DIVERSIFIED ENERGY CO (DEC) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:DEC • US25520W1071

13.39 USD
+0.25 (+1.9%)
At close: Jan 30, 2026
13.39 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to DEC. DEC was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of DEC have multiple concerns. DEC is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

2

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.
  • Each year in the past 5 years DEC had a positive operating cash flow.
DEC Yearly Net Income VS EBIT VS OCF VS FCFDEC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

1.2 Ratios

  • DEC has a Return On Assets of -2.43%. This is in the lower half of the industry: DEC underperforms 73.43% of its industry peers.
  • Looking at the Return On Equity, with a value of -19.24%, DEC is doing worse than 77.29% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 3.54%, DEC is doing worse than 65.70% of the companies in the same industry.
  • DEC had an Average Return On Invested Capital over the past 3 years of 12.02%. This is significantly below the industry average of 21.94%.
  • 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 RankSector 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%
DEC Yearly ROA, ROE, ROICDEC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300 400

1.3 Margins

  • The Operating Margin of DEC (18.42%) is comparable to the rest of the industry.
  • DEC's Operating Margin has declined in the last couple of years.
  • The Gross Margin of DEC (26.94%) is worse than 63.28% of its industry peers.
  • DEC's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
DEC Yearly Profit, Operating, Gross MarginsDEC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80 100

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1

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.
  • The number of shares outstanding for DEC has been increased compared to 1 year ago.
  • DEC has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for DEC is higher compared to a year ago.
DEC Yearly Shares OutstandingDEC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
DEC Yearly Total Debt VS Total AssetsDEC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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.
  • 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.
  • DEC's Debt to FCF ratio of 16.57 is in line compared to the rest of the industry. DEC outperforms 46.86% of its industry peers.
  • 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: 86.47% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 3.52
Debt/FCF 16.57
Altman-Z 0.25
ROIC/WACC0.39
WACC9.09%
DEC Yearly LT Debt VS Equity VS FCFDEC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

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.
  • Looking at the Current ratio, with a value of 0.54, DEC is doing worse than 83.09% of the companies in the same industry.
  • 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 Quick ratio of 0.54. This is in the lower half of the industry: DEC underperforms 79.23% of its industry peers.
Industry RankSector Rank
Current Ratio 0.54
Quick Ratio 0.54
DEC Yearly Current Assets VS Current LiabilitesDEC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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6

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%.
  • 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

  • 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

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
DEC Yearly Revenue VS EstimatesDEC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B
DEC Yearly EPS VS EstimatesDEC Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4 6

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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 3.99, which indicates a rather cheap valuation of DEC.
  • 98.07% of the companies in the same industry are more expensive than DEC, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of DEC to the average of the S&P500 Index (25.57), we can say DEC is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 3.99
DEC Price Earnings VS Forward Price EarningsDEC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, DEC is valued a bit cheaper than the industry average as 63.28% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, DEC is valued cheaper than 90.82% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.46
EV/EBITDA 7.29
DEC Per share dataDEC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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 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%

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6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 8.83%, DEC is a good candidate for dividend investing.
  • DEC's Dividend Yield is rather good when compared to the industry average which is at 3.64. DEC pays more dividend than 88.89% of the companies in the same industry.
  • DEC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 8.83%

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
DEC Yearly Dividends per shareDEC Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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 2Y54.27%
EPS Next 3Y25.13%
DEC Yearly Income VS Free CF VS DividendDEC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M -600M

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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.