NasdaqCM:FLMN

Stock Analysis Report

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Executive Summary

Falcon Minerals Corporation acquires and owns mineral, royalty, and over-riding royalty interests in oil and natural gas properties in North America. More Details


Snowflake Analysis

Good value with reasonable growth potential.

Share Price & News

How has Falcon Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FLMN is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: FLMN's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-14.4%

FLMN

-7.9%

US Oil and Gas

0.6%

US Market


1 Year Return

-66.0%

FLMN

-33.8%

US Oil and Gas

22.7%

US Market

Return vs Industry: FLMN underperformed the US Oil and Gas industry which returned -34.7% over the past year.

Return vs Market: FLMN underperformed the US Market which returned 21% over the past year.


Shareholder returns

FLMNIndustryMarket
7 Day-14.4%-7.9%0.6%
30 Day19.6%24.6%13.1%
90 Day-21.4%5.6%4.5%
1 Year-63.2%-66.0%-29.3%-33.8%25.5%22.7%
3 Yearn/a-37.0%-45.6%49.0%39.1%
5 Yearn/a-21.1%-36.6%98.3%76.5%

Long-Term Price Volatility Vs. Market

How volatile is Falcon Minerals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Falcon Minerals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLMN ($2.2) is trading below our estimate of fair value ($13.32)

Significantly Below Fair Value: FLMN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FLMN is poor value based on its PE Ratio (22.4x) compared to the US Oil and Gas industry average (8.7x).

PE vs Market: FLMN is poor value based on its PE Ratio (22.4x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: FLMN is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: FLMN is good value based on its PB Ratio (0.8x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Falcon Minerals forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

38.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLMN's forecast earnings growth (38.3% per year) is above the savings rate (2.2%).

Earnings vs Market: FLMN's earnings (38.3% per year) are forecast to grow faster than the US market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FLMN's revenue (13.1% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: FLMN's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLMN's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Falcon Minerals performed over the past 5 years?

-31.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FLMN has high quality earnings.

Growing Profit Margin: FLMN's current net profit margins (10.5%) are lower than last year (22.7%).


Past Earnings Growth Analysis

Earnings Trend: FLMN's earnings have declined by 31.9% per year over the past 5 years.

Accelerating Growth: FLMN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FLMN had negative earnings growth (-75.6%) over the past year, making it difficult to compare to the Oil and Gas industry average (-29.6%).


Return on Equity

High ROE: FLMN's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is Falcon Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: FLMN's short term assets ($8.2M) exceed its short term liabilities ($3.0M).

Long Term Liabilities: FLMN's short term assets ($8.2M) do not cover its long term liabilities ($40.0M).


Debt to Equity History and Analysis

Debt Level: FLMN's debt to equity ratio (16.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if FLMN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: FLMN's debt is well covered by operating cash flow (79.6%).

Interest Coverage: FLMN's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Falcon Minerals's current dividend yield, its reliability and sustainability?

4.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FLMN's dividend (4.55%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: FLMN's dividend (4.55%) is in the top 25% of dividend payers in the US market (4.18%)


Stability and Growth of Payments

Stable Dividend: FLMN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FLMN has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (193.3%), FLMN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FLMN's dividends in 3 years are not forecast to be well covered by earnings (171.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Daniel Herz (43 yo)

2.25yrs

Tenure

US$5,562,828

Compensation

Mr. Daniel C. Herz has been Director at Falcon Minerals Corporation since May 28, 2020. Mr. Herz is the Chief Executive Officer and President of Falcon Minerals Corp., since August 2018 and April 2017. He ...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD5.56M) is above average for companies of similar size in the US market ($USD1.12M).

Compensation vs Earnings: Daniel's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Herz
Founder2.25yrsUS$5.56m2.73%
$ 5.4m
Bryan Gunderson
Chief Financial Officer1.42yrsUS$1.16m0.14%
$ 272.6k
Stephen Pilatzke
Chief Accounting Officer2.08yrsUS$760.64k0.13%
$ 257.0k
Michael Downs
Chief Operating Officer2.08yrsno data0.19%
$ 384.3k
Brian Begley
Vice President of IRno datano datano data
Jeffrey Brotman
Chief Legal Officer & Secretaryno dataUS$116.67k0.80%
$ 1.6m

2.1yrs

Average Tenure

42.5yo

Average Age

Experienced Management: FLMN's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Herz
Founder2.25yrsUS$5.56m2.73%
$ 5.4m
Eric Liaw
Independent Director1.58yrsno datano data
Claire Harvey
Chairman of the Board0.50yrno data0.044%
$ 86.3k
Alan Hirshberg
Independent Director1.58yrsUS$120.41k0.28%
$ 554.2k
Adam Jenkins
Independent Director2.25yrsno datano data
Steven Jones
Independent Director3.08yrsUS$204.72k0.22%
$ 439.5k
William Anderson
Independent Director2.25yrsUS$204.72k0.070%
$ 138.8k
Jonathan Hamilton
Independent Director2.25yrsno datano data

1.9yrs

Average Tenure

41.5yo

Average Age

Experienced Board: FLMN's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Falcon Minerals Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Falcon Minerals Corporation
  • Ticker: FLMN
  • Exchange: NasdaqCM
  • Founded: 2016
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$198.017m
  • Market Cap: US$101.407m
  • Shares outstanding: 86.09m
  • Website: https://www.falconminerals.com

Number of Employees


Location

  • Falcon Minerals Corporation
  • 510 Madison Avenue
  • 8th Floor
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FLMNNasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDAug 2018
2JTDB (Deutsche Boerse AG)YesClass A Common StockDEEURAug 2018

Biography

Falcon Minerals Corporation acquires and owns mineral, royalty, and over-riding royalty interests in oil and natural gas properties in North America. It owns interests covering approximately 256,000 gross ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:36
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.