DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis
NASDAQ:FANG • US25278X1090
169.14 USD
+1.72 (+1.03%)
At close: Feb 13, 2026
169.14 USD
0 (0%)
After Hours: 2/13/2026, 8:06:02 PM
Overall FANG gets a fundamental rating of 5 out of 10. We evaluated FANG against 206 industry peers in the Oil, Gas & Consumable Fuels industry. While FANG belongs to the best of the industry regarding profitability, 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.
- 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 68.45% of its industry peers.
- FANG has a better Return On Equity (10.69%) than 64.56% of its industry peers.
- FANG has a Return On Invested Capital (6.23%) which is in line with its industry peers.
- FANG had an Average Return On Invested Capital over the past 3 years of 13.71%. This is significantly below the industry average of 21.98%.
- 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 84.47% 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 36.35%, FANG belongs to the top of the industry, outperforming 84.95% of the companies in the same industry.
- 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 80.10% 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.
- Compared to 1 year ago, FANG has more shares outstanding
- 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
- Based on the Altman-Z score of 1.31, we must say that FANG is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.31, FANG perfoms like the industry average, outperforming 51.94% of the companies in the same industry.
- A Debt/Equity ratio of 0.41 indicates that FANG is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.41, FANG is in line with its industry, outperforming 55.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.31 |
ROIC/WACC0.82
WACC7.63%
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: 78.64% of the companies in the same industry are doing better.
- A Quick Ratio of 0.60 indicates that FANG may have some problems paying its short term obligations.
- FANG has a Quick ratio of 0.60. This is in the lower half of the industry: FANG underperforms 72.33% of its industry peers.
| 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.
- FANG shows a strong growth in Revenue. In the last year, the Revenue has grown by 60.29%.
- 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)-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
- FANG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.85% yearly.
- Based on estimates for the next years, FANG will show a quite strong growth in Revenue. The Revenue will grow by 8.44% on average per year.
EPS Next Y-19.55%
EPS Next 2Y-18.64%
EPS Next 3Y-4.27%
EPS Next 5Y1.85%
Revenue Next Year39.98%
Revenue Next 2Y13.21%
Revenue Next 3Y11.75%
Revenue Next 5Y8.44%
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. Valuation
4.1 Price/Earnings Ratio
- FANG is valuated correctly with a Price/Earnings ratio of 12.14.
- Based on the Price/Earnings ratio, FANG is valued a bit cheaper than 74.27% of the companies in the same industry.
- FANG is valuated cheaply when we compare the Price/Earnings ratio to 27.97, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 15.93, the valuation of FANG can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FANG indicates a somewhat cheap valuation: FANG is cheaper than 60.19% 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 (27.96), we can say FANG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FANG is valued a bit cheaper than the industry average as 71.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
- FANG has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as FANG's earnings are expected to decrease with -4.27% in the coming years.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-18.64%
EPS Next 3Y-4.27%
5. Dividend
5.1 Amount
- FANG has a Yearly Dividend Yield of 2.43%.
- Compared to an average industry Dividend Yield of 3.63, FANG has a dividend in line with its industry peers.
- FANG's Dividend Yield is a higher than the S&P500 average which is at 1.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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.
- FANG has decreased its dividend 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.
- FANG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.09%
EPS Next 2Y-18.64%
EPS Next 3Y-4.27%
169.14
+1.72 (+1.03%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-03 2025-11-03/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners62.3%
Inst Owner Change-2.56%
Ins Owners0.71%
Ins Owner Change-3.98%
Market Cap48.46B
Revenue(TTM)15.36B
Net Income(TTM)4.18B
Analysts84.74
Price Target188.01 (11.16%)
Short Float %4.77%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend6.72
Dividend Growth(5Y)57.49%
DP27.09%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)1.47%
PT rev (3m)1.65%
EPS NQ rev (1m)-17.34%
EPS NQ rev (3m)-14.54%
EPS NY rev (1m)-2.85%
EPS NY rev (3m)-2.02%
Revenue NQ rev (1m)-4.66%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)2.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.14 | ||
| Fwd PE | 15.93 | ||
| P/S | 3.15 | ||
| P/FCF | N/A | ||
| P/OCF | 5.53 | ||
| P/B | 1.24 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)13.93
EY8.24%
EPS(NY)10.62
Fwd EY6.28%
FCF(TTM)-3.82
FCFYN/A
OCF(TTM)30.56
OCFY18.07%
SpS53.61
BVpS136.42
TBVpS136.42
PEG (NY)N/A
PEG (5Y)0.61
Graham Number206.78
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 | 1.31 |
F-Score7
WACC7.63%
ROIC/WACC0.82
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-19.55%
EPS Next 2Y-18.64%
EPS Next 3Y-4.27%
EPS Next 5Y1.85%
Revenue 1Y (TTM)60.29%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.36%
Revenue Next Year39.98%
Revenue Next 2Y13.21%
Revenue Next 3Y11.75%
Revenue Next 5Y8.44%
EBIT growth 1Y25.15%
EBIT growth 3Y4.83%
EBIT growth 5Y25.91%
EBIT Next Year117.36%
EBIT Next 3Y30.89%
EBIT Next 5Y20.16%
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.
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 12.14 and the Price/Book (PB) ratio is 1.24.
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%.