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Matador Resources CoMTDR +0.82%74 ROE % is 27.14% as of Jun. 2026, which is 63% above its 10-year median of 16.70. GuruFocus rates MTDR with a GF Score™ of 74/100 and a GF Value™ of $62.27 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 968 Oil & Gas companies, Matador Resources Co ranks better than 69.83% on this metric.
Matador Resources Co (NYSE:MTDR) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas E&P subindustry, Matador Resources Co's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Matador Resources Co ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Matador Resources Co's ROE % distribution charts can be found below:
* The bar in red indicates where Matador Resources Co's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Matador Resources Co (MTDR) has a ROE % of 27.14% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Matador Resources Co and its competitors. This is 63% above median its historical median of 16.70. According to the industry distribution chart, Matador Resources Co ranks #292 out of 968 companies in the Oil & Gas industry, placing it in the top 30.2%.
Is Matador Resources Co's ROE % too high?
Matador Resources Co's current ROE % of 27.14% is 63% above median its 10-year median of 16.70. The Oil & Gas industry median ROE % is 6.49. Matador Resources Co's value of 27.14% is 318.2% above this industry median. Based on the distribution chart, Matador Resources Co ranks #292 out of 968 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Matador Resources Co has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Matador Resources Co's ROE % compare to MGY and MUR?
According to the Oil & Gas industry distribution chart, Matador Resources Co ranks #292 out of 968 companies for ROE %. This puts Matador Resources Co in the upper half of its industry. The industry median ROE % is 6.49. Matador Resources Co's value of 27.14% is 318.2% above this benchmark. While the company's 10-year median is 16.70 vs. the industry median of 6.49, Matador Resources Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Oil & Gas company?
The median ROE % among Oil & Gas companies is 6.49, based on 968 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Matador Resources Co's current ROE % of 27.14% is 318.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Matador Resources Co and its competitors. For the Oil & Gas industry, the median ROE % is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Matador Resources Co's current ROE % is 27.14%, which is 63% above median its own 10-year median of 16.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Matador Resources Co stock overvalued right now?
Based on GuruFocus' analysis, Matador Resources Co (MTDR) is currently considered Modestly Undervalued. The stock's GF Value™ is $62.27, compared to a current price of $49.06 — trading 21.2% below its estimated fair value. The current ROE % is 27.14%, which is 63% above median its 10-year median of 16.70 and 318.2% above the Oil & Gas industry median of 6.49. Matador Resources Co's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Matador Resources Co (MTDR), the current ROE % is 27.14% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Matador Resources Co (MTDR) Overvalued in 2026?
Based on GuruFocus' analysis, Matador Resources Co stock appears to be undervalued.
The current stock price of $49.06 is trading 21.2% below its estimated GF Value™ of $62.27.
GuruFocus considers Matador Resources Co to be Modestly Undervalued.
Key valuation signals for MTDR:
ROE %: 27.14% (63% above median its 10-year median of 16.70)
GF Value™: $62.27 vs. price of $49.06 (21.2% below fair value)
Industry Position: 318.2% above the Oil & Gas median (#292 of 968)
No single metric tells the full story. See the MTDR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Matador Resources Co is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources. The majority of the company's assets are located in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Along with maintaining a portfolio of oil and natural gas properties, Matador works to identify and develop midstream opportunities that support and enhance its exploration and development business. The Company has two reportable business segments: exploration and production and midstream. The company generates majority of its revenue from the exploration and production segment.
74GF Score
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