DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis
NASDAQ:FANG - Nasdaq - US25278X1090 - Common Stock - Currency: USD
FANG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 212 industry peers in the Oil, Gas & Consumable Fuels industry. FANG has a medium profitability rating, but doesn't score so well on its financial health evaluation. FANG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FANG had positive earnings in the past year.
FANG had a positive operating cash flow in the past year.
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
The Return On Assets of FANG (4.93%) is comparable to the rest of the industry.
FANG has a Return On Equity (8.79%) which is in line with its industry peers.
FANG's Return On Invested Capital of 6.05% is in line compared to the rest of the industry. FANG outperforms 48.11% of 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 27.42%.
The last Return On Invested Capital (6.05%) 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 | 4.93% | ||
| ROE | 8.79% | ||
| ROIC | 6.05% |
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 (29.97%) than 81.60% of its industry peers.
In the last couple of years the Profit Margin of FANG has grown nicely.
FANG has a Operating Margin of 42.46%. This is amongst the best in the industry. FANG outperforms 85.85% of its industry peers.
In the last couple of years the Operating Margin of FANG has grown nicely.
With a decent Gross Margin value of 71.07%, FANG is doing good in the industry, outperforming 79.25% of the companies in the same industry.
In the last couple of years the Gross Margin of FANG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.46% | ||
| PM (TTM) | 29.97% | ||
| GM | 71.07% |
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.
The number of shares outstanding for FANG has been increased compared to 1 year ago.
The number of shares outstanding for FANG has been increased compared to 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 1.24. 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 (1.24) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.32 indicates that FANG is not too dependend on debt financing.
FANG's Debt to Equity ratio of 0.32 is fine compared to the rest of the industry. FANG outperforms 60.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.62
WACC9.68%
2.3 Liquidity
FANG has a Current Ratio of 0.44. 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 0.44, FANG is not doing good in the industry: 88.68% of the companies in the same industry are doing better.
FANG has a Quick Ratio of 0.44. 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 Quick ratio value of 0.41, FANG is not doing good in the industry: 87.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The earnings per share for FANG have decreased strongly by -10.94% 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.
Looking at the last year, FANG shows a very strong growth in Revenue. The Revenue has grown by 31.55%.
The Revenue has been growing by 22.79% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-10.94%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-23.21%
Revenue 1Y (TTM)31.55%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%66.56%
3.2 Future
FANG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.18% yearly.
Based on estimates for the next years, FANG will show a small growth in Revenue. The Revenue will grow by 4.05% on average per year.
EPS Next Y-2.6%
EPS Next 2Y-0.7%
EPS Next 3Y-2.2%
EPS Next 5Y0.18%
Revenue Next Year38.45%
Revenue Next 2Y17.54%
Revenue Next 3Y11.08%
Revenue Next 5Y4.05%
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
The Price/Earnings ratio is 8.58, which indicates a very decent valuation of FANG.
Based on the Price/Earnings ratio, FANG is valued a bit cheaper than 72.17% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, FANG is valued rather cheaply.
The Price/Forward Earnings ratio is 8.81, which indicates a very decent valuation of FANG.
Based on the Price/Forward Earnings ratio, FANG is valued a bit cheaper than 69.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. FANG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 8.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FANG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
The decent profitability rating of FANG may justify a higher PE ratio.
A cheap valuation may be justified as FANG's earnings are expected to decrease with -2.20% in the coming years.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-0.7%
EPS Next 3Y-2.2%
5. Dividend
5.1 Amount
FANG has a Yearly Dividend Yield of 3.25%.
The stock price of FANG dropped by -23.61% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 7.82, FANG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.57, FANG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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 47.57% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FANG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.57%
EPS Next 2Y-0.7%
EPS Next 3Y-2.2%
137.64
+7.42 (+5.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners59.82%
Inst Owner Change0.05%
Ins Owners35.08%
Ins Owner Change5.83%
Market Cap39.84B
Analysts81.08
Price Target211.69 (53.8%)
Short Float %2.48%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Yearly Dividend6.72
Dividend Growth(5Y)57.49%
DP47.57%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.07%
Min EPS beat(2)-16.8%
Max EPS beat(2)6.66%
EPS beat(4)1
Avg EPS beat(4)-3.06%
Min EPS beat(4)-16.8%
Max EPS beat(4)6.66%
EPS beat(8)2
Avg EPS beat(8)-2.48%
EPS beat(12)5
Avg EPS beat(12)-0.17%
EPS beat(16)9
Avg EPS beat(16)2.54%
Revenue beat(2)2
Avg Revenue beat(2)4.67%
Min Revenue beat(2)3.11%
Max Revenue beat(2)6.22%
Revenue beat(4)4
Avg Revenue beat(4)6.32%
Min Revenue beat(4)3.11%
Max Revenue beat(4)11.45%
Revenue beat(8)6
Avg Revenue beat(8)2.89%
Revenue beat(12)9
Avg Revenue beat(12)4.55%
Revenue beat(16)13
Avg Revenue beat(16)8.35%
PT rev (1m)-2.66%
PT rev (3m)-4.14%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)4.09%
EPS NY rev (1m)-2.93%
EPS NY rev (3m)2.79%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)-3.3%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 8.81 | ||
| P/S | 3.6 | ||
| P/FCF | N/A | ||
| P/OCF | 6.21 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 6.97 |
EPS(TTM)16.04
EY11.65%
EPS(NY)15.62
Fwd EY11.35%
FCF(TTM)-18.57
FCFYN/A
OCF(TTM)22.16
OCFY16.1%
SpS38.23
BVpS130.38
TBVpS130.38
PEG (NY)N/A
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | 8.79% | ||
| ROCE | 7.52% | ||
| ROIC | 6.05% | ||
| ROICexc | 6.06% | ||
| ROICexgc | 6.06% | ||
| OM | 42.46% | ||
| PM (TTM) | 29.97% | ||
| GM | 71.07% | ||
| 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 Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 413.58% | ||
| Cap/Sales | 106.52% | ||
| Interest Coverage | 17.47 | ||
| Cash Conversion | 84.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 1.24 |
F-Score5
WACC9.68%
ROIC/WACC0.62
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)-10.94%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-23.21%
EPS Next Y-2.6%
EPS Next 2Y-0.7%
EPS Next 3Y-2.2%
EPS Next 5Y0.18%
Revenue 1Y (TTM)31.55%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%66.56%
Revenue Next Year38.45%
Revenue Next 2Y17.54%
Revenue Next 3Y11.08%
Revenue Next 5Y4.05%
EBIT growth 1Y2.58%
EBIT growth 3Y4.83%
EBIT growth 5Y25.91%
EBIT Next Year132.62%
EBIT Next 3Y32.32%
EBIT Next 5Y15.37%
FCF growth 1Y-545.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.33%
OCF growth 3Y17.59%
OCF growth 5Y18.59%