VIPER ENERGY INC (VNOM)
US9279591062 - Common Stock
Taking everything into account, VNOM scores 5 out of 10 in our fundamental rating. VNOM was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. VNOM has an average financial health and profitability rating. VNOM is quite expensive at the moment. 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.
VNOM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VNOM had a positive operating cash flow.
1.2 Ratios
VNOM has a Return On Assets (5.21%) which is comparable to the rest of the industry.
VNOM has a Return On Equity of 19.38%. This is in the better half of the industry: VNOM outperforms 62.44% of its industry peers.
The Return On Invested Capital of VNOM (12.71%) is better than 69.01% 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 44.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 19.38% | ||
| ROIC | 12.71% |
ROA(3y)4.04%
ROA(5y)1.2%
ROE(3y)16.26%
ROE(5y)4.69%
ROIC(3y)13.49%
ROIC(5y)10%
1.3 Margins
VNOM has a Profit Margin of 24.21%. This is in the better half of the industry: VNOM outperforms 67.61% of its industry peers.
In the last couple of years the Profit Margin of VNOM has declined.
VNOM's Operating Margin of 73.70% is amongst the best of the industry. VNOM outperforms 93.43% of its industry peers.
In the last couple of years the Operating Margin of VNOM has remained more or less at the same level.
VNOM has a Gross Margin of 94.00%. This is amongst the best in the industry. VNOM outperforms 98.59% of its industry peers.
VNOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 73.7% | ||
| PM (TTM) | 24.21% | ||
| GM | 94% |
OM growth 3Y15.43%
OM growth 5Y1.29%
PM growth 3YN/A
PM growth 5Y-13.51%
GM growth 3Y0.65%
GM growth 5Y0.1%
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.
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 a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.12 indicates that VNOM is not a great score, but indicates only limited risk for bankruptcy at the moment.
VNOM's Altman-Z score of 2.12 is in line compared to the rest of the industry. VNOM outperforms 59.62% of its industry peers.
VNOM has a debt to FCF ratio of 1.69. This is a very positive value and a sign of high solvency as it would only need 1.69 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.69, VNOM is doing good in the industry, outperforming 77.46% of the companies in the same industry.
VNOM has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
VNOM has a worse Debt to Equity ratio (1.01) than 72.30% of its industry peers.
Even though the debt/equity ratio score it not favorable for VNOM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 2.12 |
ROIC/WACC1.51
WACC8.42%
2.3 Liquidity
VNOM has a Current Ratio of 3.46. This indicates that VNOM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.46, VNOM belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
A Quick Ratio of 3.46 indicates that VNOM has no problem at all paying its short term obligations.
VNOM has a better Quick ratio (3.46) than 84.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 3.46 |
3. Growth
3.1 Past
VNOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.32%, which is quite impressive.
The Earnings Per Share has been growing by 19.85% on average over the past years. This is quite good.
VNOM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.67%.
VNOM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.44% yearly.
EPS 1Y (TTM)24.32%
EPS 3Y112.91%
EPS 5Y19.85%
EPS growth Q2Q-1.89%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y48.92%
Revenue growth 5Y23.44%
Revenue growth Q2Q21.53%
3.2 Future
The Earnings Per Share is expected to decrease by -15.17% on average over the next years. This is quite bad
Based on estimates for the next years, VNOM will show a small growth in Revenue. The Revenue will grow by 5.81% on average per year.
EPS Next Y-31.46%
EPS Next 2Y-14.06%
EPS Next 3Y-15.17%
EPS Next 5YN/A
Revenue Next Year2.55%
Revenue Next 2Y3.77%
Revenue Next 3Y5.81%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.49, VNOM is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as VNOM.
Compared to an average S&P500 Price/Earnings ratio of 28.83, VNOM is valued rather cheaply.
A Price/Forward Earnings ratio of 18.20 indicates a rather expensive valuation of VNOM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VNOM indicates a slightly more expensive valuation: VNOM is more expensive than 64.79% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VNOM to the average of the S&P500 Index (20.47), we can say VNOM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 18.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VNOM is valued a bit more expensive than the industry average as 64.32% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VNOM indicates a somewhat cheap valuation: VNOM is cheaper than 64.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.19 | ||
| EV/EBITDA | 9.59 |
4.3 Compensation for Growth
The decent profitability rating of VNOM may justify a higher PE ratio.
VNOM's earnings are expected to decrease with -15.17% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y-14.06%
EPS Next 3Y-15.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.86%, VNOM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.81, VNOM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, VNOM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of VNOM decreases each year by -2.20%.
VNOM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-2.2%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
167.73% of the earnings are spent on dividend by VNOM. This is not a sustainable payout ratio.
VNOM's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP167.73%
EPS Next 2Y-14.06%
EPS Next 3Y-15.17%
VIPER ENERGY INC
NASDAQ:VNOM (5/16/2024, 7:24:24 PM)
After market: 37.24 0 (0%)37.24
+0.12 (+0.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 18.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 19.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 73.7% | ||
| PM (TTM) | 24.21% | ||
| GM | 94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.46 | ||
| Quick Ratio | 3.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)24.32%
EPS 3Y112.91%
EPS 5Y
EPS growth Q2Q
EPS Next Y-31.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.67%
Revenue growth 3Y48.92%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
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