DIVERSIFIED ENERGY CO (DEC) Fundamental Analysis & Valuation

NYSE:DEC • US25520W1071

Current stock price

17.77 USD
+0.39 (+2.24%)
At close:
17.67 USD
-0.1 (-0.56%)
Pre-Market:

This DEC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. DEC Profitability Analysis

1.1 Basic Checks

  • DEC had negative earnings in the past year.
  • DEC had a positive operating cash flow in the past year.
  • In the past 5 years DEC reported 4 times negative net income.
  • In the past 5 years DEC always reported a positive cash flow from operatings.
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 worse Return On Assets (-2.43%) than 73.68% of its industry peers.
  • DEC has a worse Return On Equity (-19.24%) than 77.51% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 3.54%, DEC is doing worse than 63.64% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for DEC is significantly below the industry average of 23.05%.
  • The last Return On Invested Capital (3.54%) for DEC is well below the 3 year average (12.02%), which needs to be investigated, but indicates that DEC had better years and this may not be a problem.
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

  • With a Operating Margin value of 18.42%, DEC perfoms like the industry average, outperforming 56.46% of the companies in the same industry.
  • DEC's Operating Margin has declined in the last couple of years.
  • DEC's Gross Margin of 26.94% is on the low side compared to the rest of the industry. DEC is outperformed by 60.29% of its industry peers.
  • In the last couple of years the Gross Margin of DEC has declined.
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. DEC Health Analysis

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
  • DEC has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, DEC has a worse debt to assets ratio.
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

  • DEC has an Altman-Z score of 0.28. This is a bad value and indicates that DEC is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 0.28, DEC is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 16.57, DEC is in line with its industry, outperforming 48.33% 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.
  • 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 84.69% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.52
Debt/FCF 16.57
Altman-Z 0.28
ROIC/WACC0.47
WACC7.47%
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

  • A Current Ratio of 0.54 indicates that DEC may have some problems paying its short term obligations.
  • DEC has a Current ratio of 0.54. This is amonst the worse of the industry: DEC underperforms 83.25% 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 in the lower half of the industry: DEC underperforms 77.99% 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. DEC Growth Analysis

3.1 Past

  • DEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -187.88%.
  • Looking at the last year, DEC shows a very strong growth in Revenue. 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

  • DEC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.62% yearly.
  • DEC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.84% yearly.
EPS Next Y134.76%
EPS Next 2Y54.27%
EPS Next 3Y25.13%
EPS Next 5Y25.62%
Revenue Next Year111.3%
Revenue Next 2Y52.49%
Revenue Next 3Y26.67%
Revenue Next 5Y18.84%

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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6

4. DEC Valuation Analysis

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 5.30 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 97.61% of the companies in the same industry.
  • DEC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 5.3
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEC indicates a somewhat cheap valuation: DEC is cheaper than 66.03% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, DEC is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.11
EV/EBITDA 7.81
DEC Per share dataDEC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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 25.13% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y54.27%
EPS Next 3Y25.13%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. DEC Dividend Analysis

5.1 Amount

  • DEC has a Yearly Dividend Yield of 7.16%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.29, DEC pays a better dividend. On top of this DEC pays more dividend than 83.73% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.90, DEC pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.16%

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.
  • 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%
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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DEC Fundamentals: All Metrics, Ratios and Statistics

DIVERSIFIED ENERGY CO

NYSE:DEC (3/26/2026, 8:15:16 PM)

Premarket: 17.67 -0.1 (-0.56%)

17.77

+0.39 (+2.24%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-26
Earnings (Next)N/A
Inst Owners82.5%
Inst Owner Change0%
Ins Owners2.3%
Ins Owner Change8.96%
Market Cap1.35B
Revenue(TTM)1.20B
Net Income(TTM)-137.81M
Analysts82.86
Price Target30 (68.82%)
Short Float %3.08%
Short Ratio2.64
Dividend
Industry RankSector Rank
Dividend Yield 7.16%
Yearly Dividend1.71
Dividend Growth(5Y)65.59%
DP-49.87%
Div Incr Years5
Div Non Decr Years5
Ex-Date05-29
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)-1.32%
PT rev (3m)2.27%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 RankSector Rank
PE N/A
Fwd PE 5.3
P/S 1.12
P/FCF 8.11
P/OCF 3.01
P/B 1.89
P/tB 1.92
EV/EBITDA 7.81
EPS(TTM)-2.62
EYN/A
EPS(NY)3.35
Fwd EY18.87%
FCF(TTM)2.19
FCFY12.33%
OCF(TTM)5.9
OCFY33.21%
SpS15.83
BVpS9.41
TBVpS9.24
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 0.28
F-Score5
WACC7.47%
ROIC/WACC0.47
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 5Y25.62%
Revenue 1Y (TTM)60.64%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%111.04%
Revenue Next Year111.3%
Revenue Next 2Y52.49%
Revenue Next 3Y26.67%
Revenue Next 5Y18.84%
EBIT growth 1Y1231.28%
EBIT growth 3Y-69.42%
EBIT growth 5Y-35.28%
EBIT Next Year386.3%
EBIT Next 3Y62.62%
EBIT Next 5Y39.6%
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 Fundamental Analysis 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.