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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
1.4%
Sector: 6.7%
Dividend Analysis audit
HIGH YIELD
6.48%
Trailing Yield
$6.48
Per $100 Invested
Attractive yield supported by strong profitability.
Est. Payout Ratio
396%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Viper Energy, Inc. (VNOM) receives a "Hold" rating with a composite score of 44.5/100, ranked #663 out of 4446 stocks. Key factor scores: Quality 50/100, Value 33/100, Momentum 50/100. This is quantitative analysis only — not investment advice.
Viper Energy, Inc. (VNOM) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Viper Energy, Inc. Do?
Viper Energy, Inc. owns, acquires, and exploits oil and natural gas properties in North America. It owns and acquires mineral and royalty interests in oil and natural gas properties primarily in the Permian Basin. Viper Energy Partners GP LLC operates as the general partner of the company. The company was formerly known as Viper Energy Partners LP and changed its name to Viper Energy, Inc. in November 2023. The company was founded in 2013 and is based in Midland, Texas. Viper Energy, Inc. is a subsidiary of Diamondback Energy, Inc. Viper Energy, Inc. (VNOM) is classified as a mid-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Travis D. Stice and employs approximately 711 people, headquartered in MIDLAND, Texas. With a market capitalization of $8.8B, VNOM is one of the notable companies in the Energy sector.
Viper Energy, Inc. (VNOM) Stock Rating — Hold (April 2026)
As of April 2026, Viper Energy, Inc. receives a Hold rating with a composite score of 44.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.VNOM ranks #663 out of 4,446 stocks in our coverage universe. Within the Energy sector, Viper Energy, Inc. ranks #72 of 128 stocks, placing it in the lower half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
VNOM Stock Price and 52-Week Range
Viper Energy, Inc. (VNOM) currently trades at $45.12. The stock gained $0.30 (0.7%) in the most recent trading session. The 52-week high for VNOM is $47.50, which means the stock is currently trading -5.0% from its annual peak. The 52-week low is $34.71, putting the stock 30.0% above its annual trough. Recent trading volume was 1.2M shares, reflecting moderate market activity.
Is VNOM Overvalued or Undervalued? — Valuation Analysis
Viper Energy, Inc. (VNOM) carries a value factor score of 33/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 61.16x, compared to the Energy sector average of 19.63x — a premium of 212%. The price-to-book ratio stands at 0.88x, versus the sector average of 1.64x. The price-to-sales ratio is 7.79x, compared to 0.47x for the average Energy stock. On an enterprise value basis, VNOM trades at 45.28x EV/EBITDA, versus 3.50x for the sector.
At current multiples, Viper Energy, Inc. trades at a premium to most Energy peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
Viper Energy, Inc. Profitability — ROE, Margins, and Quality Score
Viper Energy, Inc. (VNOM) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 1.4%, compared to the Energy sector average of 6.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.2% versus the sector average of 3.7%.
On a margin basis, Viper Energy, Inc. reports gross margins of 100.0%, compared to 52.7% for the sector. The operating margin is 32.8% (sector: 10.7%). Net profit margin stands at 23.9%, versus 6.4% for the average Energy stock. Revenue growth is running at 92.9% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
VNOM Debt, Balance Sheet, and Financial Health
Viper Energy, Inc. has a debt-to-equity ratio of 21.0%, compared to the Energy sector average of 55.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 3.72x, indicating strong short-term liquidity. Total debt on the balance sheet is $2.19B.
VNOM has a beta of 0.88, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Viper Energy, Inc. is 71/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Viper Energy, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Viper Energy, Inc. reported revenue of $1.17B and earnings per share (EPS) of $-0.48. Net income for the quarter was $149M. Operating income came in at $250M.
In FY 2025, Viper Energy, Inc. reported revenue of $1.40B and earnings per share (EPS) of $-0.48. Net income for the quarter was $-206M. Revenue grew 62.1% year-over-year compared to FY 2024. Operating income came in at $-140M.
In Q3 2025, Viper Energy, Inc. reported revenue of $418M and earnings per share (EPS) of $-0.52. Net income for the quarter was $-197M. Revenue grew 99.4% year-over-year compared to Q3 2024. Operating income came in at $-176M.
In Q2 2025, Viper Energy, Inc. reported revenue of $297M and earnings per share (EPS) of $0.28. Net income for the quarter was $84M. Revenue grew 37.1% year-over-year compared to Q2 2024. Operating income came in at $135M.
Over the past 8 quarters, Viper Energy, Inc. has demonstrated a growth trajectory, with revenue expanding from $217M to $1.17B. Investors analyzing VNOM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
VNOM Dividend Yield and Income Analysis
Viper Energy, Inc. (VNOM) currently pays a dividend yield of 6.5%. At this yield, a $10,000 investment in VNOM stock would generate approximately $$648.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning VNOM offers above-average income for its sector. With a net margin of 23.9%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
VNOM Momentum and Technical Analysis Profile
Viper Energy, Inc. (VNOM) has a momentum factor score of 50/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 21/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 27/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
VNOM vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing VNOM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full VNOM vs S&P 500 (SPY) comparison to assess how Viper Energy, Inc. stacks up against the broader market across all factor dimensions.
VNOM Next Earnings Date
No upcoming earnings date has been announced for Viper Energy, Inc. (VNOM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy VNOM? — Investment Thesis Summary
Viper Energy, Inc. presents a balanced picture with arguments on both sides. The value score of 33/100 indicates premium valuation. Low volatility (stability score 71/100) reduces downside risk.
In summary, Viper Energy, Inc. (VNOM) earns a Hold rating with a composite score of 44.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on VNOM stock.
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Institutional Research Dossier
Viper Energy, Inc. (VNOM) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Viper Energy, Inc. (VNOM). The company's unique royalty-based business model, focused on the prolific Permian Basin, offers high margins and significant revenue growth potential. However, the current valuation appears stretched, particularly when considering recent net losses and elevated EV/EBITDA multiples relative to the sector. While Viper's operational efficiency and strategic positioning within Diamondback Energy provide a degree of stability, the high valuation and negative net income warrant caution.
The primary concern revolves around the disconnect between Viper's impressive revenue growth and its recent inability to translate that growth into consistent profitability. The negative net income and EBITDA figures raise questions about the sustainability of the current valuation. While the company's high gross and operating margins compared to the sector are encouraging, the market is pricing in substantial future growth that may not materialize, especially given the inherent volatility of commodity prices and the cyclical nature of the energy industry. The Hold rating reflects a balanced view, acknowledging the company's strengths while highlighting the valuation risks.
Business Strategy & Overview
Viper Energy operates as a mineral and royalty interest owner, primarily within the Permian Basin. This business model differs significantly from traditional exploration and production (E&P) companies. Instead of directly drilling and operating wells, Viper acquires mineral rights and receives royalty payments based on the production from wells drilled by other operators on their land. This approach offers several advantages, including lower capital expenditure requirements and reduced operational risk, as Viper is not directly involved in the drilling and completion process.
The company's strategic focus on the Permian Basin is a key element of its success. The Permian Basin is one of the most prolific oil and gas producing regions in the United States, characterized by stacked pay zones and relatively low breakeven costs. This concentration allows Viper to benefit from the ongoing development activity in the region, as operators continue to invest in drilling and production. Furthermore, Viper's relationship with Diamondback Energy, its parent company, provides access to valuable insights and potential acquisition opportunities within the Permian Basin.
Viper's revenue is directly tied to the production volumes and commodity prices of oil and natural gas. As such, the company's financial performance is highly sensitive to fluctuations in these variables. However, the royalty-based business model provides a degree of insulation from operating cost inflation, as Viper does not bear the direct costs of drilling and production. The company's strategy involves actively managing its mineral and royalty portfolio, acquiring new interests and divesting non-core assets to optimize its exposure to the most productive areas within the Permian Basin.
The recent name change from Viper Energy Partners LP to Viper Energy, Inc. reflects a shift in the company's corporate structure. This change may have implications for the company's tax structure and governance. However, the core business strategy of acquiring and managing mineral and royalty interests in the Permian Basin remains unchanged. The company's long-term success will depend on its ability to continue acquiring high-quality assets, managing its portfolio effectively, and navigating the cyclical nature of the energy industry.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
92.9%
Sector: -1.2%
-8039% VS SCTR
Economic Moat Analysis
Viper Energy's economic moat is likely Narrow. The royalty-based business model inherently possesses some advantages, but these are not insurmountable. The primary source of a potential moat lies in the company's concentrated land position within the Permian Basin, a region with proven reserves and ongoing development. Owning mineral rights in highly productive areas creates a barrier to entry, as competitors cannot easily replicate Viper's existing portfolio.
However, the moat is not Wide due to several factors. First, the royalty rates Viper receives are typically fixed, meaning the company does not directly benefit from increased efficiency or technological advancements in drilling and production. Second, the company is dependent on the drilling activity of other operators on its land. While the Permian Basin is a highly active region, a decline in commodity prices or a shift in operator strategy could negatively impact Viper's production volumes and royalty revenues.
Furthermore, the market for mineral rights is competitive, and Viper faces competition from other royalty companies, private equity firms, and individual landowners. While Viper's relationship with Diamondback Energy provides a strategic advantage, it does not guarantee access to the best acquisition opportunities. The company's ability to consistently acquire high-quality assets at attractive prices will be crucial to maintaining its competitive position.
The absence of significant switching costs also limits the moat. Operators are not locked into using Viper's mineral rights and can potentially negotiate with other landowners or acquire their own mineral interests. While Viper's concentrated land position provides some leverage in negotiations, it does not create a strong barrier to entry. Therefore, while Viper possesses some competitive advantages, these are not sufficient to warrant a Wide moat rating. The Narrow moat reflects the company's strategic positioning within the Permian Basin and its royalty-based business model, but also acknowledges the competitive pressures and dependence on external factors.
Financial Health & Profitability
Viper Energy's financial health presents a mixed picture. The company's revenue growth has been impressive, with a 92.9% increase compared to a sector average of -1.7%. This growth is primarily driven by increased production volumes and favorable commodity prices. However, the company's profitability has been inconsistent. While gross and operating margins are significantly higher than the sector average, recent net income has been negative, driven by factors not immediately apparent from the provided data. The TTM net income is reported as $-206.00M, contrasting sharply with the positive net income figures reported in previous fiscal years.
The company's balance sheet appears relatively strong, with a current ratio of 3.72, indicating ample liquidity. The debt-to-equity ratio of 21.00 is significantly lower than the sector average of 55.00, suggesting a conservative capital structure. However, the total debt of $2.19B warrants close monitoring, particularly in light of the recent net losses. The absence of free cash flow data makes it difficult to assess the company's ability to generate cash from operations and service its debt obligations.
The quarterly financial history reveals a volatile trend in profitability. While Q1 and Q2 of FY2025 showed positive net income and operating margins, Q3 FY2025 reported a significant net loss and negative operating margin. This volatility raises concerns about the sustainability of the company's earnings and the factors driving these fluctuations. The transition from positive net income in FY2024 to negative net income in FY2025 is a significant red flag that requires further investigation.
The high gross and operating margins compared to the sector suggest that Viper's royalty-based business model is inherently more profitable than traditional E&P operations. However, the recent net losses indicate that other factors, such as impairments, interest expenses, or other non-operating items, are negatively impacting the bottom line. Without further information, it is difficult to fully assess the company's financial health. The high revenue growth is encouraging, but the inconsistent profitability and lack of free cash flow data warrant caution.
Valuation Assessment
Viper Energy's valuation appears stretched based on the available data. The company's P/E ratio of 62.6x is significantly higher than the sector average of 19.5x, suggesting that the market is pricing in substantial future growth. However, the recent net losses raise questions about the sustainability of this valuation. The EV/EBITDA multiple of 46.2x is also significantly higher than the sector average of 3.5x, further indicating that the stock is overvalued.
The high valuation multiples are particularly concerning in light of the company's negative net income and EBITDA figures. While the company's revenue growth has been impressive, the market appears to be overlooking the recent decline in profitability. The absence of free cash flow data makes it difficult to assess the company's ability to generate cash and support its valuation. The high valuation multiples suggest that the market is expecting a significant turnaround in profitability, which may not materialize.
The company's ROE of 1.4% is significantly lower than the sector average of 6.9%, indicating that the company is not generating sufficient returns on equity. This low ROE further supports the argument that the stock is overvalued. The high valuation multiples may be justified if the company were growing rapidly and generating strong free cash flow. However, the recent net losses and lack of free cash flow data suggest that this is not the case.
Given the high valuation multiples, negative net income, and lack of free cash flow data, Viper Energy's stock appears to be overvalued. The market is pricing in substantial future growth that may not materialize, particularly in light of the inherent volatility of commodity prices and the cyclical nature of the energy industry. While the company's royalty-based business model offers some advantages, these are not sufficient to justify the current valuation. A more reasonable valuation would likely be closer to the sector average, reflecting the company's current profitability and growth prospects.
Risk & Uncertainty
Viper Energy faces several risks and uncertainties that could negatively impact its financial performance and valuation. The most significant risk is the volatility of commodity prices. The company's revenue is directly tied to the prices of oil and natural gas, and a decline in these prices could significantly reduce its royalty revenues. Commodity prices are influenced by a variety of factors, including global supply and demand, geopolitical events, and weather patterns, making them difficult to predict.
Another risk is the dependence on the drilling activity of other operators on its land. Viper does not directly control the pace of development on its mineral rights, and a slowdown in drilling activity could negatively impact its production volumes and royalty revenues. Operators may reduce drilling activity due to a decline in commodity prices, a change in their capital allocation strategy, or regulatory constraints.
Regulatory risk is also a concern. Changes in environmental regulations, such as restrictions on hydraulic fracturing, could negatively impact the development of oil and gas resources in the Permian Basin. Increased taxes or royalties could also reduce the profitability of drilling operations and negatively impact Viper's royalty revenues. The concentration of Viper's assets in the Permian Basin exposes the company to regional risks, such as weather events, infrastructure constraints, and regulatory changes specific to the region.
Finally, competition for mineral rights is intense, and Viper faces competition from other royalty companies, private equity firms, and individual landowners. The company's ability to consistently acquire high-quality assets at attractive prices will be crucial to maintaining its competitive position. Failure to acquire new assets or overpaying for acquisitions could negatively impact the company's long-term growth prospects.
Bulls Say / Bears Say
The Bull Case
BULL VIEWViper Energy's royalty-based business model provides high margins and reduced operational risk compared to traditional E&P companies, making it an attractive investment in the energy sector.
BULL VIEWThe company's strategic focus on the prolific Permian Basin ensures exposure to a region with significant growth potential and relatively low breakeven costs, driving future revenue growth.
BULL VIEWViper's strong balance sheet and low debt-to-equity ratio provide financial flexibility to pursue acquisitions and capitalize on opportunities in the mineral rights market.
The Bear Case
BEAR VIEWViper Energy's high valuation multiples, particularly its P/E and EV/EBITDA ratios, are unsustainable given the recent net losses and lack of free cash flow, indicating significant overvaluation.
BEAR VIEWThe company's dependence on commodity prices and the drilling activity of other operators exposes it to significant volatility and reduces its control over its own revenue stream.
BEAR VIEWThe royalty-based business model limits Viper's ability to benefit from technological advancements and efficiency gains in drilling and production, potentially hindering its long-term growth prospects.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score VNOM and 4,400+ other equities.
Viper Energy, Inc. exhibits a 729% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.2%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
100.0%
Sector: 52.7%
Operating Margin
Core business profitability
32.8%
Sector: 10.7%
Net Margin
Bottom-line profitability
23.9%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+243%
Income Projection audit
A $10,000 investment would generate approximately $648 annually in dividends at the current trailing rate.
