DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis
USA - NASDAQ:FANG - US25278X1090 - Common Stock
139.67 USD
-0.97 (-0.69%)
139.67 USD
0 (0%)
FANG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While FANG belongs to the best of the industry regarding profitability, 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
FANG had positive earnings in the past year.
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
The Return On Assets of FANG (5.31%) is better than 64.29% of its industry peers.
The Return On Equity of FANG (9.82%) is better than 60.48% of its industry peers.
The Return On Invested Capital of FANG (6.25%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FANG is significantly below the industry average of 21.66%.
The 3 year average ROIC (13.71%) for FANG is well above the current ROIC(6.25%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 9.82% | ||
| ROIC | 6.25% |
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 27.11% is amongst the best of the industry. FANG outperforms 83.33% of its industry peers.
FANG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 37.63%, FANG belongs to the top of the industry, outperforming 84.76% 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 (70.77%) than 81.43% of its industry peers.
FANG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.63% | ||
| PM (TTM) | 27.11% | ||
| GM | 70.77% |
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
FANG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FANG has more shares outstanding than it did 1 year ago.
FANG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FANG has an improved debt to assets ratio.
2.2 Solvency
FANG has an Altman-Z score of 1.26. This is a bad value and indicates that FANG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.26, FANG is in line with its industry, outperforming 49.05% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that FANG is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.39, FANG perfoms like the industry average, outperforming 56.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACC0.79
WACC7.94%
2.3 Liquidity
A Current Ratio of 0.55 indicates that FANG may have some problems paying its short term obligations.
FANG has a Current ratio of 0.55. This is amonst the worse of the industry: FANG underperforms 84.76% of its industry peers.
A Quick Ratio of 0.52 indicates that FANG may have some problems paying its short term obligations.
FANG has a worse Quick ratio (0.52) than 81.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
FANG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.08%.
The Earnings Per Share has been growing by 19.84% on average over the past years. This is quite good.
Looking at the last year, FANG shows a very strong growth in Revenue. The Revenue has grown by 51.78%.
The Revenue has been growing by 22.79% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-26.08%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-40.93%
Revenue 1Y (TTM)51.78%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.13%
3.2 Future
The Earnings Per Share is expected to grow by 3.52% on average over the next years.
FANG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.10% yearly.
EPS Next Y-16.92%
EPS Next 2Y-11.4%
EPS Next 3Y-2.9%
EPS Next 5Y3.52%
Revenue Next Year35.71%
Revenue Next 2Y15.32%
Revenue Next 3Y12.49%
Revenue Next 5Y9.1%
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 9.82, which indicates a very decent valuation of FANG.
FANG's Price/Earnings ratio is a bit cheaper when compared to the industry. FANG is cheaper than 76.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of FANG to the average of the S&P500 Index (27.38), we can say FANG is valued rather cheaply.
The Price/Forward Earnings ratio is 11.09, which indicates a very decent valuation of FANG.
FANG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FANG is cheaper than 63.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. FANG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FANG indicates a somewhat cheap valuation: FANG is cheaper than 68.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.79 |
4.3 Compensation for Growth
The decent profitability rating of FANG may justify a higher PE ratio.
A cheap valuation may be justified as FANG's earnings are expected to decrease with -2.90% in the coming years.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-11.4%
EPS Next 3Y-2.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.84%, FANG has a reasonable but not impressive dividend return.
FANG's Dividend Yield is comparable with the industry average which is at 6.00.
Compared to an average S&P500 Dividend Yield of 2.38, FANG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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 32.98% 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.
DP32.98%
EPS Next 2Y-11.4%
EPS Next 3Y-2.9%
139.67
-0.97 (-0.69%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners59.61%
Inst Owner Change-1.45%
Ins Owners35.52%
Ins Owner Change0.01%
Market Cap40.43B
Analysts84.74
Price Target188.7 (35.1%)
Short Float %4.44%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend6.72
Dividend Growth(5Y)57.49%
DP32.98%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.38%
Min EPS beat(2)-7.02%
Max EPS beat(2)7.78%
EPS beat(4)2
Avg EPS beat(4)-2.35%
Min EPS beat(4)-16.8%
Max EPS beat(4)7.78%
EPS beat(8)3
Avg EPS beat(8)-0.55%
EPS beat(12)4
Avg EPS beat(12)-1.61%
EPS beat(16)8
Avg EPS beat(16)0.52%
Revenue beat(2)2
Avg Revenue beat(2)6.73%
Min Revenue beat(2)6.44%
Max Revenue beat(2)7.01%
Revenue beat(4)4
Avg Revenue beat(4)5.7%
Min Revenue beat(4)3.11%
Max Revenue beat(4)7.01%
Revenue beat(8)8
Avg Revenue beat(8)5.5%
Revenue beat(12)9
Avg Revenue beat(12)2.7%
Revenue beat(16)13
Avg Revenue beat(16)6.87%
PT rev (1m)0.41%
PT rev (3m)0.26%
EPS NQ rev (1m)-5.19%
EPS NQ rev (3m)-6.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.26%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.82 | ||
| Fwd PE | 11.09 | ||
| P/S | 2.87 | ||
| P/FCF | N/A | ||
| P/OCF | 5.33 | ||
| P/B | 1.04 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 5.79 |
EPS(TTM)14.23
EY10.19%
EPS(NY)12.59
Fwd EY9.01%
FCF(TTM)-29.14
FCFYN/A
OCF(TTM)26.19
OCFY18.75%
SpS48.64
BVpS134.31
TBVpS134.31
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.31% | ||
| ROE | 9.82% | ||
| ROCE | 7.77% | ||
| ROIC | 6.25% | ||
| ROICexc | 6.27% | ||
| ROICexgc | 6.27% | ||
| OM | 37.63% | ||
| PM (TTM) | 27.11% | ||
| GM | 70.77% | ||
| 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%
ROICexcg growth 3Y-27.28%
ROICexcg 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-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 375.95% | ||
| Cap/Sales | 113.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.26 |
F-Score5
WACC7.94%
ROIC/WACC0.79
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)-26.08%
EPS 3Y12.48%
EPS 5Y19.84%
EPS Q2Q%-40.93%
EPS Next Y-16.92%
EPS Next 2Y-11.4%
EPS Next 3Y-2.9%
EPS Next 5Y3.52%
Revenue 1Y (TTM)51.78%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.13%
Revenue Next Year35.71%
Revenue Next 2Y15.32%
Revenue Next 3Y12.49%
Revenue Next 5Y9.1%
EBIT growth 1Y9.6%
EBIT growth 3Y4.83%
EBIT growth 5Y25.91%
EBIT Next Year117.21%
EBIT Next 3Y31.99%
EBIT Next 5Y19.92%
FCF growth 1Y-598.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.27%
OCF growth 3Y17.59%
OCF growth 5Y18.59%