DIAMONDBACK ENERGY INC (FANG) Fundamental Analysis & Valuation
NASDAQ:FANG • US25278X1090
182.42 USD
-0.44 (-0.24%)
Last: Mar 10, 2026, 10:51 AM
This FANG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 4 out of 10 to FANG. FANG was compared to 207 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 is valied quite expensively at the moment, while it does show a decent growth rate.
1. FANG Profitability Analysis
1.1 Basic Checks
- FANG had positive earnings in the past year.
- FANG had a positive operating cash flow in the past year.
- In the past 5 years FANG has always 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 (2.33%) which is in line with its industry peers.
- FANG has a Return On Equity (4.48%) which is comparable to the rest of the industry.
- With a Return On Invested Capital value of 6.21%, FANG perfoms like the industry average, outperforming 56.04% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for FANG is significantly below the industry average of 22.52%.
| 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
- Looking at the Profit Margin, with a value of 11.02%, FANG is in line with its industry, outperforming 59.42% of the companies in the same industry.
- FANG's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 33.36%, FANG belongs to the best of the industry, outperforming 80.19% of the companies in the same industry.
- FANG's Operating Margin has improved in the last couple of years.
- FANG has a better Gross Margin (68.69%) than 75.85% of its industry peers.
- In the last couple of years the Gross Margin of FANG has remained more or less at the same level.
| 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
- FANG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, FANG has less shares outstanding
- Compared to 5 years ago, FANG has more shares outstanding
- FANG has a worse debt/assets ratio than last year.
2.2 Solvency
- FANG has an Altman-Z score of 1.40. 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 of 1.40. This is comparable to the rest of the industry: FANG outperforms 50.72% 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.
- FANG has a Debt to Equity ratio (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.4 |
ROIC/WACC0.87
WACC7.14%
2.3 Liquidity
- A Current Ratio of 0.42 indicates that FANG may have some problems paying its short term obligations.
- FANG's Current ratio of 0.42 is on the low side compared to the rest of the industry. FANG is outperformed by 87.92% 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 86.96% 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.
- The Revenue has grown by 35.79% in the past year. This is a very strong growth!
- 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.
- Based on estimates for the next years, FANG will show a small growth in Revenue. The Revenue will grow by 1.92% on average per year.
EPS Next Y-15.2%
EPS Next 2Y6.22%
EPS Next 3Y11.57%
EPS Next 5Y9.66%
Revenue Next Year-7.31%
Revenue Next 2Y0.18%
Revenue Next 3Y2.46%
Revenue Next 5Y1.92%
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. FANG Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.16, which indicates a correct valuation of FANG.
- Based on the Price/Earnings ratio, FANG is valued a bit cheaper than 64.73% of the companies in the same industry.
- FANG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.45.
- The Price/Forward Earnings ratio is 17.88, which indicates a rather expensive current valuation of FANG.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FANG is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of FANG to the average of the S&P500 Index (24.65), we can say FANG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 17.88 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FANG is valued a bit cheaper than the industry average as 70.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y6.22%
EPS Next 3Y11.57%
5. FANG Dividend Analysis
5.1 Amount
- FANG has a Yearly Dividend Yield of 2.35%.
- Compared to an average industry Dividend Yield of 3.45, FANG has a dividend in line with its industry peers.
- 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 | 2.35% |
5.2 History
- The dividend of FANG is nicely growing with an annual growth rate of 21.95%!
- 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)21.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- FANG pays out 69.81% of its income as dividend. 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 2Y6.22%
EPS Next 3Y11.57%
FANG Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:FANG (3/10/2026, 10:51:57 AM)
182.42
-0.44 (-0.24%)
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 Owners63.84%
Inst Owner Change0.3%
Ins Owners0.73%
Ins Owner Change-4.83%
Market Cap51.46B
Revenue(TTM)15.03B
Net Income(TTM)1.66B
Analysts84.21
Price Target187.56 (2.82%)
Short Float %5.2%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend4.02
Dividend Growth(5Y)21.95%
DP69.81%
Div Incr Years1
Div Non Decr Years1
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)-0.24%
PT rev (3m)1.2%
EPS NQ rev (1m)-12.32%
EPS NQ rev (3m)-20.85%
EPS NY rev (1m)-3.93%
EPS NY rev (3m)-16.83%
Revenue NQ rev (1m)-2.63%
Revenue NQ rev (3m)-4.48%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 17.88 | ||
| P/S | 3.42 | ||
| P/FCF | N/A | ||
| P/OCF | 5.88 | ||
| P/B | 1.39 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)12.03
EY6.59%
EPS(NY)10.2
Fwd EY5.59%
FCF(TTM)-2.49
FCFYN/A
OCF(TTM)31.05
OCFY17.02%
SpS53.27
BVpS131.07
TBVpS131.07
PEG (NY)N/A
PEG (5Y)0.48
Graham Number188.35
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 | 1.4 |
F-Score5
WACC7.14%
ROIC/WACC0.87
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 Y-15.2%
EPS Next 2Y6.22%
EPS Next 3Y11.57%
EPS Next 5Y9.66%
Revenue 1Y (TTM)35.79%
Revenue growth 3Y15.93%
Revenue growth 5Y39.81%
Sales Q2Q%-9.03%
Revenue Next Year-7.31%
Revenue Next 2Y0.18%
Revenue Next 3Y2.46%
Revenue Next 5Y1.92%
EBIT growth 1Y6.66%
EBIT growth 3Y-8.98%
EBIT growth 5Y55.27%
EBIT Next Year74.58%
EBIT Next 3Y25.98%
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 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 3 / 10 to DIAMONDBACK ENERGY INC (FANG). This can be considered as Overvalued.
What is the profitability of FANG stock?
DIAMONDBACK ENERGY INC (FANG) has a profitability rating of 5 / 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 15.16 and the Price/Book (PB) ratio is 1.39.
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%.