Matador Resources Co. (MTDR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chesapeake Energy Corp.

Coterra Energy, Inc.

Matador Resources Co.

Chord Energy Corp.

Exxon Mobil Corp.

APA Corp.

Civitas Resources, Inc.

Hess Corp.

Chevron Corp.

Southwestern Energy Co.

Denbury, Inc.

Why is Matador Resources Co. ?

High Management Efficiency with a high ROCE of 25.36%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 12.78

Healthy long term growth as Net Sales has grown by an annual rate of 31.66% and Operating profit at 50.54%

Negative results in Jun 25

INTEREST(HY) At USD 102.83 MM has Grown at 36.12%
ROCE(HY) Lowest at 17.07%
RAW MATERIAL COST(Y) Grown by 19.22% (YoY)

With ROCE of 17.57%, it has a very attractive valuation with a 1.05 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -22.44%, its profits have risen by 7.7% ; the PEG ratio of the company is 2.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -22.44% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Matador Resources Co. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Matador Resources Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Matador Resources Co.

-22.44%

-0.54

47.43%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

31.66%

EBIT Growth (5y)

50.54%

EBIT to Interest (avg)

12.78

Debt to EBITDA (avg)

1.20

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

0.48

Tax Ratio

23.22%

Dividend Payout Ratio

11.91%

Pledged Shares

Institutional Holding

96.55%

ROCE (avg)

25.36%

ROE (avg)

26.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.09

EV to EBIT

6.00

EV to EBITDA

3.50

EV to Capital Employed

1.05

EV to Sales

2.39

PEG Ratio

2.06

Dividend Yield

223.15%

ROCE (Latest)

17.57%

ROE (Latest)

19.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,413.84 MM

DIVIDEND PER SHARE(HY)

Highest at USD 6.35

DIVIDEND PAYOUT RATIO(Y)

Highest at 25.89%

-12What is not working for the Company

INTEREST(HY)

At USD 102.83 MM has Grown at 36.12%

ROCE(HY)

Lowest at 17.07%

RAW MATERIAL COST(Y)

Grown by 19.22% (YoY

PRE-TAX PROFIT(Q)

Lowest at USD 276.13 MM

NET PROFIT(Q)

Lowest at USD 178.72 MM

EPS(Q)

Lowest at USD 1.21

Here's what is working for Matador Resources Co.

Operating Cash Flow

Highest at USD 2,413.84 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 6.35 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 25.89%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 304.37 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Matador Resources Co.

Interest

At USD 102.83 MM has Grown at 36.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD 276.13 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 178.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.21

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 19.22% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.04 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income