Diamondback Energy Inc
Exchange: NASDAQSector: EnergyIndustry: Oil & Gas E&P
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.
Did you know?
Pays a 1.94% dividend yield.
Current Price
$207.65
+0.98%GoodMoat Value
$34.30
83.5% overvaluedProfile
Valuation (TTM)
Market Cap$59.50B
P/E35.76
EV$69.33B
P/B1.61
Shares Out286.53M
P/Sales3.96
Revenue$15.03B
EV/EBITDA10.16
Diamondback Energy Inc (FANG) Stock Analysis
GoodMoat Analysis
Diamondback Energy is an oil and gas exploration and production company. It fails the initial quality gate of the GoodMoat framework, showing weak financial metrics and a likely low moat score, while trading at a significant premium to the platform's target price.
Read full analysis
Diamondback Energy operates in the capital-intensive and cyclical oil & gas exploration and production sector. Applying the GoodMoat framework, the company appears to lack a durable competitive moat. While it may possess some advantages like scale or operational efficiency, the sector is characterized by commodity pricing, high capital intensity, and low barriers to entry, making it difficult to achieve a high moat score of 5+ as required by the framework. The business also fails the quality gate. Key indicators are weak: revenue growth is negative at -9.4% YoY, ROE is low at 4.5%, the Free Cash Flow Yield is negative at -1.3%, and the profit margin is 11.1%. These metrics do not meet the thresholds for high returns, strong cash flow, or consistent growth outlined in the Quality Indicators section. From a valuation perspective, the stock trades at a P/E of 33.8x, which is high for a company with negative growth and modest profitability. The GoodMoat target price of $34.30 suggests the current price of $196.02 is considered extremely overvalued, indicating a severe lack of margin of safety. For a value investor, this combination of a likely low moat score, unfavourable quality metrics, and extreme valuation makes it an unfavourable candidate for further investigation under this framework. Analysis based on data as of 2024-05-15.
Market Cap$59.50B
Current Price$207.65
P/E Ratio35.76
Forward P/E—
PEG Ratio-0.15
EPS$5.73
Book Value$129.04
P/B Ratio1.61
FANG Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 14.4B
Revenue
4.0B
FY19
2.8B
FY20
6.8B
FY21
9.6B
FY22
8.4B
FY23
11.1B
FY24
15.0B
FY25
Net Income
240M
FY19
—
FY20
2.2B
FY21
4.4B
FY22
3.1B
FY23
3.3B
FY24
1.7B
FY25
FANG 52-Week Range
$126.14
$207.65
50-Day MA: $187.51200-Day MA: $156.80
Did you know?
Profit margin stands at 11.1%.
Diamondback Energy Inc (FANG) Financial Summary
Diamondback Energy Inc (FANG) is a Energy company in the Oil & Gas E&P industry, listed on NASDAQ. The stock currently trades at $207.65 with a market capitalization of $59.50B.
Key valuation metrics include a P/E ratio of 35.76, price-to-book ratio of 1.61, and EPS of $5.73. The company reports a profit margin of 11.1% and return on equity of 4.5%.
FANG Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $59.50B |
| P/E Ratio | 35.76 |
| EPS | $5.73 |
| P/B Ratio | 1.61 |
| P/S Ratio | 3.96 |
| EV/EBITDA | 10.16 |
| Dividend Yield | 1.94% |
| Profit Margin | 11.1% |
| Return on Equity | 4.5% |
| Debt/Equity | 0.39 |
FANG Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $3.96B | $240.00M |
| FY20 | $2.81B | $-4.52B |
| FY21 | $6.80B | $2.18B |
| FY22 | $9.64B | $4.39B |
| FY23 | $8.41B | $3.14B |
| FY24 | $11.07B | $3.34B |
| FY25 | $15.03B | $1.66B |
Diamondback Energy Inc (FANG) Valuation
Based on GoodMoat's DCF model, Diamondback Energy Inc has a fair value estimate of $34.30. At the current price of $207.65, the stock appears 505.3% overvalued relative to our intrinsic value estimate.
FANG Quality Indicators
Diamondback Energy Inc maintains a profit margin of 11.1% and an operating margin of 8.4%. Return on equity stands at 4.5%. The current ratio is 0.42. Debt-to-equity ratio is 0.39.
About Diamondback Energy Inc
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.
FANG Free Cash Flow
Diamondback Energy Inc generated $-703.00M in trailing twelve-month free cash flow, representing an FCF yield of -1.18%. This low FCF yield may reflect heavy reinvestment or growth spending.
FANG Shares Outstanding
Diamondback Energy Inc has 0.29 billion shares outstanding at a share price of $207.65, giving it a market capitalization of $59.50B.
FANG Recent Insider Trades
Recent insider transactions at Diamondback Energy Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Wesson Daniel N (Exec. VP & COO) | SELL | 5,000 | $959776.00 |
| Dick Teresa L. (CAO, Exec. VP, Assist. Sec.) | SELL | 5,000 | $965000.00 |
| WEST STEVEN E | SELL | 6,000 | $1.13M |