Matador Resources Company Common Stock (MTDR)

FairStock Score: 60/100 — STEADY

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 15.0% above cost of capital
• Attractive 2.5% dividend yield providing steady income returns

Concerns

• Revenue declining at 17.3% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.3 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Matador Resources Company Common Stock is a small-cap energy company valued at $7.6 billion. The business generates $3.7 billion in annual revenue with a 5.3% net margin. From a quality standpoint, Matador shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.3 warrants caution. On valuation, the stock is attractively valued at 10.0x earnings, with a modest 23% margin of safety vs Graham Number. Growth dynamics show revenue growing at -17.3% and profit growth of -10.3%. The 2.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 60/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Matador's consistent 15% ROE at just 10x earnings—a re-rating toward sector peers could unlock 30-50% upside. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the energy space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer