Viper Energy Inc. Class A Common Stock (VNOM)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I ask whether Viper's royalty interests are a durable asset and whether the price leaves room for error. Viper owns mineral and royalty interests, mainly in the Permian Basin, and is a subsidiary of Diamondback Energy. That model can be high-margin because Viper generally does not pay drilling costs, and its mineral position is not easily replicated. But the company is a price taker in a commodity business, so the moat is narrow. The filed record shows volatility. In fiscal 2025, the year ended 2025-12-31, revenue was $1.3B, but net income was a loss of $68.0M, compared with fiscal 2024, the year ended 2024-12-31, revenue of $854.0M and net income of $359.0M. In fiscal Q3 2025, the quarter ended 2025-09-30, Viper lost $77.0M. More recently, in fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $496.0M and net income was $97.0M; in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $658.0M, net income was $142.0M, and diluted EPS was $0.73. So the Lynch-style turnaround label, a loss in the latest year after earlier profits, has recent quarterly support. Financial health is respectable: debt-to-equity is 0.16, Altman Z is 3.10, Piotroski is 7/9, and trailing free cash flow is $198.0M. But valuation does not scream bargain. At the 2026-10-13 close of $44.36, FairStock calculations put P/B at 1.69, P/E at -443.60, EV/EBITDA at 9.28, and FCF yield at only 2.3%. FairStock return metrics also show ROE of 1.09% and ROCE of 6.17%. The 5.80% dividend yield is attractive, but not enough by itself. I see a decent asset at a fair-to-full price, not a Graham bargain.

In plain English: Viper owns mineral and royalty interests in oil and gas fields, mostly in the Permian Basin. It earns money when energy companies drill on its land, so profits swing with oil and gas prices. The latest filed quarter was profitable after a loss year, and the balance sheet looks solid, but the shares do not look clearly cheap against cash flow; the price looks fair to full for a cyclical energy royalty business.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer