DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis
USA - NASDAQ:FANG - US25278X1090 - Common Stock
144.73 USD
+1.08 (+0.75%)
144.5 USD
-0.23 (-0.16%)
Taking everything into account, FANG scores 5 out of 10 in our fundamental rating. FANG was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While FANG has a great profitability rating, there are quite some concerns on its financial health. FANG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FANG had positive earnings in the past year.
FANG had a positive operating cash flow in the past year.
Of the past 5 years FANG 4 years were profitable.
Each year in the past 5 years FANG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FANG (5.48%) is better than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 10.69%, FANG is in the better half of the industry, outperforming 64.76% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.23%, FANG is in line with its industry, outperforming 56.67% 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 21.89%.
The 3 year average ROIC (13.71%) for FANG is well above the current ROIC(6.23%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin of 27.20%. This is amongst the best in the industry. FANG outperforms 84.29% of its industry peers.
In the last couple of years the Profit Margin of FANG has grown nicely.
FANG has a Operating Margin of 36.35%. This is amongst the best in the industry. FANG outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of FANG has grown nicely.
Looking at the Gross Margin, with a value of 70.42%, FANG belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FANG is still 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.
FANG has a better debt/assets ratio than last year.
2.2 Solvency
FANG has an Altman-Z score of 1.21. This is a bad value and indicates that FANG is not financially healthy and even has some risk of bankruptcy.
FANG's Altman-Z score of 1.21 is in line compared to the rest of the industry. FANG outperforms 49.05% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that FANG is not too dependend on debt financing.
FANG has a Debt to Equity ratio (0.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.21 |
ROIC/WACC0.82
WACC7.64%
2.3 Liquidity
FANG has a Current 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.
The Current ratio of FANG (0.62) is worse than 80.00% 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's Quick ratio of 0.60 is on the low side compared to the rest of the industry. FANG is outperformed by 74.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for FANG have decreased strongly by -18.73% in the last year.
The Earnings Per Share has been growing by 19.84% on average over the past years. This is quite good.
FANG shows a strong growth in Revenue. In the last year, the Revenue has grown by 60.29%.
Measured over the past years, FANG shows a very strong growth in Revenue. The Revenue has been growing by 22.79% on average per year.
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
The Earnings Per Share is expected to grow by 3.64% 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 9.64% yearly.
EPS Next Y-17.89%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
EPS Next 5Y3.64%
Revenue Next Year36.06%
Revenue Next 2Y15.59%
Revenue Next 3Y12.95%
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
FANG is valuated reasonably with a Price/Earnings ratio of 10.39.
FANG's Price/Earnings ratio is a bit cheaper when compared to the industry. FANG is cheaper than 77.62% of the companies in the same industry.
FANG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.28.
The Price/Forward Earnings ratio is 11.57, which indicates a very decent 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 65.71% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FANG to the average of the S&P500 Index (33.61), we can say FANG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
FANG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FANG is cheaper than 72.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.55 |
4.3 Compensation for Growth
The decent profitability rating of FANG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
5. Dividend
5.1 Amount
FANG has a Yearly Dividend Yield of 2.76%.
FANG's Dividend Yield is comparable with the industry average which is at 5.91.
FANG's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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.
FANG has decreased its dividend recently.
Dividend Growth(5Y)57.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
27.09% of the earnings are spent on dividend by FANG. This is a low number and sustainable payout ratio.
The dividend of FANG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.09%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
144.73
+1.08 (+0.75%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners61.93%
Inst Owner Change-1.43%
Ins Owners0.72%
Ins Owner Change0.01%
Market Cap41.90B
Revenue(TTM)15.36B
Net Income(TTM)4.18B
Analysts84.21
Price Target184.95 (27.79%)
Short Float %4.6%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend6.72
Dividend Growth(5Y)57.49%
DP27.09%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-1.72%
PT rev (3m)-1.59%
EPS NQ rev (1m)2.1%
EPS NQ rev (3m)-6.09%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)1.84%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.39 | ||
| Fwd PE | 11.57 | ||
| P/S | 2.73 | ||
| P/FCF | N/A | ||
| P/OCF | 4.79 | ||
| P/B | 1.07 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 5.55 |
EPS(TTM)13.93
EY9.62%
EPS(NY)12.51
Fwd EY8.65%
FCF(TTM)-3.78
FCFYN/A
OCF(TTM)30.25
OCFY20.9%
SpS53.06
BVpS135.02
TBVpS135.02
PEG (NY)N/A
PEG (5Y)0.52
Graham Number205.72
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 | 1.21 |
F-Score7
WACC7.64%
ROIC/WACC0.82
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-17.89%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
EPS Next 5Y3.64%
Revenue 1Y (TTM)60.29%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.36%
Revenue Next Year36.06%
Revenue Next 2Y15.59%
Revenue Next 3Y12.95%
Revenue Next 5Y9.64%
EBIT growth 1Y25.15%
EBIT growth 3Y4.83%
EBIT growth 5Y25.91%
EBIT Next Year118.23%
EBIT Next 3Y32.79%
EBIT Next 5Y19.15%
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.
Can you provide the valuation status for DIAMONDBACK ENERGY INC?
ChartMill assigns a valuation rating of 5 / 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 financial health of DIAMONDBACK ENERGY INC (FANG) stock?
The financial health rating of DIAMONDBACK ENERGY INC (FANG) is 2 / 10.
What is the expected EPS growth for DIAMONDBACK ENERGY INC (FANG) stock?
The Earnings per Share (EPS) of DIAMONDBACK ENERGY INC (FANG) is expected to decline by -17.89% in the next year.