DIVERSIFIED ENERGY CO PLC (DEC) Stock Fundamental Analysis
NYSE:DEC - New York Stock Exchange, Inc. - GB00BQHP5P93 - Common Stock - Currency: USD
Taking everything into account, DEC scores 3 out of 10 in our fundamental rating. DEC was compared to 211 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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years DEC reported 4 times negative net income.
DEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DEC's Return On Assets of -2.20% is on the low side compared to the rest of the industry. DEC is outperformed by 73.46% of its industry peers.
DEC has a Return On Equity of -19.50%. This is in the lower half of the industry: DEC underperforms 79.15% of its industry peers.
DEC has a Return On Invested Capital of 0.33%. This is in the lower half of the industry: DEC underperforms 74.88% of its industry peers.
DEC had an Average Return On Invested Capital over the past 3 years of 12.02%. This is significantly below the industry average of 23.70%.
The 3 year average ROIC (12.02%) for DEC is well above the current ROIC(0.33%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.2% | ||
| ROE | -19.5% | ||
| ROIC | 0.33% |
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 worse Operating Margin (1.78%) than 72.04% of its industry peers.
DEC's Operating Margin has declined in the last couple of years.
DEC has a worse Gross Margin (13.77%) than 68.72% of its industry peers.
In the last couple of years the Gross Margin of DEC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.78% | ||
| PM (TTM) | N/A | ||
| GM | 13.77% |
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.
DEC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DEC has a worse debt to assets ratio.
2.2 Solvency
DEC has an Altman-Z score of 0.03. 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 0.03. This is in the lower half of the industry: DEC underperforms 69.67% of its industry peers.
The Debt to FCF ratio of DEC is 342.50, which is on the high side as it means it would take DEC, 342.50 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 342.50, DEC is doing worse than 61.14% of the companies in the same industry.
DEC has a Debt/Equity ratio of 3.35. This is a high value indicating a heavy dependency on external financing.
DEC has a worse Debt to Equity ratio (3.35) than 86.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 342.5 | ||
| Altman-Z | 0.03 |
ROIC/WACC0.04
WACC9.04%
2.3 Liquidity
DEC has a Current Ratio of 0.40. 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 (0.40) than 91.00% of its industry peers.
DEC has a Quick Ratio of 0.40. 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 Quick ratio, with a value of 0.39, DEC is doing worse than 90.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The earnings per share for DEC have decreased strongly by -111.17% in the last year.
Looking at the last year, DEC shows a decrease in Revenue. The Revenue has decreased by -8.46% in the last year.
DEC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.45% yearly.
EPS 1Y (TTM)-111.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-179.51%
Revenue 1Y (TTM)-8.46%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%-50.92%
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 Y77.02%
EPS Next 2Y29.69%
EPS Next 3Y5.86%
EPS Next 5Y18.89%
Revenue Next Year35.54%
Revenue Next 2Y21.85%
Revenue Next 3Y12.05%
Revenue Next 5Y0.45%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for DEC. In the last year negative earnings were reported.
DEC is valuated cheaply with a Price/Forward Earnings ratio of 5.88.
Based on the Price/Forward Earnings ratio, DEC is valued cheaper than 88.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. DEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.88 |
4.2 Price Multiples
DEC's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as DEC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 230.31 | ||
| EV/EBITDA | 10.8 |
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.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.69%
EPS Next 3Y5.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.83%, DEC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, DEC pays a better dividend. On top of this DEC pays more dividend than 81.04% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, DEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.83% |
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.
As DEC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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-95.01%
EPS Next 2Y29.69%
EPS Next 3Y5.86%
14.67
-0.29 (-1.94%)
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 Cap1.17B
Analysts82.67
Price Target28.03 (91.07%)
Short Float %2.57%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.83% |
Yearly Dividend1.71
Dividend Growth(5Y)65.59%
DP-95.01%
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)1.01%
PT rev (3m)-1.47%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)28.15%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.88 | ||
| P/S | 1.47 | ||
| P/FCF | 230.31 | ||
| P/OCF | 3.38 | ||
| P/B | 2.58 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)-1.8
EYN/A
EPS(NY)2.49
Fwd EY17%
FCF(TTM)0.06
FCFY0.43%
OCF(TTM)4.34
OCFY29.58%
SpS9.98
BVpS5.68
TBVpS5.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.2% | ||
| ROE | -19.5% | ||
| ROCE | 0.44% | ||
| ROIC | 0.33% | ||
| ROICexc | 0.33% | ||
| ROICexgc | 0.33% | ||
| OM | 1.78% | ||
| PM (TTM) | N/A | ||
| GM | 13.77% | ||
| FCFM | 0.64% |
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-Score3
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 342.5 | ||
| Debt/EBITDA | 5.6 | ||
| Cap/Depr | 132.79% | ||
| Cap/Sales | 42.85% | ||
| Interest Coverage | 0.12 | ||
| Cash Conversion | 127.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 0.03 |
F-Score3
WACC9.04%
ROIC/WACC0.04
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)-111.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-179.51%
EPS Next Y77.02%
EPS Next 2Y29.69%
EPS Next 3Y5.86%
EPS Next 5Y18.89%
Revenue 1Y (TTM)-8.46%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%-50.92%
Revenue Next Year35.54%
Revenue Next 2Y21.85%
Revenue Next 3Y12.05%
Revenue Next 5Y0.45%
EBIT growth 1Y-87.05%
EBIT growth 3Y-69.42%
EBIT growth 5Y-35.28%
EBIT Next Year208.2%
EBIT Next 3Y43.52%
EBIT Next 5Y11.96%
FCF growth 1Y-93.1%
FCF growth 3YN/A
FCF growth 5Y-54.02%
OCF growth 1Y-15.72%
OCF growth 3Y2.58%
OCF growth 5Y4.36%