Viper Energy Inc (VNOM) Stock Analysis
Verdict: WATCH (do not buy)
VNOM's zero-CapEx Permian royalty model yields 48.9% operating margins, but Riverbend debt and oil pullbacks cap short-term upside.
Investment score: 57/100
Analysis as of
Is Viper Energy Inc stock worth reviewing? AI model thesis
The model rates VNOM as a HOLD with an investment score of 57/100. High operating margins (48.9%) and zero direct drilling CapEx are offset by a premium EV/EBITDA valuation (14.93x) and recent Q2 earnings disappointment.
7-factor investment score
- Valuation: 48/100 (weight 20%)
- Financial Health: 78/100 (weight 15%)
- Technical Momentum: 38/100 (weight 15%)
- Earnings Quality: 58/100 (weight 15%)
- Insider Sentiment: 35/100 (weight 10%)
- Analyst Consensus: 82/100 (weight 10%)
- Risk-Adjusted Return: 62/100 (weight 15%)
Viper Energy Inc opportunities and risks
What speaks for VNOM
- Zero-CapEx Permian royalty structure generates 48.9% TTM operating margins and high cash flow conversion.
What speaks against VNOM
- Direct sensitivity to crude oil price swings without commodity hedging buffer.
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| VNOM | 286.3x | 7.3x | 14.9x | 51.7% | 3.0% | 1.4% |
| PR | 13.7x | 3.1x | 5.6x | 49.9% | 21.5% | 9.1% |
| OVV | 16.7x | 1.7x | 7.2x | 51.3% | 9.5% | 26.9% |
| APA | 8.9x | 1.7x | 3.4x | 38.8% | 19.0% | 14.1% |
| AR | 9.6x | 1.8x | 6.3x | 26.0% | 19.3% | 13.7% |
| RRC | 10.1x | 2.6x | 6.7x | 47.9% | 26.0% | 13.6% |
| Peer median | 10.1x | 1.8x | 6.3x | 47.9% | 19.3% | 13.7% |
Frequently asked questions about Viper Energy Inc (VNOM)
Is VNOM stock a good investment?
The cached TradeMates AI model rates Viper Energy Inc as WATCH (do not buy) with an investment score of 57/100. The model rates VNOM as a HOLD with an investment score of 57/100. High operating margins (48.9%) and zero direct drilling CapEx are offset by a premium EV/EBITDA valuation (14.93x) and recent Q2 earnings disappointment. This is algorithmic model output, not personal investment advice.
Is VNOM stock a buy?
The TradeMates model verdict for VNOM is WATCH (do not buy) with an investment score of 57/100. Treat this as a model signal to review, not a personal buy recommendation.