DIVERSIFIED ENERGY CO (DEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEC - US25520W1071 - Common Stock
13.3 USD
-0.85 (-6.01%)
13.3 USD
0 (0%)
Taking everything into account, DEC scores 3 out of 10 in our fundamental rating. DEC was compared to 208 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
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.
In the past 5 years DEC always reported a positive cash flow from operatings.
1.2 Ratios
DEC has a Return On Assets of -2.43%. This is in the lower half of the industry: DEC underperforms 73.56% of its industry peers.
DEC has a worse Return On Equity (-19.24%) than 77.40% of its industry peers.
DEC's Return On Invested Capital of 3.54% is on the low side compared to the rest of the industry. DEC is outperformed by 65.87% 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 21.83%.
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
DEC has a Operating Margin of 18.42%. This is comparable to the rest of the industry: DEC outperforms 55.29% of its industry peers.
DEC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 26.94%, DEC is doing worse than 62.98% of the companies in the same industry.
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 0.25. 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 (0.25) than 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.
DEC has a Debt/Equity ratio of 3.52. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DEC (3.52) is worse than 86.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.4
WACC8.83%
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 82.69% of the companies in the same industry.
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: 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%.
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 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
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 3.97.
Based on the Price/Forward Earnings ratio, DEC is valued cheaper than 98.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. DEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.97 |
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 60.58% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DEC is valued cheaper than 89.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | 7.28 |
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
DEC has a Yearly Dividend Yield of 8.20%, which is a nice return.
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.
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.
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%
13.3
-0.85 (-6.01%)
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 Cap1.07B
Revenue(TTM)1.20B
Net Income(TTM)-137.81M
Analysts83.08
Price Target29.05 (118.42%)
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 | 3.97 | ||
| P/S | 0.89 | ||
| P/FCF | 6.42 | ||
| P/OCF | 2.38 | ||
| P/B | 1.49 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)-2.62
EYN/A
EPS(NY)3.35
Fwd EY25.21%
FCF(TTM)2.07
FCFY15.57%
OCF(TTM)5.58
OCFY41.96%
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
WACC8.83%
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.