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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Diamondback Energy's Sloan Ratio for the quarter that ended in Jun. 2026 was -6.26%.
As of Jun. 2026, Diamondback Energy has a Sloan Ratio of -6.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Diamondback Energy (FRA:7DB) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, Diamondback Energy has a Sloan Ratio of -6.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Diamondback Energy Sloan Ratio % Related Terms
Diamondback Energy Sloan Ratio % Historical Data
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The historical data trend for Diamondback Energy's Sloan Ratio % can be seen below:
* 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.
FRA:7DB vs OXY, DVN, EOG: Sloan Ratio % Comparison
For the Oil & Gas E&P subindustry, Diamondback Energy's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Diamondback Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Diamondback Energy's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Diamondback Energy's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Diamondback Energy's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 867.336 (Sep. 2025 ) + -1245.132 (Dec. 2025 ) + 21.625 (Mar. 2026 ) + 1633.576 (Jun. 2026 ) = €1,277 Mil.
Diamondback Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 2030.316 (Sep. 2025 ) + 2000.922 (Dec. 2025 ) + 1581.22 (Mar. 2026 ) + 3115.252 (Jun. 2026 ) = €8,728 Mil.
Diamondback Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -1754.268 (Sep. 2025 ) + -100.772 (Dec. 2025 ) + -569.17 (Mar. 2026 ) + -1210.86 (Jun. 2026 ) = €-3,635 Mil.
* 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 Sloan Ratio % of -6.26% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Diamondback Energy and its competitors.
Is Diamondback Energy's Sloan Ratio % too high?
Diamondback Energy's current Sloan Ratio % is -6.26%. 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 Sloan Ratio % compare to OXY and DVN?
Diamondback Energy's Sloan Ratio % of -6.26% can be compared against companies in the Oil & Gas industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Oil & Gas company?
A good Sloan Ratio % depends on the Oil & Gas industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Diamondback Energy and its competitors. Diamondback Energy's current Sloan Ratio % is -6.26%. 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 €182.05, compared to a current price of €165.42 — trading 9.1% below its estimated fair value. The current Sloan Ratio % is -6.26%. Diamondback Energy's overall GF Score™ is 62/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Diamondback Energy (FRA:7DB), the current Sloan Ratio % is -6.26% 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 €165.42 is trading 9.1% below its estimated GF Value™ of €182.05.
GuruFocus considers Diamondback Energy to be Fairly Valued.
Key valuation signals for FRA:7DB:
Sloan Ratio %: -6.26%
GF Value™: €182.05 vs. price of €165.42 (9.1% 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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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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