DIAMONDBACK ENERGY INC (FANG) Fundamental Analysis & Valuation
NASDAQ:FANG • US25278X1090
Current stock price
187.22 USD
+4.89 (+2.68%)
At close:
186.98 USD
-0.24 (-0.13%)
After Hours:
This FANG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. FANG Profitability Analysis
1.1 Basic Checks
- FANG had positive earnings in the past year.
- In the past year FANG had a positive cash flow from operations.
- In the past 5 years FANG has always been profitable.
- FANG had a positive operating cash flow in each of the past 5 years.
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 of 4.48%. This is comparable to the rest of the industry: FANG outperforms 41.06% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.21%, FANG is in line with its industry, outperforming 56.04% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for FANG is significantly below the industry average of 22.49%.
| 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
- The Profit Margin of FANG (11.02%) is comparable to the rest of the industry.
- FANG's Profit Margin has declined in the last couple of years.
- FANG has a better Operating Margin (33.36%) than 80.19% of its industry peers.
- FANG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 68.69%, FANG is in the better half of the industry, outperforming 75.85% of the companies in the same industry.
- 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
- 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 reduced 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 is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.40, we must say that FANG is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.40, FANG perfoms like the industry average, outperforming 50.24% of the companies in the same industry.
- FANG has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- FANG's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. FANG outperforms 57.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.4 |
ROIC/WACC0.86
WACC7.24%
2.3 Liquidity
- A Current Ratio of 0.42 indicates that FANG may have some problems paying its short term obligations.
- FANG has a Current ratio of 0.42. This is amonst the worse of the industry: FANG underperforms 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.
- FANG has a worse Quick ratio (0.40) than 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.4 |
3. FANG Growth Analysis
3.1 Past
- The earnings per share for FANG have decreased strongly by -25.00% in the last year.
- 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.
- Looking at the last year, FANG shows a very strong growth in Revenue. The Revenue has grown by 35.79%.
- 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
- The Earnings Per Share is expected to grow by 9.66% on average over the next years. This is quite good.
- FANG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.92% yearly.
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.
- 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. FANG Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.56, FANG is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of FANG indicates a somewhat cheap valuation: FANG is cheaper than 65.22% of the companies listed in the same industry.
- FANG is valuated rather cheaply when we compare the Price/Earnings ratio to 25.96, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 18.35, which indicates a rather expensive current valuation of FANG.
- FANG's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of FANG to the average of the S&P500 Index (24.04), we can say FANG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 18.35 |
4.2 Price Multiples
- FANG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FANG is cheaper than 71.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y6.22%
EPS Next 3Y11.57%
5. FANG Dividend Analysis
5.1 Amount
- FANG has a Yearly Dividend Yield of 2.37%.
- FANG's Dividend Yield is comparable with the industry average which is at 3.47.
- Compared to an average S&P500 Dividend Yield of 1.91, FANG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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.
- FANG has decreased its dividend 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.
- FANG's earnings are growing slower than its dividend. 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
187.22
+4.89 (+2.68%)
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-4.91%
Market Cap52.81B
Revenue(TTM)15.03B
Net Income(TTM)1.66B
Analysts84.21
Price Target187.56 (0.18%)
Short Float %4.85%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)-11.23%
EPS NQ rev (3m)-19.87%
EPS NY rev (1m)-3.93%
EPS NY rev (3m)-16.83%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-2.44%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 18.35 | ||
| P/S | 3.51 | ||
| P/FCF | N/A | ||
| P/OCF | 6.03 | ||
| P/B | 1.43 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 6.55 |
EPS(TTM)12.03
EY6.43%
EPS(NY)10.2
Fwd EY5.45%
FCF(TTM)-2.49
FCFYN/A
OCF(TTM)31.05
OCFY16.58%
SpS53.27
BVpS131.07
TBVpS131.07
PEG (NY)N/A
PEG (5Y)0.49
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
WACC7.24%
ROIC/WACC0.86
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 Fundamental Analysis 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 15.56 and the Price/Book (PB) ratio is 1.43.
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%.