DIVERSIFIED ENERGY CO (DEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEC - US25520W1071 - Common Stock
14.27 USD
-0.16 (-1.11%)
13.7 USD
-0.57 (-3.99%)
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. Both the profitability and financial health of DEC have multiple concerns. 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.
In the past year DEC had a positive cash flow from operations.
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's Return On Assets of -2.43% is on the low side compared to the rest of the industry. DEC is outperformed by 72.86% of its industry peers.
DEC has a Return On Equity of -19.24%. This is in the lower half of the industry: DEC underperforms 77.14% of its industry peers.
With a Return On Invested Capital value of 3.54%, DEC is not doing good in the industry: 66.19% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for DEC is significantly below the industry average of 21.09%.
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
Looking at the Operating Margin, with a value of 18.42%, DEC is in line with its industry, outperforming 54.76% of the companies in the same industry.
In the last couple of years the Operating Margin of DEC has declined.
With a Gross Margin value of 26.94%, DEC is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DEC is still creating some value.
Compared to 1 year ago, DEC has more shares outstanding
DEC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DEC is higher compared to a year ago.
2.2 Solvency
DEC has an Altman-Z score of 0.26. This is a bad value and indicates that DEC is not financially healthy and even has some risk of bankruptcy.
DEC has a worse Altman-Z score (0.26) than 66.19% 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.
With a Debt to FCF ratio value of 16.57, DEC perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
A Debt/Equity ratio of 3.52 is on the high side and indicates that DEC has dependencies on debt financing.
DEC has a worse Debt to Equity ratio (3.52) than 87.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.4
WACC8.95%
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.
DEC's Current ratio of 0.54 is on the low side compared to the rest of the industry. DEC is outperformed by 82.86% 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 worse Quick ratio (0.54) than 79.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
DEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -187.88%.
The Revenue has grown by 60.64% in the past year. This is a very strong growth!
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)-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
The Earnings Per Share is expected to grow by 26.66% on average over the next years. This is a very strong growth
DEC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.10% yearly.
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
DEC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 4.26, the valuation of DEC can be described as very cheap.
Based on the Price/Forward Earnings ratio, DEC is valued cheaply inside the industry as 97.62% of the companies are valued more expensively.
DEC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEC is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEC indicates a rather cheap valuation: DEC is cheaper than 86.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.89 | ||
| EV/EBITDA | 7.42 |
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.
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%
5. Dividend
5.1 Amount
DEC has a Yearly Dividend Yield of 8.04%, which is a nice return.
DEC's Dividend Yield is rather good when compared to the industry average which is at 3.96. DEC pays more dividend than 82.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, DEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.04% |
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-49.87%
EPS Next 2Y54.27%
EPS Next 3Y25.13%
14.27
-0.16 (-1.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners63.67%
Inst Owner Change0%
Ins Owners2.81%
Ins Owner Change0%
Market Cap1.15B
Revenue(TTM)1.20B
Net Income(TTM)-137.81M
Analysts83.08
Price Target29.05 (103.57%)
Short Float %3.92%
Short Ratio5.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.04% |
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)4.49%
PT rev (3m)4.18%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)101.98%
EPS NY rev (3m)88.91%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.26 | ||
| P/S | 0.95 | ||
| P/FCF | 6.89 | ||
| P/OCF | 2.56 | ||
| P/B | 1.6 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 7.42 |
EPS(TTM)-2.62
EYN/A
EPS(NY)3.35
Fwd EY23.5%
FCF(TTM)2.07
FCFY14.52%
OCF(TTM)5.58
OCFY39.11%
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 | 0.26 |
F-Score5
WACC8.95%
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.
Can you provide the valuation status for DIVERSIFIED ENERGY CO?
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.
Is the dividend of DIVERSIFIED ENERGY CO sustainable?
The dividend rating of DIVERSIFIED ENERGY CO (DEC) is 6 / 10 and the dividend payout ratio is -49.87%.