* Note: Prices are in Million (M) USD.
Description:
Matador Resources Company, an independent energy company, is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States. The company is headquartered in Dallas, Texas.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $87 M
Debt : $3,286 M
EBITDA : $2,567 M
Net Debt (Debt - Cash): $3,199 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Energy
Industry: Oil & gas e&p
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 8.85
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 16 overlapping fiscal years (max 20).Average Free Cash Flow: $-118 M
Average Revenue: $992 M
Revenue Converted To Free Cash Flow (%): -11.9%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $3,479 M
Revenue 4 Years Ago (2020-12-31): $862 M
Last 5 Years Average Revenue Growth: 61%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $124 M
Share Count 5 Years Ago (2020-12-31): $116 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $5.36
Trailing 12-Month Earnings Per Share (EPS): $6.02
Average Earnings Per Share (EPS): $5.69
Dividend Per Share (DPS): $1
Payout Ratio: 19%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 16 valid ROE years (max 20).Average ROE: -3.1%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $50
52-Week Low: $35
Threshold Price (15% Above 52-Week Low): $40
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $5,839 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 20 points to above Matador Resources Company (MTDR) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 11 Years Avg P/E (15.26)
× EPS ($5.69) = $86.83.
Last 11 Years Avg PE 15.26, Fair Value PE 15, Industry Based PE 15, Growth Based PE 50, RCFC Based PE 12, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 19.19. Value-Trades has assined P/E value 19.19. Since an average (Current Year EPS + Next Year EPS) earning per share is $5.69.
The fair value of Matador Resources Company (MTDR) stock should be (19.19 x $5.69) = $109.2.
