Viper Energy, Inc. Fundamental Analysis (NASDAQ: VNOM)
Viper Energy, Inc. (NASDAQ: VNOM) shows weak financial fundamentals with a PE ratio of 294.93, profit margin of 3.00%, and ROE of 1.23%. The company generates $3.7B in annual revenue with strong year-over-year growth of 56.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VNOM's fundamental strength across five key dimensions:
Efficiency Score
WeakVNOM struggles to generate sufficient returns from assets.
Valuation Score
ModerateVNOM shows balanced valuation metrics.
Growth Score
ModerateVNOM shows steady but slowing expansion.
Financial Health Score
ExcellentVNOM maintains a strong and stable balance sheet.
Profitability Score
WeakVNOM struggles to sustain strong margins.
Key Financial Metrics
Is VNOM Expensive or Cheap?
P/E Ratio
VNOM trades at 294.93 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VNOM's PEG of -2.67 indicates potential undervaluation.
Price to Book
The market values Viper Energy, Inc. at 1.59 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.35 times EBITDA. This signals the market has high growth expectations.
How Well Does VNOM Make Money?
Net Profit Margin
For every $100 in sales, Viper Energy, Inc. keeps $3.00 as profit after all expenses.
Operating Margin
Core operations generate 48.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.23 in profit for every $100 of shareholder equity.
ROA
Viper Energy, Inc. generates $0.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Viper Energy, Inc. generates strong operating cash flow of $2.78B, reflecting robust business health.
Free Cash Flow
Viper Energy, Inc. generates weak or negative free cash flow of $-6.41B, restricting financial flexibility.
FCF Per Share
Each share generates $-17.80 in free cash annually.
FCF Yield
VNOM converts -23.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
294.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How VNOM Stacks Against Its Sector Peers
| Metric | VNOM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 294.93 | 22.27 | Worse (Expensive) |
| ROE | 1.23% | 1228.00% | Weak |
| Net Margin | 3.00% | 1247.00% | Weak |
| Debt/Equity | 0.33 | 2.78 | Strong (Low Leverage) |
| Current Ratio | 6.37 | 5.40 | Strong Liquidity |
| ROA | 0.49% | 4396.00% | Weak |
VNOM outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Viper Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
156.13%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
83.21%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
154.41%
Industry Style: Cyclical, Value, Commodity
High Growth