DIVERSIFIED ENERGY CO PLC (DEC) Stock Fundamental Analysis
USA - NYSE:DEC - GB00BQHP5P93 - Common Stock
13.96 USD
-0.37 (-2.58%)
13.96 USD
0 (0%)
Overall DEC gets a fundamental rating of 3 out of 10. We evaluated DEC against 211 industry peers in the Oil, Gas & Consumable Fuels industry. DEC may be in some trouble as it scores bad on both profitability and health. DEC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DEC has reported negative net income.
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
Looking at the Return On Assets, with a value of -2.43%, DEC is doing worse than 72.04% of the companies in the same industry.
DEC has a worse Return On Equity (-19.24%) than 78.20% of its industry peers.
DEC has a Return On Invested Capital of 3.54%. This is in the lower half of the industry: DEC underperforms 63.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DEC is significantly below the industry average of 21.71%.
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.
In the last couple of years the Operating Margin of DEC has declined.
DEC has a Gross Margin of 26.94%. This is in the lower half of the industry: DEC underperforms 61.14% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DEC is still 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
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.
DEC has a worse Altman-Z score (0.26) than 65.88% 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.
With a Debt to FCF ratio value of 16.57, DEC perfoms like the industry average, outperforming 45.50% 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.
Looking at the Debt to Equity ratio, with a value of 3.52, DEC is doing worse than 86.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.39
WACC9.04%
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.
The Current ratio of DEC (0.54) is worse than 85.78% of its industry peers.
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 80.57% of the companies in the same industry.
| 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.
Looking at the last year, DEC shows a very strong growth in Revenue. The Revenue has grown by 60.64%.
DEC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.45% yearly.
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 18.89% on average over the next years. This is quite good.
Based on estimates for the next years, DEC will show a small growth in Revenue. The Revenue will grow by 0.45% on average per year.
EPS Next Y24.27%
EPS Next 2Y37.33%
EPS Next 3Y30.99%
EPS Next 5Y18.89%
Revenue Next Year111.54%
Revenue Next 2Y45.78%
Revenue Next 3Y25.6%
Revenue Next 5Y0.45%
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 decreasing.
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 5.25, the valuation of DEC can be described as very cheap.
Based on the Price/Forward Earnings ratio, DEC is valued cheaply inside the industry as 92.89% of the companies are valued more expensively.
DEC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.25 |
4.2 Price Multiples
62.09% of the companies in the same industry are more expensive than DEC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, DEC is valued cheaper than 87.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.53 | ||
| EV/EBITDA | 7.37 |
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 30.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y37.33%
EPS Next 3Y30.99%
5. Dividend
5.1 Amount
DEC has a Yearly Dividend Yield of 7.97%, which is a nice return.
DEC's Dividend Yield is rather good when compared to the industry average which is at 5.98. DEC pays more dividend than 83.41% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, DEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.97% |
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.
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 2Y37.33%
EPS Next 3Y30.99%
13.96
-0.37 (-2.58%)
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 ChangeN/A
Market Cap1.09B
Analysts83.33
Price Target27.89 (99.79%)
Short Float %3.69%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.97% |
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)-2.5%
PT rev (3m)-0.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-8.6%
EPS NY rev (3m)-29.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.88%
Revenue NY rev (3m)56.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.25 | ||
| P/S | 0.9 | ||
| P/FCF | 6.53 | ||
| P/OCF | 2.42 | ||
| P/B | 1.52 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 7.37 |
EPS(TTM)-2.62
EYN/A
EPS(NY)2.66
Fwd EY19.04%
FCF(TTM)2.14
FCFY15.32%
OCF(TTM)5.76
OCFY41.27%
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 | 0.26 |
F-Score5
WACC9.04%
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 Y24.27%
EPS Next 2Y37.33%
EPS Next 3Y30.99%
EPS Next 5Y18.89%
Revenue 1Y (TTM)60.64%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%111.04%
Revenue Next Year111.54%
Revenue Next 2Y45.78%
Revenue Next 3Y25.6%
Revenue Next 5Y0.45%
EBIT growth 1Y1231.28%
EBIT growth 3Y-69.42%
EBIT growth 5Y-35.28%
EBIT Next Year335.81%
EBIT Next 3Y54.94%
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%