DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis
NASDAQ:FANG - Nasdaq - US25278X1090 - Common Stock - Currency: USD
Overall FANG gets a fundamental rating of 5 out of 10. We evaluated FANG against 210 industry peers in the Oil, Gas & Consumable Fuels industry. FANG has a medium profitability rating, but doesn't score so well on its financial health evaluation. FANG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FANG had positive earnings in the past year.
In the past year FANG had a positive cash flow from operations.
FANG had positive earnings in 4 of the past 5 years.
FANG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.87%, FANG perfoms like the industry average, outperforming 49.03% of the companies in the same industry.
FANG has a Return On Equity (8.55%) which is comparable to the rest of the industry.
FANG has a Return On Invested Capital of 5.75%. This is in the lower half of the industry: FANG underperforms 60.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FANG is significantly below the industry average of 28.71%.
The last Return On Invested Capital (5.75%) for FANG is well below the 3 year average (16.51%), which needs to be investigated, but indicates that FANG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 8.55% | ||
| ROIC | 5.75% |
ROA(3y)12.29%
ROA(5y)2.45%
ROE(3y)21.92%
ROE(5y)3.24%
ROIC(3y)16.51%
ROIC(5y)11.49%
1.3 Margins
FANG's Profit Margin of 33.41% is amongst the best of the industry. FANG outperforms 82.52% of its industry peers.
FANG's Profit Margin has been stable in the last couple of years.
The Operating Margin of FANG (46.56%) is better than 85.92% of its industry peers.
In the last couple of years the Operating Margin of FANG has grown nicely.
FANG's Gross Margin of 72.00% is fine compared to the rest of the industry. FANG outperforms 78.64% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.56% | ||
| PM (TTM) | 33.41% | ||
| GM | 72% |
OM growth 3Y41.13%
OM growth 5Y2.5%
PM growth 3YN/A
PM growth 5Y-0.92%
GM growth 3Y4.34%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
FANG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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.
Compared to 1 year ago, FANG has an improved debt to assets ratio.
2.2 Solvency
FANG has an Altman-Z score of 1.46. This is a bad value and indicates that FANG is not financially healthy and even has some risk of bankruptcy.
FANG has a Altman-Z score (1.46) which is in line with its industry peers.
FANG has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
FANG has a Debt to Equity ratio (0.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.46 |
ROIC/WACC0.69
WACC8.34%
2.3 Liquidity
A Current Ratio of 0.45 indicates that FANG may have some problems paying its short term obligations.
FANG's Current ratio of 0.45 is on the low side compared to the rest of the industry. FANG is outperformed by 89.81% of its industry peers.
FANG has a Quick Ratio of 0.45. This is a bad value and indicates that FANG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.42, FANG is doing worse than 89.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for FANG have decreased by -7.65% in the last year.
Measured over the past years, FANG shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.14% on average per year.
FANG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.67%.
The Revenue has been growing by 31.05% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-7.65%
EPS 3Y80.95%
EPS 5Y24.14%
EPS Q2Q%-38.43%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y44.07%
Revenue growth 5Y31.05%
Sales Q2Q%13.03%
3.2 Future
The Earnings Per Share is expected to decrease by -1.57% on average over the next years.
FANG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.83% yearly.
EPS Next Y-9.18%
EPS Next 2Y-8.13%
EPS Next 3Y-3.27%
EPS Next 5Y-1.57%
Revenue Next Year29.22%
Revenue Next 2Y32.2%
Revenue Next 3Y21.19%
Revenue Next 5Y11.83%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.01, which indicates a very decent valuation of FANG.
Compared to the rest of the industry, the Price/Earnings ratio of FANG indicates a somewhat cheap valuation: FANG is cheaper than 67.96% of the companies listed in the same industry.
FANG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 11.29, which indicates a very decent valuation of FANG.
63.59% of the companies in the same industry are more expensive than FANG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FANG to the average of the S&P500 Index (91.29), we can say FANG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FANG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
The decent profitability rating of FANG may justify a higher PE ratio.
FANG's earnings are expected to decrease with -3.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y-8.13%
EPS Next 3Y-3.27%
5. Dividend
5.1 Amount
FANG has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
FANG's Dividend Yield is slightly below the industry average, which is at 6.55.
Compared to an average S&P500 Dividend Yield of 2.27, FANG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
On average, the dividend of FANG grows each year by 95.11%, which is quite nice.
FANG has been paying a dividend for over 5 years, so it has already some track record.
FANG has decreased its dividend recently.
Dividend Growth(5Y)95.11%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FANG pays out 59.93% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of FANG has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP59.93%
EPS Next 2Y-8.13%
EPS Next 3Y-3.27%
DIAMONDBACK ENERGY INC
NASDAQ:FANG (1/30/2025, 1:43:31 PM)
171.62
+0.76 (+0.44%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.07%
Inst Owner Change-1.25%
Ins Owners34.75%
Ins Owner Change-0.87%
Market Cap50.11B
Analysts80.56
Price Target220.83 (28.67%)
Short Float %2.78%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend8.05
Dividend Growth(5Y)95.11%
DP59.93%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.32%
Min EPS beat(2)-16.8%
Max EPS beat(2)-1.85%
EPS beat(4)0
Avg EPS beat(4)-4.81%
Min EPS beat(4)-16.8%
Max EPS beat(4)-0.26%
EPS beat(8)1
Avg EPS beat(8)-3.39%
EPS beat(12)5
Avg EPS beat(12)-0.28%
EPS beat(16)8
Avg EPS beat(16)2.04%
Revenue beat(2)2
Avg Revenue beat(2)8.84%
Min Revenue beat(2)6.22%
Max Revenue beat(2)11.45%
Revenue beat(4)4
Avg Revenue beat(4)5.72%
Min Revenue beat(4)0.72%
Max Revenue beat(4)11.45%
Revenue beat(8)5
Avg Revenue beat(8)1.92%
Revenue beat(12)9
Avg Revenue beat(12)5.89%
Revenue beat(16)12
Avg Revenue beat(16)8.01%
PT rev (1m)-0.7%
PT rev (3m)-0.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-29.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)40.4%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)11.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 11.29 | ||
| P/S | 5.23 | ||
| P/FCF | N/A | ||
| P/OCF | 8.8 | ||
| P/B | 1.34 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)17.14
EY9.99%
EPS(NY)15.2
Fwd EY8.86%
FCF(TTM)-19.52
FCFYN/A
OCF(TTM)19.51
OCFY11.37%
SpS32.82
BVpS128.19
TBVpS128.19
PEG (NY)N/A
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.87% | ||
| ROE | 8.55% | ||
| ROCE | 7.28% | ||
| ROIC | 5.75% | ||
| ROICexc | 5.79% | ||
| ROICexgc | 5.79% | ||
| OM | 46.56% | ||
| PM (TTM) | 33.41% | ||
| GM | 72% | ||
| FCFM | N/A |
ROA(3y)12.29%
ROA(5y)2.45%
ROE(3y)21.92%
ROE(5y)3.24%
ROIC(3y)16.51%
ROIC(5y)11.49%
ROICexc(3y)16.81%
ROICexc(5y)11.68%
ROICexgc(3y)16.81%
ROICexgc(5y)11.68%
ROCE(3y)20.89%
ROCE(5y)14.53%
ROICexcg growth 3Y73.25%
ROICexcg growth 5Y27.61%
ROICexc growth 3Y73.25%
ROICexc growth 5Y27.61%
OM growth 3Y41.13%
OM growth 5Y2.5%
PM growth 3YN/A
PM growth 5Y-0.92%
GM growth 3Y4.34%
GM growth 5Y-0.33%
F-Score5
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 526.91% | ||
| Cap/Sales | 118.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.46 |
F-Score5
WACC8.34%
ROIC/WACC0.69
Cap/Depr(3y)237.03%
Cap/Depr(5y)224.74%
Cap/Sales(3y)42.07%
Cap/Sales(5y)58.45%
Profit Quality(3y)59.65%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.65%
EPS 3Y80.95%
EPS 5Y24.14%
EPS Q2Q%-38.43%
EPS Next Y-9.18%
EPS Next 2Y-8.13%
EPS Next 3Y-3.27%
EPS Next 5Y-1.57%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y44.07%
Revenue growth 5Y31.05%
Sales Q2Q%13.03%
Revenue Next Year29.22%
Revenue Next 2Y32.2%
Revenue Next 3Y21.19%
Revenue Next 5Y11.83%
EBIT growth 1Y-3.73%
EBIT growth 3Y103.32%
EBIT growth 5Y34.32%
EBIT Next Year67.01%
EBIT Next 3Y33.95%
EBIT Next 5Y16.23%
FCF growth 1Y-277.16%
FCF growth 3Y153.54%
FCF growth 5YN/A
OCF growth 1Y-5.87%
OCF growth 3Y40.86%
OCF growth 5Y30.49%