DIVERSIFIED ENERGY CO (DEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEC - US25520W1071 - Common Stock
14.34 USD
-0.25 (-1.71%)
14.34 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 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.
DEC had negative earnings in 4 of the past 5 years.
In the past 5 years DEC always reported a positive cash flow from operatings.
1.2 Ratios
DEC has a worse Return On Assets (-2.43%) than 73.21% of its industry peers.
The Return On Equity of DEC (-19.24%) is worse than 77.51% of its industry peers.
With a Return On Invested Capital value of 3.54%, DEC is not doing good in the industry: 66.99% of the companies in the same industry are doing better.
DEC had an Average Return On Invested Capital over the past 3 years of 12.02%. This is significantly below the industry average of 20.87%.
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 in line with its industry peers.
In the last couple of years the Operating Margin of DEC has declined.
With a Gross Margin value of 26.94%, DEC is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of DEC has declined.
| 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.
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.
Compared to 1 year ago, DEC has a worse debt to assets ratio.
2.2 Solvency
DEC has an Altman-Z score of 0.26. This is a bad value and indicates that DEC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.26, DEC is doing worse than 67.46% of the companies in the same industry.
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.
The Debt to FCF ratio of DEC (16.57) is comparable to the rest of the industry.
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 88.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.39
WACC9%
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 84.21% of its industry peers.
A Quick Ratio of 0.54 indicates that DEC may have some problems paying its short term obligations.
With a Quick ratio value of 0.54, DEC is not doing good in the industry: 80.38% of the companies in the same industry are doing better.
| 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.
The Revenue is expected to grow by 18.10% on average over the next years. This is quite good.
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.
DEC is valuated cheaply with a Price/Forward Earnings ratio of 4.28.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DEC indicates a rather cheap valuation: DEC is cheaper than 98.09% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DEC to the average of the S&P500 Index (23.79), we can say DEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEC is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEC indicates a rather cheap valuation: DEC is cheaper than 87.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.92 | ||
| EV/EBITDA | 7.44 |
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 7.95%, DEC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.83, DEC pays a better dividend. On top of this DEC pays more dividend than 83.73% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, DEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.95% |
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.
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%
14.34
-0.25 (-1.71%)
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 Change0%
Market Cap1.15B
Revenue(TTM)1.20B
Net Income(TTM)-137.81M
Analysts83.08
Price Target29.33 (104.53%)
Short Float %3.7%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.95% |
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)7.75%
PT rev (3m)5.18%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)101.98%
EPS NY rev (3m)72.66%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.28 | ||
| P/S | 0.96 | ||
| P/FCF | 6.92 | ||
| P/OCF | 2.57 | ||
| P/B | 1.61 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 7.44 |
EPS(TTM)-2.62
EYN/A
EPS(NY)3.35
Fwd EY23.38%
FCF(TTM)2.07
FCFY14.44%
OCF(TTM)5.58
OCFY38.92%
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 | 0.26 |
F-Score5
WACC9%
ROIC/WACC0.39
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.
Can you provide the valuation status for DIVERSIFIED ENERGY CO?
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.
Is the dividend of DIVERSIFIED ENERGY CO sustainable?
The dividend rating of DIVERSIFIED ENERGY CO (DEC) is 6 / 10 and the dividend payout ratio is -49.87%.