152.59 USD
+3.28 (+2.2%)
152.69 USD
+0.1 (+0.07%)
We assign a fundamental rating of 5 out of 10 to FANG. FANG was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. FANG scores excellent on profitability, but 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.
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
FANG has a better Return On Assets (5.48%) than 68.42% of its industry peers.
FANG has a Return On Equity of 10.69%. This is in the better half of the industry: FANG outperforms 66.03% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.23%, FANG is in line with its industry, outperforming 55.50% 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 21.49%.
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
The Profit Margin of FANG (27.20%) is better than 84.69% of its industry peers.
In the last couple of years the Profit Margin of FANG has grown nicely.
The Operating Margin of FANG (36.35%) is better than 84.21% of its industry peers.
In the last couple of years the Operating Margin of FANG has grown nicely.
FANG has a better Gross Margin (70.42%) than 80.86% of its industry peers.
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
FANG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FANG has been increased compared to 1 year ago.
The number of shares outstanding for FANG has been increased compared to 5 years ago.
Compared to 1 year ago, FANG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that FANG is in the distress zone and has some risk of bankruptcy.
FANG has a Altman-Z score (1.24) which is in line with its industry peers.
FANG has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FANG (0.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.79
WACC7.88%
2.3 Liquidity
A Current Ratio of 0.62 indicates that FANG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.62, FANG is doing worse than 78.95% of the companies in the same industry.
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 has a worse Quick ratio (0.60) than 73.21% 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.
The Revenue has grown by 60.29% in the past year. This is a very strong growth!
FANG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.79% yearly.
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
Based on estimates for the next years, FANG will show a small growth in Earnings Per Share. The EPS will grow by 5.10% on average per year.
The Revenue is expected to grow by 9.64% on average over the next years. This is quite good.
EPS Next Y-17.89%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
EPS Next 5Y5.1%
Revenue Next Year36.06%
Revenue Next 2Y15.59%
Revenue Next 3Y12.95%
Revenue Next 5Y9.64%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
FANG is valuated reasonably with a Price/Earnings ratio of 10.95.
FANG's Price/Earnings ratio is a bit cheaper when compared to the industry. FANG is cheaper than 74.64% 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 26.31.
FANG is valuated correctly with a Price/Forward Earnings ratio of 12.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FANG indicates a somewhat cheap valuation: FANG is cheaper than 62.68% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.59. FANG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
70.81% of the companies in the same industry are more expensive than FANG, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.76 |
4.3 Compensation for Growth
The decent profitability rating of FANG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
5. Dividend
5.1 Amount
FANG has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
FANG's Dividend Yield is comparable with the industry average which is at 5.93.
Compared to an average S&P500 Dividend Yield of 2.34, FANG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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
27.09% 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.
DP27.09%
EPS Next 2Y-11.67%
EPS Next 3Y-0.94%
152.59
+3.28 (+2.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners61.93%
Inst Owner Change1.31%
Ins Owners0.72%
Ins Owner Change-0.02%
Market Cap43.72B
Revenue(TTM)15.36B
Net Income(TTM)4.18B
Analysts84.21
Price Target184.98 (21.23%)
Short Float %4.91%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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)-1.71%
PT rev (3m)-1.86%
EPS NQ rev (1m)2.18%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)-1.77%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)1.98%
Revenue NQ rev (3m)1.81%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 12.19 | ||
| P/S | 2.85 | ||
| P/FCF | N/A | ||
| P/OCF | 4.99 | ||
| P/B | 1.12 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 5.76 |
EPS(TTM)13.93
EY9.13%
EPS(NY)12.51
Fwd EY8.2%
FCF(TTM)-3.82
FCFYN/A
OCF(TTM)30.56
OCFY20.03%
SpS53.61
BVpS136.42
TBVpS136.42
PEG (NY)N/A
PEG (5Y)0.55
Graham Number206.78
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 | 1.24 |
F-Score7
WACC7.88%
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)-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 5Y5.1%
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 5Y20.16%
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.