DIAMONDBACK ENERGY INC (FANG) Fundamental Analysis & Valuation
NASDAQ:FANG • US25278X1090
Current stock price
186.65 USD
+0.78 (+0.42%)
At close:
186.65 USD
0 (0%)
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.
- Each year in the past 5 years FANG has been profitable.
- 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 44.98% of its industry peers.
- FANG's Return On Equity of 4.48% is in line compared to the rest of the industry. FANG outperforms 44.50% of its industry peers.
- FANG's Return On Invested Capital of 6.21% is in line compared to the rest of the industry. FANG outperforms 56.46% 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 22.60%.
| 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
- FANG has a Profit Margin of 11.02%. This is comparable to the rest of the industry: FANG outperforms 58.85% 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 80.38% of its industry peers.
- In the last couple of years the Operating Margin of FANG has grown nicely.
- FANG has a better Gross Margin (68.69%) than 74.64% of its industry peers.
- FANG's Gross Margin has been stable in the last couple of years.
| 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
- 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.
- FANG has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, FANG has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.42, we must say that FANG is in the distress zone and has some risk of bankruptcy.
- FANG has a Altman-Z score of 1.42. This is comparable to the rest of the industry: FANG outperforms 49.28% 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.
- Looking at the Debt to Equity ratio, with a value of 0.37, FANG is in the better half of the industry, outperforming 60.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.42 |
ROIC/WACC0.85
WACC7.27%
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 87.08% 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.
- Looking at the Quick ratio, with a value of 0.40, FANG is doing worse than 86.60% of the companies in the same industry.
| 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.
- FANG shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.79%.
- Measured over the past years, FANG shows a very strong growth in Revenue. The Revenue has been growing by 39.81% on average per year.
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
- Based on estimates for the next years, FANG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.66% on average per year.
- FANG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
EPS Next Y16.56%
EPS Next 2Y12.25%
EPS Next 3Y10.62%
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
- Based on the Price/Earnings ratio of 15.52, the valuation of FANG can be described as correct.
- FANG's Price/Earnings ratio is a bit cheaper when compared to the industry. FANG is cheaper than 65.07% of the companies in the same industry.
- When comparing the Price/Earnings ratio of FANG to the average of the S&P500 Index (27.53), we can say FANG is valued slightly cheaper.
- A Price/Forward Earnings ratio of 13.31 indicates a correct valuation of FANG.
- 65.55% of the companies in the same industry are more expensive than FANG, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 37.95. FANG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 13.31 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FANG is valued a bit cheaper than 70.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.66 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.94
PEG (5Y)0.49
EPS Next 2Y12.25%
EPS Next 3Y10.62%
5. FANG Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.25%, FANG has a reasonable but not impressive dividend return.
- FANG's Dividend Yield is comparable with the industry average which is at 3.23.
- Compared to an average S&P500 Dividend Yield of 1.82, FANG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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.
Dividend Growth(5Y)21.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 69.81% of the earnings are spent on dividend by FANG. 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 2Y12.25%
EPS Next 3Y10.62%
FANG Fundamentals: All Metrics, Ratios and Statistics
186.65
+0.78 (+0.42%)
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 Owners63.99%
Inst Owner Change0.01%
Ins Owners0.74%
Ins Owner Change-20.69%
Market Cap52.50B
Revenue(TTM)15.03B
Net Income(TTM)1.66B
Analysts83.5
Price Target209.25 (12.11%)
Short Float %4.81%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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)11.56%
PT rev (3m)12.94%
EPS NQ rev (1m)33.55%
EPS NQ rev (3m)8.16%
EPS NY rev (1m)37.45%
EPS NY rev (3m)14.58%
Revenue NQ rev (1m)6.3%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)10.42%
Revenue NY rev (3m)6.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.52 | ||
| Fwd PE | 13.31 | ||
| P/S | 3.49 | ||
| P/FCF | N/A | ||
| P/OCF | 6 | ||
| P/B | 1.42 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 6.66 |
EPS(TTM)12.03
EY6.45%
EPS(NY)14.02
Fwd EY7.51%
FCF(TTM)-2.5
FCFYN/A
OCF(TTM)31.13
OCFY16.68%
SpS53.42
BVpS131.43
TBVpS131.43
PEG (NY)0.94
PEG (5Y)0.49
Graham Number188.615 (1.05%)
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 | 1.42 |
F-Score5
WACC7.27%
ROIC/WACC0.85
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 Y16.56%
EPS Next 2Y12.25%
EPS Next 3Y10.62%
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 Year105.07%
EBIT Next 3Y27.98%
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 4 / 10 to DIAMONDBACK ENERGY INC (FANG). This can be considered as Fairly Valued.
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 4 / 10 and the dividend payout ratio is 69.81%.