163.95 USD
+0.88 (+0.54%)
At close: Jan 30, 2026
161.143 USD
-2.81 (-1.71%)
After Hours: 1/30/2026, 8:00:02 PM
Overall FANG gets a fundamental rating of 5 out of 10. We evaluated FANG against 207 industry peers in the Oil, Gas & Consumable Fuels industry. FANG has an excellent profitability rating, but there are concerns on its financial health. FANG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year FANG was profitable.
- In the past year FANG had a positive cash flow from operations.
- Of the past 5 years FANG 4 years were profitable.
- Each year in the past 5 years FANG had a positive operating cash flow.
1.2 Ratios
- FANG's Return On Assets of 5.48% is fine compared to the rest of the industry. FANG outperforms 68.60% of its industry peers.
- FANG has a better Return On Equity (10.69%) than 65.70% 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 56.52% 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 21.94%.
- The 3 year average ROIC (13.71%) for FANG is well above the current ROIC(6.23%). The reason for the recent decline needs to be investigated.
| 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
- FANG has a better Profit Margin (27.20%) than 85.02% of its industry peers.
- In the last couple of years the Profit Margin of FANG has grown nicely.
- The Operating Margin of FANG (36.35%) is better than 85.02% of its industry peers.
- FANG's Operating Margin has improved in the last couple of years.
- FANG has a Gross Margin of 70.42%. This is amongst the best in the industry. FANG outperforms 80.19% of its industry peers.
- FANG's Gross Margin has declined in the last couple of years.
| 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.
- The debt/assets ratio for FANG has been reduced compared to a year ago.
2.2 Solvency
- FANG has an Altman-Z score of 1.30. 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 (1.30) which is in line with its industry peers.
- A Debt/Equity ratio of 0.41 indicates that FANG is not too dependend on debt financing.
- FANG's Debt to Equity ratio of 0.41 is in line compared to the rest of the industry. FANG outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.77
WACC8.09%
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.
- With a Current ratio value of 0.62, FANG is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
- FANG has a Quick 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.
- FANG has a Quick ratio of 0.60. This is in the lower half of the industry: FANG underperforms 71.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- FANG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.73%.
- Measured over the past years, FANG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.84% on average per year.
- FANG shows a strong growth in Revenue. In the last year, 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
- Based on estimates for the next years, FANG will show a small growth in Earnings Per Share. The EPS will grow by 1.85% on average per year.
- The Revenue is expected to grow by 8.44% on average over the next years. This is quite good.
EPS Next Y-18.35%
EPS Next 2Y-16.29%
EPS Next 3Y-2.64%
EPS Next 5Y1.85%
Revenue Next Year40.65%
Revenue Next 2Y13.14%
Revenue Next 3Y11.66%
Revenue Next 5Y8.44%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- FANG is valuated reasonably with a Price/Earnings ratio of 11.77.
- 78.26% of the companies in the same industry are more expensive than FANG, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, FANG is valued rather cheaply.
- With a Price/Forward Earnings ratio of 14.58, FANG is valued correctly.
- Based on the Price/Forward Earnings ratio, FANG is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. FANG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 14.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FANG is valued a bit cheaper than 71.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
- FANG has a very decent profitability rating, which may justify a higher PE ratio.
- FANG's earnings are expected to decrease with -2.64% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-16.29%
EPS Next 3Y-2.64%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.45%, FANG has a reasonable but not impressive dividend return.
- FANG's Dividend Yield is comparable with the industry average which is at 3.64.
- FANG's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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.
- FANG has decreased its dividend recently.
Dividend Growth(5Y)57.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 27.09% of the earnings are spent on dividend by FANG. This is a low number and 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-16.29%
EPS Next 3Y-2.64%
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.
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.
What is the profitability of FANG stock?
DIAMONDBACK ENERGY INC (FANG) has a profitability rating of 7 / 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 11.77 and the Price/Book (PB) ratio is 1.2.
Can you provide the dividend sustainability for FANG stock?
The dividend rating of DIAMONDBACK ENERGY INC (FANG) is 5 / 10 and the dividend payout ratio is 27.09%.