Viper Energy, Inc. (VNOM) stock analysis
Close on Nov 12, 2026Market cap $14.68BP/E –Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed11 of 30 checks passed
Viper Energy passes 11 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 3/6
- Past performance
- 2/6
- Financial health
- 3/6
- Dividend
- 3/6
What stands out
Revenue growing 10%+ a year
Revenue grew 17.2% a year over the last three fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 69.4% of total debt.
Low bankruptcy risk
The Altman Z-score is 3.91; above 3 is the safe zone and below 1.8 the distress zone.
Guidance raised
Viper Energy raised its Q3 2026 Q3 2026 Net Production - Mboe/d outlook on Aug 3, 2026.
What to watch
Margin of safety under 20%
The price is 157% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $41.13 is above our fair value estimate of $16.03.
Return on equity under 15%
Return on equity was 5.7% over the last twelve months and averaged 17.4% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 9.7%, below the 10% that usually covers the cost of capital.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA above its 5-year median
Viper Energy's EV/EBITDA of 27.3 is above its 5-year median of 11.1.
P/B above the industry
Viper Energy's price-to-book of 2.88 is above the Crude Petroleum and Natural Gas median of 1.33.
Trading above fair value
The share price of $41.13 is above our fair value estimate of $16.03.
Margin of safety under 20%
The price is 157% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 17.2% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 92.1% over the last twelve months; the Crude Petroleum and Natural Gas median is 8.7%.
Guidance raised
Viper Energy raised its Q3 2026 Q3 2026 Net Production - Mboe/d outlook on Aug 3, 2026.
Gross margin trend
This company does not report gross profit.
Past performance2/6
Return on equity under 15%
Return on equity was 5.7% over the last twelve months and averaged 17.4% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 9.7%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Viper Energy's return on equity of 5.7% 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 12.1% over the last twelve months, against a 5-year average of 18.0%.
Net margin above the industry
Viper Energy's net margin of 12.1% is above the Crude Petroleum and Natural Gas median of 3.8%.
Financial health3/6
High debt
Debt is 46.7% of shareholders' equity, above 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 69.4% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 5.92 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.91; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
Viper Energy paid dividends worth 7.2% of the share price over the last twelve months.
Yield above Treasuries
The 7.2% yield is above the 4.4% on a 1-year Treasury.
Yield in the top quarter
The top quarter of US dividend payers yield 3.8% or more; Viper Energy yields 7.2%.
Dividend stability
Fewer than five years of dividend history.
Not covered by earnings
Dividends take 168% of net income, leaving little room.
Cash-flow cover
Needs dividends paid and free cash flow.
Fair value
How we estimate itOur estimate per share
$16.03
The share price is 157% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| EV/EBITDA | 7.0× | 11.1× | 5.3× | $9.56 | 58% |
| P/B | 1.4× | 1.6× | 1.3× | $19.90 | 17% |
| Earnings power | 7.5% cost of equity | – | – | $28.58 | 25% |
| Fair value | $16.03 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 14.0
- Crude Petroleum and Natural Gas median 10.4
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $97.48M
- Value traded per 1% price move
- $57.18M
Downside
Low risk
- Typical loss in a bad month
- 11.2%
- Volatility (annualized)
- 30%
- Sharpe ratio, 1 year
- 0.16
- Beta to the S&P 500 (5Y)
- 0.52
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2013 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +62.0% | +17.2% | +41.0% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | -2.2% | |
| Return on assets | -1.8% | -7.3% | -0.8% | |
| Current ratio | 10.88 | 1.20 | 3.72 | |
| Debt to equity | – | – | 0.49 | |
| Interest coverage | -3.8× | – | – | |
| Capex to revenue | 0.0% | 0.0% | – | |
| Diluted shares | – | – | 143M |
Cash use needs five years of cash flow figures
Viper Energy does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -4.9% | 0.16× | 2.89× | -2.2% |
| FY2024 | 41.7% | 0.19× | 3.35× | 26.6% |
| FY2023 | 24.2% | 0.24× | 4.04× | 23.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$68.00M
- Cash generatingOperating cash flow above zero$1.05B
- Return on assets improvedROA up on the prior year9.0% → -1.3%
- Earnings backed by cashOperating cash flow above net income$1.05B vs -$68.00M
- Less leverageLong-term debt to assets fell21.4% → 17.3%
- Better liquidityCurrent ratio rose4.86 → 3.72
- No dilutionShare count did not rise94M → 143M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.22 → 0.28
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