VIPER ENERGY INC (VNOM) Stock Fundamental Analysis
NASDAQ:VNOM - Nasdaq - US9279591062 - Common Stock - Currency: USD
VNOM 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. VNOM has an excellent profitability rating, but there are some minor concerns on its financial health. VNOM is valued quite expensively, but it does show have an excellent growth rating. With these ratings, VNOM could be worth investigating further 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.
VNOM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VNOM (6.26%) is better than 67.61% of its industry peers.
VNOM has a better Return On Equity (14.60%) than 71.83% of its industry peers.
VNOM's Return On Invested Capital of 7.49% is fine compared to the rest of the industry. VNOM outperforms 63.38% of its industry peers.
VNOM had an Average Return On Invested Capital over the past 3 years of 13.30%. This is significantly below the industry average of 23.55%.
The last Return On Invested Capital (7.49%) 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 | 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
With an excellent Profit Margin value of 43.37%, VNOM belongs to the best of the industry, outperforming 91.55% 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 93.90% of its industry peers.
VNOM's Operating Margin has been stable in the last couple of years.
The Gross Margin of VNOM (92.95%) is better than 97.18% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VNOM is creating some value.
Compared to 1 year ago, VNOM has more shares outstanding
Compared to 5 years ago, VNOM has more shares outstanding
Compared to 1 year ago, VNOM has an improved debt to assets ratio.
2.2 Solvency
VNOM has an Altman-Z score of 2.60. This is not the best score and indicates that VNOM is in the grey zone with still only limited risk for bankruptcy at the moment.
VNOM has a Altman-Z score of 2.60. This is in the better half of the industry: VNOM outperforms 75.59% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 92.11, VNOM is in line with its industry, outperforming 40.38% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that VNOM is not too dependend on debt financing.
VNOM has a Debt to Equity ratio of 0.31. This is in the better half of the industry: VNOM outperforms 61.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 92.11 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.86
WACC8.71%
2.3 Liquidity
A Current Ratio of 8.70 indicates that VNOM has no problem at all paying its short term obligations.
VNOM's Current ratio of 8.70 is amongst the best of the industry. VNOM outperforms 95.77% of its industry peers.
A Quick Ratio of 8.70 indicates that VNOM has no problem at all paying its short term obligations.
The Quick ratio of VNOM (8.70) is better than 96.71% 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 -25.72% in the last year.
VNOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.17% yearly.
VNOM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.15%.
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)4.15%
Revenue growth 3Y19.44%
Revenue growth 5Y23.6%
Sales Q2Q%19.28%
3.2 Future
Based on estimates for the next years, VNOM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.32% on average per year.
Based on estimates for the next years, VNOM will show a very strong growth in Revenue. The Revenue will grow by 23.13% on average per year.
EPS Next Y-22.78%
EPS Next 2Y-4.83%
EPS Next 3Y9.32%
EPS Next 5YN/A
Revenue Next Year40.82%
Revenue Next 2Y29.04%
Revenue Next 3Y23.13%
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
Based on the Price/Earnings ratio of 19.86, 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.
When comparing the Price/Earnings ratio of VNOM to the average of the S&P500 Index (26.34), we can say VNOM is valued slightly cheaper.
A Price/Forward Earnings ratio of 22.15 indicates a rather expensive valuation of VNOM.
Based on the Price/Forward Earnings ratio, VNOM is valued a bit more expensive than the industry average as 60.56% of the companies are valued more cheaply.
VNOM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 22.15 |
4.2 Price Multiples
62.91% of the companies in the same industry are cheaper than VNOM, based on the Enterprise Value to EBITDA ratio.
60.56% 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 | 1316.6 | ||
| EV/EBITDA | 14.75 |
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)0.98
EPS Next 2Y-4.83%
EPS Next 3Y9.32%
5. Dividend
5.1 Amount
VNOM has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.54, VNOM has a dividend in line with its industry peers.
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 | 2.9% |
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.
VNOM has decreased its dividend recently.
Dividend Growth(5Y)8.8%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VNOM pays out 129.82% of its income as dividend. This is not a sustainable payout ratio.
VNOM's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP129.82%
EPS Next 2Y-4.83%
EPS Next 3Y9.32%
40.72
-0.12 (-0.29%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner Change28.16%
Ins Owners0.3%
Ins Owner Change0.21%
Market Cap11.75B
Analysts83.64
Price Target54.4 (33.6%)
Short Float %5.63%
Short Ratio5.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)-3.03%
PT rev (3m)-10.07%
EPS NQ rev (1m)6.51%
EPS NQ rev (3m)-23.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.85%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)-9.9%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 22.15 | ||
| P/S | 13.05 | ||
| P/FCF | 1316.6 | ||
| P/OCF | 16.66 | ||
| P/B | 4.39 | ||
| P/tB | 4.39 | ||
| EV/EBITDA | 14.75 |
EPS(TTM)2.05
EY5.03%
EPS(NY)1.84
Fwd EY4.51%
FCF(TTM)0.03
FCFY0.08%
OCF(TTM)2.44
OCFY6%
SpS3.12
BVpS9.27
TBVpS9.27
PEG (NY)N/A
PEG (5Y)0.98
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 | 2.6 |
F-Score6
WACC8.71%
ROIC/WACC0.86
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)4.15%
Revenue growth 3Y19.44%
Revenue growth 5Y23.6%
Sales Q2Q%19.28%
Revenue Next Year40.82%
Revenue Next 2Y29.04%
Revenue Next 3Y23.13%
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%