Diamondback Energy, Inc. (FANG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

EQT Corp.

Ovintiv, Inc.

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Devon Energy Corp.

Range Resources Corp.

Pioneer Natural Resources Co.

EOG Resources, Inc.

Marathon Oil Corp.

ConocoPhillips

Diamondback Energy, Inc.

Occidental Petroleum Corp.

Why is Diamondback Energy, Inc. ?

INTEREST COVERAGE RATIO(Q) Lowest at 3,627.14
ROCE(HY) Lowest at 10.92%
RAW MATERIAL COST(Y) Grown by 13.26% (YoY)

With ROCE of 10.19%, it has a very expensive valuation with a 1.22 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 24.22%, its profits have risen by 30.2% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Diamondback Energy, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Diamondback Energy, Inc.

24.22%

-0.02

39.16%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

37.30%

EBIT Growth (5y)

52.59%

EBIT to Interest (avg)

26.78

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.31

Sales to Capital Employed (avg)

0.30

Tax Ratio

18.27%

Dividend Payout Ratio

53.37%

Pledged Shares

Institutional Holding

63.75%

ROCE (avg)

18.11%

ROE (avg)

22.02%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.31

EV to EBIT

11.99

EV to EBITDA

6.45

EV to Capital Employed

1.22

EV to Sales

4.36

PEG Ratio

0.35

Dividend Yield

141.20%

ROCE (Latest)

10.19%

ROE (Latest)

11.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 8,756 MM

NET SALES(HY)

At USD 7,602 MM has Grown at 48.24%

INVENTORY TURNOVER RATIO(HY)

Highest at 88.2 times

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,627.14

ROCE(HY)

Lowest at 10.92%

RAW MATERIAL COST(Y)

Grown by 13.26% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 40.14 %

INTEREST(Q)

Highest at USD 70 MM

Here's what is working for Diamondback Energy, Inc.

Net Sales

At USD 7,602 MM has Grown at 48.24%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Cash Flow

Highest at USD 8,756 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Highest at 88.2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at USD 1,286 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Diamondback Energy, Inc.

Interest Coverage Ratio

Lowest at 3,627.14 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 70 MM has Grown at 25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 70 MM

in the last five periods and Increased by 25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 40.14 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 13.26% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales