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Diamondback Energy, Inc.

Energy • CIK: 0001539838

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Market Cap
$41.59B
P/E (TTM)
10.0x
Rev Growth (TTM)
+60.3%
Net Margin (TTM)
27.2%
FCF Yield (TTM)
21.1%
FCF Margin (TTM)
57.0%

LATEST EARNINGS

Q3 FY2025
4 months ago
View source
Revenue
$3.92B
+48.2%
Net Income
$1.02B
+54.5%
EPS
$3.51
+10.0%
Operating
31.5% +4.7%
Net
26.0% +1.1%
  • Average oil production reached 503.8 MBO/d, a significant increase from the prior year.
  • Generated $2.4 billion in net cash from operating activities and $1.8 billion in Free Cash Flow.
  • Returned $892 million to shareholders through dividends and share repurchases, representing 50% of Adjusted Free Cash Flow.
  • Completed strategic divestitures of Environmental Disposal Systems and EPIC Crude, generating substantial upfront cash proceeds.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$8.8B
Q3 '25
$2.4B+42%
Q2 '25
$1.7B-29%
FCF Margin
TTM57.0%
Q3 '2560.7%+33%
Sector: 6.0%Top 25%
OCF Margin57.0%
OCF/NI2.10x
CapEx Coverage
FCF Yield21.1%
FCF Growth (2Y)+13%
Cash Conversion Cycle
31 days
DSO: 31+DIO: DPO:

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM7.5%
Div Yield2.7%
+
Buyback (TTM)4.8%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)2.7%
FCF Payout Ratio12.9%
Free Cash Flow (TTM)$8.8B
Stock Repurchases (TTM)$2.0B
Capital Return / FCF35.5%
Est. Dividends Paid (TTM)$1.1B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
6.9%
Stable
-0.3% YoY-9.3%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
29.2%
8Q: 33.7%
Asset Turnover
0.22x
8Q: 0.23x
Leverage (1+D/E)
1.42x
D/E: 0.42x
DuPont: 9.0%6.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
0.23x
8Q:0.24x
-14.7%
Invested Cap Turn
0.24x
8Q:0.25x
-13.5%
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023
Revenue
$15.4B
$3.9B6.7%
$3.7B9.1%
$4.0B9.1%
$3.7B40.3%
$2.6B6.5%
$2.5B11.5%
$2.2B0.0%
$2.2B
Operating Income
$5.5B
$1.2B8.5%
$1.1B31.9%
$1.7B18.5%
$1.4B98.9%
$710.0M38.6%
$1.2B3.4%
$1.1B7.2%
$1.2B
Net Income
$4.2B
$1.0B45.9%
$695.0M50.3%
$1.4B30.7%
$1.1B63.9%
$653.0M21.4%
$831.0M8.9%
$763.0M20.1%
$955.0M
Operating Cash Flow
$8.8B
$2.4B42.1%
$1.7B28.8%
$2.4B0.6%
$2.3B93.6%
$1.2B20.9%
$1.5B14.6%
$1.3B17.9%
$1.6B
Free Cash Flow
$8.8B
$2.4B42.1%
$1.7B28.8%
$2.4B0.6%
$2.3B93.6%
$1.2B20.9%
$1.5B14.6%
$1.3B17.9%
$1.6B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
10.0x
Volatile
8Q: 44.6x+847%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
10.0x
vs sector
Cash Flow
6.7x
EV/FCF vs
Growth-Adj
0.2xPEG
Undervalued for growth
Quality-Adj
1.5P/E per %ROIC
ROIC: 6.9%
Shareholder Returns
Dividend
2.7%
Buyback
4.8%
Total Yield
7.5%
Market Cap$41.59B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
72/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
10.9%
8Q:
Return on Invested Capital (ROIC)Top 25%
6.9%
8Q:
-9.3%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 29.2%
Asset Turnover: 0.22x

Earnings Quality

Cash Conversion

2.10x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin

Capital Efficiency

Invested Capital Turnover0.24x

Working Capital

Cash Conversion Cycle31 days

Growth Quality & Momentum

Quality Growth
Growth Quality Score
77/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
60.3%
OpInc Growth YoY
74.1%
EPS Growth YoY
-18.4%
FCF 3Y CAGR
13.1%

Growth Quality Analysis

Working Capital Drag: FCF growth lagging revenue by 47.2%
Sustainability Index: 7.5/10 - Highly sustainable growth

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
Operating
35.5%
Top 25% in sector
Net
27.2%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+29.8 pts
FCF: 57.0% | Net: 27.2%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $15.69B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.42x
Balance sheet risk & solvency analysis