DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis
USA - NASDAQ:FANG - US25278X1090 - Common Stock
142.11 USD
+2.29 (+1.64%)
142.11 USD
0 (0%)
FANG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. FANG scores excellent on profitability, but 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
In the past year FANG was profitable.
FANG had a positive operating cash flow in the past year.
FANG had positive earnings in 4 of the past 5 years.
FANG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FANG (5.31%) is better than 64.93% of its industry peers.
The Return On Equity of FANG (9.82%) is better than 61.14% of its industry peers.
FANG's Return On Invested Capital of 6.25% is in line compared to the rest of the industry. FANG outperforms 55.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FANG is significantly below the industry average of 21.53%.
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 83.41% of the companies in the same industry.
FANG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 37.63%, FANG belongs to the top of the industry, outperforming 85.31% of the companies in the same industry.
FANG's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 70.77%, FANG belongs to the best of the industry, outperforming 81.04% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FANG is still 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
FANG has an Altman-Z score of 1.26. This is a bad value and indicates that FANG is not financially healthy and even has some risk of bankruptcy.
FANG's Altman-Z score of 1.26 is in line compared to the rest of the industry. FANG outperforms 49.29% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that FANG is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.39, FANG perfoms like the industry average, outperforming 55.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACC0.79
WACC7.88%
2.3 Liquidity
FANG has a Current 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.
FANG has a Current ratio of 0.55. This is amonst the worse of the industry: FANG underperforms 85.78% of its industry peers.
A Quick Ratio of 0.52 indicates that FANG may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, FANG is not doing good in the industry: 82.94% of the companies in the same industry are doing better.
| 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 -26.08% in the last year.
The Earnings Per Share has been growing by 19.84% on average over the past years. This is quite good.
The Revenue has grown by 51.78% in the past year. This is a very strong growth!
Measured over the past years, FANG shows a very strong growth in Revenue. The Revenue has been growing by 22.79% on average per year.
EPS 1Y (TTM)-26.08%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-40.93%
Revenue 1Y (TTM)51.78%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.13%
3.2 Future
Based on estimates for the next years, FANG will show a small growth in Earnings Per Share. The EPS will grow by 4.77% on average per year.
The Revenue is expected to grow by 9.64% on average over the next years. This is quite good.
EPS Next Y-17.86%
EPS Next 2Y-11.01%
EPS Next 3Y-0.12%
EPS Next 5Y4.77%
Revenue Next Year35.62%
Revenue Next 2Y15.62%
Revenue Next 3Y13.19%
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
The Price/Earnings ratio is 9.99, which indicates a very decent valuation of FANG.
Based on the Price/Earnings ratio, FANG is valued a bit cheaper than the industry average as 74.88% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FANG to the average of the S&P500 Index (27.35), we can say FANG is valued rather cheaply.
FANG is valuated reasonably with a Price/Forward Earnings ratio of 11.19.
Based on the Price/Forward Earnings ratio, FANG is valued a bit cheaper than 60.66% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. FANG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 11.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FANG is valued a bit cheaper than 68.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.79 |
4.3 Compensation for Growth
FANG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-11.01%
EPS Next 3Y-0.12%
5. Dividend
5.1 Amount
FANG has a Yearly Dividend Yield of 2.77%.
Compared to an average industry Dividend Yield of 6.15, FANG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, FANG has a dividend comparable with the average S&P500 company.
| 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.
The dividend of FANG decreased recently.
Dividend Growth(5Y)57.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
32.98% of the earnings are spent on dividend by FANG. This is a low number and 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-11.01%
EPS Next 3Y-0.12%
142.11
+2.29 (+1.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners61.93%
Inst Owner Change-0.04%
Ins Owners0.72%
Ins Owner Change0.01%
Market Cap41.14B
Analysts84.74
Price Target188.19 (32.43%)
Short Float %4.49%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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)-0.43%
PT rev (3m)-0.01%
EPS NQ rev (1m)1.73%
EPS NQ rev (3m)-6.24%
EPS NY rev (1m)-1.13%
EPS NY rev (3m)-4.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 11.19 | ||
| P/S | 2.92 | ||
| P/FCF | N/A | ||
| P/OCF | 5.43 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 5.79 |
EPS(TTM)14.23
EY10.01%
EPS(NY)12.7
Fwd EY8.94%
FCF(TTM)-29.14
FCFYN/A
OCF(TTM)26.19
OCFY18.43%
SpS48.64
BVpS134.31
TBVpS134.31
PEG (NY)N/A
PEG (5Y)0.5
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%
ROICexcg growth 3Y-27.28%
ROICexcg 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
WACC7.88%
ROIC/WACC0.79
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)-26.08%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-40.93%
EPS Next Y-17.86%
EPS Next 2Y-11.01%
EPS Next 3Y-0.12%
EPS Next 5Y4.77%
Revenue 1Y (TTM)51.78%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.13%
Revenue Next Year35.62%
Revenue Next 2Y15.62%
Revenue Next 3Y13.19%
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%