Diamondback Energy, Inc. [NASDAQ: FANG] shares went higher by 6.94% from its previous closing of $96.73, now trading at the price of $103.44, also adding 6.71 points. Is FANG stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 1.69 million contracts. Compared to the average trading volume of FANG shares, the company saw a far better performance. Moreover, the stock has a 162.05M float and a +6.87% run over in the last seven days. FANG share price has been hovering between $140.78 and $85.19 lately, and is definitely worthy of attention.
Diamondback Energy, Inc. [NASDAQ:FANG]: Analyst Rating and Earnings
Its stock price has been found in the range of 85.19 to 140.78. This is compared to its latest closing price of $96.73.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Tue 5 Nov (In 50 Days).
Fundamental Analysis of Diamondback Energy, Inc. [FANG]
Now let’s turn to look at profitability: with a current Operating Margin for Diamondback Energy, Inc. [FANG] sitting at +48.14 and its Gross Margin at +51.26, this company’s Net Margin is now 26.90%. These measurements indicate that Diamondback Energy, Inc. [FANG] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 8.16, and its Return on Invested Capital has reached 4.60%. Its Return on Equity is 8.92, and its Return on Assets is 5.74. These metrics suggest that this Diamondback Energy, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
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Turning to investigate this organization’s capital structure, Diamondback Energy, Inc. [FANG] has generated a Total Debt to Total Equity ratio of 32.59. Similarly, its Total Debt to Total Capital is 24.58, while its Total Debt to Total Assets stands at 20.67. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 8.68, and its Long-Term Debt to Total Capital is 32.59.
What about valuation? This company’s Enterprise Value to EBITDA is 11.83 and its Total Debt to EBITDA Value is 2.67. The Enterprise Value to Sales for this firm is now 6.48, and its Total Debt to Enterprise Value stands at 0.31. Diamondback Energy, Inc. [FANG] has a Price to Book Ratio of 1.11, a Price to Cash Flow Ratio of 6.22 and P/E Ratio of 16.51. These metrics all suggest that Diamondback Energy, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Diamondback Energy, Inc. [FANG] earns $3,060,838 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.58 and its Total Asset Turnover is 0.15. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.87 and its Current Ratio is 0.91. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Diamondback Energy, Inc. [FANG] has 162.10M shares outstanding, amounting to a total market cap of $15.68B. Its stock price has been found in the range of 85.19 to 140.78. At its current price, it has moved down by -26.52% from its 52-week high, and it has moved up 21.42% from its 52-week low.
This stock’s Beta value is currently 0.78, which indicates that it is 2.98% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 59.82. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Diamondback Energy, Inc. [FANG] a Reliable Buy?
Shares of Diamondback Energy, Inc. [FANG], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.