DIVERSIFIED ENERGY CO (DEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEC - US25520W1071 - Common Stock
13.3 USD
-0.85 (-6.01%)
13.3 USD
0 (0%)
Overall DEC gets a fundamental rating of 3 out of 10. We evaluated DEC against 208 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
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.
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: 73.56% of the companies in the same industry are doing better.
DEC has a Return On Equity of -19.24%. This is in the lower half of the industry: DEC underperforms 77.40% of its industry peers.
The Return On Invested Capital of DEC (3.54%) is worse than 65.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DEC is significantly below the industry average of 21.83%.
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 of 18.42%. This is comparable to the rest of the industry: DEC outperforms 55.29% of its industry peers.
DEC's Operating Margin has declined in the last couple of years.
DEC's Gross Margin of 26.94% is on the low side compared to the rest of the industry. DEC is outperformed by 62.98% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DEC is 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.
The debt/assets ratio for DEC is higher compared to a year ago.
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 Altman-Z score of 0.25. This is in the lower half of the industry: DEC underperforms 66.35% 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 47.12% of the companies in the same industry.
DEC has a Debt/Equity ratio of 3.52. This is a high value indicating a heavy dependency on external 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 86.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.4
WACC8.83%
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 82.69% 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.
Looking at the Quick ratio, with a value of 0.54, DEC is doing worse than 78.85% of the companies in the same industry.
| 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%.
The Revenue has been growing by 11.45% on average over the past years. This is quite good.
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.
With a Price/Forward Earnings ratio of 3.97, the valuation of DEC can be described as very cheap.
Based on the Price/Forward Earnings ratio, DEC is valued cheaper than 98.08% of the companies in the same industry.
DEC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DEC is valued a bit cheaper than 60.58% of the companies in the same industry.
DEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DEC is cheaper than 89.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | 7.28 |
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 8.20%, DEC is a good candidate for dividend investing.
DEC's Dividend Yield is rather good when compared to the industry average which is at 3.91. DEC pays more dividend than 82.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, DEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.2% |
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.
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
DEC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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%
13.3
-0.85 (-6.01%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.01%
Inst Owner Change0%
Ins Owners2.16%
Ins Owner Change3%
Market Cap1.07B
Revenue(TTM)1.20B
Net Income(TTM)-137.81M
Analysts83.08
Price Target29.05 (118.42%)
Short Float %3.74%
Short Ratio5.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.2% |
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)-0.95%
PT rev (3m)5.13%
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 | 3.97 | ||
| P/S | 0.89 | ||
| P/FCF | 6.42 | ||
| P/OCF | 2.38 | ||
| P/B | 1.49 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)-2.62
EYN/A
EPS(NY)3.35
Fwd EY25.21%
FCF(TTM)2.07
FCFY15.57%
OCF(TTM)5.58
OCFY41.96%
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
WACC8.83%
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.