DIAMONDBACK ENERGY INC (FANG) Fundamental Analysis & Valuation
NASDAQ:FANG • US25278X1090
178.37 USD
-4.49 (-2.46%)
At close: Mar 10, 2026
173.69 USD
-4.68 (-2.62%)
After Hours: 3/10/2026, 8:21:33 PM
This FANG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
FANG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While FANG is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- In the past year FANG had a positive cash flow from operations.
- Each year in the past 5 years FANG has been profitable.
- FANG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FANG's Return On Assets of 2.33% is in line compared to the rest of the industry. FANG outperforms 43.00% of its industry peers.
- FANG has a Return On Equity (4.48%) which is comparable to the rest of the industry.
- FANG has a Return On Invested Capital (6.21%) which is comparable to the rest of the 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
- FANG has a Profit Margin (11.02%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of FANG has declined.
- Looking at the Operating Margin, with a value of 33.36%, FANG belongs to the top of the industry, outperforming 80.19% of the companies in the same industry.
- In the last couple of years the Operating Margin of FANG has grown nicely.
- FANG's Gross Margin of 68.69% is fine compared to the rest of the industry. FANG outperforms 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FANG is still creating some value.
- FANG has less shares outstanding than it did 1 year ago.
- FANG has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for FANG is higher compared to a year ago.
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 (1.40) which is comparable to the rest of the industry.
- 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/WACC0.88
WACC7.08%
2.3 Liquidity
- FANG has a Current 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 Current ratio (0.42) than 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.
- With a Quick ratio value of 0.40, FANG is not doing good in the industry: 86.96% of the companies in the same industry are doing better.
| 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.
- The Earnings Per Share has been growing by 31.67% on average over the past years. This is a very strong growth
- The Revenue has grown by 35.79% in the past year. This is a very strong growth!
- FANG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 39.81% yearly.
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.
- 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
- 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. FANG Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.83 indicates a correct valuation of FANG.
- Based on the Price/Earnings ratio, FANG is valued a bit cheaper than the industry average as 64.73% of the companies are valued more expensively.
- FANG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 17.49, the valuation of FANG can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as FANG.
- The average S&P500 Price/Forward Earnings ratio is at 24.39. FANG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 17.49 |
4.2 Price Multiples
- FANG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FANG is cheaper than 70.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y6.22%
EPS Next 3Y11.57%
5. FANG Dividend Analysis
5.1 Amount
- FANG has a Yearly Dividend Yield of 2.35%. Purely for dividend investing, there may be better candidates out there.
- 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
178.37
-4.49 (-2.46%)
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 Cap50.31B
Revenue(TTM)15.03B
Net Income(TTM)1.66B
Analysts84.21
Price Target187.56 (5.15%)
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 | 14.83 | ||
| Fwd PE | 17.49 | ||
| P/S | 3.35 | ||
| P/FCF | N/A | ||
| P/OCF | 5.74 | ||
| P/B | 1.36 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)12.03
EY6.74%
EPS(NY)10.2
Fwd EY5.72%
FCF(TTM)-2.49
FCFYN/A
OCF(TTM)31.05
OCFY17.41%
SpS53.27
BVpS131.07
TBVpS131.07
PEG (NY)N/A
PEG (5Y)0.47
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
WACC7.08%
ROIC/WACC0.88
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 14.83 and the Price/Book (PB) ratio is 1.36.
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%.