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

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Matador Resources Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

MTDR' s 10-Year Piotroski F-Score Range
Min: 3   Max: 8
Current: 8

3
8

During the past 5 years, the highest Piotroski F-Score of Matador Resources Co was 8. The lowest was 3. And the median was 7.


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 (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 20.105 + 15.374 + 16.363 + 18.226 = $70.1 Mil.
Cash Flow from Operations was 43.28 + 52.278 + 31.945 + 81.53 = $209.0 Mil.
Revenue was 71.376 + 68.667 + 73.98 + 90.907 = $304.9 Mil.
Gross Profit was 56.248 + 53.689 + 58.623 + 70.087 = $238.6 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(734.711 + 795.82 + 890.33 + 1021.731 + 1133.441) / 5 = $915.2 Mil.
Total Assets was $1,133.4 Mil.
Long-Term Debt was $150.0 Mil.
Total Current Assets was $67.3 Mil.
Total Current Liabilities was $150.9 Mil.
Net Income was -9.197 + -21.188 + -15.505 + 25.119 = $-20.8 Mil.

Revenue was 28.386 + 51.908 + 54.886 + 65.959 = $201.1 Mil.
Gross Profit was 19.073 + 37.168 + 39.89 + 51.368 = $147.5 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(537.689 + 588.836 + 632.029 + 650.322 + 734.711) / 5 = $628.7 Mil.
Total Assets was $734.7 Mil.
Long-Term Debt was $245.0 Mil.
Total Current Assets was $38.8 Mil.
Total Current Liabilities was $91.7 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Matador Resources Co's current net income (ttm) was 70.1. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Matador Resources Co's current cash flow from operations (ttm) was 209.0. ==> Positive ==> Score 1.

Q3. 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)/Average Total Assets from Jun13 to Jun14
=70.068/915.2066
=0.07655976

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=-20.771/628.7174
=-0.0330371

Matador Resources Co's return on assets of this year was 0.07655976. Matador Resources Co's return on assets of last year was -0.0330371. ==> This year is higher. ==> Score 1.

Q4. 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 70.1. Matador Resources Co's current cash flow from operations (ttm) was 209.0. ==> 209.0 > 70.1 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

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

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

Gearing (This Year: Jun14)=Long-Term Debt/Total Assets
=150/1133.441
=0.13234037

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=245/734.711
=0.33346445

Matador Resources Co's gearing of this year was 0.13234037. Matador Resources Co's gearing of last year was 0.33346445. ==> This year is lower or equal to last year. ==> Score 1.

Q6. 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: Jun14)=Total Current Assets/Total Current Liabilities
=67.344/150.928
=0.44619951

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=38.81/91.738
=0.42305261

Matador Resources Co's current ratio of this year was 0.44619951. Matador Resources Co's current ratio of last year was 0.42305261. ==> This year's current ratio is higher. ==> Score 1.

Q7. 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 69.2. Matador Resources Co's number of shares in issue last year was 55.9. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. 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
=238.647/304.93
=0.7826288

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=147.499/201.139
=0.73331875

Matador Resources Co's gross margin of this year was 0.7826288. Matador Resources Co's gross margin of last year was 0.73331875. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout 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)/Average Total Assets from Jun13 to Jun14
=304.93/915.2066
=0.3331816

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=201.139/628.7174
=0.31991957

Matador Resources Co's asset turnover of this year was 0.3331816. Matador Resources Co's asset turnover of last year was 0.31991957. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Matador Resources Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


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, Altman Z-Score, Beneish M-Score


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

Dec09Dec10Dec11Dec12Dec13
Q1 1
Q2 1
Q3
Q4
Q5
Q6
Q7
Q8
Q9
F-score

Matador Resources Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 001111
Q2 111111
Q3 001111
Q4 111111
Q5 000111
Q6 001101
Q7 000000
Q8 001111
Q9 111111
F-score 0003337878
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