Diamondback Energy, Inc. (FANG) Stock Analysis

Analysis from 10-Q filed 2025-11-05. Data as of Q4 2025.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 1.6%. FCF margin 58.3%. D/E 0.4x. Source: 10-Q filed 2025-11-05.

Metric	Value	Context
ROIC	1.6%	Below expectations
FCF Margin	58.3%	Strong cash generation
Debt/Equity	0.4x	Conservative leverage

ROIC 1.6% — Bottom 50% of sector peers. FCF margin 58.3% — Top 25%.

Explore Diamondback Energy, Inc.: Earnings History | Filings | ROIC Analysis

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 1.6% ROIC, Bottom 50% in Energy

ROIC TTM 1.6%, sector median 6.7%, Bottom 50%. DuPont: NOPAT margin 7.0% × asset turnover 0.2x. Operating margin 8.4%. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Return on Invested Capital (ROIC)	1.6%	Red flag	Below sector median of 6.7%
Return on Equity (ROE)	4.3%	Warning	Moderate equity returns
Operating Margin	8.4%	Adequate	Moderate operational efficiency

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Cash Flow: Diamondback Energy, Inc. generates $8.8B FCF at 58.3% margin, positive NaN/8 quarters

FCF TTM $8.8B. FCF margin 58.3%, Top 25%. OCF/Net income 5.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Free Cash Flow Margin	58.3%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$8.8B	Good	Positive cash generation
OCF/Net Income	5.3x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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

Debt/Equity 0.4x. Total debt $14.5B, cash & investments $106.0M. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Debt to Equity	0.4x	Good	Conservative capital structure
Net Cash Position	$-14.4B	Warning	Net debt position

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Valuation: Diamondback Energy, Inc. trades at 26.2x earnings

P/E 26.2x. EV/Sales 3.8x. FCF yield 20.2%. Dividend yield 2.7%. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
P/E Ratio	26.2x	Adequate	Premium valuation
EV/Sales	3.8x	Good	Growth premium priced in
FCF Yield	20.2%	Excellent	Attractive cash return
Dividend Yield	2.7%	Adequate	Growth focus over income

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Capital Allocation: Diamondback Energy, Inc. returns 6.6% shareholder yield

Total shareholder yield 6.6% (div 2.7% + buyback 3.9%). Capital returned $2.9B TTM. Source: 10-Q filed 2025-11-05.

Metric	FANG	Rating	Context
Total Shareholder Yield	6.6%	Excellent	Dividend + buyback yield combined
Buyback Yield	3.9%	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)	1.6%	Bottom 50%	0.2x below
Free Cash Flow Margin	58.3%	Top 25%	7.7x above
Operating Margin	8.4%	Bottom 50%	0.9x below
Return on Equity (ROE)	4.3%	Bottom 50%	0.5x below
P/E Ratio	26.2x	N/A	-

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Financial Scorecard

Metric	FANG	Rating	Sector Context
Return on Invested Capital (ROIC)	1.6%	Red flag	Bottom 50% of sector (median: 6.7%)
Free Cash Flow Margin	58.3%	Excellent	Top 25% of sector (median: 7.6%)
Debt to Equity Ratio	39.2%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	26.2x	Adequate	Growth premium
Free Cash Flow Yield	20.2%	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 1.6%. Sector median 6.7%. 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 58.3%, generating $8.8 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 26.2x, which is above the sector median of N/A. EV/Sales 3.8x. FCF yield 20.2%. 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 2.7%. Total shareholder yield (dividend + buybacks) 6.6%. 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 35.8% year-over-year. EPS -63.3% 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 3.9%. 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 1.6%, sector median 6.7% (Bottom 50%). FCF margin 58.3%, sector median 7.6% (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 -17.4% 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 Q4 2025.

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.