DIVERSIFIED ENERGY CO PLC (DEC) Stock Fundamental Analysis
USA - NYSE:DEC - GB00BQHP5P93 - Common Stock
15.36 USD
+0.56 (+3.78%)
15.36 USD
0 (0%)
Overall DEC gets a fundamental rating of 3 out of 10. We evaluated DEC against 210 industry peers in the Oil, Gas & Consumable Fuels industry. DEC has a bad profitability rating. Also its financial health evaluation is rather negative. DEC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DEC has reported negative net income.
In the past year DEC had a positive cash flow from operations.
In the past 5 years DEC reported 4 times negative net income.
Each year in the past 5 years DEC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DEC (-2.43%) is worse than 71.90% of its industry peers.
DEC has a worse Return On Equity (-19.24%) than 77.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.54%, DEC is doing worse than 65.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DEC is significantly below the industry average of 21.85%.
The 3 year average ROIC (12.02%) for DEC is well above the current ROIC(3.54%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.43% | ||
| ROE | -19.24% | ||
| ROIC | 3.54% |
ROA(3y)1.1%
ROA(5y)-1.41%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.02%
ROIC(5y)10.21%
1.3 Margins
DEC has a Operating Margin (18.42%) which is in line with its industry peers.
DEC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 26.94%, DEC is doing worse than 62.38% of the companies in the same industry.
DEC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.42% | ||
| PM (TTM) | N/A | ||
| GM | 26.94% |
OM growth 3Y-66.91%
OM growth 5Y-41.93%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-36.76%
GM growth 5Y-17.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DEC is still creating some value.
Compared to 1 year ago, DEC has more shares outstanding
DEC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DEC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.26, we must say that DEC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.26, DEC is doing worse than 64.29% of the companies in the same industry.
The Debt to FCF ratio of DEC is 16.57, which is on the high side as it means it would take DEC, 16.57 years of fcf income to pay off all of its debts.
DEC has a Debt to FCF ratio (16.57) which is in line with its industry peers.
DEC has a Debt/Equity ratio of 3.52. This is a high value indicating a heavy dependency on external financing.
DEC has a Debt to Equity ratio of 3.52. This is amonst the worse of the industry: DEC underperforms 86.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.41
WACC8.72%
2.3 Liquidity
DEC has a Current Ratio of 0.54. This is a bad value and indicates that DEC is not financially healthy enough and could expect problems in meeting its short term obligations.
DEC has a worse Current ratio (0.54) than 85.71% of its industry peers.
A Quick Ratio of 0.54 indicates that DEC may have some problems paying its short term obligations.
DEC has a Quick ratio of 0.54. This is amonst the worse of the industry: DEC underperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for DEC have decreased strongly by -187.88% in the last year.
The Revenue has grown by 60.64% in the past year. This is a very strong growth!
Measured over the past years, DEC shows a quite strong growth in Revenue. The Revenue has been growing by 11.45% on average per year.
EPS 1Y (TTM)-187.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-258.19%
Revenue 1Y (TTM)60.64%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%111.04%
3.2 Future
Based on estimates for the next years, DEC will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.89% on average per year.
The Revenue is expected to grow by 0.45% on average over the next years.
EPS Next Y16.23%
EPS Next 2Y31.62%
EPS Next 3Y27.04%
EPS Next 5Y18.89%
Revenue Next Year111.3%
Revenue Next 2Y33.46%
Revenue Next 3Y17.57%
Revenue Next 5Y0.45%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DEC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 6.29 indicates a rather cheap valuation of DEC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DEC indicates a rather cheap valuation: DEC is cheaper than 92.38% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DEC to the average of the S&P500 Index (34.59), we can say DEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DEC is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEC indicates a rather cheap valuation: DEC is cheaper than 89.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 7.4 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DEC's earnings are expected to grow with 27.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y31.62%
EPS Next 3Y27.04%
5. Dividend
5.1 Amount
DEC has a Yearly Dividend Yield of 8.29%, which is a nice return.
Compared to an average industry Dividend Yield of 5.89, DEC pays a better dividend. On top of this DEC pays more dividend than 83.81% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, DEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.29% |
5.2 History
On average, the dividend of DEC grows each year by 65.59%, which is quite nice.
DEC has been paying a dividend for over 5 years, so it has already some track record.
DEC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)65.59%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
DEC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DEC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-49.87%
EPS Next 2Y31.62%
EPS Next 3Y27.04%
15.36
+0.56 (+3.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners63.67%
Inst Owner Change0%
Ins Owners2.81%
Ins Owner ChangeN/A
Market Cap1.18B
Revenue(TTM)1.20B
Net Income(TTM)-137.81M
Analysts83.08
Price Target27.23 (77.28%)
Short Float %3.34%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.29% |
Yearly Dividend1.71
Dividend Growth(5Y)65.59%
DP-49.87%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.49%
PT rev (3m)-0.22%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.47%
EPS NY rev (3m)-34.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.29 | ||
| P/S | 0.98 | ||
| P/FCF | 7.08 | ||
| P/OCF | 2.63 | ||
| P/B | 1.65 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 7.4 |
EPS(TTM)-2.62
EYN/A
EPS(NY)2.44
Fwd EY15.89%
FCF(TTM)2.17
FCFY14.12%
OCF(TTM)5.84
OCFY38.04%
SpS15.67
BVpS9.32
TBVpS9.15
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.43% | ||
| ROE | -19.24% | ||
| ROCE | 4.66% | ||
| ROIC | 3.54% | ||
| ROICexc | 3.56% | ||
| ROICexgc | 3.57% | ||
| OM | 18.42% | ||
| PM (TTM) | N/A | ||
| GM | 26.94% | ||
| FCFM | 13.84% |
ROA(3y)1.1%
ROA(5y)-1.41%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.02%
ROIC(5y)10.21%
ROICexc(3y)12.05%
ROICexc(5y)10.25%
ROICexgc(3y)12.15%
ROICexgc(5y)10.32%
ROCE(3y)15.83%
ROCE(5y)13.45%
ROICexgc growth 3Y-71.19%
ROICexgc growth 5Y-41.91%
ROICexc growth 3Y-71.19%
ROICexc growth 5Y-41.96%
OM growth 3Y-66.91%
OM growth 5Y-41.93%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-36.76%
GM growth 5Y-17.01%
F-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Debt/EBITDA | 4.82 | ||
| Cap/Depr | 93.66% | ||
| Cap/Sales | 23.45% | ||
| Interest Coverage | 1.32 | ||
| Cash Conversion | 85.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.26 |
F-Score5
WACC8.72%
ROIC/WACC0.41
Cap/Depr(3y)146.83%
Cap/Depr(5y)153.57%
Cap/Sales(3y)33.3%
Cap/Sales(5y)33.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-187.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-258.19%
EPS Next Y16.23%
EPS Next 2Y31.62%
EPS Next 3Y27.04%
EPS Next 5Y18.89%
Revenue 1Y (TTM)60.64%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%111.04%
Revenue Next Year111.3%
Revenue Next 2Y33.46%
Revenue Next 3Y17.57%
Revenue Next 5Y0.45%
EBIT growth 1Y1231.28%
EBIT growth 3Y-69.42%
EBIT growth 5Y-35.28%
EBIT Next Year335.81%
EBIT Next 3Y54.94%
EBIT Next 5Y11.96%
FCF growth 1Y185.91%
FCF growth 3YN/A
FCF growth 5Y-54.02%
OCF growth 1Y26.35%
OCF growth 3Y2.58%
OCF growth 5Y4.36%
DIVERSIFIED ENERGY CO PLC / DEC FAQ
What is the ChartMill fundamental rating of DIVERSIFIED ENERGY CO PLC (DEC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to DEC.
Can you provide the valuation status for DIVERSIFIED ENERGY CO PLC?
ChartMill assigns a valuation rating of 6 / 10 to DIVERSIFIED ENERGY CO PLC (DEC). This can be considered as Fairly Valued.
What is the profitability of DEC stock?
DIVERSIFIED ENERGY CO PLC (DEC) has a profitability rating of 2 / 10.
Is the dividend of DIVERSIFIED ENERGY CO PLC sustainable?
The dividend rating of DIVERSIFIED ENERGY CO PLC (DEC) is 6 / 10 and the dividend payout ratio is -49.87%.