DIAMONDBACK ENERGY INC (FANG) Fundamental Analysis & Valuation
NASDAQ:FANG • US25278X1090
Current stock price
186.31 USD
-0.16 (-0.09%)
At close:
185.51 USD
-0.8 (-0.43%)
After Hours:
This FANG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. FANG Profitability Analysis
1.1 Basic Checks
- In the past year FANG was profitable.
- In the past year FANG had a positive cash flow from operations.
- In the past 5 years FANG has always been profitable.
- FANG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FANG has a Return On Assets (2.33%) which is comparable to the rest of the industry.
- FANG has a Return On Equity (4.48%) which is comparable to the rest of the industry.
- FANG has a Return On Invested Capital (6.21%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for FANG is significantly below the industry average of 23.10%.
| Industry Rank | Sector 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%
1.3 Margins
- FANG has a Profit Margin of 11.02%. This is comparable to the rest of the industry: FANG outperforms 58.37% of its industry peers.
- In the last couple of years the Profit Margin of FANG has declined.
- With a decent Operating Margin value of 33.36%, FANG is doing good in the industry, outperforming 79.90% of the companies in the same industry.
- FANG's Operating Margin has improved in the last couple of years.
- FANG's Gross Margin of 68.69% is fine compared to the rest of the industry. FANG outperforms 75.60% of its industry peers.
- FANG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. FANG Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FANG is still creating some value.
- FANG has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for FANG has been increased compared to 5 years ago.
- Compared to 1 year ago, FANG has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.42, we must say that FANG is in the distress zone and has some risk of bankruptcy.
- FANG has a Altman-Z score of 1.42. This is comparable to the rest of the industry: FANG outperforms 50.24% of its industry peers.
- FANG has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- FANG has a better Debt to Equity ratio (0.37) than 60.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.42 |
ROIC/WACC0.85
WACC7.27%
2.3 Liquidity
- A Current Ratio of 0.42 indicates that FANG may have some problems paying its short term obligations.
- The Current ratio of FANG (0.42) is worse than 86.12% of its industry peers.
- FANG has a Quick Ratio of 0.42. This is a bad value and indicates that FANG is not financially healthy enough and could expect problems in meeting its short term obligations.
- FANG's Quick ratio of 0.40 is on the low side compared to the rest of the industry. FANG is outperformed by 85.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.4 |
3. FANG Growth Analysis
3.1 Past
- The earnings per share for FANG have decreased strongly by -25.00% in the last year.
- The Earnings Per Share has been growing by 31.67% on average over the past years. This is a very strong growth
- FANG shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.79%.
- The Revenue has been growing by 39.81% on average over the past years. This is a very strong growth!
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
- FANG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.66% yearly.
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. FANG Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.49, FANG is valued correctly.
- 66.51% of the companies in the same industry are more expensive than FANG, based on the Price/Earnings ratio.
- FANG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
- FANG is valuated rather expensively with a Price/Forward Earnings ratio of 18.26.
- The rest of the industry has a similar Price/Forward Earnings ratio as FANG.
- FANG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 18.26 |
4.2 Price Multiples
- 72.25% of the companies in the same industry are more expensive than FANG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.65 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y6.22%
EPS Next 3Y11.57%
5. FANG Dividend Analysis
5.1 Amount
- FANG has a Yearly Dividend Yield of 2.08%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.16, FANG has a dividend in line with its industry peers.
- FANG's Dividend Yield is comparable with the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
- On average, the dividend of FANG grows each year by 21.95%, which is quite nice.
- 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
5.3 Sustainability
- FANG pays out 69.81% of its income as dividend. 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 Fundamentals: All Metrics, Ratios and Statistics
186.31
-0.16 (-0.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-23 2026-02-23/amc
Earnings (Next)05-04 2026-05-04/amc
Inst Owners63.84%
Inst Owner Change0%
Ins Owners0.73%
Ins Owner Change-20.69%
Market Cap52.41B
Revenue(TTM)15.03B
Net Income(TTM)1.66B
Analysts83.5
Price Target199.9 (7.29%)
Short Float %5.09%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend4.02
Dividend Growth(5Y)21.95%
DP69.81%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-05 2026-03-05 (1.05)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.49 | ||
| Fwd PE | 18.26 | ||
| P/S | 3.49 | ||
| P/FCF | N/A | ||
| P/OCF | 5.98 | ||
| P/B | 1.42 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 6.65 |
EPS(TTM)12.03
EY6.46%
EPS(NY)10.2
Fwd EY5.48%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)31.13
OCFY16.71%
SpS53.42
BVpS131.43
TBVpS131.43
PEG (NY)N/A
PEG (5Y)0.49
Graham Number188.62
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.42 |
F-Score5
WACC7.27%
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%.