Fact based stock research
Diamondback Energy (NasdaqGS:FANG)

US25278X1090

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Diamondback Energy stock research in summary

ir.diamondbackenergy.com

ANALYSIS: With an Obermatt Combined Rank of 76 (better than 76% compared with investment alternatives), Diamondback Energy (Oil & Gas Production, USA) shares have much better financial characteristics than comparable stocks. Shares of Diamondback Energy are a good value (attractively priced) with a consolidated Value Rank of 50 (better than 50% of alternatives), show above-average growth (Growth Rank of 78), and are safely financed (Safety Rank of 51), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 76, is a strong buy recommendation based on Diamondback Energy's financial characteristics. As the company Diamondback Energy's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 50), above-average growth (Obermatt Growth Rank of 78), and indicate that the company is safely financed (Obermatt Safety Rank of 51), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Diamondback Energy. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	50
Growth Rank	78
Safety Rank	51
Combined Rank	76

Country	USA
Industry	Oil & Gas Production
Index	Oil & Gas, SDG 13, SDG 9, Water Efficiency, NASDAQ, S&P 500
Size class	X-Large

This stock has achievements: Top 10 Stock.

20-Feb-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Diamondback Energy

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	35	23	50	50
GROWTH
GROWTH	75	57	78	78
SAFETY
SAFETY	57	66	51	51
SENTIMENT
SENTIMENT	37	69	38	^new
360° VIEW
360° VIEW	49	56	53	^new

Most recent update of the stock research: 20-Feb-2025. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Diamondback Energy is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	35	23	50	50
GROWTH
GROWTH	75	57	78	78
SAFETY
SAFETY	57	66	51	51
COMBINED
COMBINED	57	42	76	76

Last update of combined financial performance: 20-Feb-2025. Stock analysis on combined financial performance: The higher the rank of Diamondback Energy the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 50 (better than 50% compared with alternatives), Diamondback Energy shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Diamondback Energy. Price-to-Profit (also referred to as price-earnings, P/E) is 53 which means that the stock price compared with what market professionals expect for future profits is lower than for 53% of comparable companies, indicating a good value concerning Diamondback Energy's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 76, which means that the stock price is lower as regards to invested capital than for 76% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 73% of alternatives (only 27% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 56% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 50, is a buy recommendation based on Diamondback Energy's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	8	11	27	27
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	46	46	53	53
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	61	46	76	76
DIVIDEND YIELD
DIVIDEND YIELD	61	54	44	44
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	35	23	50	50

Last update of Value Rank: 20-Feb-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Diamondback Energy; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 78 (better than 78% compared with alternatives) for 2025, Diamondback Energy shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Diamondback Energy. Sales Growth has a value of 88 which means that currently professionals expect the company to grow more than 88% of its competitors. Profit Growth with a value of 50 and Capital Growth with a rank of 91 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 30, which means that stock returns have recently been below 70% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 78, is a buy recommendation for growth and momentum investors. Diamondback Energy has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Diamondback Energy, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	42	25	88	88
PROFIT GROWTH
PROFIT GROWTH	67	80	50	50
CAPITAL GROWTH
CAPITAL GROWTH	82	23	91	91
STOCK RETURNS
STOCK RETURNS	51	93	30	30
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	75	57	78	78

Last update of Growth Rank: 20-Feb-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Diamondback Energy.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 51 (better than 51% compared with alternatives), the company Diamondback Energy has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Diamondback Energy is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Diamondback Energy. Liquidity is at 84, meaning the company generates more profit to service its debt than 84% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 24, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 76% of its competitors. Leverage is also high at a rank of 49, which means that the company has an above-average debt-to-equity ratio. It has more debt than 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 51 (better than 51% compared with alternatives), Diamondback Energy has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	61	48	49	49
REFINANCING
REFINANCING	5	56	24	24
LIQUIDITY
LIQUIDITY	89	81	84	84
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	57	66	51	51

Last update of Safety Rank: 20-Feb-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Diamondback Energy and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	76	75	^new
OPINIONS CHANGE
OPINIONS CHANGE	12	49	52	^new
PRO HOLDINGS
PRO HOLDINGS	6	39	25	^new
MARKET PULSE
MARKET PULSE	50	67	43	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	37	69	38	^new

Last update of Sentiment Rank: 20-Feb-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Diamondback Energy.
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