DIVERSIFIED ENERGY CO (DEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEC - US25520W1071 - Common Stock
13.07 USD
+0.52 (+4.14%)
13.07 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to DEC. DEC was compared to 207 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 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.
- DEC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -2.43%, DEC is not doing good in the industry: 73.43% of the companies in the same industry are doing better.
- The Return On Equity of DEC (-19.24%) is worse 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
- DEC has a Operating Margin (18.42%) which is comparable to the rest of the industry.
- DEC's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 26.94%, DEC is doing worse than 62.80% 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.
- The number of shares outstanding for DEC has been increased compared to 1 year ago.
- Compared to 5 years ago, DEC has less shares outstanding
- DEC has a worse debt/assets ratio than last year.
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.
- The Altman-Z score of DEC (0.25) is worse than 66.67% 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 46.86% 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's Debt to Equity ratio of 3.52 is on the low side compared to the rest of the industry. DEC is outperformed by 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
WACC8.96%
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 83.09% 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 79.23% 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%.
- 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
- The Earnings Per Share is expected to grow by 26.66% on average over the next years. This is a very strong growth
- 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
- 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.
- The Price/Forward Earnings ratio is 3.90, which 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 98.07% of the companies in the same industry.
- DEC is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.30, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DEC is valued a bit cheaper than the industry average as 62.80% of the companies are valued more expensively.
- 90.82% 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 | 6.31 | ||
| EV/EBITDA | 7.24 |
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
- With a Yearly Dividend Yield of 9.32%, DEC is a good candidate for dividend investing.
- DEC's Dividend Yield is rather good when compared to the industry average which is at 3.75. DEC pays more dividend than 89.37% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.86, DEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.32% |
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%
13.07
+0.52 (+4.14%)
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 Change3%
Market Cap1.05B
Revenue(TTM)1.20B
Net Income(TTM)-137.81M
Analysts83.08
Price Target29.09 (122.57%)
Short Float %3.79%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.32% |
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)-0.83%
PT rev (3m)5.26%
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 | 3.9 | ||
| P/S | 0.87 | ||
| P/FCF | 6.31 | ||
| P/OCF | 2.34 | ||
| P/B | 1.47 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 7.24 |
EPS(TTM)-2.62
EYN/A
EPS(NY)3.35
Fwd EY25.66%
FCF(TTM)2.07
FCFY15.85%
OCF(TTM)5.58
OCFY42.7%
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
WACC8.96%
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.