DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis
USA - NASDAQ:FANG - US25278X1090 - Common Stock
146.37 USD
-2.83 (-1.9%)
146.37 USD
0 (0%)
Taking everything into account, FANG scores 5 out of 10 in our fundamental rating. FANG was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. FANG has an excellent profitability rating, but there are concerns on its financial health. FANG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FANG was profitable.
In the past year FANG had a positive cash flow from operations.
FANG had positive earnings in 4 of the past 5 years.
In the past 5 years FANG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.48%, FANG is in the better half of the industry, outperforming 67.14% of the companies in the same industry.
FANG has a better Return On Equity (10.69%) than 64.29% of its industry peers.
FANG has a Return On Invested Capital (6.23%) which is in line with its industry peers.
FANG had an Average Return On Invested Capital over the past 3 years of 13.71%. This is significantly below the industry average of 21.71%.
The 3 year average ROIC (13.71%) for FANG is well above the current ROIC(6.23%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.69% | ||
| ROIC | 6.23% |
ROA(3y)10.76%
ROA(5y)3.23%
ROE(3y)18.84%
ROE(5y)4.64%
ROIC(3y)13.71%
ROIC(5y)11.82%
1.3 Margins
The Profit Margin of FANG (27.20%) is better than 84.29% of its industry peers.
FANG's Profit Margin has improved in the last couple of years.
FANG has a better Operating Margin (36.35%) than 83.33% of its industry peers.
In the last couple of years the Operating Margin of FANG has grown nicely.
FANG's Gross Margin of 70.42% is amongst the best of the industry. FANG outperforms 80.95% of its industry peers.
FANG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.35% | ||
| PM (TTM) | 27.2% | ||
| GM | 70.42% |
OM growth 3Y-10.89%
OM growth 5Y2.54%
PM growth 3Y-2.26%
PM growth 5Y37.7%
GM growth 3Y-4.27%
GM growth 5Y-1.55%
2. Health
2.1 Basic Checks
FANG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FANG has been increased compared to 1 year ago.
Compared to 5 years ago, FANG has more shares outstanding
The debt/assets ratio for FANG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that FANG is in the distress zone and has some risk of bankruptcy.
FANG has a Altman-Z score (1.24) which is in line with its industry peers.
FANG has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
FANG has a Debt to Equity ratio (0.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.78
WACC7.98%
2.3 Liquidity
A Current Ratio of 0.62 indicates that FANG may have some problems paying its short term obligations.
With a Current ratio value of 0.62, FANG is not doing good in the industry: 79.05% of the companies in the same industry are doing better.
FANG has a Quick Ratio of 0.62. 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 0.60 is on the low side compared to the rest of the industry. FANG is outperformed by 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
FANG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.73%.
FANG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.84% yearly.
FANG shows a strong growth in Revenue. In the last year, the Revenue has grown by 60.29%.
The Revenue has been growing by 22.79% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-18.73%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-8.88%
Revenue 1Y (TTM)60.29%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.36%
3.2 Future
The Earnings Per Share is expected to grow by 3.64% on average over the next years.
The Revenue is expected to grow by 9.64% on average over the next years. This is quite good.
EPS Next Y-17.89%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
EPS Next 5Y3.64%
Revenue Next Year36.06%
Revenue Next 2Y15.59%
Revenue Next 3Y12.95%
Revenue Next 5Y9.64%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.51 indicates a reasonable valuation of FANG.
Based on the Price/Earnings ratio, FANG is valued a bit cheaper than 76.67% of the companies in the same industry.
FANG is valuated cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.70, the valuation of FANG can be described as reasonable.
65.71% of the companies in the same industry are more expensive than FANG, based on the Price/Forward Earnings ratio.
FANG is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 11.7 |
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 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.71 |
4.3 Compensation for Growth
The decent profitability rating of FANG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.77%, FANG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.86, FANG has a dividend in line with its industry peers.
FANG's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
On average, the dividend of FANG grows each year by 57.49%, 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)57.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
27.09% of the earnings are spent on dividend by FANG. This is a low number and sustainable payout ratio.
The dividend of FANG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.09%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
146.37
-2.83 (-1.9%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners61.93%
Inst Owner Change1.31%
Ins Owners0.72%
Ins Owner Change0.01%
Market Cap42.37B
Revenue(TTM)15.36B
Net Income(TTM)4.18B
Analysts84.21
Price Target184.95 (26.36%)
Short Float %4.6%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend6.72
Dividend Growth(5Y)57.49%
DP27.09%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.91%
Min EPS beat(2)-7.02%
Max EPS beat(2)3.2%
EPS beat(4)3
Avg EPS beat(4)2.65%
Min EPS beat(4)-7.02%
Max EPS beat(4)7.78%
EPS beat(8)3
Avg EPS beat(8)-1.08%
EPS beat(12)4
Avg EPS beat(12)-1.37%
EPS beat(16)8
Avg EPS beat(16)0.45%
Revenue beat(2)2
Avg Revenue beat(2)8.1%
Min Revenue beat(2)7.01%
Max Revenue beat(2)9.18%
Revenue beat(4)4
Avg Revenue beat(4)6.44%
Min Revenue beat(4)3.11%
Max Revenue beat(4)9.18%
Revenue beat(8)8
Avg Revenue beat(8)6.08%
Revenue beat(12)9
Avg Revenue beat(12)3.43%
Revenue beat(16)13
Avg Revenue beat(16)6.03%
PT rev (1m)-1.72%
PT rev (3m)-1.59%
EPS NQ rev (1m)-5.87%
EPS NQ rev (3m)-9.86%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 11.7 | ||
| P/S | 2.76 | ||
| P/FCF | N/A | ||
| P/OCF | 4.84 | ||
| P/B | 1.08 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)13.93
EY9.52%
EPS(NY)12.51
Fwd EY8.55%
FCF(TTM)-3.78
FCFYN/A
OCF(TTM)30.25
OCFY20.66%
SpS53.06
BVpS135.02
TBVpS135.02
PEG (NY)N/A
PEG (5Y)0.53
Graham Number205.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.69% | ||
| ROCE | 7.75% | ||
| ROIC | 6.23% | ||
| ROICexc | 6.24% | ||
| ROICexgc | 6.24% | ||
| OM | 36.35% | ||
| PM (TTM) | 27.2% | ||
| GM | 70.42% | ||
| FCFM | N/A |
ROA(3y)10.76%
ROA(5y)3.23%
ROE(3y)18.84%
ROE(5y)4.64%
ROIC(3y)13.71%
ROIC(5y)11.82%
ROICexc(3y)13.87%
ROICexc(5y)12.01%
ROICexgc(3y)13.87%
ROICexgc(5y)12.01%
ROCE(3y)17.06%
ROCE(5y)14.7%
ROICexgc growth 3Y-27.28%
ROICexgc growth 5Y2.37%
ROICexc growth 3Y-27.28%
ROICexc growth 5Y2.37%
OM growth 3Y-10.89%
OM growth 5Y2.54%
PM growth 3Y-2.26%
PM growth 5Y37.7%
GM growth 3Y-4.27%
GM growth 5Y-1.55%
F-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 205% | ||
| Cap/Sales | 64.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.24 |
F-Score7
WACC7.98%
ROIC/WACC0.78
Cap/Depr(3y)314.79%
Cap/Depr(5y)256.28%
Cap/Sales(3y)66.3%
Cap/Sales(5y)61.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.73%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-8.88%
EPS Next Y-17.89%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
EPS Next 5Y3.64%
Revenue 1Y (TTM)60.29%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.36%
Revenue Next Year36.06%
Revenue Next 2Y15.59%
Revenue Next 3Y12.95%
Revenue Next 5Y9.64%
EBIT growth 1Y25.15%
EBIT growth 3Y4.83%
EBIT growth 5Y25.91%
EBIT Next Year118.23%
EBIT Next 3Y32.79%
EBIT Next 5Y19.15%
FCF growth 1Y-208.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y52.62%
OCF growth 3Y17.59%
OCF growth 5Y18.59%
DIAMONDBACK ENERGY INC / FANG FAQ
What is the ChartMill fundamental rating of DIAMONDBACK ENERGY INC (FANG) stock?
ChartMill assigns a fundamental rating of 5 / 10 to FANG.
Can you provide the valuation status for DIAMONDBACK ENERGY INC?
ChartMill assigns a valuation rating of 5 / 10 to DIAMONDBACK ENERGY INC (FANG). This can be considered as Fairly Valued.
What is the profitability of FANG stock?
DIAMONDBACK ENERGY INC (FANG) has a profitability rating of 7 / 10.
What is the financial health of DIAMONDBACK ENERGY INC (FANG) stock?
The financial health rating of DIAMONDBACK ENERGY INC (FANG) is 2 / 10.
What is the expected EPS growth for DIAMONDBACK ENERGY INC (FANG) stock?
The Earnings per Share (EPS) of DIAMONDBACK ENERGY INC (FANG) is expected to decline by -17.89% in the next year.