DIVERSIFIED ENERGY CO PLC (DEC) Stock Fundamental Analysis
NYSE:DEC - GB00BQHP5P93 - Common Stock
15.05 USD
-0.48 (-3.09%)
15.05 USD
0 (0%)
Taking everything into account, DEC scores 3 out of 10 in our fundamental rating. DEC was compared to 209 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.
In the past year DEC had a positive cash flow from operations.
In the past 5 years DEC reported 4 times negative net income.
Each year in the past 5 years DEC had a positive operating cash flow.
1.2 Ratios
DEC has a worse Return On Assets (-2.43%) than 72.25% of its industry peers.
DEC's Return On Equity of -19.24% is on the low side compared to the rest of the industry. DEC is outperformed by 78.47% of its industry peers.
DEC has a worse Return On Invested Capital (3.54%) than 64.59% of its industry peers.
DEC had an Average Return On Invested Capital over the past 3 years of 12.02%. This is significantly below the industry average of 21.91%.
The last Return On Invested Capital (3.54%) for DEC is well below the 3 year average (12.02%), which needs to be investigated, but indicates that DEC had better years and this may not be a problem.
| 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.
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 61.72% of its industry peers.
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.
Compared to 1 year ago, DEC has more shares outstanding
Compared to 5 years ago, DEC has less shares outstanding
Compared to 1 year ago, DEC has a worse debt to assets ratio.
2.2 Solvency
DEC has an Altman-Z score of 0.27. 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 0.27, DEC is doing worse than 66.51% 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.
DEC has a Debt to FCF ratio of 16.57. This is comparable to the rest of the industry: DEC outperforms 45.45% 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.
DEC has a Debt to Equity ratio of 3.52. This is amonst the worse of the industry: DEC underperforms 86.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.27 |
ROIC/WACC0.38
WACC9.33%
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 86.12% 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: 80.86% 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
The earnings per share for DEC have decreased strongly by -187.88% in the last year.
The Revenue has grown by 60.64% in the past year. This is a very strong growth!
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 quite strong growth in Earnings Per Share. The EPS will grow by 18.89% on average per year.
DEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.45% yearly.
EPS Next Y35.96%
EPS Next 2Y32.45%
EPS Next 3Y22.75%
EPS Next 5Y18.89%
Revenue Next Year107.64%
Revenue Next 2Y45.53%
Revenue Next 3Y25.49%
Revenue Next 5Y0.45%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less 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 6.09, 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 89.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.69. DEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DEC indicates a somewhat cheap valuation: DEC is cheaper than 60.29% of the companies listed in the same industry.
84.69% 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 | 7.04 | ||
| EV/EBITDA | 7.54 |
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.
A more expensive valuation may be justified as DEC's earnings are expected to grow with 22.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.45%
EPS Next 3Y22.75%
5. Dividend
5.1 Amount
DEC has a Yearly Dividend Yield of 7.18%, which is a nice return.
Compared to an average industry Dividend Yield of 6.06, DEC pays a better dividend. On top of this DEC pays more dividend than 80.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, DEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.18% |
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.
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
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 2Y32.45%
EPS Next 3Y22.75%
15.05
-0.48 (-3.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners57.32%
Inst Owner Change0%
Ins Owners2.91%
Ins Owner ChangeN/A
Market Cap1.17B
Analysts83.08
Price Target28.6 (90.03%)
Short Float %3.65%
Short Ratio5.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.18% |
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)5.31%
PT rev (3m)3.08%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-23.19%
EPS NY rev (3m)-23.19%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)53.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.09 | ||
| P/S | 0.97 | ||
| P/FCF | 7.04 | ||
| P/OCF | 2.61 | ||
| P/B | 1.64 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 7.54 |
EPS(TTM)-2.62
EYN/A
EPS(NY)2.47
Fwd EY16.43%
FCF(TTM)2.14
FCFY14.21%
OCF(TTM)5.76
OCFY38.28%
SpS15.45
BVpS9.19
TBVpS9.02
PEG (NY)N/A
PEG (5Y)N/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%
ROICexcg growth 3Y-71.19%
ROICexcg 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 | 0.27 |
F-Score5
WACC9.33%
ROIC/WACC0.38
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 Y35.96%
EPS Next 2Y32.45%
EPS Next 3Y22.75%
EPS Next 5Y18.89%
Revenue 1Y (TTM)60.64%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%111.04%
Revenue Next Year107.64%
Revenue Next 2Y45.53%
Revenue Next 3Y25.49%
Revenue Next 5Y0.45%
EBIT growth 1Y1231.28%
EBIT growth 3Y-69.42%
EBIT growth 5Y-35.28%
EBIT Next Year208.2%
EBIT Next 3Y43.52%
EBIT Next 5Y11.96%
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%