Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin48.1%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin33.3%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt11.1 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$4.8B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$542M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
D
Margin of Safety7.2%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book1.13x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
F
Free Cash Flow-$625M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income399.9%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$2.3B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Matador Resources Company
Matador Resources Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil and natural gas resources in the United States. It operates through two segments, Exploration and Production; and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. It also operates the Haynesville shale and Cotton Valley plays in Northwest Louisiana. In addition, the company conducts midstream operations in support of its exploration, development, and production operations. Further, it provides natural gas processing and oil transportation services; and oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties, as well as sells natural gas to unaffiliated independent marketing companies and unaffiliated midstream companies. The company was formerly known as Matador Holdco, Inc. and changed its name to Matador Resources Company in August 2011. Matador Resources Company was incorporated in 2003 and is headquartered in Dallas, Texas.
Matador Resources Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil and natural gas resources in the United States. It operates through two segments, Exploration and Production; and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. It also operates the Haynesville shale and Cotton Valley plays in Northwest Louisiana. In addition, the company conducts midstream operations in support of its exploration, development, and production operations. Further, it provides natural gas processing and oil transportation services; and oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties, as well as sells natural gas to unaffiliated independent marketing companies and unaffiliated midstream companies. The company was formerly known as Matador Holdco, Inc. and changed its name to Matador Resources Company in August 2011. Matador Resources Company was incorporated in 2003 and is headquartered in Dallas, Texas.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Matador Resources Company at $54.09.
The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.
At $54.09, the stock trades below its Graham Number of $58.27 — suggesting a margin of safety exists.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.
Showing Key Metrics
Income Highlights
Metric
Q2 2026
Q4 2025
Gross Profit %
62.2%▼
72.1%
Operating Margin %
48.1%▲
25.2%
Net Income %
33.3%▲
23.8%
Diluted EPS
3.15▲
1.55
Balance Sheet Highlights
Metric
Q2 2026
Q4 2025
Q4 2024
Total Assets
$13.5B
$11.7B
N/A
Total Debt
$4.3B▲
$3.5B•
N/A
Working Capital
-$542M▼
-$215M•
N/A
Years to Pay Debt
11.07
18.11
N/A
Cash Flow Highlights
Metric
Q2 2026
Q4 2025
Q4 2024
Free Cash Flow
-$625M▼
-$114M•
N/A
Owner Earnings
$2.3B
$1.1B
N/A
CapEx % of Net Income
399.9%
305.4%
N/A
Income Statement
2026
2025
Tax Effect Of Unusual Items
2,723
8,074
Tax Rate For Calcs
0
0
Normalized EBITDA
883,483
511,813
Total Unusual Items
12,969
38,446
Total Unusual Items Excluding Goodwill
12,969
38,446
Net Income From Continuing Operation Net Minority Interest
390,652
192,547
Reconciled Depreciation
315,144
305,511
Reconciled Cost Of Revenue
443,716
226,264
EBITDA
896,452
550,259
EBIT
581,308
244,748
Net Interest Income
-60,819
-55,045
Interest Expense
60,819
55,045
Normalized Income
380,406
162,175
Net Income From Continuing And Discontinued Operation
390,652
192,547
Total Expenses
609,070
605,244
Total Operating Income As Reported
577,322
242,748
Diluted Average Shares
124,156
124,280
Basic Average Shares
124,156
124,280
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
390,652
192,547
Net Income Common Stockholders
390,652
192,547
Net Income
390,652
192,547
Minority Interests
-23,000
-22,992
Net Income Including Noncontrolling Interests
413,652
215,539
Net Income Continuous Operations
413,652
215,539
Tax Provision
106,837
-25,836
Pretax Income
520,489
189,703
Other Income Expense
16,955
40,446
Other Non Operating Income Expenses
3,986
2,000
Special Income Charges
0
0
Gain On Sale Of Ppe
0
0
Other Special Charges
Gain On Sale Of Security
12,969
38,446
Net Non Operating Interest Income Expense
-60,819
-55,045
Interest Expense Non Operating
60,819
55,045
Operating Income
564,353
204,302
Operating Expense
165,354
378,980
Other Operating Expenses
21,286
68,991
Other Taxes
102,794
Selling General And Administration
41,274
34,360
General And Administrative Expense
41,274
34,360
Other Gand A
41,274
34,360
Gross Profit
729,707
583,282
Cost Of Revenue
443,716
226,264
Total Revenue
1,173,423
809,546
Operating Revenue
1,173,423
809,546
Balance Sheet
2026
2025
2024
Treasury Shares Number
147
Ordinary Shares Number
123,998
124,262
Share Issued
123,998
124,410
Net Debt
4,190,092
3,386,788
Total Debt
4,323,705
3,487,111
Tangible Book Value
5,928,623
5,658,141
Invested Capital
10,145,033
9,060,243
Working Capital
-542,004
-214,941
Net Tangible Assets
5,928,623
5,658,141
Capital Lease Obligations
107,295
85,009
Common Stock Equity
5,928,623
5,658,141
Total Capitalization
10,145,033
9,060,243
Total Equity Gross Minority Interest
6,250,898
5,996,652
Minority Interest
322,275
338,511
Stockholders Equity
5,928,623
5,658,141
Treasury Stock
25,002
5,333
Retained Earnings
3,414,634
3,153,112
Additional Paid In Capital
2,537,746
2,509,118
Capital Stock
1,245
1,244
Common Stock
1,245
1,244
Total Liabilities Net Minority Interest
7,243,668
5,713,917
Total Non Current Liabilities Net Minority Interest
5,694,555
4,682,408
Other Non Current Liabilities
189,583
120,312
Derivative Product Liabilities
8,470
Non Current Deferred Liabilities
1,124,901
1,015,931
Non Current Deferred Taxes Liabilities
1,124,901
1,015,931
Long Term Debt And Capital Lease Obligation
4,216,410
3,402,102
Long Term Debt
4,216,410
3,402,102
Long Term Provisions
155,191
144,063
Current Liabilities
1,549,113
1,031,509
Other Current Liabilities
275,655
75,658
Current Deferred Liabilities
78,280
64,169
Current Debt And Capital Lease Obligation
107,295
85,009
Current Capital Lease Obligation
107,295
85,009
Pensionand Other Post Retirement Benefit Plans Current
25,262
33,162
30,544
Current Provisions
3,883
6,309
Payables And Accrued Expenses
1,058,738
767,202
Current Accrued Expenses
403,135
226,273
Interest Payable
42,906
32,157
Payables
655,603
540,929
Other Payable
411,838
361,592
Dueto Related Parties Current
30,544
Accounts Payable
243,765
179,337
Total Assets
13,494,566
11,710,569
Total Non Current Assets
12,487,457
10,894,001
Other Non Current Assets
224,177
162,703
Financial Assets
0
Net PPE
12,263,280
10,731,298
Accumulated Depreciation
-8,002,990
-7,395,142
Gross PPE
20,266,270
18,126,440
Leases
22,028
19,242
Other Properties
2,075,304
1,963,059
Machinery Furniture Equipment
31,171
28,290
Current Assets
1,007,109
816,568
Other Current Assets
181,276
129,368
Hedging Assets Current
13,597
34,052
Restricted Cash
64,597
64,163
Inventory
50,177
43,842
Receivables
671,144
529,829
Other Receivables
77,526
103,628
Accounts Receivable
593,618
426,201
Cash Cash Equivalents And Short Term Investments
26,318
15,314
Cash And Cash Equivalents
26,318
15,314
Cash Financial
26,318
15,314
Cash Flow
2026
2025
2024
Free Cash Flow
-625,238
-113,598
Repurchase Of Capital Stock
-11,399
-5,143
Repayment Of Debt
-1,041,331
-607,000
Issuance Of Debt
1,788,000
788,000
Capital Expenditure
-1,562,366
-588,047
Interest Paid Supplemental Data
75,867
Income Tax Paid Supplemental Data
-4,279
End Cash Position
90,915
79,477
Beginning Cash Position
92,472
96,387
Changes In Cash
-1,557
-16,910
Financing Cash Flow
661,285
96,688
Cash Flow From Continuing Financing Activities
661,285
96,688
Net Other Financing Charges
-27,544
-32,885
Cash Dividends Paid
-46,441
-46,284
Common Stock Dividend Paid
-46,441
Net Common Stock Issuance
-11,399
-5,143
Common Stock Payments
-11,399
-5,143
Net Issuance Payments Of Debt
746,669
181,000
Net Long Term Debt Issuance
746,669
181,000
Long Term Debt Payments
-1,041,331
-607,000
Long Term Debt Issuance
1,788,000
788,000
Investing Cash Flow
-1,599,970
-588,047
Cash Flow From Continuing Investing Activities
-1,599,970
-588,047
Net Other Investing Changes
0
-3,263
Net Business Purchase And Sale
3,263
113,576
Net PPE Purchase And Sale
-1,173,379
-77,295
Purchase Of PPE
-1,173,379
-77,295
Capital Expenditure Reported
-388,987
-510,752
Operating Cash Flow
937,128
474,449
Cash Flow From Continuing Operating Activities
937,128
474,449
Change In Working Capital
174,549
-938
Change In Other Working Capital
17,173
-55,313
Change In Other Current Liabilities
-1,851
-576
Change In Other Current Assets
1,887
1,514
Change In Payables And Accrued Expense
123,457
-43,478
Change In Payable
123,457
-43,478
Change In Account Payable
60,808
-51,638
Change In Prepaid Assets
Change In Inventory
-6,172
-3,010
Change In Receivables
40,055
105,261
Changes In Account Receivables
40,055
105,261
Other Non Cash Items
6,530
7,214
Stock Based Compensation
6,099
3,686
Deferred Tax
106,611
-26,189
Deferred Income Tax
106,611
-26,189
Depreciation Amortization Depletion
315,144
305,511
Operating Gains Losses
-85,457
-30,374
Gain Loss On Investment Securities
-85,457
-30,374
Net Income From Continuing Operations
413,652
215,539
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $926M▲ $1.2B+26.8%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 47.3%▲ 62.2%+14.9pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 61.0%▲ 48.1%-12.9pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 16.2%▲ 33.3%+17.1pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$1.2B/qtr (≈$4.7B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.65x current ratio
vs ≥ 2.0x
❌ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
-$625M
vs Positive
Operating Cash Flow
$937M
Latest quarter · Buffett's cash reality check
ROIC
3.7%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
1.1x
Net Assets: $6.3B
Asset Context — Oil & Gas E&P
Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.
⚠️Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
Peers & Industry
No auto-detected peers for Oil & Gas E&P. You can manually compare MTDR against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
7.09%
Moderate — some alignment with shareholders
Return on Equity (ROE)
6.6%
Weak — poor returns on equity
Return on Assets (ROA)
2.9%
Fair — average asset utilization
Share Buybacks (Latest Year)
$56M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+21.2% YoY
Debt is growing — management is leveraging up
Leadership Team
Joseph Wm. Foran
Founder, CEO & Chairman of the Board
Age 73
Pay: $5,553,211
1.422% of net income
Van Singleton II
Co-President Land, Acquisitions & Divestitures and Planning
Age 47
Pay: $2,554,625
0.654% of net income
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
9.32%
11,529,447
Vanguard Portfolio Management LLC
6.57%
8,132,644
Dimensional Fund Advisors LP
5.73%
7,087,531
State Street Corporation
4.24%
5,241,643
Vanguard Capital Management LLC
4.12%
5,102,110
LSV Asset Management
3.25%
4,023,693
Wellington Management Group, LLP
3.23%
3,995,579
T. Rowe Price Investment Management, Inc.
3.02%
3,731,487
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.79
Low volatility — more stable than the market
Short Interest
11.7% of float
Moderate short interest
Debt-to-Equity
0.69x
Conservative balance sheet — low financial risk
Current Ratio
0.65x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $37.14Current: $54.09High: $66.84
Currently at 57% of 52-week range
Matador Resources Company (MTDR) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $58.27. Margin of safety: 7.2%. Gross profit margin: 62.2%. Operating margin: 48.1%. Net margin: 33.3%. Market cap: $6.7B. Sector: Energy. Industry: Oil & Gas E&P. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.