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Matador Resources Co (NYSE:MTDR)
Piotroski F-Score
2 (As of Today)

Warning Sign:

Piotroski F-Score of 2 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Matador Resources Co has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

MTDR' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 8
Current: 2

2
8

During the past 7 years, the highest Piotroski F-Score of Matador Resources Co was 8. The lowest was 2. And the median was 4.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Net Income was -242.059 + -230.401 + -107.654 + -105.853 = $-686.0 Mil.
Cash Flow from Operations was 72.534 + 22.611 + 18.358 + 31.242 = $144.7 Mil.
Revenue was 98.41 + 67.251 + 44.15 + 45.176 = $255.0 Mil.
Gross Profit was 74.202 + 43.033 + 20.759 + 21.446 = $159.4 Mil.
Average Total Assets from the begining of this year (Jun15)
to the end of this year (Jun16) was
(1560.297 + 1280.522 + 1140.861 + 1164.152 + 1086.088) / 5 = $1246.384 Mil.
Total Assets at the begining of this year (Jun15) was $1,560.3 Mil.
Long-Term Debt was $391.8 Mil.
Total Current Assets was $94.6 Mil.
Total Current Liabilities was $136.1 Mil.
Net Income was 29.619 + 46.563 + -50.234 + -157.091 = $-131.1 Mil.

Revenue was 112.209 + 153.939 + 72.412 + 78.096 = $416.7 Mil.
Gross Profit was 89.901 + 127.9 + 52.317 + 52.888 = $323.0 Mil.
Average Total Assets from the begining of last year (Jun14)
to the end of last year (Jun15) was
(1133.441 + 1277.403 + 1434.49 + 1687.426 + 1560.297) / 5 = $1418.6114 Mil.
Total Assets at the begining of last year (Jun14) was $1,133.4 Mil.
Long-Term Debt was $390.7 Mil.
Total Current Assets was $145.0 Mil.
Total Current Liabilities was $166.9 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Matador Resources Co's current net income (TTM) was -686.0. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Matador Resources Co's current cash flow from operations (TTM) was 144.7. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Jun15)
=-685.967/1560.297
=-0.43963874

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=-131.143/1133.441
=-0.11570342

Matador Resources Co's return on assets of this year was -0.43963874. Matador Resources Co's return on assets of last year was -0.11570342. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Matador Resources Co's current net income (TTM) was -686.0. Matador Resources Co's current cash flow from operations (TTM) was 144.7. ==> 144.7 > -686.0 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun16)=Long-Term Debt/Average Total Assets from Jun15 to Jun16
=391.845/1246.384
=0.31438545

Gearing (Last Year: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=390.667/1418.6114
=0.2753869

Matador Resources Co's gearing of this year was 0.31438545. Matador Resources Co's gearing of last year was 0.2753869. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Jun16)=Total Current Assets/Total Current Liabilities
=94.629/136.078
=0.69540264

Current Ratio (Last Year: Jun15)=Total Current Assets/Total Current Liabilities
=145.004/166.923
=0.86868796

Matador Resources Co's current ratio of this year was 0.69540264. Matador Resources Co's current ratio of last year was 0.86868796. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Matador Resources Co's number of shares in issue this year was 92.3. Matador Resources Co's number of shares in issue last year was 82.9. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=159.44/254.987
=0.62528678

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=323.006/416.656
=0.77523425

Matador Resources Co's gross margin of this year was 0.62528678. Matador Resources Co's gross margin of last year was 0.77523425. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Jun15)
=254.987/1560.297
=0.16342209

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=416.656/1133.441
=0.36760272

Matador Resources Co's asset turnover of this year was 0.16342209. Matador Resources Co's asset turnover of last year was 0.36760272. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+0+0+0+0+0
=2

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Matador Resources Co has an F-score of 2. It is a bad or low score, which usually implies poor business operation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Matador Resources Co Annual Data

Dec12Dec13Dec14Dec15
Question 1 0110
Question 2 1111
Question 3 0110
Question 4 1111
Question 5 0101
Question 6 0111
Question 7 0000
Question 8 0110
Question 9 1110
F-score 3874

Matador Resources Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Question 1 1111100000
Question 2 1111111111
Question 3 1111000000
Question 4 1111111111
Question 5 1100100110
Question 6 0101111110
Question 7 0000000000
Question 8 1111100000
Question 9 1111000000
F-score 7867633442
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