FANG Diamondback Energy
$202.62
▲ 3.6%Updated Oct 16, 2:25 PM ET
Report Card
FANG at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Weak · 37/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 23.3% in the year to Jul 6, 2026
Key Metrics
Market Cap
$48.40B
P/E
199.33x
Forward P/E (est.)
—
ROE
0.8%
Revenue Growth
18.1%
EPS Growth
-94.5%
Profit Margin
1.9%
FCF Yield
14.8%
Debt / Equity
0.39x
ROIC
2.0%
Interest Coverage
5.19x
Current Ratio
0.47x
Dividend Yield
2.3%
Implied Growth (rev. DCF)
—
Rating Score
37/100
Business Overview
Diamondback Energy (FANG) is a large-cap company in the Oil & Gas Exploration & Production industry, part of the Energy sector of the S&P 500, with a market value around $48.40B.
In its latest reported year it generated about $15.03B in revenue and $1.66B in net profit.
Our model rates FANG Weak (37/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (9 years of history).
Profit margins and economic moats, explainedSome durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
34.2% average over the last 3 years
±76.8 pts around 16.5% across 9 years
grew in 6 of the last 8 year-over-year periods
positive in 9 of 9 years
2.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what FANG's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. FANG trades near $202.62, above its 50-day average ($194.70) and 200-day average ($168.73). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 18 it is oversold — selling has been heavy and a bounce is possible.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. FANG's is $4.99 (~2.5% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, FANG found buyers near $170.10 (support) and sellers near $207.16 (resistance); its 52-week range then was $134.30–$214.51. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.9× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
21.9%
Revenue moved from $1.21B in 2017 to $15.03B in 2025, a 37.1% compound annual growth rate. The most recent year grew a strong 18.1% year over year. Consistent top-line growth is one sign of healthy demand.
Profitability
Gross Margin
67.8%
Operating Margin
8.4%
Net Margin
11.1%
ROE
0.8%
Diamondback Energy keeps about 1.9% of each sales dollar as net profit, with a 67.8% gross margin and 8.4% operating margin. Return on equity is 0.8% and return on invested capital about 2.0%. Thin margins leave less cushion if costs rise.
Debt Analysis
Total Debt
$11.07B
Net Debt
$10.60B
Net Debt / EBITDA
8.38x
Debt / Equity
0.39x
Leverage: debt-to-equity is 0.4x, and operating profit covers interest about 5.2x, with a current ratio of 0.5x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $11.07B of total debt against $462.00M of cash.
Cash Flow Analysis
Operating CF
$8.76B
Free Cash Flow
$8.76B
FCF Margin
58.3%
In the latest year Diamondback Energy produced about $8.76B of operating cash flow and $8.76B of free cash flow after capital spending. That is a free-cash-flow yield of about 14.8% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockCoverage is weak, the payout was cut recently, or it's being financed rather than earned — treat the current yield as fragile.
Dividend yield
2.3%
Per share (latest FY)
$4.00
Total paid (latest FY)
$1.16B
History on record
8 years
dividend uses 13% of free cash flow
69% of net income paid out
no current raise streak
payout was cut at least once in the last 8 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
199.33x
P/S
3.5x
P/B
1.25x
EV / EBITDA
—
FANG trades at 199.3x trailing earnings, 3.5x sales, and 1.3x book value. That is a rich multiple that prices in a lot of future growth.
Metrics vs. Sector Range
Where FANG sits versus the Energy companies we cover.
Bands show the middle half (25th–75th percentile) of the 47 Energy companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How FANG stacks up against its Energy peers — valuation, profitability, and growth versus the sector median.
Among the 47 rated Energy companies we cover, FANG ranks #42 by our overall rating. It trades at a premium versus the sector on earnings (199.3x P/E vs. 21.4x median) with a lower return on equity (0.8% vs. 13.3%) and faster revenue growth (18.1% vs. 0.7%).
P/E vs sector
199.3x
median 21.4x
ROE vs sector
0.8%
median 13.3%
Growth vs sector
18.1%
median 0.7%
Sector rank
#42
of 47 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Energy companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 47 rated companies among the 57 Energy stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$1,883.89 – $3,150.37
vs. $202.62 today · implied CAGR 56% – 73%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $17.73B | $20.92B | $24.69B | $29.13B | $34.38B |
| Net income | $1.95B | $2.30B | $2.72B | $3.20B | $3.78B |
| EPS | $8.17 | $9.64 | $11.37 | $13.42 | $15.83 |
| Share price (low) | $971.69 | $1,146.59 | $1,352.98 | $1,596.52 | $1,883.89 |
| Share price (high) | $1,624.93 | $1,917.41 | $2,262.55 | $2,669.81 | $3,150.37 |
| CAGR (low–high) | 380% / 702% | 138% / 208% | 88% / 124% | 68% / 91% | 56% / 73% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for FANG:
- Revenue is growing 18.1% a year, a sign of real demand.
- Healthy free-cash-flow yield (~14.8%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.4x) lowers risk.
- Pays a 2.3% dividend on top of any price gains.
Bear Case
The case against FANG:
- Thin net margins (1.9%) leave little room for error.
- A rich 199.3x earnings multiple prices in a lot of growth.
- Our model's overall read is Weak (37/100).
Key Risks
Valuation risk — at 199.3x earnings, disappointing results could compress the multiple.
Margin risk — thin profitability (1.9%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen weakly: Diamondback Energy is a large-cap energy business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 199.3x earnings, which our model scores Weak (37/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Latest SEC Filings
FANG's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
FANG — frequently asked questions
Is FANG a good stock to buy?
We don't give buy or sell advice. Our model rates Diamondback Energy Weak (37/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is FANG's rating on The Stocks School?
Diamondback Energy currently scores 37/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does FANG's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Diamondback Energy's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for FANG calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this FANG analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell FANG. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.