DIVERSIFIED ENERGY CO (DEC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DEC • US25520W1071
13.155 USD
+0.01 (+0.11%)
Last: Jan 30, 2026, 02:16 PM
DEC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of DEC have multiple concerns. DEC has a correct valuation and a medium 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.
- DEC had negative earnings in 4 of the past 5 years.
- Each year in the past 5 years DEC had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of DEC (-2.43%) is worse than 73.43% of its industry peers.
- DEC has a worse Return On Equity (-19.24%) than 77.29% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.54%, DEC is doing worse than 65.70% 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 21.94%.
- 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
- The Operating Margin of DEC (18.42%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of DEC has declined.
- DEC has a Gross Margin of 26.94%. This is in the lower half of the industry: DEC underperforms 62.80% 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 0.25. 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 (0.25) than 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 (16.57) which is in line with its industry peers.
- A Debt/Equity ratio of 3.52 is on the high side and indicates that DEC has dependencies on debt financing.
- With a Debt to Equity ratio value of 3.52, DEC is not doing good in the industry: 86.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.39
WACC9.08%
2.3 Liquidity
- A Current Ratio of 0.54 indicates that DEC may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.54, DEC is doing worse than 83.09% of the companies in the same industry.
- 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's Quick ratio of 0.54 is on the low side compared to the rest of the industry. DEC is outperformed by 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.
- Looking at the last year, DEC shows a very strong growth in Revenue. The Revenue has grown by 60.64%.
- 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
- DEC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.66% yearly.
- Based on estimates for the next years, DEC will show a quite strong growth in Revenue. The Revenue will grow by 18.10% on average per year.
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
- The Price/Earnings Ratio is negative for DEC. In the last year negative earnings were reported.
- Based on the Price/Forward Earnings ratio of 3.92, the valuation of DEC can be described as very cheap.
- Based on the Price/Forward Earnings ratio, DEC is valued cheaper than 98.07% of the companies in the same industry.
- DEC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DEC is valued a bit cheaper than the industry average as 63.77% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEC indicates a rather cheap valuation: DEC is cheaper than 90.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.35 | ||
| EV/EBITDA | 7.25 |
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.
- 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
- DEC has a Yearly Dividend Yield of 8.96%, which is a nice return.
- Compared to an average industry Dividend Yield of 3.73, DEC pays a better dividend. On top of this DEC pays more dividend than 87.92% 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 | 8.96% |
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
- DEC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- 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%
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.