Diamondback Energy Stock Analysis, Valuation (NASDAQ:FANG)

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$125.75 $0.02 (0.02%) FANG stock closing price Apr 25, 2018 (Closing)
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Diamondback Energy
Updated on : Apr 25, 2018
previous close
FANG 125.8 (0%)
S&P 500 2639.4 (0%)
Closing Price On: Apr 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil and Gas-US exploration and production
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
74.4%
Operating Profit
Operating Margin:
50.2%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.48B
Debt/Equity Ratio:
 0.27
Compared to the industry
Cash Flow
Operating cash flow:
$250.6M
Net Income:
$114.6M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Low Debt Burden
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
FANG PS :
10.2
Industry PS :
1.7
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6.6%
Return on Equity:
9.4%
Free Cash Flow Margin:
1.2%
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Diamondback Energy Stock Analysis

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Watch the robo advisor video of Diamondback Energy stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for FANG stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Diamondback Energy Inc Stock Rating 3.5/5

Amigobulls FANG stock analysis takes into account various financial ratios like relative valuation, Diamondback Energy revenue, growth and return on equity based on latest quarter 2017 Q4 financial statements. We also check Diamondback Energy dividend performance. Diamondback Energy valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Diamondback Energy stock rating is our opinion about the business fundamentals of the company.

Should you buy FANG stock?

  • The Year Over Year (YoY) revenue growth for Diamondback Energy was 115.8% in 2017 Q4.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 74.4%.
  • Diamondback Energy's average operating margin of 50.2% was exceptional.
  • Net margins came in at average 40% for Diamondback Energy over the last twelve months.
  • With its debt/equity ratio of  0.27, Diamondback Energy has a lower debt burden when compared to the Oils-Energy average.
  • The company has an operating cash flow which is 2.2 times the net income.
  • Diamondback Energy generates a high return on invested capital of 6.6%.
  • The LTM ROE of 9.4% for Diamondback Energy is attractive.

Should you sell FANG stock?

  • FANG stock is trading at a PS multiple of 10.2, which is a negative when compared to the Oil and Gas-US exploration and production industry average multiple of 1.7.

Comments on this video and Diamondback Energy stock

Amigobulls Diamondback Energy stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

Diamondback Energy revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.