DIVERSIFIED ENERGY CO (DEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEC - US25520W1071 - Common Stock
12.78 USD
-0.52 (-3.91%)
12.8793 USD
+0.1 (+0.78%)
DEC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 208 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.
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
The Return On Assets of DEC (-2.43%) is worse than 73.56% of its industry peers.
With a Return On Equity value of -19.24%, DEC is not doing good in the industry: 77.40% of the companies in the same industry are doing better.
The Return On Invested Capital of DEC (3.54%) is worse than 65.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
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.
The Gross Margin of DEC (26.94%) is worse than 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.
Compared to 1 year ago, DEC has more shares outstanding
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
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 66.35% 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.
DEC's Debt to FCF ratio of 16.57 is in line compared to the rest of the industry. DEC outperforms 47.12% 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.
With a Debt to Equity ratio value of 3.52, DEC is not doing good in the industry: 86.06% 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/WACC0.4
WACC8.78%
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.
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.
With a Quick ratio value of 0.54, DEC is not doing good in the industry: 78.85% 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%.
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
The Earnings Per Share is expected to grow by 26.66% on average over the next years. This is a very strong growth
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.
Based on the Price/Forward Earnings ratio of 3.81, the valuation of DEC can be described as very cheap.
DEC's Price/Forward Earnings ratio is rather cheap when compared to the industry. DEC is cheaper than 98.08% of the companies in the same industry.
DEC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.81 |
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.
Based on the Price/Free Cash Flow ratio, DEC is valued cheaply inside the industry as 89.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.17 | ||
| EV/EBITDA | 7.28 |
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
With a Yearly Dividend Yield of 8.20%, DEC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.91, DEC pays a better dividend. On top of this DEC pays more dividend than 82.69% 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 1.92.
| 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
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%
12.78
-0.52 (-3.91%)
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 Cap1.03B
Revenue(TTM)1.20B
Net Income(TTM)-137.81M
Analysts83.08
Price Target29.05 (127.31%)
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 | 3.81 | ||
| P/S | 0.85 | ||
| P/FCF | 6.17 | ||
| P/OCF | 2.29 | ||
| P/B | 1.44 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)-2.62
EYN/A
EPS(NY)3.35
Fwd EY26.24%
FCF(TTM)2.07
FCFY16.21%
OCF(TTM)5.58
OCFY43.67%
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
WACC8.78%
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.