DIVERSIFIED ENERGY CO PLC (DEC) Stock Fundamental Analysis
USA - NYSE:DEC - GB00BQHP5P93 - Common Stock
12.65 USD
+0.14 (+1.12%)
12.65 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to DEC. DEC was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. DEC has a bad profitability rating. Also its financial health evaluation is rather negative. DEC has a correct valuation and a medium growth rate.
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.
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
The Return On Assets of DEC (-2.43%) is worse than 72.73% of its industry peers.
Looking at the Return On Equity, with a value of -19.24%, DEC is doing worse than 78.95% of the companies in the same industry.
DEC has a Return On Invested Capital of 3.54%. This is in the lower half of the industry: DEC underperforms 64.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DEC is significantly below the industry average of 21.72%.
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 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 has a Operating Margin (18.42%) which is in line with its industry peers.
DEC's Operating Margin has declined in the last couple of years.
The Gross Margin of DEC (26.94%) is worse than 61.24% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DEC is still creating some value.
DEC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DEC has been reduced compared to 5 years ago.
DEC has a worse debt/assets ratio than last year.
2.2 Solvency
DEC has an Altman-Z score of 0.24. This is a bad value and indicates that DEC is not financially healthy and even has some risk of bankruptcy.
DEC's Altman-Z score of 0.24 is on the low side compared to the rest of the industry. DEC is outperformed by 66.51% 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.
Looking at the Debt to FCF ratio, with a value of 16.57, DEC is in line with its industry, outperforming 45.93% 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.
Looking at the Debt to Equity ratio, with a value of 3.52, DEC is doing worse than 86.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.4
WACC8.94%
2.3 Liquidity
A Current Ratio of 0.54 indicates that DEC may have some problems paying its short term obligations.
With a Current ratio value of 0.54, DEC is not doing good in the industry: 86.60% of the companies in the same industry are doing better.
A Quick Ratio of 0.54 indicates that DEC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.54, DEC is doing worse than 81.82% of the companies in the same industry.
| 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.
Looking at the last year, DEC shows a very strong growth in Revenue. The Revenue has grown by 60.64%.
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 18.89% on average over the next years. This is quite good.
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 Y24.27%
EPS Next 2Y37.33%
EPS Next 3Y30.99%
EPS Next 5Y18.89%
Revenue Next Year111.3%
Revenue Next 2Y33.46%
Revenue Next 3Y17.57%
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.
A Price/Forward Earnings ratio of 4.76 indicates a rather cheap valuation of DEC.
Based on the Price/Forward Earnings ratio, DEC is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
DEC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.76 |
4.2 Price Multiples
62.68% of the companies in the same industry are more expensive than DEC, based on the Enterprise Value to EBITDA ratio.
88.52% of the companies in the same industry are more expensive than DEC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.83 | ||
| EV/EBITDA | 7.07 |
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 30.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y37.33%
EPS Next 3Y30.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.84%, DEC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.13, DEC pays a better dividend. On top of this DEC pays more dividend than 85.17% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, DEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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.
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.
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 2Y37.33%
EPS Next 3Y30.99%
12.65
+0.14 (+1.12%)
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 ChangeN/A
Market Cap972.15M
Revenue(TTM)1.20B
Net Income(TTM)-137814000
Analysts83.08
Price Target27.64 (118.5%)
Short Float %3.34%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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)-0.9%
PT rev (3m)1.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-29.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)55.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.76 | ||
| P/S | 0.81 | ||
| P/FCF | 5.83 | ||
| P/OCF | 2.17 | ||
| P/B | 1.36 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 7.07 |
EPS(TTM)-2.62
EYN/A
EPS(NY)2.66
Fwd EY21.01%
FCF(TTM)2.17
FCFY17.14%
OCF(TTM)5.84
OCFY46.18%
SpS15.67
BVpS9.32
TBVpS9.15
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 | 0.24 |
F-Score5
WACC8.94%
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 Y24.27%
EPS Next 2Y37.33%
EPS Next 3Y30.99%
EPS Next 5Y18.89%
Revenue 1Y (TTM)60.64%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%111.04%
Revenue Next Year111.3%
Revenue Next 2Y33.46%
Revenue Next 3Y17.57%
Revenue Next 5Y0.45%
EBIT growth 1Y1231.28%
EBIT growth 3Y-69.42%
EBIT growth 5Y-35.28%
EBIT Next Year335.81%
EBIT Next 3Y54.94%
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%
DIVERSIFIED ENERGY CO PLC / DEC FAQ
What is the ChartMill fundamental rating of DIVERSIFIED ENERGY CO PLC (DEC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to DEC.
Can you provide the valuation status for DIVERSIFIED ENERGY CO PLC?
ChartMill assigns a valuation rating of 6 / 10 to DIVERSIFIED ENERGY CO PLC (DEC). This can be considered as Fairly Valued.
What is the profitability of DEC stock?
DIVERSIFIED ENERGY CO PLC (DEC) has a profitability rating of 2 / 10.
Is the dividend of DIVERSIFIED ENERGY CO PLC sustainable?
The dividend rating of DIVERSIFIED ENERGY CO PLC (DEC) is 6 / 10 and the dividend payout ratio is -49.87%.