Diamondback Energy, Inc. (FANG) Stock Analysis

Analysis from 10-Q filed 2025-11-05. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC -0.5%. FCF margin 54.1%. D/E 0.4x. Source: 10-Q filed 2025-11-05.

Metric	Value	Context
ROIC	-0.5%	Below expectations
FCF Margin	54.1%	Strong cash generation
Debt/Equity	0.4x	Conservative leverage

ROIC -0.5% — Bottom 50% of sector peers. FCF margin 54.1% — Top 25%.

Explore Diamondback Energy, Inc.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for FANG: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: Diamondback Energy, Inc. earns -0.5% ROIC, Bottom 50% in Energy

ROIC TTM -0.5%, sector median 6.2%, Bottom 50%. DuPont: NOPAT margin -2.4% × asset turnover 0.2x. Operating margin -1.9%. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Return on Invested Capital (ROIC)	-0.5%	Red flag	Below sector median of 6.2%
Return on Equity (ROE)	0.7%	Warning	Moderate equity returns
Operating Margin	-1.9%	Warning	Moderate operational efficiency

---

Cash Flow: Diamondback Energy, Inc. generates $8.2B FCF at 54.1% margin, positive NaN/8 quarters

FCF TTM $8.2B. FCF margin 54.1%, Top 25%. OCF/Net income 29.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Free Cash Flow Margin	54.1%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$8.2B	Good	Positive cash generation
OCF/Net Income	29.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: Diamondback Energy, Inc. at 0.4x leverage

Debt/Equity 0.4x. Total debt $13.9B, cash & investments $174.0M. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Debt to Equity	0.4x	Good	Conservative capital structure
Net Cash Position	$-13.7B	Warning	Net debt position

---

Valuation: Diamondback Energy, Inc. trades at 203.7x earnings

P/E 203.7x. EV/Sales 4.7x. FCF yield 14.5%. Dividend yield 2.0%. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
P/E Ratio	203.7x	Warning	Premium valuation
EV/Sales	4.7x	Good	Growth premium priced in
FCF Yield	14.5%	Excellent	Attractive cash return
Dividend Yield	2.0%	Adequate	Growth focus over income

---

Capital Allocation: Diamondback Energy, Inc. returns 5.8% shareholder yield

Total shareholder yield 5.8% (div 2.0% + buyback 3.7%). Capital returned $3.3B TTM. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Total Shareholder Yield	5.8%	Good	Dividend + buyback yield combined
Buyback Yield	3.7%	Good	Active share repurchases
Total Capital Returned (TTM)	$3.3B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	-0.5%	Bottom 50%	-0.1x below
Free Cash Flow Margin	54.1%	Top 25%	6.4x above
Operating Margin	-1.9%	Bottom 10%	-0.2x below
Return on Equity (ROE)	0.7%	Bottom 50%	0.1x below
P/E Ratio	203.7x	N/A	-

---

Financial Scorecard

Metric	FANG	Rating	Sector Context
Return on Invested Capital (ROIC)	-0.5%	Red flag	Bottom 50% of sector (median: 6.2%)
Free Cash Flow Margin	54.1%	Excellent	Top 25% of sector (median: 8.5%)
Debt to Equity Ratio	38.1%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	203.7x	Warning	High expectations priced in
Free Cash Flow Yield	14.5%	Excellent	High cash return

---

Frequently Asked Questions

Q: What is Diamondback Energy, Inc.'s Return on Invested Capital (ROIC)?

Diamondback Energy, Inc. (FANG) has a trailing twelve-month Return on Invested Capital (ROIC) of -0.5%. Sector median 6.2%. Source: 10-Q filed 2025-11-05.

Q: What is Diamondback Energy, Inc.'s Free Cash Flow Margin?

Diamondback Energy, Inc. (FANG) has a free cash flow margin of 54.1%, generating $8.2 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-05.

Q: What is Diamondback Energy, Inc.'s P/E ratio and how does it compare to peers?

Diamondback Energy, Inc. (FANG) trades at a P/E ratio of 203.7x, which is above the sector median of N/A. EV/Sales 4.7x. FCF yield 14.5%. Source: 10-Q filed 2025-11-05.

Q: Does Diamondback Energy, Inc. pay a dividend?

Diamondback Energy, Inc. (FANG) currently pays a dividend yield of 2.0%. Total shareholder yield (dividend + buybacks) 5.8%. Source: 10-Q filed 2025-11-05.

Q: What is Diamondback Energy, Inc.'s revenue and earnings growth?

Diamondback Energy, Inc. (FANG) grew revenue by 18.1% year-over-year. EPS -94.1% YoY. Source: 10-Q filed 2025-11-05.

Q: Is Diamondback Energy, Inc. buying back stock?

Diamondback Energy, Inc. (FANG) repurchased $2.1 billion of stock over the trailing twelve months. This represents a buyback yield of 3.7%. Source: 10-Q filed 2025-11-05.

Q: How does Diamondback Energy, Inc. compare to competitors in Energy?

Compared to other companies in Energy, Diamondback Energy, Inc. (FANG) shows: ROIC -0.5%, sector median 6.2% (Bottom 50%). FCF margin 54.1%, sector median 8.5% (Top 25%). These rankings are based on MetricDuck's analysis of all Energy companies with available SEC filings.

Q: What warning signs should I watch for with Diamondback Energy, Inc.?

Quantitative warning flags for Diamondback Energy, Inc. (FANG): 1) ROIC declining -14.8% over 8 quarters. Source: 10-Q filed 2025-11-05.

---

Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.