DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis
USA - NASDAQ:FANG - US25278X1090 - Common Stock
139.42 USD
-1.85 (-1.31%)
139.482 USD
+0.06 (+0.04%)
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. While FANG belongs to the best of the industry regarding profitability, there are concerns on its financial health. 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.
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
FANG has a better Return On Assets (5.31%) than 65.24% of its industry peers.
Looking at the Return On Equity, with a value of 9.82%, FANG is in the better half of the industry, outperforming 61.43% of the companies in the same industry.
With a Return On Invested Capital value of 6.25%, FANG perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FANG is significantly below the industry average of 21.78%.
The last Return On Invested Capital (6.25%) for FANG is well below the 3 year average (13.71%), which needs to be investigated, but indicates that FANG had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 9.82% | ||
| ROIC | 6.25% |
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
Looking at the Profit Margin, with a value of 27.11%, FANG belongs to the top of the industry, outperforming 83.81% of the companies in the same industry.
In the last couple of years the Profit Margin of FANG has grown nicely.
The Operating Margin of FANG (37.63%) is better than 85.24% of its industry peers.
In the last couple of years the Operating Margin of FANG has grown nicely.
FANG's Gross Margin of 70.77% is amongst the best of the industry. FANG outperforms 80.95% of its industry peers.
In the last couple of years the Gross Margin of FANG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.63% | ||
| PM (TTM) | 27.11% | ||
| GM | 70.77% |
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.
FANG has more shares outstanding than it did 1 year ago.
FANG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FANG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that FANG is in the distress zone and has some risk of bankruptcy.
FANG has a Altman-Z score (1.26) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.39 indicates that FANG is not too dependend on debt financing.
FANG has a Debt to Equity ratio (0.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACC0.8
WACC7.8%
2.3 Liquidity
A Current Ratio of 0.55 indicates that FANG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.55, FANG is doing worse than 85.71% of the companies in the same industry.
FANG has a Quick Ratio of 0.55. 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 0.52, FANG is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for FANG have decreased strongly by -18.73% in the last year.
Measured over the past years, FANG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.84% on average per year.
Looking at the last year, FANG shows a very strong growth in Revenue. The Revenue has grown by 31.55%.
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)31.55%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.36%
3.2 Future
FANG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.77% yearly.
Based on estimates for the next years, FANG will show a quite strong growth in Revenue. The Revenue will grow by 9.64% on average per year.
EPS Next Y-17.89%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
EPS Next 5Y4.77%
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
Based on the Price/Earnings ratio of 10.01, the valuation of FANG can be described as reasonable.
FANG's Price/Earnings ratio is a bit cheaper when compared to the industry. FANG is cheaper than 76.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. FANG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.14, which indicates a very decent valuation of FANG.
Based on the Price/Forward Earnings ratio, FANG is valued a bit cheaper than 64.76% of the companies in the same industry.
FANG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 11.14 |
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 69.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.84 |
4.3 Compensation for Growth
The decent profitability rating of FANG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.83%, FANG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.82, FANG has a dividend in line with its industry peers.
FANG's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of FANG is nicely growing with an annual growth rate of 57.49%!
FANG has been paying a dividend for over 5 years, so it has already some track record.
The dividend of FANG decreased recently.
Dividend Growth(5Y)57.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FANG pays out 32.98% of its income as dividend. This is a sustainable payout ratio.
FANG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.98%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
139.42
-1.85 (-1.31%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners61.93%
Inst Owner Change-1.16%
Ins Owners0.72%
Ins Owner Change0.01%
Market Cap40.36B
Revenue(TTM)11.07B
Net Income(TTM)3.82B
Analysts84.21
Price Target184.95 (32.66%)
Short Float %4.6%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend6.72
Dividend Growth(5Y)57.49%
DP32.98%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.38%
Min EPS beat(2)-7.02%
Max EPS beat(2)7.78%
EPS beat(4)2
Avg EPS beat(4)-2.35%
Min EPS beat(4)-16.8%
Max EPS beat(4)7.78%
EPS beat(8)3
Avg EPS beat(8)-0.55%
EPS beat(12)4
Avg EPS beat(12)-1.61%
EPS beat(16)8
Avg EPS beat(16)0.52%
Revenue beat(2)2
Avg Revenue beat(2)6.73%
Min Revenue beat(2)6.44%
Max Revenue beat(2)7.01%
Revenue beat(4)4
Avg Revenue beat(4)5.7%
Min Revenue beat(4)3.11%
Max Revenue beat(4)7.01%
Revenue beat(8)8
Avg Revenue beat(8)5.5%
Revenue beat(12)9
Avg Revenue beat(12)2.7%
Revenue beat(16)13
Avg Revenue beat(16)6.87%
PT rev (1m)-1.99%
PT rev (3m)-1.99%
EPS NQ rev (1m)2.1%
EPS NQ rev (3m)-6.09%
EPS NY rev (1m)1.77%
EPS NY rev (3m)-2.36%
Revenue NQ rev (1m)1.84%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 11.14 | ||
| P/S | 2.87 | ||
| P/FCF | N/A | ||
| P/OCF | 5.32 | ||
| P/B | 1.04 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 5.84 |
EPS(TTM)13.93
EY9.99%
EPS(NY)12.51
Fwd EY8.98%
FCF(TTM)-29.14
FCFYN/A
OCF(TTM)26.19
OCFY18.79%
SpS48.64
BVpS134.31
TBVpS134.31
PEG (NY)N/A
PEG (5Y)0.5
Graham Number205.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 9.82% | ||
| ROCE | 7.77% | ||
| ROIC | 6.25% | ||
| ROICexc | 6.27% | ||
| ROICexgc | 6.27% | ||
| OM | 37.63% | ||
| PM (TTM) | 27.11% | ||
| GM | 70.77% | ||
| 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-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 375.95% | ||
| Cap/Sales | 113.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.26 |
F-Score5
WACC7.8%
ROIC/WACC0.8
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 5Y4.77%
Revenue 1Y (TTM)31.55%
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 1Y9.6%
EBIT growth 3Y4.83%
EBIT growth 5Y25.91%
EBIT Next Year118.23%
EBIT Next 3Y32.79%
EBIT Next 5Y20.87%
FCF growth 1Y-598.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.27%
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.