by 2.04% on average per year.
The Revenue is expected to grow by 23.42% on average over the next years. This is a very strong growth
EPS Next Y-13.16%
EPS Next 2Y-6.56%
EPS Next 3Y2.04%
EPS Next 5YN/A
Revenue Next Year60.89%
Revenue Next 2Y49.73%
Revenue Next 3Y35.84%
Revenue Next 5Y23.42%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
VNOM is valuated rather expensively with a Price/Earnings ratio of 19.78.
VNOM's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.02. VNOM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 20.64, which indicates a rather expensive current valuation of VNOM.
VNOM's Price/Forward Earnings ratio is in line with the industry average.
VNOM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 20.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNOM is valued a bit more expensive than 64.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.08 |
4.3 Compensation for Growth
The decent profitability rating of VNOM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-6.56%
EPS Next 3Y2.04%
5. Dividend
5.1 Amount
VNOM has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
VNOM's Dividend Yield is comparable with the industry average which is at 6.07.
Compared to an average S&P500 Dividend Yield of 2.44, VNOM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
On average, the dividend of VNOM grows each year by 8.80%, which is quite nice.
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 155.68% of its income as dividend. This is not a sustainable payout ratio.
The dividend of VNOM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP155.68%
EPS Next 2Y-6.56%
EPS Next 3Y2.04%
36.59
-1.24 (-3.28%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners82.77%
Inst Owner Change-0.01%
Ins Owners0.06%
Ins Owner Change0.2%
Market Cap11.94B
Analysts83.48
Price Target54.38 (48.62%)
Short Float %5.4%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend2.59
Dividend Growth(5Y)8.8%
DP155.68%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.28%
Min EPS beat(2)12.62%
Max EPS beat(2)21.94%
EPS beat(4)3
Avg EPS beat(4)6.58%
Min EPS beat(4)-9.78%
Max EPS beat(4)21.94%
EPS beat(8)7
Avg EPS beat(8)20.74%
EPS beat(12)10
Avg EPS beat(12)21.77%
EPS beat(16)12
Avg EPS beat(16)19.25%
Revenue beat(2)2
Avg Revenue beat(2)1.32%
Min Revenue beat(2)0.6%
Max Revenue beat(2)2.03%
Revenue beat(4)3
Avg Revenue beat(4)0.3%
Min Revenue beat(4)-2.13%
Max Revenue beat(4)2.03%
Revenue beat(8)5
Avg Revenue beat(8)6.75%
Revenue beat(12)7
Avg Revenue beat(12)5.09%
Revenue beat(16)11
Avg Revenue beat(16)8.78%
PT rev (1m)-0.29%
PT rev (3m)-3.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)-2.65%
EPS NY rev (3m)6.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.22%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)6.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 20.64 | ||
| P/S | 12.18 | ||
| P/FCF | N/A | ||
| P/OCF | 16.26 | ||
| P/B | 3.49 | ||
| P/tB | 3.49 | ||
| EV/EBITDA | 15.08 |
EPS(TTM)1.85
EY5.06%
EPS(NY)1.77
Fwd EY4.84%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)2.25
OCFY6.15%
SpS3.01
BVpS10.48
TBVpS10.48
PEG (NY)N/A
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 10.84% | ||
| ROCE | 5.96% | ||
| ROIC | 4.71% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 4.72% | ||
| OM | 59.06% | ||
| PM (TTM) | 37.8% | ||
| GM | 92.93% | ||
| 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-Score4
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 8.27 | ||
| Cash Conversion | 82.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.15 | ||
| Quick Ratio | 6.15 | ||
| Altman-Z | 1.51 |
F-Score4
WACC8.52%
ROIC/WACC0.55
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-13.16%
EPS Next 2Y-6.56%
EPS Next 3Y2.04%
EPS Next 5YN/A
Revenue 1Y (TTM)6.55%
Revenue growth 3Y19.44%
Revenue growth 5Y23.6%
Sales Q2Q%37.05%
Revenue Next Year60.89%
Revenue Next 2Y49.73%
Revenue Next 3Y35.84%
Revenue Next 5Y23.42%
EBIT growth 1Y-14.02%
EBIT growth 3Y16.14%
EBIT growth 5Y23.96%
EBIT Next Year105.45%
EBIT Next 3Y46.1%
EBIT Next 5Y30.56%
FCF growth 1Y-136.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.3%
OCF growth 3Y26.36%
OCF growth 5Y21.22%