Diamondback Energy (FANG) Fundamental Analysis: Revenue, Earnings & Valuation

7.12 / 10

Outperform

FANG's fundamental score of 7.1/10 reflects strong asset quality, healthy profitability metrics, and efficient receivables turnover. Key positives include a high Net profit attributable to parent company shareholders / Net profit ratio (94.23%) and an Accounts receivable turnover ratio of 7.26, both in top groups. However, the Long-term debt to working capital ratio of 27.19 indicates elevated leverage, and the Revenue-MV factor shows only moderate revenue scaling. These elements combine to form an optimistic yet nuanced fundamental view.

Analysis Checks(7/10)

Revenue-MV

Value0.15

Score0/3

Weight-0.21%

1M Return-0.16%

Net profit attributable to parent company shareholders / Net profit (%)

Value94.23

Score2/3

Weight2.80%

1M Return2.33%

Profit-MV

Value1.54

Score1/3

Weight1.15%

1M Return0.92%

Net income-Revenue

Value1.00

Score2/3

Weight3.04%

1M Return2.07%

Accounts receivable turnover ratio

Value7.26

Score3/3

Weight6.02%

1M Return4.57%

PB-ROE

Value-0.50

Score2/3

Weight2.80%

1M Return2.08%

Net cash flow from operating activities / Total liabilities (%)

Value0.21

Score2/3

Weight2.72%

1M Return2.21%

Long-term debt to working capital ratio (%)

Value27.19

Score1/3

Weight2.01%

1M Return1.63%

Asset-MV

Value-0.50

Score3/3

Weight76.47%

1M Return42.62%

Cash-MV

Value1.16

Score2/3

Weight3.19%

1M Return2.63%

Is FANG undervalued or overvalued?

FANG scores 7.12/10 on fundamentals and holds a Discounted valuation at present. Backed by its 7.30% ROE, 29.97% net margin, 11.41 P/E ratio, 1.05 P/B ratio, and -17.83% earnings growth, these metrics solidify its Outperform investment rating.