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DIAMONDBACK ENERGY INC (FANG) Stock Fundamental Analysis

USA - NASDAQ:FANG - US25278X1090 - Common Stock

139.67 USD
-0.97 (-0.69%)
Last: 9/19/2025, 8:01:48 PM
139.67 USD
0 (0%)
After Hours: 9/19/2025, 8:01:48 PM
Fundamental Rating

5

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.


Dividend Valuation Growth Profitability Health

7

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.
FANG Yearly Net Income VS EBIT VS OCF VS FCFFANG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B 6B

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 RankSector 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%
FANG Yearly ROA, ROE, ROICFANG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

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 RankSector 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%
FANG Yearly Profit, Operating, Gross MarginsFANG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150

2

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.
FANG Yearly Shares OutstandingFANG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
FANG Yearly Total Debt VS Total AssetsFANG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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 RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Altman-Z 1.26
ROIC/WACC0.79
WACC7.94%
FANG Yearly LT Debt VS Equity VS FCFFANG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

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 RankSector Rank
Current Ratio 0.55
Quick Ratio 0.52
FANG Yearly Current Assets VS Current LiabilitesFANG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

6

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.
FANG Yearly Revenue VS EstimatesFANG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B
FANG Yearly EPS VS EstimatesFANG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

5

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 RankSector Rank
PE 9.82
Fwd PE 11.09
FANG Price Earnings VS Forward Price EarningsFANG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF N/A
EV/EBITDA 5.79
FANG Per share dataFANG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

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%

4

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 RankSector 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
FANG Yearly Dividends per shareFANG Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

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%
FANG Yearly Income VS Free CF VS DividendFANG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B
FANG Dividend Payout.FANG Dividend Payout, showing the Payout Ratio.FANG Dividend Payout.PayoutRetained Earnings

DIAMONDBACK ENERGY INC

NASDAQ:FANG (9/19/2025, 8:01:48 PM)

After market: 139.67 0 (0%)

139.67

-0.97 (-0.69%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)08-04 2025-08-04/amc
Earnings (Next)11-03 2025-11-03/amc
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 RankSector Rank
Dividend Yield 2.84%
Yearly Dividend6.72
Dividend Growth(5Y)57.49%
DP32.98%
Div Incr Years1
Div Non Decr Years1
Ex-Date08-14 2025-08-14 (1)
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 RankSector 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 RankSector 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 RankSector 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%