DIAMONDBACK ENERGY INC (FANG) Fundamental Analysis & Valuation
NASDAQ:FANG • US25278X1090
Current stock price
193.88 USD
+3.26 (+1.71%)
At close:
194.96 USD
+1.08 (+0.56%)
After Hours:
This FANG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. FANG Profitability Analysis
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 each of the past 5 years.
- In the past 5 years FANG always reported a positive cash flow from operatings.
1.2 Ratios
- FANG has a Return On Assets of 2.33%. This is comparable to the rest of the industry: FANG outperforms 44.50% of its industry peers.
- FANG's Return On Equity of 4.48% is in line compared to the rest of the industry. FANG outperforms 43.54% of its industry peers.
- With a Return On Invested Capital value of 6.21%, FANG perfoms like the industry average, outperforming 56.94% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for FANG is significantly below the industry average of 23.10%.
| Industry Rank | Sector 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%
1.3 Margins
- The Profit Margin of FANG (11.02%) is comparable to the rest of the industry.
- FANG's Profit Margin has declined in the last couple of years.
- FANG has a Operating Margin of 33.36%. This is in the better half of the industry: FANG outperforms 79.90% of its industry peers.
- FANG's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 68.69%, FANG is doing good in the industry, outperforming 75.60% of the companies in the same industry.
- In the last couple of years the Gross Margin of FANG has remained more or less at the same level.
| Industry Rank | Sector 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%
2. FANG Health Analysis
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 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.
2.2 Solvency
- Based on the Altman-Z score of 1.45, we must say that FANG is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of FANG (1.45) is comparable to the rest of the industry.
- FANG has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- FANG's Debt to Equity ratio of 0.37 is fine compared to the rest of the industry. FANG outperforms 60.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.45 |
ROIC/WACC0.84
WACC7.37%
2.3 Liquidity
- FANG has a Current 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 has a worse Current ratio (0.42) than 86.12% 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.
- With a Quick ratio value of 0.40, FANG is not doing good in the industry: 85.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.4 |
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.
- The Revenue has grown by 35.79% in the past year. This is a very strong growth!
- The Revenue has been growing by 39.81% on average over the past years. This is a very strong growth!
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 Year2.34%
Revenue Next 2Y1.9%
Revenue Next 3Y1.97%
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.
4. FANG Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.12, which indicates a correct valuation of FANG.
- Based on the Price/Earnings ratio, FANG is valued a bit cheaper than the industry average as 65.55% of the companies are valued more expensively.
- FANG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 19.01 indicates a rather expensive valuation of FANG.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FANG is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, FANG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 19.01 |
4.2 Price Multiples
- FANG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FANG is cheaper than 73.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y6.22%
EPS Next 3Y11.57%
5. FANG Dividend Analysis
5.1 Amount
- FANG has a Yearly Dividend Yield of 2.08%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.16, FANG has a dividend in line with its industry peers.
- FANG's Dividend Yield is comparable with the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
- The dividend of FANG is nicely growing with an annual growth rate of 21.95%!
- FANG has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)21.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- FANG pays out 69.81% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of FANG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP69.81%
EPS Next 2Y6.22%
EPS Next 3Y11.57%
FANG Fundamentals: All Metrics, Ratios and Statistics
193.88
+3.26 (+1.71%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-23 2026-02-23/amc
Earnings (Next)05-04 2026-05-04/amc
Inst Owners63.84%
Inst Owner Change0%
Ins Owners0.73%
Ins Owner Change-20.69%
Market Cap54.54B
Revenue(TTM)15.03B
Net Income(TTM)1.66B
Analysts83.5
Price Target199.9 (3.11%)
Short Float %5.09%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend4.02
Dividend Growth(5Y)21.95%
DP69.81%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-05 2026-03-05 (1.05)
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)6.58%
PT rev (3m)7.89%
EPS NQ rev (1m)33.33%
EPS NQ rev (3m)6.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.64%
Revenue NQ rev (1m)8.58%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)10.42%
Revenue NY rev (3m)6.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.12 | ||
| Fwd PE | 19.01 | ||
| P/S | 3.63 | ||
| P/FCF | N/A | ||
| P/OCF | 6.23 | ||
| P/B | 1.48 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 6.86 |
EPS(TTM)12.03
EY6.2%
EPS(NY)10.2
Fwd EY5.26%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)31.13
OCFY16.06%
SpS53.42
BVpS131.43
TBVpS131.43
PEG (NY)N/A
PEG (5Y)0.51
Graham Number188.62
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.45 |
F-Score5
WACC7.37%
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 Year2.34%
Revenue Next 2Y1.9%
Revenue Next 3Y1.97%
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.
How profitable is DIAMONDBACK ENERGY INC (FANG) stock?
DIAMONDBACK ENERGY INC (FANG) has a profitability rating of 5 / 10.
What is the financial health of DIAMONDBACK ENERGY INC (FANG) stock?
The financial health rating of DIAMONDBACK ENERGY INC (FANG) is 2 / 10.
Can you provide the dividend sustainability for FANG stock?
The dividend rating of DIAMONDBACK ENERGY INC (FANG) is 3 / 10 and the dividend payout ratio is 69.81%.