DIAMONDBACK ENERGY INC (FANG) Fundamental Analysis & Valuation

NASDAQ:FANG • US25278X1090

Current stock price

188.205 USD
+1.9 (+1.02%)
At close:
188.54 USD
+0.33 (+0.18%)
After Hours:

This FANG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. FANG Profitability Analysis

1.1 Basic Checks

  • In the past year FANG was profitable.
  • FANG had a positive operating cash flow in the past year.
  • Each year in the past 5 years FANG has been profitable.
  • Each year in the past 5 years FANG had a positive operating cash flow.
FANG Yearly Net Income VS EBIT VS OCF VS FCFFANG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B

1.2 Ratios

  • FANG has a Return On Assets of 2.33%. This is comparable to the rest of the industry: FANG outperforms 44.50% of its industry peers.
  • The Return On Equity of FANG (4.48%) is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 6.21%, FANG is in line with its industry, outperforming 56.94% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for FANG is significantly below the industry average of 23.10%.
Industry RankSector Rank
ROA 2.33%
ROE 4.48%
ROIC 6.21%
ROA(3y)6.01%
ROA(5y)8.83%
ROE(3y)10.68%
ROE(5y)15.81%
ROIC(3y)8.78%
ROIC(5y)12.79%
FANG Yearly ROA, ROE, ROICFANG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40

1.3 Margins

  • FANG has a Profit Margin (11.02%) which is in line with its industry peers.
  • FANG's Profit Margin has declined in the last couple of years.
  • FANG's Operating Margin of 33.36% is fine compared to the rest of the industry. FANG outperforms 79.90% of its industry peers.
  • FANG's Operating Margin has improved in the last couple of years.
  • FANG has a better Gross Margin (68.69%) than 75.60% of its industry peers.
  • In the last couple of years the Gross Margin of FANG has remained more or less at the same level.
Industry RankSector Rank
OM 33.36%
PM (TTM) 11.02%
GM 68.69%
OM growth 3Y-21.49%
OM growth 5Y11.06%
PM growth 3Y-37.46%
PM growth 5YN/A
GM growth 3Y-6.57%
GM growth 5Y-0.16%
FANG Yearly Profit, Operating, Gross MarginsFANG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100 -150

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2

2. FANG Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FANG is creating some value.
  • The number of shares outstanding for FANG has been reduced compared to 1 year ago.
  • FANG has more shares outstanding than it did 5 years ago.
  • FANG has a worse debt/assets ratio than last year.
FANG Yearly Shares OutstandingFANG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
FANG Yearly Total Debt VS Total AssetsFANG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • FANG has an Altman-Z score of 1.41. This is a bad value and indicates that FANG is not financially healthy and even has some risk of bankruptcy.
  • FANG's Altman-Z score of 1.41 is in line compared to the rest of the industry. FANG outperforms 49.28% of its industry peers.
  • A Debt/Equity ratio of 0.37 indicates that FANG is not too dependend on debt financing.
  • FANG has a Debt to Equity ratio of 0.37. This is in the better half of the industry: FANG outperforms 60.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF N/A
Altman-Z 1.41
ROIC/WACC0.85
WACC7.3%
FANG Yearly LT Debt VS Equity VS FCFFANG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 0.42 indicates that FANG may have some problems paying its short term obligations.
  • With a Current ratio value of 0.42, FANG is not doing good in the industry: 86.12% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.40 indicates that FANG may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.40, FANG is doing worse than 85.65% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.42
Quick Ratio 0.4
FANG Yearly Current Assets VS Current LiabilitesFANG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. FANG Growth Analysis

3.1 Past

  • FANG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.00%.
  • Measured over the past years, FANG shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.67% on average per year.
  • The Revenue has grown by 35.79% in the past year. This is a very strong growth!
  • Measured over the past years, FANG shows a very strong growth in Revenue. The Revenue has been growing by 39.81% on average per year.
EPS 1Y (TTM)-25%
EPS 3Y-20.61%
EPS 5Y31.67%
EPS Q2Q%-52.2%
Revenue 1Y (TTM)35.79%
Revenue growth 3Y15.93%
Revenue growth 5Y39.81%
Sales Q2Q%-9.03%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.66% on average over the next years. This is quite good.
  • Based on estimates for the next years, FANG will show a small growth in Revenue. The Revenue will grow by 1.92% on average per year.
EPS Next Y-15.2%
EPS Next 2Y6.22%
EPS Next 3Y11.57%
EPS Next 5Y9.66%
Revenue Next Year2.34%
Revenue Next 2Y1.9%
Revenue Next 3Y1.97%
Revenue Next 5Y1.92%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
FANG Yearly Revenue VS EstimatesFANG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B 15B
FANG Yearly EPS VS EstimatesFANG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5 10 15 20

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3

4. FANG Valuation Analysis

4.1 Price/Earnings Ratio

  • FANG is valuated correctly with a Price/Earnings ratio of 15.64.
  • 64.59% of the companies in the same industry are more expensive than FANG, based on the Price/Earnings ratio.
  • FANG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.78.
  • A Price/Forward Earnings ratio of 18.45 indicates a rather expensive valuation of FANG.
  • The rest of the industry has a similar Price/Forward Earnings ratio as FANG.
  • FANG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.54, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.64
Fwd PE 18.45
FANG Price Earnings VS Forward Price EarningsFANG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FANG indicates a somewhat cheap valuation: FANG is cheaper than 71.29% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.65
FANG Per share dataFANG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80 100

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y6.22%
EPS Next 3Y11.57%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. FANG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.25%, FANG has a reasonable but not impressive dividend return.
  • FANG's Dividend Yield is comparable with the industry average which is at 3.16.
  • Compared to an average S&P500 Dividend Yield of 1.89, FANG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.25%

5.2 History

  • The dividend of FANG is nicely growing with an annual growth rate of 21.95%!
  • FANG has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)21.95%
Div Incr Years0
Div Non Decr Years0
FANG Yearly Dividends per shareFANG Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

5.3 Sustainability

  • 69.81% of the earnings are spent on dividend by FANG. This is not a sustainable payout ratio.
  • The dividend of FANG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP69.81%
EPS Next 2Y6.22%
EPS Next 3Y11.57%
FANG Yearly Income VS Free CF VS DividendFANG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B
FANG Dividend Payout.FANG Dividend Payout, showing the Payout Ratio.FANG Dividend Payout.PayoutRetained Earnings

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FANG Fundamentals: All Metrics, Ratios and Statistics

DIAMONDBACK ENERGY INC

NASDAQ:FANG (4/10/2026, 8:20:03 PM)

After market: 188.54 +0.33 (+0.18%)

188.205

+1.9 (+1.02%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-23
Earnings (Next)05-04
Inst Owners63.99%
Inst Owner Change0%
Ins Owners0.74%
Ins Owner Change-20.69%
Market Cap52.94B
Revenue(TTM)15.03B
Net Income(TTM)1.66B
Analysts83.5
Price Target209.25 (11.18%)
Short Float %5.09%
Short Ratio3.01
Dividend
Industry RankSector Rank
Dividend Yield 2.25%
Yearly Dividend4.02
Dividend Growth(5Y)21.95%
DP69.81%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-05
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.4%
Min EPS beat(2)-18%
Max EPS beat(2)3.2%
EPS beat(4)2
Avg EPS beat(4)-3.51%
Min EPS beat(4)-18%
Max EPS beat(4)7.78%
EPS beat(8)3
Avg EPS beat(8)-3.29%
EPS beat(12)4
Avg EPS beat(12)-2.82%
EPS beat(16)7
Avg EPS beat(16)-1.01%
Revenue beat(2)2
Avg Revenue beat(2)4.67%
Min Revenue beat(2)0.15%
Max Revenue beat(2)9.18%
Revenue beat(4)4
Avg Revenue beat(4)5.7%
Min Revenue beat(4)0.15%
Max Revenue beat(4)9.18%
Revenue beat(8)8
Avg Revenue beat(8)6.01%
Revenue beat(12)10
Avg Revenue beat(12)3.82%
Revenue beat(16)13
Avg Revenue beat(16)4.83%
PT rev (1m)6.58%
PT rev (3m)7.89%
EPS NQ rev (1m)33.33%
EPS NQ rev (3m)6.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.64%
Revenue NQ rev (1m)8.58%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)10.42%
Revenue NY rev (3m)6.35%
Valuation
Industry RankSector Rank
PE 15.64
Fwd PE 18.45
P/S 3.52
P/FCF N/A
P/OCF 6.04
P/B 1.43
P/tB 1.43
EV/EBITDA 6.65
EPS(TTM)12.03
EY6.39%
EPS(NY)10.2
Fwd EY5.42%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)31.13
OCFY16.54%
SpS53.42
BVpS131.43
TBVpS131.43
PEG (NY)N/A
PEG (5Y)0.49
Graham Number188.62
Profitability
Industry RankSector Rank
ROA 2.33%
ROE 4.48%
ROCE 7.54%
ROIC 6.21%
ROICexc 6.22%
ROICexgc 6.22%
OM 33.36%
PM (TTM) 11.02%
GM 68.69%
FCFM N/A
ROA(3y)6.01%
ROA(5y)8.83%
ROE(3y)10.68%
ROE(5y)15.81%
ROIC(3y)8.78%
ROIC(5y)12.79%
ROICexc(3y)8.89%
ROICexc(5y)12.98%
ROICexgc(3y)8.89%
ROICexgc(5y)12.98%
ROCE(3y)10.65%
ROCE(5y)15.52%
ROICexgc growth 3Y-34.85%
ROICexgc growth 5Y17.23%
ROICexc growth 3Y-34.85%
ROICexc growth 5Y17.23%
OM growth 3Y-21.49%
OM growth 5Y11.06%
PM growth 3Y-37.46%
PM growth 5YN/A
GM growth 3Y-6.57%
GM growth 5Y-0.16%
F-Score5
Asset Turnover0.21
Health
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF N/A
Debt/EBITDA 1.37
Cap/Depr 187.79%
Cap/Sales 62.96%
Interest Coverage 32.34
Cash Conversion 87.14%
Profit Quality N/A
Current Ratio 0.42
Quick Ratio 0.4
Altman-Z 1.41
F-Score5
WACC7.3%
ROIC/WACC0.85
Cap/Depr(3y)290.45%
Cap/Depr(5y)262.49%
Cap/Sales(3y)75.17%
Cap/Sales(5y)59.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25%
EPS 3Y-20.61%
EPS 5Y31.67%
EPS Q2Q%-52.2%
EPS Next Y-15.2%
EPS Next 2Y6.22%
EPS Next 3Y11.57%
EPS Next 5Y9.66%
Revenue 1Y (TTM)35.79%
Revenue growth 3Y15.93%
Revenue growth 5Y39.81%
Sales Q2Q%-9.03%
Revenue Next Year2.34%
Revenue Next 2Y1.9%
Revenue Next 3Y1.97%
Revenue Next 5Y1.92%
EBIT growth 1Y6.66%
EBIT growth 3Y-8.98%
EBIT growth 5Y55.27%
EBIT Next Year74.58%
EBIT Next 3Y25.98%
EBIT Next 5Y18.39%
FCF growth 1Y86.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y36.57%
OCF growth 3Y11.46%
OCF growth 5Y32.83%

DIAMONDBACK ENERGY INC / FANG Fundamental Analysis FAQ

What is the ChartMill fundamental rating of DIAMONDBACK ENERGY INC (FANG) stock?

ChartMill assigns a fundamental rating of 4 / 10 to FANG.


What is the valuation status of DIAMONDBACK ENERGY INC (FANG) stock?

ChartMill assigns a valuation rating of 3 / 10 to DIAMONDBACK ENERGY INC (FANG). This can be considered as Overvalued.


How profitable is DIAMONDBACK ENERGY INC (FANG) stock?

DIAMONDBACK ENERGY INC (FANG) has a profitability rating of 5 / 10.


What is the financial health of DIAMONDBACK ENERGY INC (FANG) stock?

The financial health rating of DIAMONDBACK ENERGY INC (FANG) is 2 / 10.


Can you provide the dividend sustainability for FANG stock?

The dividend rating of DIAMONDBACK ENERGY INC (FANG) is 3 / 10 and the dividend payout ratio is 69.81%.