DIVERSIFIED ENERGY CO PLC (DEC) Stock Fundamental Analysis
USA - NYSE:DEC - GB00BQHP5P93 - Common Stock
12.65 USD
+0.14 (+1.12%)
12.65 USD
0 (0%)
DEC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 210 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.
In the past 5 years DEC reported 4 times negative net income.
In the past 5 years DEC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -2.43%, DEC is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
With a Return On Equity value of -19.24%, DEC is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 3.54%, DEC is not doing good in the industry: 64.59% 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 21.93%.
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's Operating Margin of 18.42% is in line compared to the rest of the industry. DEC outperforms 52.63% of its industry peers.
In the last couple of years the Operating Margin of DEC has declined.
DEC's Gross Margin of 26.94% is on the low side compared to the rest of the industry. DEC is outperformed by 61.24% 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
Compared to 5 years ago, DEC has less shares outstanding
The debt/assets ratio for DEC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.24, we must say that DEC is in the distress zone and has some risk of bankruptcy.
DEC has a Altman-Z score of 0.24. This is in the lower half of the industry: DEC underperforms 66.51% of its industry peers.
DEC has a debt to FCF ratio of 16.57. This is a negative value and a sign of low solvency as DEC would need 16.57 years to pay back of all of its debts.
DEC has a Debt to FCF ratio (16.57) which is comparable to the rest of the industry.
DEC has a Debt/Equity ratio of 3.52. This is a high value indicating a heavy dependency on external financing.
DEC has a Debt to Equity ratio of 3.52. This is amonst the worse of the industry: DEC underperforms 86.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.4
WACC8.94%
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 has a Current ratio of 0.54. This is amonst the worse of the industry: DEC underperforms 86.60% of its industry peers.
A Quick Ratio of 0.54 indicates that DEC may have some problems paying its short term obligations.
DEC has a worse Quick ratio (0.54) than 81.82% of its industry peers.
| 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
The Earnings Per Share is expected to grow by 18.89% on average over the next years. This is quite good.
DEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.45% yearly.
EPS Next Y24.27%
EPS Next 2Y37.33%
EPS Next 3Y30.99%
EPS Next 5Y18.89%
Revenue Next Year111.3%
Revenue Next 2Y33.46%
Revenue Next 3Y17.57%
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.
A Price/Forward Earnings ratio of 4.76 indicates a rather cheap valuation of DEC.
DEC's Price/Forward Earnings ratio is rather cheap when compared to the industry. DEC is cheaper than 94.26% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. DEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.76 |
4.2 Price Multiples
DEC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DEC is cheaper than 62.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DEC is valued cheaply inside the industry as 89.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.83 | ||
| EV/EBITDA | 7.09 |
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.
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 9.18%, which is a nice return.
DEC's Dividend Yield is rather good when compared to the industry average which is at 6.83. DEC pays more dividend than 86.60% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, DEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.18% |
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
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 2Y37.33%
EPS Next 3Y30.99%
12.65
+0.14 (+1.12%)
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 Cap972.15M
Revenue(TTM)1.20B
Net Income(TTM)-137814000
Analysts83.08
Price Target27.23 (115.26%)
Short Float %3.34%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.18% |
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)-2.38%
PT rev (3m)0.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-29.8%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.76 | ||
| P/S | 0.81 | ||
| P/FCF | 5.83 | ||
| P/OCF | 2.17 | ||
| P/B | 1.36 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 7.09 |
EPS(TTM)-2.62
EYN/A
EPS(NY)2.66
Fwd EY21.01%
FCF(TTM)2.17
FCFY17.14%
OCF(TTM)5.84
OCFY46.18%
SpS15.67
BVpS9.32
TBVpS9.15
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 | 0.24 |
F-Score5
WACC8.94%
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 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 Year111.3%
Revenue Next 2Y33.46%
Revenue Next 3Y17.57%
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%
DIVERSIFIED ENERGY CO PLC / DEC FAQ
What is the ChartMill fundamental rating of DIVERSIFIED ENERGY CO PLC (DEC) stock?
ChartMill assigns a fundamental rating of 3 / 10 to DEC.
Can you provide the valuation status for DIVERSIFIED ENERGY CO PLC?
ChartMill assigns a valuation rating of 6 / 10 to DIVERSIFIED ENERGY CO PLC (DEC). This can be considered as Fairly Valued.
What is the profitability of DEC stock?
DIVERSIFIED ENERGY CO PLC (DEC) has a profitability rating of 2 / 10.
Is the dividend of DIVERSIFIED ENERGY CO PLC sustainable?
The dividend rating of DIVERSIFIED ENERGY CO PLC (DEC) is 6 / 10 and the dividend payout ratio is -49.87%.