DIAMONDBACK ENERGY INC (FANG) Fundamental Analysis & Valuation

NASDAQ:FANG • US25278X1090

Current stock price

192.54 USD
+2.23 (+1.17%)
At close:
190.1 USD
-2.44 (-1.27%)
After Hours:

This FANG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

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.
  • Each year in the past 5 years FANG had a positive operating cash flow.
FANG Yearly Net Income VS EBIT VS OCF VS FCFFANG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B

1.2 Ratios

  • FANG has a Return On Assets of 2.33%. This is comparable to the rest of the industry: FANG outperforms 43.75% of its industry peers.
  • Looking at the Return On Equity, with a value of 4.48%, FANG is in line with its industry, outperforming 42.31% of the companies in the same industry.
  • FANG has a Return On Invested Capital of 6.21%. This is comparable to the rest of the industry: FANG outperforms 56.73% of its industry peers.
  • FANG had an Average Return On Invested Capital over the past 3 years of 8.78%. This is significantly below the industry average of 22.30%.
Industry RankSector 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%
FANG Yearly ROA, ROE, ROICFANG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40

1.3 Margins

  • FANG has a Profit Margin of 11.02%. This is comparable to the rest of the industry: FANG outperforms 59.13% of its industry peers.
  • FANG's Profit Margin has declined in the last couple of years.
  • FANG has a better Operating Margin (33.36%) than 80.77% of its industry peers.
  • In the last couple of years the Operating Margin of FANG has grown nicely.
  • Looking at the Gross Margin, with a value of 68.69%, FANG is in the better half of the industry, outperforming 75.96% of the companies in the same industry.
  • FANG's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
FANG Yearly Profit, Operating, Gross MarginsFANG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100 -150

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

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.
  • Compared to 5 years ago, FANG has more shares outstanding
  • The debt/assets ratio for FANG is higher compared to a year ago.
FANG Yearly Shares OutstandingFANG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
FANG Yearly Total Debt VS Total AssetsFANG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • FANG has an Altman-Z score of 1.44. This is a bad value and indicates that FANG is not financially healthy and even has some risk of bankruptcy.
  • FANG has a Altman-Z score of 1.44. This is comparable to the rest of the industry: FANG outperforms 50.48% 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.
  • The Debt to Equity ratio of FANG (0.37) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.37
Debt/FCF N/A
Altman-Z 1.44
ROIC/WACC0.84
WACC7.4%
FANG Yearly LT Debt VS Equity VS FCFFANG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B

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 87.50% 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 86.54% of its industry peers.
Industry RankSector Rank
Current Ratio 0.42
Quick Ratio 0.4
FANG Yearly Current Assets VS Current LiabilitesFANG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. FANG Growth Analysis

3.1 Past

  • FANG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.00%.
  • Measured over the past years, FANG shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.67% on average per year.
  • Looking at the last year, FANG shows a very strong growth in Revenue. The Revenue has grown by 35.79%.
  • FANG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.81% yearly.
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.
  • The Revenue is expected to grow by 1.92% on average over the next years.
EPS Next Y-15.2%
EPS Next 2Y6.22%
EPS Next 3Y11.57%
EPS Next 5Y9.66%
Revenue Next Year-7.31%
Revenue Next 2Y0.18%
Revenue Next 3Y2.46%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
FANG Yearly Revenue VS EstimatesFANG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B 15B
FANG Yearly EPS VS EstimatesFANG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5 10 15 20

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2

4. FANG Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 16.00, which indicates a correct 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 66.35% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.23. FANG is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 18.87, FANG is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of FANG is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 23.28. FANG is around the same levels.
Industry RankSector Rank
PE 16
Fwd PE 18.87
FANG Price Earnings VS Forward Price EarningsFANG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • FANG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FANG is cheaper than 72.60% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.77
FANG Per share dataFANG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80 100

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y6.22%
EPS Next 3Y11.57%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. FANG Dividend Analysis

5.1 Amount

  • FANG has a Yearly Dividend Yield of 2.21%.
  • FANG's Dividend Yield is comparable with the industry average which is at 3.35.
  • Compared to an average S&P500 Dividend Yield of 1.89, FANG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.21%

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.
  • The dividend of FANG decreased recently.
Dividend Growth(5Y)21.95%
Div Incr Years1
Div Non Decr Years1
FANG Yearly Dividends per shareFANG Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8

5.3 Sustainability

  • 69.81% of the earnings are spent on dividend by FANG. This is not a sustainable payout ratio.
  • FANG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP69.81%
EPS Next 2Y6.22%
EPS Next 3Y11.57%
FANG Yearly Income VS Free CF VS DividendFANG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B
FANG Dividend Payout.FANG Dividend Payout, showing the Payout Ratio.FANG Dividend Payout.PayoutRetained Earnings

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FANG Fundamentals: All Metrics, Ratios and Statistics

DIAMONDBACK ENERGY INC

NASDAQ:FANG (3/20/2026, 8:00:02 PM)

After market: 190.1 -2.44 (-1.27%)

192.54

+2.23 (+1.17%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-23
Earnings (Next)05-04
Inst Owners63.84%
Inst Owner Change0.3%
Ins Owners0.73%
Ins Owner Change-4.91%
Market Cap54.16B
Revenue(TTM)15.03B
Net Income(TTM)1.66B
Analysts84.21
Price Target187.56 (-2.59%)
Short Float %4.85%
Short Ratio3.12
Dividend
Industry RankSector Rank
Dividend Yield 2.21%
Yearly Dividend4.02
Dividend Growth(5Y)21.95%
DP69.81%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-05
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)-0.24%
PT rev (3m)1.2%
EPS NQ rev (1m)-11.23%
EPS NQ rev (3m)-19.87%
EPS NY rev (1m)-3.93%
EPS NY rev (3m)-16.83%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-2.44%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-3.09%
Valuation
Industry RankSector Rank
PE 16
Fwd PE 18.87
P/S 3.61
P/FCF N/A
P/OCF 6.2
P/B 1.47
P/tB 1.47
EV/EBITDA 6.77
EPS(TTM)12.03
EY6.25%
EPS(NY)10.2
Fwd EY5.3%
FCF(TTM)-2.49
FCFYN/A
OCF(TTM)31.05
OCFY16.13%
SpS53.27
BVpS131.07
TBVpS131.07
PEG (NY)N/A
PEG (5Y)0.51
Graham Number188.35
Profitability
Industry RankSector 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 RankSector 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 1.44
F-Score5
WACC7.4%
ROIC/WACC0.84
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 Year-7.31%
Revenue Next 2Y0.18%
Revenue Next 3Y2.46%
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 2 / 10 to DIAMONDBACK ENERGY INC (FANG). This can be considered as Overvalued.


What is the profitability of FANG stock?

DIAMONDBACK ENERGY INC (FANG) has a profitability rating of 5 / 10.


What is the valuation of DIAMONDBACK ENERGY INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for DIAMONDBACK ENERGY INC (FANG) is 16 and the Price/Book (PB) ratio is 1.47.


Can you provide the dividend sustainability for FANG stock?

The dividend rating of DIAMONDBACK ENERGY INC (FANG) is 4 / 10 and the dividend payout ratio is 69.81%.