DIAMONDBACK ENERGY INC (FANG)
US25278X1090 - Common Stock
FANG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 204 industry peers in the Oil, Gas & Consumable Fuels industry. While FANG is still in line with the averages on profitability rating, there are concerns on its financial health. FANG has a correct valuation and a medium 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.
Of the past 5 years FANG 4 years were profitable.
In the past 5 years FANG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FANG (4.91%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.62%, FANG is doing worse than 60.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.75%, FANG is doing worse than 61.58% 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 22.54%.
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 | 4.91% | ||
| ROE | 8.62% | ||
| 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 has a better Profit Margin (33.66%) than 82.27% 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 84.73% of its industry peers.
In the last couple of years the Operating Margin of FANG has grown nicely.
The Gross Margin of FANG (72.00%) is better than 79.80% of its industry peers.
FANG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.56% | ||
| PM (TTM) | 33.66% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FANG is creating value.
FANG has less shares outstanding than it did 1 year ago.
FANG has more shares outstanding than it did 5 years ago.
FANG has a better debt/assets ratio than last year.
2.2 Solvency
FANG has an Altman-Z score of 1.53. This is a bad value and indicates that FANG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.53, FANG perfoms like the industry average, outperforming 47.78% of the companies in the same industry.
FANG has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FANG (0.32) is better than 60.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.53 |
ROIC/WACC0.7
WACC8.27%
2.3 Liquidity
FANG has a Current 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.
With a Current ratio value of 0.45, FANG is not doing good in the industry: 90.64% of the companies in the same industry are doing better.
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.
The Quick ratio of FANG (0.42) is worse than 89.66% of its industry peers.
| 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.
Looking at the last year, FANG shows a quite strong growth in Revenue. The Revenue has grown by 16.67% in the last year.
FANG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.05% yearly.
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
Based on estimates for the next years, FANG will show a decrease in Earnings Per Share. The EPS will decrease by -0.05% on average per year.
The Revenue is expected to grow by 11.87% on average over the next years. This is quite good.
EPS Next Y-5.63%
EPS Next 2Y-5.02%
EPS Next 3Y-1.71%
EPS Next 5Y-0.05%
Revenue Next Year26.4%
Revenue Next 2Y32.45%
Revenue Next 3Y21.86%
Revenue Next 5Y11.87%
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
A Price/Earnings ratio of 10.66 indicates a reasonable 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 62.07% of the companies listed in the same industry.
FANG is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
FANG is valuated reasonably with a Price/Forward Earnings ratio of 11.25.
Based on the Price/Forward Earnings ratio, FANG is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
FANG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.66 | ||
| Fwd PE | 11.25 |
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 | 9.95 |
4.3 Compensation for Growth
FANG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y-5.02%
EPS Next 3Y-1.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, FANG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.45, FANG is paying slightly less dividend.
FANG's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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.
Dividend Growth(5Y)95.11%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FANG pays out 59.49% of its income as dividend. This is a bit on the high side, but may be sustainable.
FANG's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP59.49%
EPS Next 2Y-5.02%
EPS Next 3Y-1.71%
DIAMONDBACK ENERGY INC
NASDAQ:FANG (11/21/2024, 8:25:58 PM)
After market: 182.7 0 (0%)182.7
+1.24 (+0.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap53.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.66 | ||
| Fwd PE | 11.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.91% | ||
| ROE | 8.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 46.56% | ||
| PM (TTM) | 33.66% | ||
| GM | 72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-7.65%
EPS 3Y80.95%
EPS 5Y
EPS Q2Q%
EPS Next Y-5.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.67%
Revenue growth 3Y44.07%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y