FANGDiamondback Energy

$199.92

Is the business good?

How good a business is FANG?

Diamondback Energy earns 1.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

1.7%

Return on invested capital · cost of capital 9.0% · 7.3 points below what the capital costs: growth destroys value

Operating margin
6.3%

Operating margin · Oil & Gas E&P median 30% · 12 months to Q2 2026

Share count, year on year
−3.7%

Share count, year on year · bought back, each share owns more of the company

Operating margin by fiscal year
YearOperating margin
FY2020−195%
FY202159%
FY202267%
FY202354%
FY202440%
FY20258.4%
Details
Operating margin12 months to Q2 2026
6.3%
Net margin12 months to Q2 2026
8.6%
Free cash flow margin
43%
Revenue, trailing twelve months
$17.1B
Free cash flow, trailing twelve months
$7.33B
Net income, trailing twelve months
$1.47B
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
1.7%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.