Matador Resources Co (MTDR) stock analysis

P/E above its 5-year median

Matador Resources's P/E of 9.0 is above its own 5-year median of 7.7.

P/E below the industry

Matador Resources's P/E of 9.0 is below the Crude Petroleum and Natural Gas median of 10.4.

EV/EBITDA below its 5-year median

Matador Resources's EV/EBITDA of 3.0 is below its 5-year median of 3.2.

P/B below the industry

Matador Resources's price-to-book of 1.07 is below the Crude Petroleum and Natural Gas median of 1.33.

Trading below fair value

The share price of $52.08 is below our fair value estimate of $72.17.

Margin of safety over 20%

The price is 27.8% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -15.5% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.3% over the last twelve months; the Crude Petroleum and Natural Gas median is 8.7%.

Guidance raised

Matador Resources raised its full-year 2026 Total Oil Equivalent Production, BOE per day outlook on Nov 3, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 12.5% over the last twelve months and averaged 28.6% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 16.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Matador Resources's return on equity of 12.5% is above the Crude Petroleum and Natural Gas median of 5.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 18.6% over the last twelve months, against a 5-year average of 30.2%.

Net margin above the industry

Matador Resources's net margin of 18.6% is above the Crude Petroleum and Natural Gas median of 3.8%.

Low debt

Debt is 10.7% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 383% of total debt.

Interest not well covered

Operating income covers interest expense 4.9 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.55 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.26; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Matador Resources paid dividends worth 2.2% of the share price over the last twelve months.

Yield below Treasuries

The 2.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Matador Resources yields 2.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Covered by earnings

Dividends take 25.8% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.