DIVERSIFIED ENERGY CO PLC (DEC) Stock Fundamental Analysis
USA - NYSE:DEC - GB00BQHP5P93 - Common Stock
14.25 USD
+0.21 (+1.5%)
14.3 USD
+0.05 (+0.35%)
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 may be in some trouble as it scores bad on both profitability and health. DEC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DEC had negative earnings in the past year.
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
DEC has a worse Return On Assets (-2.43%) than 72.38% of its industry peers.
DEC's Return On Equity of -19.24% is on the low side compared to the rest of the industry. DEC is outperformed by 78.57% of its industry peers.
DEC has a Return On Invested Capital of 3.54%. This is in the lower half of the industry: DEC underperforms 64.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DEC is significantly below the industry average of 21.66%.
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's Operating Margin of 18.42% is in line compared to the rest of the industry. DEC outperforms 52.86% of its industry peers.
In the last couple of years the Operating Margin of DEC has declined.
DEC's Gross Margin of 26.94% is on the low side compared to the rest of the industry. DEC is outperformed by 61.43% of its industry peers.
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
DEC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DEC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DEC has less shares outstanding
DEC has a worse debt/assets ratio than last year.
2.2 Solvency
DEC has an Altman-Z score of 0.25. This is a bad value and indicates that DEC is not financially healthy and even has some risk of bankruptcy.
DEC has a Altman-Z score of 0.25. This is in the lower half of the industry: DEC underperforms 66.67% of its industry peers.
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.
The Debt to FCF ratio of DEC (16.57) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.52 is on the high side and indicates that DEC has dependencies on debt financing.
DEC's Debt to Equity ratio of 3.52 is on the low side compared to the rest of the industry. DEC is outperformed by 86.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.39
WACC9.01%
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.
With a Current ratio value of 0.54, DEC is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
DEC has a Quick 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 Quick ratio (0.54) than 80.48% 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.
DEC shows a strong growth in Revenue. In the last year, the Revenue has grown by 60.64%.
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
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.
Based on estimates for the next years, DEC will show a small growth in Revenue. The Revenue will grow by 0.45% on average per year.
EPS Next Y35.96%
EPS Next 2Y32.45%
EPS Next 3Y22.75%
EPS Next 5Y18.89%
Revenue Next Year111.54%
Revenue Next 2Y45.78%
Revenue Next 3Y25.6%
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
The Price/Earnings Ratio is negative for DEC. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 5.76, which indicates a rather cheap valuation of DEC.
DEC's Price/Forward Earnings ratio is rather cheap when compared to the industry. DEC is cheaper than 90.48% of the companies in the same industry.
DEC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEC indicates a somewhat cheap valuation: DEC is cheaper than 60.95% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEC indicates a rather cheap valuation: DEC is cheaper than 87.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.66 | ||
| EV/EBITDA | 7.32 |
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.
A more expensive valuation may be justified as DEC's earnings are expected to grow with 22.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.45%
EPS Next 3Y22.75%
5. Dividend
5.1 Amount
DEC has a Yearly Dividend Yield of 7.32%, which is a nice return.
Compared to an average industry Dividend Yield of 6.17, DEC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, DEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.32% |
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.
DEC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-49.87%
EPS Next 2Y32.45%
EPS Next 3Y22.75%
14.25
+0.21 (+1.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.32%
Inst Owner Change0%
Ins Owners2.91%
Ins Owner ChangeN/A
Market Cap1.11B
Analysts83.33
Price Target27.89 (95.72%)
Short Float %3.69%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.32% |
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)2.21%
PT rev (3m)2.05%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-23.19%
EPS NY rev (3m)-23.19%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.88%
Revenue NY rev (3m)56.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.76 | ||
| P/S | 0.92 | ||
| P/FCF | 6.66 | ||
| P/OCF | 2.47 | ||
| P/B | 1.55 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)-2.62
EYN/A
EPS(NY)2.47
Fwd EY17.35%
FCF(TTM)2.14
FCFY15%
OCF(TTM)5.76
OCFY40.43%
SpS15.45
BVpS9.19
TBVpS9.02
PEG (NY)N/A
PEG (5Y)N/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%
ROICexcg growth 3Y-71.19%
ROICexcg 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
WACC9.01%
ROIC/WACC0.39
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 Y35.96%
EPS Next 2Y32.45%
EPS Next 3Y22.75%
EPS Next 5Y18.89%
Revenue 1Y (TTM)60.64%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%111.04%
Revenue Next Year111.54%
Revenue Next 2Y45.78%
Revenue Next 3Y25.6%
Revenue Next 5Y0.45%
EBIT growth 1Y1231.28%
EBIT growth 3Y-69.42%
EBIT growth 5Y-35.28%
EBIT Next Year208.2%
EBIT Next 3Y43.52%
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%