Diamondback Energy Shares Owned By Institutions vs. Return On Equity

FANG Stock  USD 177.59  1.40  0.79%   
Based on the key profitability measurements obtained from Diamondback Energy's financial statements, Diamondback Energy is performing exceptionally good at this time. It has a great risk to showcase excellent profitability results in December. Profitability indicators assess Diamondback Energy's ability to earn profits and add value for shareholders. The current Price To Sales Ratio is estimated to decrease to 3.15. The current Days Sales Outstanding is estimated to decrease to 34.91. At this time, Diamondback Energy's Net Income is most likely to increase significantly in the upcoming years. The Diamondback Energy's current Income Tax Expense is estimated to increase to about 957.6 M, while Total Other Income Expense Net is projected to decrease to (338.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.620.5791
Notably Up
Pretty Stable
For Diamondback Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Diamondback Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Diamondback Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Diamondback Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Diamondback Energy over time as well as its relative position and ranking within its peers.
  
Check out Investing Opportunities.
For more detail on how to invest in Diamondback Stock please use our How to Invest in Diamondback Energy guide.
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Diamondback Energy. If investors know Diamondback will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Diamondback Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.37)
Dividend Share
8.29
Earnings Share
17.33
Revenue Per Share
49.46
Quarterly Revenue Growth
0.087
The market value of Diamondback Energy is measured differently than its book value, which is the value of Diamondback that is recorded on the company's balance sheet. Investors also form their own opinion of Diamondback Energy's value that differs from its market value or its book value, called intrinsic value, which is Diamondback Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Diamondback Energy's market value can be influenced by many factors that don't directly affect Diamondback Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Diamondback Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Diamondback Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Diamondback Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Diamondback Energy Return On Equity vs. Shares Owned By Institutions Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Diamondback Energy's current stock value. Our valuation model uses many indicators to compare Diamondback Energy value to that of its competitors to determine the firm's financial worth.
Diamondback Energy is rated below average in shares owned by institutions category among its peers. It is rated below average in return on equity category among its peers . The ratio of Shares Owned By Institutions to Return On Equity for Diamondback Energy is about  503.67 . At this time, Diamondback Energy's Return On Equity is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Diamondback Energy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Diamondback Return On Equity vs. Shares Owned By Institutions

Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.

Diamondback Energy

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
61.80 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Diamondback Energy

Return On Equity

 = 

Net Income

Total Equity

 = 
0.12
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Diamondback Return On Equity Comparison

Diamondback Energy is currently under evaluation in return on equity category among its peers.

Diamondback Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Diamondback Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Diamondback Energy will eventually generate negative long term returns. The profitability progress is the general direction of Diamondback Energy's change in net profit over the period of time. It can combine multiple indicators of Diamondback Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-8 M-8.4 M
Operating Income4.6 B4.8 B
Income Before Tax4.2 B4.5 B
Total Other Income Expense Net-322 M-338.1 M
Net Income3.3 B3.5 B
Income Tax Expense912 M957.6 M
Net Income Applicable To Common SharesB5.3 B
Net Income From Continuing Ops3.3 B3.5 B
Non Operating Income Net Other-551.7 M-524.1 M
Interest IncomeM1.9 M
Net Interest Income-175 M-183.8 M
Change To Netincome1.7 B932.8 M
Net Income Per Share 17.46  18.33 
Income Quality 1.77  1.86 
Net Income Per E B T 0.74  0.58 

Diamondback Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Diamondback Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Diamondback Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Diamondback Energy's important profitability drivers and their relationship over time.

Use Diamondback Energy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Diamondback Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Diamondback Energy will appreciate offsetting losses from the drop in the long position's value.

Diamondback Energy Pair Trading

Diamondback Energy Pair Trading Analysis

The ability to find closely correlated positions to Diamondback Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Diamondback Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Diamondback Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Diamondback Energy to buy it.
The correlation of Diamondback Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Diamondback Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Diamondback Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Diamondback Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Diamondback Energy position

In addition to having Diamondback Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Petroleum and Natural Gas Thematic Idea Now

Petroleum and Natural Gas
Petroleum and Natural Gas Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural Gas theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Petroleum and Natural Gas Theme or any other thematic opportunities.
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When determining whether Diamondback Energy is a strong investment it is important to analyze Diamondback Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Diamondback Energy's future performance. For an informed investment choice regarding Diamondback Stock, refer to the following important reports:
Check out Investing Opportunities.
For more detail on how to invest in Diamondback Stock please use our How to Invest in Diamondback Energy guide.
You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
To fully project Diamondback Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Diamondback Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Diamondback Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Diamondback Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Diamondback Energy investors may work on each financial statement separately, they are all related. The changes in Diamondback Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Diamondback Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.