DIAMONDBACK ENERGY INC (FANG)
US25278X1090 - Common Stock
FANG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 205 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FANG had positive earnings in the past year.
FANG had a positive operating cash flow in the past year.
FANG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years FANG had a positive operating cash flow.
1.2 Ratios
FANG's Return On Assets of 4.87% is in line compared to the rest of the industry. FANG outperforms 48.04% of its industry peers.
FANG has a Return On Equity of 8.55%. This is in the lower half of the industry: FANG underperforms 60.29% of its industry peers.
FANG has a Return On Invested Capital (5.75%) which is comparable to the rest of the industry.
FANG had an Average Return On Invested Capital over the past 3 years of 16.51%. This is significantly below the industry average of 29.03%.
The 3 year average ROIC (16.51%) for FANG is well above the current ROIC(5.75%). The reason for the recent decline needs to be investigated.
| 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 81.37% of its industry peers.
FANG's Profit Margin has been stable in the last couple of years.
FANG's Operating Margin of 46.56% is amongst the best of the industry. FANG outperforms 84.80% of its industry peers.
FANG's Operating Margin has improved in the last couple of years.
FANG has a Gross Margin of 72.00%. This is in the better half of the industry: FANG outperforms 79.90% 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) | 33.41% | ||
| 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
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.
The number of shares outstanding for FANG has been increased compared to 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 1.37. This is a bad value and indicates that FANG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FANG (1.37) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.32 indicates that FANG is not too dependend on debt financing.
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 | 1.37 |
ROIC/WACC0.69
WACC8.32%
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.
FANG's Current ratio of 0.45 is on the low side compared to the rest of the industry. FANG is outperformed by 89.22% 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.
FANG has a Quick ratio of 0.42. This is amonst the worse of the industry: FANG underperforms 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
FANG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.65%.
The Earnings Per Share has been growing by 24.14% on average over the past years. This is a very strong growth
The Revenue has grown by 16.67% in the past year. This is quite good.
Measured over the past years, FANG shows a very strong growth in Revenue. The Revenue has been growing by 31.05% on average per year.
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 -1.57% on average per year.
Based on estimates for the next years, FANG will show a quite strong growth in Revenue. The Revenue will grow by 11.83% on average per year.
EPS Next Y-9.18%
EPS Next 2Y-8.13%
EPS Next 3Y-3.27%
EPS Next 5Y-1.57%
Revenue Next Year28.84%
Revenue Next 2Y32.28%
Revenue Next 3Y21.36%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.22, the valuation of FANG can be described as very reasonable.
Based on the Price/Earnings ratio, FANG is valued a bit cheaper than the industry average as 67.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.55, FANG is valued rather cheaply.
The Price/Forward Earnings ratio is 10.40, which indicates a very decent valuation of FANG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FANG indicates a somewhat cheap valuation: FANG is cheaper than 64.22% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.00. FANG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FANG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.85 |
4.3 Compensation for Growth
FANG has a very decent profitability rating, which 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)0.38
EPS Next 2Y-8.13%
EPS Next 3Y-3.27%
5. Dividend
5.1 Amount
FANG has a Yearly Dividend Yield of 2.35%.
Compared to an average industry Dividend Yield of 7.14, FANG is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, FANG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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.
The dividend of FANG decreased 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.
FANG's earnings are declining while the Dividend Rate has been growing. 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 (12/26/2024, 6:04:56 PM)
After market: 158.01 -0.02 (-0.01%)158.03
+0.26 (+0.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.07%
Inst Owner Change5.88%
Ins Owners34.75%
Ins Owner Change-0.87%
Market Cap46.14B
Analysts80
Price Target222.4 (40.73%)
Short Float %2.9%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Dividend Growth(5Y)95.11%
DP59.93%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-0.21%
PT rev (3m)-3.33%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)-29.3%
EPS NY rev (1m)-3.77%
EPS NY rev (3m)-15.55%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)40.4%
Revenue NY rev (1m)1.93%
Revenue NY rev (3m)12.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 10.4 | ||
| P/S | 4.82 | ||
| P/FCF | N/A | ||
| P/OCF | 8.1 | ||
| P/B | 1.23 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 8.85 |
EPS(TTM)17.14
EY10.85%
EPS(NY)15.2
Fwd EY9.62%
FCF(TTM)-19.52
FCFYN/A
OCF(TTM)19.51
OCFY12.34%
SpS32.82
BVpS128.19
TBVpS128.19
PEG (NY)N/A
PEG (5Y)0.38
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 | 1.37 |
F-Score5
WACC8.32%
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 Year28.84%
Revenue Next 2Y32.28%
Revenue Next 3Y21.36%
Revenue Next 5Y11.83%
EBIT growth 1Y-3.73%
EBIT growth 3Y103.32%
EBIT growth 5Y34.32%
EBIT Next Year68.57%
EBIT Next 3Y33.83%
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%