DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis
USA - NASDAQ:FANG - US25278X1090 - Common Stock
136.88 USD
-1.54 (-1.11%)
137.5 USD
+0.62 (+0.45%)
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 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.
FANG had positive earnings in 4 of the past 5 years.
In the past 5 years FANG always reported a positive cash flow from operatings.
1.2 Ratios
FANG's Return On Assets of 5.31% is fine compared to the rest of the industry. FANG outperforms 63.81% of its industry peers.
Looking at the Return On Equity, with a value of 9.82%, FANG is in line with its industry, outperforming 59.52% of the companies in the same industry.
FANG has a Return On Invested Capital (6.25%) which is comparable to the rest of the industry.
FANG had an Average Return On Invested Capital over the past 3 years of 13.71%. This is significantly below the industry average of 21.91%.
The 3 year average ROIC (13.71%) for FANG is well above the current ROIC(6.25%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 9.82% | ||
| ROIC | 6.25% |
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 27.11%, FANG belongs to the best of the industry, outperforming 82.38% of the companies in the same industry.
In the last couple of years the Profit Margin of FANG has grown nicely.
With an excellent Operating Margin value of 37.63%, FANG belongs to the best of the industry, outperforming 84.76% of the companies in the same industry.
In the last couple of years the Operating Margin of FANG has grown nicely.
With an excellent Gross Margin value of 70.77%, FANG belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
FANG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.63% | ||
| PM (TTM) | 27.11% | ||
| GM | 70.77% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FANG is creating some value.
Compared to 1 year ago, FANG has more shares outstanding
The number of shares outstanding for FANG has been increased compared to 5 years ago.
FANG has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that FANG is in the distress zone and has some risk of bankruptcy.
FANG has a Altman-Z score (1.24) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.39 indicates that FANG is not too dependend on debt financing.
FANG has a Debt to Equity ratio (0.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.77
WACC8.14%
2.3 Liquidity
A Current Ratio of 0.55 indicates that FANG may have some problems paying its short term obligations.
The Current ratio of FANG (0.55) is worse than 84.76% of its industry peers.
A Quick Ratio of 0.52 indicates that FANG may have some problems paying its short term obligations.
FANG's Quick ratio of 0.52 is on the low side compared to the rest of the industry. FANG is outperformed by 81.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for FANG have decreased strongly by -26.08% in the last year.
FANG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.84% yearly.
FANG shows a strong growth in Revenue. In the last year, the Revenue has grown by 51.78%.
FANG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.79% yearly.
EPS 1Y (TTM)-26.08%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-40.93%
Revenue 1Y (TTM)51.78%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.13%
3.2 Future
The Earnings Per Share is expected to grow by 3.52% on average over the next years.
The Revenue is expected to grow by 9.10% on average over the next years. This is quite good.
EPS Next Y-16.92%
EPS Next 2Y-11.4%
EPS Next 3Y-2.9%
EPS Next 5Y3.52%
Revenue Next Year35.71%
Revenue Next 2Y15.32%
Revenue Next 3Y12.49%
Revenue Next 5Y9.1%
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
The Price/Earnings ratio is 9.62, which indicates a very decent valuation of FANG.
Based on the Price/Earnings ratio, FANG is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FANG to the average of the S&P500 Index (27.30), we can say FANG is valued rather cheaply.
The Price/Forward Earnings ratio is 10.87, which indicates a very decent valuation of FANG.
Based on the Price/Forward Earnings ratio, FANG is valued a bit cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. FANG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FANG is valued a bit cheaper than 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.7 |
4.3 Compensation for Growth
The decent profitability rating of FANG may justify a higher PE ratio.
FANG's earnings are expected to decrease with -2.90% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y-11.4%
EPS Next 3Y-2.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.89%, FANG has a reasonable but not impressive dividend return.
FANG's Dividend Yield is comparable with the industry average which is at 6.14.
FANG's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
32.98% of the earnings are spent on dividend by FANG. This is a low number and sustainable payout ratio.
FANG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.98%
EPS Next 2Y-11.4%
EPS Next 3Y-2.9%
136.88
-1.54 (-1.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners59.61%
Inst Owner Change-1.45%
Ins Owners35.52%
Ins Owner Change0.01%
Market Cap39.63B
Analysts84.74
Price Target188.7 (37.86%)
Short Float %5.34%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend6.72
Dividend Growth(5Y)57.49%
DP32.98%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.38%
Min EPS beat(2)-7.02%
Max EPS beat(2)7.78%
EPS beat(4)2
Avg EPS beat(4)-2.35%
Min EPS beat(4)-16.8%
Max EPS beat(4)7.78%
EPS beat(8)3
Avg EPS beat(8)-0.55%
EPS beat(12)4
Avg EPS beat(12)-1.61%
EPS beat(16)8
Avg EPS beat(16)0.52%
Revenue beat(2)2
Avg Revenue beat(2)6.73%
Min Revenue beat(2)6.44%
Max Revenue beat(2)7.01%
Revenue beat(4)4
Avg Revenue beat(4)5.7%
Min Revenue beat(4)3.11%
Max Revenue beat(4)7.01%
Revenue beat(8)8
Avg Revenue beat(8)5.5%
Revenue beat(12)9
Avg Revenue beat(12)2.7%
Revenue beat(16)13
Avg Revenue beat(16)6.87%
PT rev (1m)0.41%
PT rev (3m)0.41%
EPS NQ rev (1m)-5.73%
EPS NQ rev (3m)-6.5%
EPS NY rev (1m)-2.96%
EPS NY rev (3m)-7.55%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)1.6%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 10.87 | ||
| P/S | 2.81 | ||
| P/FCF | N/A | ||
| P/OCF | 5.23 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 5.7 |
EPS(TTM)14.23
EY10.4%
EPS(NY)12.59
Fwd EY9.2%
FCF(TTM)-29.14
FCFYN/A
OCF(TTM)26.19
OCFY19.13%
SpS48.64
BVpS134.31
TBVpS134.31
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 9.82% | ||
| ROCE | 7.77% | ||
| ROIC | 6.25% | ||
| ROICexc | 6.27% | ||
| ROICexgc | 6.27% | ||
| OM | 37.63% | ||
| PM (TTM) | 27.11% | ||
| GM | 70.77% | ||
| 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%
ROICexcg growth 3Y-27.28%
ROICexcg 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-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 375.95% | ||
| Cap/Sales | 113.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.24 |
F-Score5
WACC8.14%
ROIC/WACC0.77
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)-26.08%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-40.93%
EPS Next Y-16.92%
EPS Next 2Y-11.4%
EPS Next 3Y-2.9%
EPS Next 5Y3.52%
Revenue 1Y (TTM)51.78%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.13%
Revenue Next Year35.71%
Revenue Next 2Y15.32%
Revenue Next 3Y12.49%
Revenue Next 5Y9.1%
EBIT growth 1Y9.6%
EBIT growth 3Y4.83%
EBIT growth 5Y25.91%
EBIT Next Year117.21%
EBIT Next 3Y31.99%
EBIT Next 5Y19.92%
FCF growth 1Y-598.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.27%
OCF growth 3Y17.59%
OCF growth 5Y18.59%