DIAMONDBACK ENERGY INC (FANG) Fundamental Analysis & Valuation
NASDAQ:FANG • US25278X1090
179.04 USD
+2.33 (+1.32%)
At close: Mar 5, 2026
178.03 USD
-1.01 (-0.56%)
After Hours: 3/5/2026, 8:00:02 PM
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. There are concerns on the financial health of FANG while its profitability can be described as average. 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.
- FANG had positive earnings in each of the past 5 years.
- In the past 5 years FANG always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.33%, FANG is in line with its industry, outperforming 43.96% of the companies in the same industry.
- FANG has a Return On Equity (4.48%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 6.21%, FANG is in line with its industry, outperforming 57.00% 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 22.19%.
| 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 in line with its industry peers.
- In the last couple of years the Profit Margin of FANG has declined.
- With an excellent Operating Margin value of 33.36%, FANG belongs to the best of the industry, outperforming 80.68% of the companies in the same industry.
- 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 75.36% 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 1.37, we must say that FANG is in the distress zone and has some risk of bankruptcy.
- FANG has a Altman-Z score of 1.37. 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'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 | 1.37 |
ROIC/WACC0.88
WACC7.06%
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 87.44% of its industry peers.
- A Quick Ratio of 0.40 indicates that FANG may have some problems paying its short term obligations.
- The Quick ratio of FANG (0.40) is worse than 86.47% 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.
- FANG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.67% yearly.
- The Revenue has grown by 35.79% in the past year. This is a very strong growth!
- The Revenue has been growing by 39.81% on average over the past years. This is a very strong growth!
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.
- The Revenue is expected to grow by 1.92% on average over the next years.
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.
- 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
- FANG is valuated correctly with a Price/Earnings ratio of 14.88.
- Based on the Price/Earnings ratio, FANG is valued a bit cheaper than 65.22% of the companies in the same industry.
- When comparing the Price/Earnings ratio of FANG to the average of the S&P500 Index (26.74), we can say FANG is valued slightly cheaper.
- FANG is valuated rather expensively with a Price/Forward Earnings ratio of 17.55.
- The rest of the industry has a similar Price/Forward Earnings ratio as FANG.
- FANG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 17.55 |
4.2 Price Multiples
- FANG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FANG is cheaper than 72.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.39 |
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.
- FANG's Dividend Yield is comparable with the industry average which is at 3.46.
- FANG's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
- On average, the dividend of FANG grows each year by 21.95%, which is quite nice.
- 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
- 69.81% of the earnings are spent on dividend by FANG. 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
179.04
+2.33 (+1.32%)
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 Owners62.3%
Inst Owner Change0.29%
Ins Owners0.71%
Ins Owner Change-3.98%
Market Cap50.50B
Revenue(TTM)15.03B
Net Income(TTM)1.66B
Analysts84.21
Price Target187.56 (4.76%)
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)1.2%
PT rev (3m)1.4%
EPS NQ rev (1m)-9.59%
EPS NQ rev (3m)-18.97%
EPS NY rev (1m)-5.54%
EPS NY rev (3m)-15.15%
Revenue NQ rev (1m)-2.48%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 17.55 | ||
| P/S | 3.36 | ||
| P/FCF | N/A | ||
| P/OCF | 5.77 | ||
| P/B | 1.37 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 6.39 |
EPS(TTM)12.03
EY6.72%
EPS(NY)10.2
Fwd EY5.7%
FCF(TTM)-2.49
FCFYN/A
OCF(TTM)31.05
OCFY17.34%
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 | 1.37 |
F-Score5
WACC7.06%
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 14.88 and the Price/Book (PB) ratio is 1.37.
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%.