Matador Resources Company Fundamental Analysis (NYSE: MTDR)
Matador Resources Company Fundamental Analysis (NYSE: MTDR)
Matador Resources Company (NYSE: MTDR) shows moderate financial fundamentals with a PE ratio of 9.19, profit margin of 18.60%, and ROE of 12.76%. The company generates $3.9B in annual revenue with moderate year-over-year growth of 5.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MTDR's fundamental strength across five key dimensions:
Efficiency Score
WeakMTDR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMTDR trades at attractive valuation levels.
Growth Score
ModerateMTDR shows steady but slowing expansion.
Financial Health Score
ModerateMTDR shows balanced financial health with some risks.
Profitability Score
ModerateMTDR maintains healthy but balanced margins.
Key Financial Metrics
Is MTDR Expensive or Cheap?
P/E Ratio
MTDR trades at 9.19 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MTDR's PEG of -0.62 indicates potential undervaluation.
Price to Book
The market values Matador Resources Company at 1.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.42 times EBITDA. This is generally considered low.
How Well Does MTDR Make Money?
Net Profit Margin
For every $100 in sales, Matador Resources Company keeps $18.60 as profit after all expenses.
Operating Margin
Core operations generate 36.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.76 in profit for every $100 of shareholder equity.
ROA
Matador Resources Company generates $5.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Matador Resources Company generates strong operating cash flow of $2.60B, reflecting robust business health.
Free Cash Flow
Matador Resources Company generates strong free cash flow of $625.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.04 in free cash annually.
FCF Yield
MTDR converts 9.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How MTDR Stacks Against Its Sector Peers
| Metric | MTDR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.19 | 21.78 | Better (Cheaper) |
| ROE | 12.76% | 1231.00% | Weak |
| Net Margin | 18.60% | 1251.00% | Weak |
| Debt/Equity | 0.56 | 2.78 | Strong (Low Leverage) |
| Current Ratio | 0.65 | 5.46 | Weak Liquidity |
| ROA | 5.36% | 4417.00% | Weak |
MTDR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Matador Resources Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
298.43%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
219.26%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
373.17%
Industry Style: Cyclical, Value, Commodity
High Growth