Diamondback Energy, Inc. (FANG) Stock Analysis

Analysis from 10-Q filed 2025-11-05. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 1.3%. FCF margin 59.3%. D/E 0.3x. Source: 10-Q filed 2025-11-05.

Metric	Value	Context
ROIC	1.3%	Below expectations
FCF Margin	59.3%	Strong cash generation
Debt/Equity	0.3x	Conservative leverage

ROIC 1.3% — Bottom 50% of sector peers. FCF margin 59.3% — 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.

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Profitability: Diamondback Energy, Inc. earns 1.3% ROIC, Bottom 50% in Energy

ROIC TTM 1.3%, sector median 7.3%, Bottom 50%. DuPont: NOPAT margin 5.2% × asset turnover 0.2x. Operating margin 6.3%. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Return on Invested Capital (ROIC)	1.3%	Red flag	Below sector median of 7.3%
Return on Equity (ROE)	3.9%	Warning	Moderate equity returns
Operating Margin	6.3%	Adequate	Moderate operational efficiency

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Cash Flow: Diamondback Energy, Inc. generates $10.1B FCF at 59.3% margin, positive NaN/8 quarters

FCF TTM $10.1B. FCF margin 59.3%, Top 25%. OCF/Net income 6.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Free Cash Flow Margin	59.3%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$10.1B	Good	Positive cash generation
OCF/Net Income	6.9x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Diamondback Energy, Inc. at 0.3x leverage

Debt/Equity 0.3x. Total debt $12.6B, cash & investments $462.0M. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Debt to Equity	0.3x	Good	Conservative capital structure
Net Cash Position	$-12.2B	Warning	Net debt position

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Valuation: Diamondback Energy, Inc. trades at 34.4x earnings

P/E 34.4x. EV/Sales 3.5x. FCF yield 20.3%. Dividend yield 2.4%. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
P/E Ratio	34.4x	Adequate	Premium valuation
EV/Sales	3.5x	Good	Growth premium priced in
FCF Yield	20.3%	Excellent	Attractive cash return
Dividend Yield	2.4%	Adequate	Growth focus over income

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Capital Allocation: Diamondback Energy, Inc. returns 5.7% shareholder yield

Total shareholder yield 5.7% (div 2.4% + buyback 3.4%). Capital returned $2.9B TTM. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Total Shareholder Yield	5.7%	Good	Dividend + buyback yield combined
Buyback Yield	3.4%	Good	Active share repurchases
Total Capital Returned (TTM)	$2.9B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	1.3%	Bottom 50%	0.2x below
Free Cash Flow Margin	59.3%	Top 25%	4.8x above
Operating Margin	6.3%	Bottom 50%	0.5x below
Return on Equity (ROE)	3.9%	Bottom 50%	0.4x below
P/E Ratio	34.4x	N/A	-

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Financial Scorecard

Metric	FANG	Rating	Sector Context
Return on Invested Capital (ROIC)	1.3%	Red flag	Bottom 50% of sector (median: 7.3%)
Free Cash Flow Margin	59.3%	Excellent	Top 25% of sector (median: 12.3%)
Debt to Equity Ratio	33.3%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	34.4x	Adequate	Growth premium
Free Cash Flow Yield	20.3%	Excellent	High cash return

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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 1.3%. Sector median 7.3%. 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 59.3%, generating $10.1 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 34.4x, which is above the sector median of N/A. EV/Sales 3.5x. FCF yield 20.3%. 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 2.4%. Total shareholder yield (dividend + buybacks) 5.7%. 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 21.4% year-over-year. EPS -63.9% YoY. Source: 10-Q filed 2025-11-05.

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

Diamondback Energy, Inc. (FANG) repurchased $1.7 billion of stock over the trailing twelve months. This represents a buyback yield of 3.4%. 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 1.3%, sector median 7.3% (Bottom 50%). FCF margin 59.3%, sector median 12.3% (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 -4.0% over 8 quarters. Source: 10-Q filed 2025-11-05.

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Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q2 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.