MTDR Stock Analysis — Matador Resources
Sector: Energy
AI Verdict
At 8.5x forward earnings for 8.8% growth, this is cheap for the growth on offer if Matador's low-cost Permian moat holds up.
Competitive Moat
Matador Resources specializes in oil and natural gas exploration in the Permian Basin, where it benefits from established acreage, operational scale, and efficient drilling techniques. Its defensibility comes from low-cost production and strategic access to high-yield shale assets, making it harder for new entrants to compete on cost.
Summary
Matador trades at just 8.5x next year's earnings, making it one of the cheaper energy names relative to expected growth.
Where It Stands
With an 8.5x forward P/E and 8.8% forecast EPS growth, MTDR trades well below the energy sector median of 12x, despite a -10.1% revenue drop last year.
Key Metrics
- Trailing P/E: 9.3x
- Forward P/E: 8.5x
- PEG Ratio: 1.06
- Earnings Growth: +0.1%
- Revenue Growth: -0.1%
- Dividend Yield: 0.03%
- 52-Week High: $66.84
- 52-Week Low: $37.14
Analyst Consensus
22 Buy · 6 Hold · 0 Sell (28 analysts)
Bull Case
The 8.5x forward P/E gives you exposure to nearly 9% expected earnings growth at a discount to the sector's 12x norm.
Bear Case
If the P/E reverts to the sector median of 12x but earnings disappoint, the stock could see little upside given last year's -10.1% revenue contraction.
Catalyst to Watch
Watch for quarterly production updates — a positive surprise on volumes or costs could justify the low multiple.