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Falcon Minerals

Nasdaq:FLMN
Snowflake Description

Good value with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FLMN
Nasdaq
$530M
Imp Market Cap
  1. Home
  2. US
  3. Energy
Company description

Falcon Minerals Corporation acquires and owns mineral, royalty, and over-riding royalty interests in oil and natural gas properties in North America. The last earnings update was 13 days ago. More info.


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FLMN Share Price and Events
7 Day Returns
-2.4%
NasdaqCM:FLMN
-2.9%
US Oil and Gas
0.9%
US Market
1 Year Returns
-22.3%
NasdaqCM:FLMN
-13.7%
US Oil and Gas
16.8%
US Market
FLMN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Falcon Minerals (FLMN) -2.4% -2.8% 3.7% -22.3% - -
US Oil and Gas -2.9% 0.9% -0.2% -13.7% -19% -35.8%
US Market 0.9% 4.5% 6.2% 16.8% 38% 44.1%
1 Year Return vs Industry and Market
  • FLMN underperformed the Oil and Gas industry which returned -13.7% over the past year.
  • FLMN underperformed the Market in United States of America which returned 16.8% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Falcon Minerals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Falcon Minerals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Falcon Minerals.

NasdaqCM:FLMN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:FLMN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.901 (1 + (1- 21%) (7.17%))
0.968
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.968 * 5.96%)
8.5%

Discounted Cash Flow Calculation for NasdaqCM:FLMN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Falcon Minerals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqCM:FLMN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.5%)
2020 57.85 Est @ -2.03% 53.32
2021 57.50 Est @ -0.6% 48.85
2022 57.73 Est @ 0.4% 45.20
2023 58.37 Est @ 1.1% 42.12
2024 59.29 Est @ 1.59% 39.44
2025 60.44 Est @ 1.93% 37.05
2026 61.75 Est @ 2.17% 34.89
2027 63.19 Est @ 2.34% 32.91
2028 64.74 Est @ 2.46% 31.08
2029 66.39 Est @ 2.54% 29.37
Present value of next 10 years cash flows $394.00
NasdaqCM:FLMN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $66.39 × (1 + 2.73%) ÷ (8.5% – 2.73%)
$1,182.46
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,182.46 ÷ (1 + 8.5%)10
$523.10
NasdaqCM:FLMN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $394.00 + $523.10
$917.10
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $917.10 / 85.95
$10.67
NasdaqCM:FLMN Discount to Share Price
Calculation Result
Value per share (USD) From above. $10.67
Current discount Discount to share price of $6.22
= -1 x ($6.22 - $10.67) / $10.67
41.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Falcon Minerals is available for.
Intrinsic value
42%
Share price is $6.22 vs Future cash flow value of $10.67
Current Discount Checks
For Falcon Minerals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Falcon Minerals's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Falcon Minerals's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Falcon Minerals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Falcon Minerals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:FLMN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.40
NasdaqCM:FLMN Share Price ** NasdaqCM (2019-11-20) in USD $6.22
United States of America Oil and Gas Industry PE Ratio Median Figure of 99 Publicly-Listed Oil and Gas Companies 9.91x
United States of America Market PE Ratio Median Figure of 2,923 Publicly-Listed Companies 18.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Falcon Minerals.

NasdaqCM:FLMN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:FLMN Share Price ÷ EPS (both in USD)

= 6.22 ÷ 0.40

15.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Falcon Minerals is overvalued based on earnings compared to the US Oil and Gas industry average.
  • Falcon Minerals is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Falcon Minerals's expected growth come at a high price?
Raw Data
NasdaqCM:FLMN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
27.5%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 84 Publicly-Listed Oil and Gas Companies 0.23x
United States of America Market PEG Ratio Median Figure of 2,042 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

NasdaqCM:FLMN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.39x ÷ 27.5%

0.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Falcon Minerals is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Falcon Minerals's assets?
Raw Data
NasdaqCM:FLMN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $2.88
NasdaqCM:FLMN Share Price * NasdaqCM (2019-11-20) in USD $6.22
United States of America Oil and Gas Industry PB Ratio Median Figure of 187 Publicly-Listed Oil and Gas Companies 0.83x
United States of America Market PB Ratio Median Figure of 5,094 Publicly-Listed Companies 1.76x
NasdaqCM:FLMN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:FLMN Share Price ÷ Book Value per Share (both in USD)

= 6.22 ÷ 2.88

2.16x

* Primary Listing of Falcon Minerals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Falcon Minerals is overvalued based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Falcon Minerals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Falcon Minerals has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Falcon Minerals expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Falcon Minerals expected to grow at an attractive rate?
  • Falcon Minerals's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Falcon Minerals's earnings growth is expected to exceed the United States of America market average.
  • Falcon Minerals's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:FLMN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:FLMN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 27.5%
NasdaqCM:FLMN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 10.9%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 15.9%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:FLMN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:FLMN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 116 76 64 1
2022-12-31 104 69 42 2
2021-12-31 93 61 42 4
2020-12-31 83 55 32 6
2019-12-31 72 54 17 6
2019-11-21
NasdaqCM:FLMN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 82 67 19
2019-06-30 90 73 -53
2019-03-31 100 76 -40
2018-12-31 99 78 7
2018-09-30 98 78 44
2018-06-30 94 79 48
2018-03-31 87 81 112
2017-12-31 96 81 73
2016-12-31 71 51 15

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Falcon Minerals's earnings are expected to grow significantly at over 20% yearly.
  • Falcon Minerals's revenue is expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:FLMN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Falcon Minerals Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:FLMN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.75 0.75 0.75 1.00
2022-12-31 0.63 0.68 0.57 2.00
2021-12-31 0.50 0.61 0.40 6.00
2020-12-31 0.43 0.53 0.36 7.00
2019-12-31 0.36 0.41 0.33 6.00
2019-11-21
NasdaqCM:FLMN Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.40
2019-06-30 -1.15
2019-03-31 -0.88
2018-12-31 0.15
2018-09-30 0.96
2018-06-30 1.06
2018-03-31
2017-12-31
2016-12-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Falcon Minerals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Falcon Minerals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Falcon Minerals has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Falcon Minerals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Falcon Minerals's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Falcon Minerals's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Falcon Minerals's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Falcon Minerals's 1-year earnings growth is negative, it can't be compared to the US Oil and Gas industry average.
Earnings and Revenue History
Falcon Minerals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Falcon Minerals Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:FLMN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 81.71 18.53 14.07
2019-06-30 89.63 -52.70 11.95
2019-03-31 99.52 -40.42 12.21
2018-12-31 98.66 7.03 11.91
2018-09-30 98.21 44.09 13.91
2018-06-30 93.60 48.46 14.81
2018-03-31 86.95 112.17 13.81
2017-12-31 95.97 72.54 14.72
2016-12-31 70.96 14.69 12.72
2015-12-31 108.02 29.44 20.39

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Falcon Minerals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Falcon Minerals used its assets more efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • Unable to establish if Falcon Minerals improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Falcon Minerals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Falcon Minerals has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Falcon Minerals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Falcon Minerals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Falcon Minerals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Falcon Minerals's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Falcon Minerals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Falcon Minerals Company Filings, last reported 1 month ago.

NasdaqCM:FLMN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 251.60 38.00 2.63
2019-06-30 257.56 36.50 2.87
2019-03-31 263.37 28.50 3.09
2018-12-31 269.71 21.00 7.32
2018-09-30 263.58 38.00 12.91
2018-06-30 252.54 30.88 35.39
2018-03-31 235.54 30.87 14.89
2017-12-31 289.16 57.00 8.35
2016-12-31 373.87 58.65 8.05
2015-12-31
  • Falcon Minerals's level of debt (15.1%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Falcon Minerals's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (177.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.3x coverage).
X
Financial health checks
We assess Falcon Minerals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Falcon Minerals has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.68%
Current annual income from Falcon Minerals dividends. Estimated to be 12.32% next year.
If you bought $2,000 of Falcon Minerals shares you are expected to receive $174 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Falcon Minerals's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Falcon Minerals's dividend is above the markets top 25% of dividend payers in United States of America (3.68%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:FLMN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 67 Stocks 4.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1955 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:FLMN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.07 1.00
2022-12-31 0.99 3.00
2021-12-31 0.75 6.00
2020-12-31 0.71 7.00
2019-12-31 0.60 3.00
2019-11-21
NasdaqCM:FLMN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-11-08 0.540 8.439
2019-08-05 0.600 9.652
2019-05-08 0.700 8.985
2019-05-07 0.700 8.621
2019-02-07 0.800 9.555
2018-11-13 0.900 11.342
2018-11-08 0.900 10.352

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Falcon Minerals has stable dividend payments.
  • Falcon Minerals only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Falcon Minerals's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.6x coverage).
X
Income/ dividend checks
We assess Falcon Minerals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Falcon Minerals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Falcon Minerals has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Falcon Minerals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Daniel Herz
COMPENSATION $166,667
AGE 42
TENURE AS CEO 1.3 years
CEO Bio

Mr. Daniel C. Herz is the Chief Executive Officer and President of Falcon Minerals Corp., since August 2018 and April 2017. He was the President of Osprey Energy Acquisition Corp. since April 2017. He served as Executive Vice President and Director of Atlas Resources, LLC. He served as the Chief Executive Officer of Titan Energy, LLC from September 2016 to August 23, 2018. Mr. Herz is Co-Owner of Osprey Sponsor, LLC. He had been the President of Atlas Energy Gp, LLC from September 25, 2015 to 2018. He has been Chief Executive Officer at ARP’s since August 2015. Mr. Herz has been President and a director of the general partner of Atlas Growth Partners, L.P. since 2013. He serves as Executive Director of Atlas Eagle Ford 2016 L.P. Mr. Herz was the President of Atlas Energy Group, LLC from April 2015 to October 31, 2018. He served as Executive Vice President of Atlas Resources, LLC - Managing General Partner of Dgoc Series 28, L.P. from May 2011 to August 23, 2018. Mr. Herz served as an Executive Vice President of Atlas Resources LLC from May 2011 to June 30, 2017. He served as the Chief Executive Officer of Atlas Resource Partners GP, LLC from April 14, 2015 to September 25, 2015. Mr. Herz served as Senior Vice President of Corporate Development & Strategy at Atlas Resource Partners GP, LLC, General Partner of Atlas Resource Partners, L.P., from March 2012 to April 2015. He served as Executive Vice President and Director of Atlas Resources LLC at DGOC Series 18(C), L.P. Mr. Herz served as Senior Vice President of Corporate Development & Strategy of Atlas Energy GP, LLC, GP at Atlas Energy, L.P since February 2011. He served as Senior Vice President of Corporate Development & Strategy at Atlas Energy Group, LLC from 2007 to April 14, 2015. Mr. Herz served as Senior Vice President of Corporate Development at Arkhan Corporation since August 2007. He served as Senior Vice President of Corporate Development of Atlas Pipeline Holdings GP, LLC, a General Partner of Atlas Energy, L.P. since August 2007. Mr. Herz served as Senior Vice President of Corporate Development of Atlas Energy, Inc. and Atlas Energy Resources, LLC from August 2007 to February 2011. He served as the Chief Executive Officer of Atlas Resource Partners Gp, Llc - General Partner at Titan Energy, LLC since April 14, 2015. Mr. Herz served as Senior Vice President of Corporate Development at Atlas Pipeline Partners GP LLC, the General Partner of Targa Pipeline Partners LP from August 2007 to February 2015. He served as Senior Vice President of Corporate Development and Strategy of the general partner of Atlas Energy, L.P. from February 2011 until February 2015 and Vice President of Corporate Development from January 2006 until February 2011. Mr. Herz served as Vice President of Corporate Development at Atlas Pipeline Partners GP LLC from December 2004 to August 2007. He joined Atlas America and Atlas Pipeline Partners GP in January 2004. Mr. Herz served as Vice President of Corporate Development of Atlas America of Targa Pipeline Partners LP since July 2004. He served as Vice President of Corporate Development of Atlas Energy, Inc. from December 2004 to August 2007. Mr. Herz served as Vice President of Corporate Development of Atlas Pipeline Holdings GP LLC since January 2006. He served as an Associate Investment Banker of Banc of America Securities from 2002 to 2003 and an Analyst of Energy Group from 1999 to 2002. Mr. Herz served as a Director of Osprey Energy Acquisition Corp. since April 2017 until July 19, 2018. He serves as a Director at Dgoc Series 28, L.P. Mr. Herz has been a Director at Titan Energy, LLC since September 2016. He served as Director of Atlas Resources, L.L.C. until August 23, 2018. Mr. Herz serves as Chief Executive Officer & President at Falcon Minerals Corporation. He graduated with a BA in Economics from Indiana University in 1999.

CEO Compensation
  • Insufficient data for Daniel to compare compensation growth.
  • Daniel's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Falcon Minerals management team in years:

1.1
Average Tenure
42
Average Age
  • The average tenure for the Falcon Minerals management team is less than 2 years, this suggests a new team.
Management Team

Daniel Herz

TITLE
CEO & President
COMPENSATION
$167K
AGE
42
TENURE
1.3 yrs

Jeff Brotman

TITLE
Chief Legal Officer & Secretary
COMPENSATION
$117K
AGE
55

Bryan Gunderson

TITLE
Chief Financial Officer
TENURE
0.4 yrs

Stephen Pilatzke

TITLE
Chief Accounting Officer
AGE
40
TENURE
1.1 yrs

Brian Begley

TITLE
Vice President of IR
Board of Directors Tenure

Average tenure and age of the Falcon Minerals board of directors in years:

1.3
Average Tenure
46
Average Age
  • The average tenure for the Falcon Minerals board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jonathan Cohen

TITLE
Chairman
COMPENSATION
$89K
AGE
48
TENURE
1.3 yrs

Ed Cohen

TITLE
Vice Chairman
COMPENSATION
$89K
AGE
80
TENURE
1.3 yrs

Jonathan Hamilton

TITLE
Independent Director
AGE
29
TENURE
1.3 yrs

Brian Frank

TITLE
Independent Director
COMPENSATION
$36K
AGE
45
TENURE
2.3 yrs

Eric Liaw

TITLE
Independent Director
AGE
38
TENURE
0.6 yrs

Steven Jones

TITLE
Independent Director
COMPENSATION
$36K
AGE
46
TENURE
2.1 yrs

Adam Jenkins

TITLE
Independent Director
AGE
35
TENURE
1.3 yrs

William Anderson

TITLE
Independent Director
COMPENSATION
$36K
AGE
65
TENURE
1.3 yrs

Al Hirshberg

TITLE
Independent Director
AGE
58
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. Oct 19 Sell Hite Hedge Asset Management LLC Company 22. Oct 19 22. Oct 19 -117,627 $6.52 $-766,928
16. Oct 19 Sell Hite Hedge Asset Management LLC Company 11. Oct 19 11. Oct 19 -28,642 $6.82 $-195,338
13. Sep 19 Sell Hite Hedge Asset Management LLC Company 11. Sep 19 11. Sep 19 -176,400 $7.04 $-1,241,856
09. Aug 19 Buy Alan Hirshberg Individual 08. Aug 19 08. Aug 19 35,611 $6.30 $224,349
09. Jul 19 Sell Hite Hedge Asset Management LLC Company 28. Jun 19 28. Jun 19 -647,031 $8.40 $-5,435,060
16. May 19 Buy Alan Hirshberg Individual 14. May 19 14. May 19 30,000 $8.00 $240,000
07. Feb 19 Buy Hite Hedge Asset Management LLC Company 05. Feb 19 06. Feb 19 54,130 $8.25 $445,565
06. Feb 19 Buy Hite Hedge Asset Management LLC Company 01. Feb 19 04. Feb 19 59,455 $8.28 $489,743
13. Dec 18 Buy Brian Frank Individual 12. Dec 18 12. Dec 18 15,000 $7.75 $115,750
X
Management checks
We assess Falcon Minerals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Falcon Minerals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Dividend Investors: Don't Be Too Quick To Buy Falcon Minerals Corporation (NASDAQ:FLMN) For Its Upcoming Dividend

Falcon Minerals paid a dividend last year despite being unprofitable. … If Falcon Minerals didn't generate enough cash to pay the dividend, then it must have either paid from cash in the bank or by borrowing money, neither of which is sustainable in the long term. … Given that Falcon Minerals has only been paying a dividend for a year, there's not much of a past history to draw insight from.

Simply Wall St -

Insider Buying: The Falcon Minerals Corporation (NASDAQ:FLMN) Director Just Bought US$224k Worth Of Shares

Check out our latest analysis for Falcon Minerals The Last 12 Months Of Insider Transactions At Falcon Minerals Over the last year, we can see that the biggest insider purchase was by Vice Chairman Edward Cohen for US$7.5m worth of shares, at about US$10.00 per share. … Falcon Minerals insiders may have bought shares in the last year, but they didn't sell any. … NasdaqCM:FLMN Recent Insider Trading, August 13th 2019 Insider Ownership For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

Is Falcon Minerals Corporation (NASDAQ:FLMN) Trading At A 44% Discount?

Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $65.3m $63.6m $63.0m $63.1m $63.7m $64.6m $65.8m $67.2m $68.7m $70.4m Growth Rate Estimate Source Est @ -4.84% Est @ -2.57% Est @ -0.98% Est @ 0.13% Est @ 0.91% Est @ 1.46% Est @ 1.84% Est @ 2.11% Est @ 2.29% Est @ 2.42% Present Value ($, Millions) Discounted @ 8.46% $60.2 $54.1 $49.4 $45.6 $42.4 $39.7 $37.2 $35.1 $33.1 $31.2 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $427.9m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$70m × (1 + 2.7%) ÷ (8.5% – 2.7%) = US$1.3b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$1.3b ÷ ( 1 + 8.5%)10 = $559.57m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $987.47m. … NasdaqCM:FLMN Intrinsic value, August 6th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Should You Buy Falcon Minerals Corporation (NASDAQ:FLMN) For Its 8.3% Dividend?

Conclusion To summarise, shareholders should always check that Falcon Minerals's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … We're not keen on the fact that Falcon Minerals paid dividends despite reporting a loss over the past year, although fortunately its dividend was covered by cash flow. … While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Falcon Minerals out there.

Simply Wall St -

An Intrinsic Calculation For Falcon Minerals Corporation (NASDAQ:FLMN) Suggests It's 40% Undervalued

by estimating the company's future cash flows and discounting them to their present value. … I will be using the Discounted Cash Flow (DCF) model. … We generally believe that a company's value is the present value of all of the cash it will generate in the future.

Simply Wall St -

Falcon Minerals Corporation (NASDAQ:FLMN) Delivered A Better ROE Than Its Industry

Falcon Minerals has a ROE of 37%, based on the last twelve months. … That means that for every $1 worth of shareholders' equity, it generated $0.37 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Falcon Minerals Corporation's (NASDAQ:FLMN) Balance Sheet Strong Enough To Weather A Storm?

While small-cap stocks, such as Falcon Minerals Corporation (NASDAQ:FLMN) with its market cap of US$676m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

These Fundamentals Make Falcon Minerals Corporation (NASDAQ:FLMN) Truly Worth Looking At

Help shape the future of investing tools and receive a $60 prize! … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company that has been able to sustain great financial health, trading at an attractive share price

Simply Wall St -

Is Falcon Minerals Corporation's (NASDAQ:FLMN) Balance Sheet A Threat To Its Future?

While small-cap stocks, such as Falcon Minerals Corporation (NASDAQ:FLMN) with its market cap of US$687m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Company Info

Description

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 unit acres in the Eagle Ford Shale and Austin Chalk in Karnes, DeWitt, and Gonzales Counties in Texas, as well as approximately 68,000 gross unit acres in Pennsylvania, Ohio, and West Virginia that is prospective for the Marcellus Shale. The company is based in Philadelphia, Pennsylvania.

Details
Name: Falcon Minerals Corporation
FLMN
Exchange: NasdaqCM
Founded:
$529,886,164
$285,813,453
85,950,716
Website: http://www.falconminerals.com
Address: Falcon Minerals Corporation
1845 Walnut Street,
10th Floor,
Philadelphia,
Pennsylvania, 19103,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM FLMN Class A Common Stock Nasdaq Capital Market US USD 24. Aug 2018
DB 2JT Class A Common Stock Deutsche Boerse AG DE EUR 24. Aug 2018
Number of employees
Current staff
Staff numbers
8
Falcon Minerals employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/21 01:13
End of day share price update: 2019/11/20 00:00
Last estimates confirmation: 2019/11/19
Last earnings filing: 2019/11/08
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.