DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis
NASDAQ:FANG - Nasdaq - US25278X1090 - Common Stock - Currency: USD
Overall FANG gets a fundamental rating of 5 out of 10. We evaluated FANG against 208 industry peers in the Oil, Gas & Consumable Fuels industry. FANG scores excellent on profitability, but there are concerns on its financial health. FANG has a correct valuation and a medium 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.
FANG had positive earnings in 4 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 5.31%, FANG is in the better half of the industry, outperforming 63.46% of the companies in the same industry.
With a Return On Equity value of 9.82%, FANG perfoms like the industry average, outperforming 56.73% of the companies in the same industry.
FANG has a Return On Invested Capital (6.25%) 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 23.53%.
The last Return On Invested Capital (6.25%) 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 | 5.31% | ||
| 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 has a Profit Margin of 27.11%. This is amongst the best in the industry. FANG outperforms 80.77% of its industry peers.
In the last couple of years the Profit Margin of FANG has grown nicely.
With an excellent Operating Margin value of 37.63%, FANG belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of FANG has grown nicely.
FANG has a Gross Margin of 70.77%. This is amongst the best in the industry. FANG outperforms 80.77% of its industry peers.
In the last couple of years the Gross Margin of FANG has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FANG is creating some value.
The number of shares outstanding for FANG has been increased compared to 1 year ago.
Compared to 5 years ago, FANG has more shares outstanding
The debt/assets ratio for FANG has been reduced compared to a year ago.
2.2 Solvency
FANG has an Altman-Z score of 1.28. 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 (1.28) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.39 indicates that FANG is not too dependend on debt financing.
FANG has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: FANG outperforms 55.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.74
WACC8.42%
2.3 Liquidity
A Current Ratio of 0.55 indicates that FANG may have some problems paying its short term obligations.
FANG has a worse Current ratio (0.55) than 83.17% of its industry peers.
FANG has a Quick Ratio of 0.55. 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 Quick ratio (0.52) than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for FANG have decreased strongly by -26.08% in the last year.
FANG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.84% yearly.
FANG shows a strong growth in Revenue. In the last year, 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
FANG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.86% yearly.
FANG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.61% yearly.
EPS Next Y-14.39%
EPS Next 2Y-9.72%
EPS Next 3Y0.38%
EPS Next 5Y0.86%
Revenue Next Year33.56%
Revenue Next 2Y14.5%
Revenue Next 3Y11.77%
Revenue Next 5Y8.61%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.62 indicates a reasonable 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 73.56% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FANG to the average of the S&P500 Index (26.41), we can say FANG is valued rather cheaply.
A Price/Forward Earnings ratio of 10.47 indicates a reasonable 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 61.54% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.87. FANG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 10.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FANG is valued a bit cheaper than 64.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
FANG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y-9.72%
EPS Next 3Y0.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.82%, FANG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.31, FANG has a dividend in line with its industry peers.
FANG's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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
32.98% of the earnings are spent on dividend by FANG. This is a low number and 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-9.72%
EPS Next 3Y0.38%
136.84
-5.19 (-3.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners59.61%
Inst Owner Change-2.89%
Ins Owners35.52%
Ins Owner Change5.87%
Market Cap39.98B
Analysts84.32
Price Target187.93 (37.34%)
Short Float %4.16%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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)6.62%
Min Revenue beat(2)6.44%
Max Revenue beat(2)6.79%
Revenue beat(4)4
Avg Revenue beat(4)5.64%
Min Revenue beat(4)3.11%
Max Revenue beat(4)6.79%
Revenue beat(8)8
Avg Revenue beat(8)5.48%
Revenue beat(12)9
Avg Revenue beat(12)2.69%
Revenue beat(16)13
Avg Revenue beat(16)6.86%
PT rev (1m)-0.15%
PT rev (3m)-2.46%
EPS NQ rev (1m)-3.83%
EPS NQ rev (3m)-9.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.72%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-3.72%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 10.47 | ||
| P/S | 2.84 | ||
| P/FCF | N/A | ||
| P/OCF | 5.27 | ||
| P/B | 1.03 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 5.9 |
EPS(TTM)14.23
EY10.4%
EPS(NY)13.07
Fwd EY9.55%
FCF(TTM)-28.88
FCFYN/A
OCF(TTM)25.95
OCFY18.96%
SpS48.2
BVpS133.08
TBVpS133.08
PEG (NY)N/A
PEG (5Y)0.48
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 | 1.28 |
F-Score5
WACC8.42%
ROIC/WACC0.74
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-14.39%
EPS Next 2Y-9.72%
EPS Next 3Y0.38%
EPS Next 5Y0.86%
Revenue 1Y (TTM)51.78%
Revenue growth 3Y17.64%
Revenue growth 5Y22.79%
Sales Q2Q%48.13%
Revenue Next Year33.56%
Revenue Next 2Y14.5%
Revenue Next 3Y11.77%
Revenue Next 5Y8.61%
EBIT growth 1Y9.6%
EBIT growth 3Y4.83%
EBIT growth 5Y25.91%
EBIT Next Year117.21%
EBIT Next 3Y31.99%
EBIT Next 5Y19.39%
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%