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Diamondback Energy has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Diamondback Energy's Interest Coverage for the quarter that ended in Jun. 2026 was 44.86.
Diamondback Energy's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.57.
As of today, Diamondback Energy's Altman Z-Score is 1.69.
Diamondback Energy (FRA:7DB) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Diamondback Energy has the Financial Strength Rank of 5.
Diamondback Energy Financial Strength Related Terms
FRA:7DB vs DVN, OXY, EOG: Financial Strength Comparison
For the Oil & Gas E&P subindustry, Diamondback Energy's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Diamondback Energy Financial Strength vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Diamondback Energy's Financial Strength distribution charts can be found below:
* The bar in red indicates where Diamondback Energy's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Diamondback Energy has a Z-score of 1.69, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.69 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Diamondback Energy (FRA:7DB) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Diamondback Energy and its competitors. This is near median its historical median of 5.00. Over the past decade, Diamondback Energy's Financial Strength has ranged from 4.00 to 8.00.
Is Diamondback Energy's Financial Strength too high?
Diamondback Energy's current Financial Strength of 5 is near median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 8.00. Overall, Diamondback Energy has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Diamondback Energy's Financial Strength compare to DVN and OXY?
Diamondback Energy's Financial Strength of 5 can be compared against companies in the Oil & Gas industry. Historically, Diamondback Energy's own Financial Strength has ranged from 4.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Oil & Gas company?
A good Financial Strength depends on the Oil & Gas industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Diamondback Energy and its competitors. Diamondback Energy's current Financial Strength is 5, which is near median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamondback Energy stock overvalued right now?
Based on GuruFocus' analysis, Diamondback Energy (FRA:7DB) is currently considered Fairly Valued. The stock's GF Value™ is €179.00, compared to a current price of €170.00 — trading 5% below its estimated fair value. The current Financial Strength is 5, which is near median its 10-year median of 5.00. Diamondback Energy's overall GF Score™ is 62/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Diamondback Energy (FRA:7DB), the current Financial Strength is 5 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Diamondback Energy (FRA:7DB) Overvalued in 2026?
Based on GuruFocus' analysis, Diamondback Energy stock appears to be undervalued.
The current stock price of €170.00 is trading 5% below its estimated GF Value™ of €179.00.
GuruFocus considers Diamondback Energy to be Fairly Valued.
Key valuation signals for FRA:7DB:
Financial Strength: 5 (near median its 10-year median of 5.00)
GF Value™: €179.00 vs. price of €170.00 (5% below fair value)
No single metric tells the full story. See the FRA:7DB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diamondback is a crude oil and natural gas exploration and production firm whose operations represent a pure-play in the US Permian Basin. The company went public in 2012 and has established itself as a top-tier independent producer through disciplined acquisition and operational excellence. The company's most transformational transaction occurred in September 2024 with the completion of its $26 billion merger with Endeavor Energy Resources, which added around 470,000 net acres and doubled Diamondback's total acreage position. Diamondback boasts an enviable position in the Midland sub-basin, with some of the lowest unit costs among its Permian peers.
62GF Score
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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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