Is MTDR a high-quality business?

AlphaMadera's AlphaQuality grade scores Matador Resources Company on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how MTDR compares to a Buffett-style quality bar.

What is Matador Resources Company's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to MTDR based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes MTDR a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

MTDR - Matador Resources Company

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $68.38 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

C+ 59.6 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C- 47.8

5yr Avg ROIC 11.7% 68/100
Operating Margin Trend -4.68 pp/yr 0/100

Capital Efficiency

Weight: 10%

B- 67.5

5yr Avg ROE 15.2% 80/100
5yr Share-Count CAGR 1.1% 44/100

Growth Quality

Weight: 5%

A- 81.2

5yr Revenue CAGR 21.8% 100/100
5yr EPS CAGR 5.5% 58/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 25%

B- 64.4

5yr FCF Margin 14.9% 82/100
5yr FCF/NI Conversion 0.46x 43/100

Balance Sheet

Weight: 25%

B- 63.1

Net Debt / EBITDA 1.42x 79/100
Interest Coverage (EBIT/Int) 5.96x 69/100
Altman Z-Score 1.53 28/100

Stability

Weight: 20%

C- 48.3

EPS Volatility (σ/μ) 0.64 18/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

3 of 3 gurus held; 1 new buy; 1 added; 1 trimmed; 1 full exit.

Holders: 3 +1
Avg Δ position: +22.5%
New buys: 1
Full exits: 1

Laffont new
Wood sold -100%
Greenblatt increased +111%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.