DIVERSIFIED ENERGY CO (DEC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DEC • US25520W1071
13.15 USD
+0.16 (+1.23%)
At close: Feb 4, 2026
13.15 USD
0 (0%)
After Hours: 2/4/2026, 7:14:53 PM
Taking everything into account, DEC scores 3 out of 10 in our fundamental rating. DEC was compared to 207 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 is not valued too expensively and it also shows a decent growth rate.
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 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.
- DEC's Return On Equity of -19.24% is on the low side compared to the rest of the industry. DEC is outperformed by 77.29% of its industry peers.
- DEC has a Return On Invested Capital of 3.54%. This is in the lower half of the industry: DEC underperforms 65.70% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for DEC is significantly below the industry average of 21.95%.
- 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.
- In the last couple of years the Operating Margin of DEC has declined.
- Looking at the Gross Margin, with a value of 26.94%, DEC is doing worse than 63.28% of the companies in the same industry.
- 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
- 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.
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.
- DEC has a debt to FCF ratio of 16.57. This is a negative value and a sign of low solvency as DEC would need 16.57 years to pay back of all of its debts.
- DEC has a Debt to FCF ratio of 16.57. This is comparable to the rest of the industry: DEC outperforms 46.86% of its industry peers.
- A Debt/Equity ratio of 3.52 is on the high side and indicates that DEC has dependencies on debt financing.
- DEC has a Debt to Equity ratio of 3.52. This is amonst the worse of the industry: DEC underperforms 86.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.4
WACC8.9%
2.3 Liquidity
- A Current Ratio of 0.54 indicates that DEC may have some problems paying 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 83.09% of its industry peers.
- 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 worse Quick ratio (0.54) than 79.23% of its industry peers.
| 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.
- The Revenue has grown by 60.64% in the past year. This is a very strong growth!
- 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
- Based on estimates for the next years, DEC will show a very strong growth in Earnings Per Share. The EPS will grow by 26.66% on average per year.
- 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- DEC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- DEC is valuated cheaply with a Price/Forward Earnings ratio of 3.92.
- DEC's Price/Forward Earnings ratio is rather cheap when compared to the industry. DEC is cheaper than 98.07% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DEC to the average of the S&P500 Index (27.50), we can say DEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.92 |
4.2 Price Multiples
- 64.73% of the companies in the same industry are more expensive than DEC, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEC indicates a rather cheap valuation: DEC is cheaper than 91.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.35 | ||
| EV/EBITDA | 7.23 |
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%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.83%, DEC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.64, DEC pays a better dividend. On top of this DEC pays more dividend than 88.89% of the companies listed in the same industry.
- DEC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector 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
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 2Y54.27%
EPS Next 3Y25.13%
13.15
+0.16 (+1.23%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-03 2025-11-03
Earnings (Next)N/A N/A
Inst Owners68.01%
Inst Owner Change0%
Ins Owners2.16%
Ins Owner Change2.45%
Market Cap1.06B
Revenue(TTM)1.20B
Net Income(TTM)-137.81M
Analysts83.08
Price Target29.09 (121.22%)
Short Float %3.87%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.83% |
Yearly Dividend1.71
Dividend Growth(5Y)65.59%
DP-49.87%
Div Incr Years5
Div Non Decr Years5
Ex-Date02-27 2026-02-27 (0.29)
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)0.12%
PT rev (3m)6.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)88.91%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.92 | ||
| P/S | 0.88 | ||
| P/FCF | 6.35 | ||
| P/OCF | 2.36 | ||
| P/B | 1.48 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)-2.62
EYN/A
EPS(NY)3.35
Fwd EY25.5%
FCF(TTM)2.07
FCFY15.75%
OCF(TTM)5.58
OCFY42.44%
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 | 0.25 |
F-Score5
WACC8.9%
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.
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.