Matador Resources Company [NYSE:MTDR]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Matador Resources Company [MTDR], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in December. On average, stock market experts give MTDR an Outperform rating. Its stock price has been found in the range of 13.97 to 35.22. This is compared to its latest closing price of $18.60.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Matador Resources Company [MTDR] is sitting at 2.21. This is compared to 1 month ago, when its average rating was 2.26.
For the quarter ending in Dec-18 Matador Resources Company [MTDR] generated $0.19 billion in sales. That’s 5.20% lower than the average estimate of $0.2 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Wed 1 May (In 48 Days).
Fundamental Analysis of Matador Resources Company [MTDR]
Now let’s turn to look at profitability: with a current Operating Margin for Matador Resources Company [MTDR] sitting at +35.55 and its Gross Margin at +43.88, this company’s Net Margin is now 30.50%. These measurements indicate that Matador Resources Company [MTDR] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 12.05, and its Return on Invested Capital has reached 11.40%. Its Return on Equity is 19.27, and its Return on Assets is 9.79. These metrics all suggest that Matador Resources Company is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Matador Resources Company [MTDR] has generated a Total Debt to Total Equity ratio of 76.85. Similarly, its Total Debt to Total Capital is 43.45, while its Total Debt to Total Assets stands at 37.56. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 76.85, and its Long-Term Debt to Total Capital is 43.45. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 5.52 and its Total Debt to EBITDA Value is 2.31. The Enterprise Value to Sales for this firm is now 3.73, and its Total Debt to Enterprise Value stands at 0.43. Matador Resources Company [MTDR] has a Price to Book Ratio of 1.07, a Price to Cash Flow Ratio of 2.90 and P/E Ratio of 7.70. These metrics all suggest that Matador Resources Company is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Matador Resources Company [MTDR] earns $3,152,197 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.79 and its Total Asset Turnover is 0.30. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.87 and its Current Ratio is 0.93. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Matador Resources Company [MTDR] has 119.74M shares outstanding, amounting to a total market cap of $2.22B. Its stock price has been found in the range of 13.97 to 35.22. At its current price, it has moved by -47.39% from its 52-week high, and it has moved 32.64% from its 52-week low.
This stock’s Beta value is currently 1.90, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 52.65. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Matador Resources Company [MTDR] a Reliable Buy?
Shares of Matador Resources Company [MTDR], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.