DIVERSIFIED ENERGY CO (DEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEC - US25520W1071 - Common Stock
13.3 USD
-0.85 (-6.01%)
13.3 USD
0 (0%)
Taking everything into account, DEC scores 3 out of 10 in our fundamental rating. DEC was compared to 208 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DEC has reported negative net income.
DEC had a positive operating cash flow in the past year.
DEC had negative earnings in 4 of the past 5 years.
In the past 5 years DEC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -2.43%, DEC is not doing good in the industry: 73.56% of the companies in the same industry are doing better.
DEC's Return On Equity of -19.24% is on the low side compared to the rest of the industry. DEC is outperformed by 77.40% of its industry peers.
With a Return On Invested Capital value of 3.54%, DEC is not doing good in the industry: 65.87% of the companies in the same industry are doing better.
DEC had an Average Return On Invested Capital over the past 3 years of 12.02%. This is significantly below the industry average of 21.28%.
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 of 18.42%. This is comparable to the rest of the industry: DEC outperforms 55.29% of its industry peers.
In the last couple of years the Operating Margin of DEC has declined.
DEC has a worse Gross Margin (26.94%) than 62.98% of its industry peers.
In the last couple of years the Gross Margin of DEC has declined.
| 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
DEC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, DEC has more shares outstanding
Compared to 5 years ago, DEC has less shares outstanding
DEC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.25, we must say that DEC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DEC (0.25) is worse than 66.35% of its industry peers.
DEC has a debt to FCF ratio of 16.57. This is a negative value and a sign of low solvency as DEC would need 16.57 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.57, DEC is in line with its industry, outperforming 47.12% of the companies in the same industry.
DEC has a Debt/Equity ratio of 3.52. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.52, DEC is not doing good in the industry: 86.06% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.4
WACC8.83%
2.3 Liquidity
A Current Ratio of 0.54 indicates that DEC may have some problems paying its short term obligations.
DEC has a worse Current ratio (0.54) than 82.69% of its industry peers.
A Quick Ratio of 0.54 indicates that DEC may have some problems paying its short term obligations.
DEC's Quick ratio of 0.54 is on the low side compared to the rest of the industry. DEC is outperformed by 78.85% 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!
The Revenue has been growing by 11.45% on average over the past years. This is quite good.
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
DEC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.66% yearly.
The Revenue is expected to grow by 18.10% on average over the next years. This is quite good.
EPS Next Y134.76%
EPS Next 2Y54.27%
EPS Next 3Y25.13%
EPS Next 5Y26.66%
Revenue Next Year110.08%
Revenue Next 2Y41.02%
Revenue Next 3Y17.57%
Revenue Next 5Y18.1%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for DEC. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 3.97, the valuation of DEC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DEC indicates a rather cheap valuation: DEC is cheaper than 98.08% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. DEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DEC is valued a bit cheaper than 60.58% of the companies in the same industry.
DEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DEC is cheaper than 89.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
DEC's 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 25.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y54.27%
EPS Next 3Y25.13%
5. Dividend
5.1 Amount
DEC has a Yearly Dividend Yield of 8.20%, which is a nice return.
DEC's Dividend Yield is rather good when compared to the industry average which is at 3.93. DEC pays more dividend than 82.69% of the companies in the same industry.
DEC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.2% |
5.2 History
The dividend of DEC is nicely growing with an annual growth rate of 65.59%!
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
The earnings of DEC are negative and hence is the payout ratio. DEC will probably not be able to sustain this dividend level.
The dividend of DEC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-49.87%
EPS Next 2Y54.27%
EPS Next 3Y25.13%
13.3
-0.85 (-6.01%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.01%
Inst Owner Change0%
Ins Owners2.16%
Ins Owner Change0%
Market Cap1.07B
Revenue(TTM)1.20B
Net Income(TTM)-137.81M
Analysts83.08
Price Target29.05 (118.42%)
Short Float %3.74%
Short Ratio5.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.2% |
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)-0.95%
PT rev (3m)5.13%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)88.91%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.97 | ||
| P/S | 0.89 | ||
| P/FCF | 6.42 | ||
| P/OCF | 2.38 | ||
| P/B | 1.49 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)-2.62
EYN/A
EPS(NY)3.35
Fwd EY25.21%
FCF(TTM)2.07
FCFY15.57%
OCF(TTM)5.58
OCFY41.96%
SpS14.97
BVpS8.9
TBVpS8.74
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 | 0.25 |
F-Score5
WACC8.83%
ROIC/WACC0.4
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 Y134.76%
EPS Next 2Y54.27%
EPS Next 3Y25.13%
EPS Next 5Y26.66%
Revenue 1Y (TTM)60.64%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%111.04%
Revenue Next Year110.08%
Revenue Next 2Y41.02%
Revenue Next 3Y17.57%
Revenue Next 5Y18.1%
EBIT growth 1Y1231.28%
EBIT growth 3Y-69.42%
EBIT growth 5Y-35.28%
EBIT Next Year361.88%
EBIT Next 3Y62.08%
EBIT Next 5Y39.74%
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 / DEC FAQ
What is the ChartMill fundamental rating of DIVERSIFIED ENERGY CO (DEC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to DEC.
What is the valuation status of DIVERSIFIED ENERGY CO (DEC) stock?
ChartMill assigns a valuation rating of 6 / 10 to DIVERSIFIED ENERGY CO (DEC). This can be considered as Fairly Valued.
What is the profitability of DEC stock?
DIVERSIFIED ENERGY CO (DEC) has a profitability rating of 2 / 10.
What is the expected EPS growth for DIVERSIFIED ENERGY CO (DEC) stock?
The Earnings per Share (EPS) of DIVERSIFIED ENERGY CO (DEC) is expected to grow by 134.76% in the next year.