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 210 industry peers in the Oil, Gas & Consumable Fuels industry. VNOM scores excellent on profitability, but 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.
VNOM had a positive operating cash flow in the past year.
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 67.62% of its industry peers.
With a decent Return On Equity value of 14.60%, VNOM is doing good in the industry, outperforming 71.90% of the companies in the same industry.
VNOM has a Return On Invested Capital of 7.49%. This is in the better half of the industry: VNOM outperforms 63.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VNOM is significantly below the industry average of 23.80%.
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 91.43% of the companies in the same industry.
VNOM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 64.72%, VNOM belongs to the best of the industry, outperforming 93.81% 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.
With an excellent Gross Margin value of 92.95%, VNOM belongs to the best of the industry, outperforming 97.14% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VNOM is creating some value.
The number of shares outstanding for VNOM has been increased compared to 1 year ago.
Compared to 5 years ago, VNOM has more shares outstanding
VNOM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.44 indicates that VNOM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.44, VNOM is in the better half of the industry, outperforming 74.76% 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.
The Debt to FCF ratio of VNOM (92.11) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.31 indicates that VNOM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, VNOM is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 92.11 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.81
WACC9.27%
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 95.71% of its industry peers.
VNOM has a Quick Ratio of 8.70. This indicates that VNOM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 8.70, VNOM belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.7 | ||
| Quick Ratio | 8.7 |
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%.
The Earnings Per Share has been growing by 20.17% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 4.15% in the past year.
VNOM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.60% yearly.
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
The Earnings Per Share is expected to grow by 4.70% on average over the next years.
The Revenue is expected to grow by 32.82% on average over the next years. This is a very strong growth
EPS Next Y-17.23%
EPS Next 2Y-4.55%
EPS Next 3Y4.7%
EPS Next 5YN/A
Revenue Next Year50.8%
Revenue Next 2Y42.11%
Revenue Next 3Y32.82%
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
The Price/Earnings ratio is 18.10, which indicates a rather expensive current valuation of VNOM.
VNOM's Price/Earnings is on the same level as the industry average.
VNOM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.06, the valuation of VNOM can be described as rather expensive.
VNOM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, VNOM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.1 | ||
| Fwd PE | 20.06 |
4.2 Price Multiples
62.86% of the companies in the same industry are cheaper than VNOM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VNOM is valued a bit more expensive than the industry average as 60.48% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1199.51 | ||
| EV/EBITDA | 13.58 |
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)0.9
EPS Next 2Y-4.55%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
VNOM has a Yearly Dividend Yield of 3.23%.
VNOM's Dividend Yield is comparable with the industry average which is at 6.41.
VNOM's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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
VNOM pays out 129.82% of its income as dividend. 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%
37.1
-0.45 (-1.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner Change0%
Ins Owners0.3%
Ins Owner Change0.21%
Market Cap10.70B
Analysts83.81
Price Target56.1 (51.21%)
Short Float %8.31%
Short Ratio7.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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)3.13%
PT rev (3m)-6.33%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-27.1%
EPS NY rev (1m)7.18%
EPS NY rev (3m)-16.86%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-9%
Revenue NY rev (1m)7.08%
Revenue NY rev (3m)3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.1 | ||
| Fwd PE | 20.06 | ||
| P/S | 11.89 | ||
| P/FCF | 1199.51 | ||
| P/OCF | 15.18 | ||
| P/B | 4 | ||
| P/tB | 4 | ||
| EV/EBITDA | 13.58 |
EPS(TTM)2.05
EY5.53%
EPS(NY)1.85
Fwd EY4.99%
FCF(TTM)0.03
FCFY0.08%
OCF(TTM)2.44
OCFY6.59%
SpS3.12
BVpS9.27
TBVpS9.27
PEG (NY)N/A
PEG (5Y)0.9
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 | 2.44 |
F-Score6
WACC9.27%
ROIC/WACC0.81
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-17.23%
EPS Next 2Y-4.55%
EPS Next 3Y4.7%
EPS Next 5YN/A
Revenue 1Y (TTM)4.15%
Revenue growth 3Y19.44%
Revenue growth 5Y23.6%
Sales Q2Q%19.28%
Revenue Next Year50.8%
Revenue Next 2Y42.11%
Revenue Next 3Y32.82%
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%