DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis
USA - NASDAQ:FANG - US25278X1090 - Common Stock
148.69 USD
-0.89 (-0.59%)
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. FANG scores excellent on profitability, but there are concerns on its financial health. FANG has a correct valuation and a medium 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.
FANG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FANG's Return On Assets of 5.48% is fine compared to the rest of the industry. FANG outperforms 67.62% of its industry peers.
The Return On Equity of FANG (10.69%) is better than 64.29% of its industry peers.
FANG's Return On Invested Capital of 6.23% is in line compared to the rest of the industry. FANG outperforms 56.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FANG is significantly below the industry average of 21.66%.
The last Return On Invested Capital (6.23%) 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 | 5.48% | ||
| ROE | 10.69% | ||
| ROIC | 6.23% |
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
With an excellent Profit Margin value of 27.20%, FANG belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
FANG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 36.35%, FANG belongs to the best of the industry, outperforming 83.81% of the companies in the same industry.
In the last couple of years the Operating Margin of FANG has grown nicely.
FANG's Gross Margin of 70.42% 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 | 36.35% | ||
| PM (TTM) | 27.2% | ||
| GM | 70.42% |
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.
FANG has more shares outstanding than it did 5 years ago.
FANG has a better debt/assets ratio than last year.
2.2 Solvency
FANG has an Altman-Z score of 1.23. 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 (1.23) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.41 indicates that FANG is not too dependend on debt financing.
FANG has a Debt to Equity ratio of 0.41. This is comparable to the rest of the industry: FANG outperforms 55.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.23 |
ROIC/WACC0.78
WACC7.98%
2.3 Liquidity
FANG has a Current Ratio of 0.62. This is a bad value and indicates that FANG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of FANG (0.62) is worse than 78.57% of its industry peers.
A Quick Ratio of 0.60 indicates that FANG may have some problems paying its short term obligations.
With a Quick ratio value of 0.60, FANG is not doing good in the industry: 72.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for FANG have decreased strongly by -18.73% in the last year.
The Earnings Per Share has been growing by 19.84% on average over the past years. This is quite good.
Looking at the last year, FANG shows a very strong growth in Revenue. The Revenue has grown by 60.29%.
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)60.29%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.36%
3.2 Future
The Earnings Per Share is expected to grow by 3.64% on average over the next years.
FANG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.64% yearly.
EPS Next Y-17.89%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
EPS Next 5Y3.64%
Revenue Next Year36.06%
Revenue Next 2Y15.59%
Revenue Next 3Y12.95%
Revenue Next 5Y9.64%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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. Valuation
4.1 Price/Earnings Ratio
FANG is valuated reasonably with a Price/Earnings ratio of 10.67.
FANG's Price/Earnings ratio is a bit cheaper when compared to the industry. FANG is cheaper than 75.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.47, FANG is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.88, the valuation of FANG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FANG indicates a somewhat cheap valuation: FANG is cheaper than 64.76% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FANG to the average of the S&P500 Index (35.42), we can say FANG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 11.88 |
4.2 Price Multiples
70.95% of the companies in the same industry are more expensive than FANG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.69 |
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)0.54
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.77%, FANG has a reasonable but not impressive dividend return.
FANG's Dividend Yield is comparable with the industry average which is at 5.90.
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
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 27.09% of its income as dividend. This is a sustainable payout ratio.
The dividend of FANG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.09%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
NASDAQ:FANG (11/19/2025, 2:58:19 PM)
148.69
-0.89 (-0.59%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners61.93%
Inst Owner Change1.31%
Ins Owners0.72%
Ins Owner Change0.01%
Market Cap43.04B
Revenue(TTM)15.36B
Net Income(TTM)4.18B
Analysts84.21
Price Target184.95 (24.39%)
Short Float %4.91%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend6.72
Dividend Growth(5Y)57.49%
DP27.09%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.91%
Min EPS beat(2)-7.02%
Max EPS beat(2)3.2%
EPS beat(4)3
Avg EPS beat(4)2.65%
Min EPS beat(4)-7.02%
Max EPS beat(4)7.78%
EPS beat(8)3
Avg EPS beat(8)-1.08%
EPS beat(12)4
Avg EPS beat(12)-1.37%
EPS beat(16)8
Avg EPS beat(16)0.45%
Revenue beat(2)2
Avg Revenue beat(2)8.1%
Min Revenue beat(2)7.01%
Max Revenue beat(2)9.18%
Revenue beat(4)4
Avg Revenue beat(4)6.44%
Min Revenue beat(4)3.11%
Max Revenue beat(4)9.18%
Revenue beat(8)8
Avg Revenue beat(8)6.08%
Revenue beat(12)9
Avg Revenue beat(12)3.43%
Revenue beat(16)13
Avg Revenue beat(16)6.03%
PT rev (1m)-1.72%
PT rev (3m)-1.59%
EPS NQ rev (1m)-5.87%
EPS NQ rev (3m)-9.86%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 11.88 | ||
| P/S | 2.8 | ||
| P/FCF | N/A | ||
| P/OCF | 4.92 | ||
| P/B | 1.1 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 5.69 |
EPS(TTM)13.93
EY9.37%
EPS(NY)12.51
Fwd EY8.42%
FCF(TTM)-3.78
FCFYN/A
OCF(TTM)30.25
OCFY20.34%
SpS53.06
BVpS135.02
TBVpS135.02
PEG (NY)N/A
PEG (5Y)0.54
Graham Number205.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.69% | ||
| ROCE | 7.75% | ||
| ROIC | 6.23% | ||
| ROICexc | 6.24% | ||
| ROICexgc | 6.24% | ||
| OM | 36.35% | ||
| PM (TTM) | 27.2% | ||
| GM | 70.42% | ||
| 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-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 205% | ||
| Cap/Sales | 64.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.23 |
F-Score7
WACC7.98%
ROIC/WACC0.78
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 5Y3.64%
Revenue 1Y (TTM)60.29%
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 1Y25.15%
EBIT growth 3Y4.83%
EBIT growth 5Y25.91%
EBIT Next Year118.23%
EBIT Next 3Y32.79%
EBIT Next 5Y19.15%
FCF growth 1Y-208.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y52.62%
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.