Matador Resources Stock Analysis, Valuation (NYSE:MTDR)

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$29.79 $1.86 (5.88%) MTDR stock closing price Aug 15, 2018 (Closing)

Investors can watch the Amigobulls Matador Resources stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for MTDR stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Matador Resources Co Stock Rating 3.2/5

Amigobulls MTDR stock analysis relies on business fundamentals such as Matador Resources revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. Matador Resources valuation forms a crucial part of our stock analysis. Our Matador Resources stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy MTDR stock?

  • The Year Over Year (YoY) revenue growth for Matador Resources was 41.8% in 2018-03.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 26.2.
  • The TTM operating margin was good at 29.38 for Matador Resources.
  • Net margins stood at a healthy 23.2% (average) for Matador Resources in the Trailing Twelve Months.
  • The company has an operating cash flow which is 2.2725 times the net income.
  • Matador Resources's return on invested capital of 7.4 is good.
  • The LTM ROE of 12.9 for Matador Resources is attractive.

Should you sell MTDR stock?

  • The company is trading at a price to sales multiple of 5.1, which is higher in comparison to the Oils-Energy sector average of 1.6, making MTDR stock expensive.
  • The company has a negative free cash flow margin of -44.3.

Comments on this video and Matador Resources stock

Amigobulls Matador Resources stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of MTDR stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Matador Resources revenue growth and profit or net income are two main metrics which help in identifying whether MTDR stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.