147.41 USD
-0.25 (-0.17%)
147.41 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FANG. FANG was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. FANG scores excellent on profitability, but there are concerns on its financial health. FANG is not valued too expensively and it also shows a decent growth rate.
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.
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
FANG has a better Return On Assets (5.48%) than 68.75% of its industry peers.
The Return On Equity of FANG (10.69%) is better than 65.87% of its industry peers.
FANG has a Return On Invested Capital (6.23%) 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 21.28%.
The last Return On Invested Capital (6.23%) 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 | 5.48% | ||
| ROE | 10.69% | ||
| ROIC | 6.23% |
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's Profit Margin of 27.20% is amongst the best of the industry. FANG outperforms 85.10% of its industry peers.
In the last couple of years the Profit Margin of FANG has grown nicely.
The Operating Margin of FANG (36.35%) is better than 84.62% of its industry peers.
In the last couple of years the Operating Margin of FANG has grown nicely.
The Gross Margin of FANG (70.42%) is better than 79.81% of its industry peers.
In the last couple of years the Gross Margin of FANG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.35% | ||
| PM (TTM) | 27.2% | ||
| GM | 70.42% |
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.
FANG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FANG has more shares outstanding
Compared to 1 year ago, FANG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that FANG is in the distress zone and has some risk of bankruptcy.
FANG has a Altman-Z score of 1.22. This is comparable to the rest of the industry: FANG outperforms 50.00% of its industry peers.
FANG has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.41, FANG perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC0.81
WACC7.71%
2.3 Liquidity
A Current Ratio of 0.62 indicates that FANG may have some problems paying its short term obligations.
FANG has a worse Current ratio (0.62) than 77.88% of its industry peers.
FANG has a Quick Ratio of 0.62. 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 Quick ratio of 0.60. This is in the lower half of the industry: FANG underperforms 71.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
FANG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.73%.
Measured over the past years, FANG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.84% on average per year.
The Revenue has grown by 60.29% in the past year. This is a very strong growth!
The Revenue has been growing by 22.79% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-18.73%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-8.88%
Revenue 1Y (TTM)60.29%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.36%
3.2 Future
Based on estimates for the next years, FANG will show a small growth in Earnings Per Share. The EPS will grow by 5.10% on average per year.
FANG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.64% yearly.
EPS Next Y-17.18%
EPS Next 2Y-12.65%
EPS Next 3Y-0.69%
EPS Next 5Y5.1%
Revenue Next Year39.72%
Revenue Next 2Y15.46%
Revenue Next 3Y12.77%
Revenue Next 5Y9.64%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.58, which indicates a very decent valuation of FANG.
Compared to the rest of the industry, the Price/Earnings ratio of FANG indicates a somewhat cheap valuation: FANG is cheaper than 77.40% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FANG to the average of the S&P500 Index (27.00), we can say FANG is valued rather cheaply.
A Price/Forward Earnings ratio of 12.05 indicates a correct valuation of FANG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FANG indicates a somewhat cheap valuation: FANG is cheaper than 64.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.70. FANG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 12.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FANG is valued a bit cheaper than 71.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.62 |
4.3 Compensation for Growth
The decent profitability rating of FANG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-12.65%
EPS Next 3Y-0.69%
5. Dividend
5.1 Amount
FANG has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
FANG's Dividend Yield is comparable with the industry average which is at 3.96.
Compared to an average S&P500 Dividend Yield of 1.94, FANG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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 27.09% of its income as dividend. This is a sustainable payout ratio.
FANG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.09%
EPS Next 2Y-12.65%
EPS Next 3Y-0.69%
147.41
-0.25 (-0.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners62.3%
Inst Owner Change0%
Ins Owners0.71%
Ins Owner Change-1.96%
Market Cap42.24B
Revenue(TTM)15.36B
Net Income(TTM)4.18B
Analysts84.1
Price Target185.28 (25.69%)
Short Float %4.95%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend6.72
Dividend Growth(5Y)57.49%
DP27.09%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.91%
Min EPS beat(2)-7.02%
Max EPS beat(2)3.2%
EPS beat(4)3
Avg EPS beat(4)2.65%
Min EPS beat(4)-7.02%
Max EPS beat(4)7.78%
EPS beat(8)3
Avg EPS beat(8)-1.08%
EPS beat(12)4
Avg EPS beat(12)-1.37%
EPS beat(16)8
Avg EPS beat(16)0.45%
Revenue beat(2)2
Avg Revenue beat(2)8.1%
Min Revenue beat(2)7.01%
Max Revenue beat(2)9.18%
Revenue beat(4)4
Avg Revenue beat(4)6.44%
Min Revenue beat(4)3.11%
Max Revenue beat(4)9.18%
Revenue beat(8)8
Avg Revenue beat(8)6.08%
Revenue beat(12)9
Avg Revenue beat(12)3.43%
Revenue beat(16)13
Avg Revenue beat(16)6.03%
PT rev (1m)0.16%
PT rev (3m)-1.55%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-2.09%
EPS NY rev (1m)0.53%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)2.78%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 12.05 | ||
| P/S | 2.75 | ||
| P/FCF | N/A | ||
| P/OCF | 4.82 | ||
| P/B | 1.08 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 5.62 |
EPS(TTM)13.93
EY9.45%
EPS(NY)12.24
Fwd EY8.3%
FCF(TTM)-3.82
FCFYN/A
OCF(TTM)30.56
OCFY20.73%
SpS53.61
BVpS136.42
TBVpS136.42
PEG (NY)N/A
PEG (5Y)0.53
Graham Number206.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.48% | ||
| ROE | 10.69% | ||
| ROCE | 7.75% | ||
| ROIC | 6.23% | ||
| ROICexc | 6.24% | ||
| ROICexgc | 6.24% | ||
| OM | 36.35% | ||
| PM (TTM) | 27.2% | ||
| GM | 70.42% | ||
| 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%
ROICexgc growth 3Y-27.28%
ROICexgc 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-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 205% | ||
| Cap/Sales | 64.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.22 |
F-Score7
WACC7.71%
ROIC/WACC0.81
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)-18.73%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-8.88%
EPS Next Y-17.18%
EPS Next 2Y-12.65%
EPS Next 3Y-0.69%
EPS Next 5Y5.1%
Revenue 1Y (TTM)60.29%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.36%
Revenue Next Year39.72%
Revenue Next 2Y15.46%
Revenue Next 3Y12.77%
Revenue Next 5Y9.64%
EBIT growth 1Y25.15%
EBIT growth 3Y4.83%
EBIT growth 5Y25.91%
EBIT Next Year121.19%
EBIT Next 3Y31.93%
EBIT Next 5Y20.16%
FCF growth 1Y-208.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y52.62%
OCF growth 3Y17.59%
OCF growth 5Y18.59%
DIAMONDBACK ENERGY INC / FANG FAQ
What is the ChartMill fundamental rating of DIAMONDBACK ENERGY INC (FANG) stock?
ChartMill assigns a fundamental rating of 5 / 10 to FANG.
What is the valuation status of DIAMONDBACK ENERGY INC (FANG) stock?
ChartMill assigns a valuation rating of 4 / 10 to DIAMONDBACK ENERGY INC (FANG). This can be considered as Fairly Valued.
What is the profitability of FANG stock?
DIAMONDBACK ENERGY INC (FANG) has a profitability rating of 7 / 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 10.58 and the Price/Book (PB) ratio is 1.08.
Can you provide the dividend sustainability for FANG stock?
The dividend rating of DIAMONDBACK ENERGY INC (FANG) is 5 / 10 and the dividend payout ratio is 27.09%.