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DIVERSIFIED ENERGY CO PLC (DEC) Stock Fundamental Analysis

NYSE:DEC - New York Stock Exchange, Inc. - GB00BQHP5P93 - Common Stock - Currency: USD

12.89  -0.04 (-0.31%)

Fundamental Rating

3

DEC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 213 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 is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

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.
Each year in the past 5 years DEC had a positive operating cash flow.
DEC Yearly Net Income VS EBIT VS OCF VS FCFDEC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

1.2 Ratios

DEC has a Return On Assets of -2.20%. This is in the lower half of the industry: DEC underperforms 74.65% of its industry peers.
With a Return On Equity value of -19.50%, DEC is not doing good in the industry: 80.75% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 0.33%, DEC is not doing good in the industry: 76.53% 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 25.69%.
The 3 year average ROIC (12.02%) for DEC is well above the current ROIC(0.33%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -2.2%
ROE -19.5%
ROIC 0.33%
ROA(3y)1.1%
ROA(5y)-1.41%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.02%
ROIC(5y)10.21%
DEC Yearly ROA, ROE, ROICDEC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300 400

1.3 Margins

DEC has a worse Operating Margin (1.78%) than 73.24% of its industry peers.
DEC's Operating Margin has declined in the last couple of years.
DEC's Gross Margin of 13.77% is on the low side compared to the rest of the industry. DEC is outperformed by 69.48% of its industry peers.
DEC's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 1.78%
PM (TTM) N/A
GM 13.77%
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%
DEC Yearly Profit, Operating, Gross MarginsDEC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80 100

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1

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.
The number of shares outstanding for DEC has been increased compared to 1 year ago.
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.
DEC Yearly Shares OutstandingDEC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
DEC Yearly Total Debt VS Total AssetsDEC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of 0.00, we must say that DEC is in the distress zone and has some risk of bankruptcy.
DEC has a worse Altman-Z score (0.00) than 69.48% of its industry peers.
DEC has a debt to FCF ratio of 342.50. This is a negative value and a sign of low solvency as DEC would need 342.50 years to pay back of all of its debts.
DEC has a worse Debt to FCF ratio (342.50) than 60.56% of its industry peers.
A Debt/Equity ratio of 3.35 is on the high side and indicates that DEC has dependencies on debt financing.
DEC has a worse Debt to Equity ratio (3.35) than 87.32% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.35
Debt/FCF 342.5
Altman-Z 0
ROIC/WACC0.03
WACC10.12%
DEC Yearly LT Debt VS Equity VS FCFDEC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 0.40 indicates that DEC may have some problems paying its short term obligations.
The Current ratio of DEC (0.40) is worse than 89.67% of its industry peers.
A Quick Ratio of 0.39 indicates that DEC may have some problems paying its short term obligations.
DEC has a Quick ratio of 0.39. This is amonst the worse of the industry: DEC underperforms 87.32% of its industry peers.
Industry RankSector Rank
Current Ratio 0.4
Quick Ratio 0.39
DEC Yearly Current Assets VS Current LiabilitesDEC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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3

3. Growth

3.1 Past

The earnings per share for DEC have decreased strongly by -111.17% in the last year.
Looking at the last year, DEC shows a decrease in Revenue. The Revenue has decreased by -8.46% in the last year.
The Revenue has been growing by 11.45% on average over the past years. This is quite good.
EPS 1Y (TTM)-111.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-179.51%
Revenue 1Y (TTM)-8.46%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%-50.92%

3.2 Future

DEC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.89% yearly.
DEC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.45% yearly.
EPS Next Y77.02%
EPS Next 2Y29.69%
EPS Next 3Y5.86%
EPS Next 5Y18.89%
Revenue Next Year35.54%
Revenue Next 2Y21.85%
Revenue Next 3Y12.05%
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.
DEC Yearly Revenue VS EstimatesDEC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B 1.5B
DEC Yearly EPS VS EstimatesDEC Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4 6

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4

4. Valuation

4.1 Price/Earnings Ratio

DEC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 5.17, which indicates a rather cheap valuation of DEC.
Based on the Price/Forward Earnings ratio, DEC is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
DEC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.42.
Industry RankSector Rank
PE N/A
Fwd PE 5.17
DEC Price Earnings VS Forward Price EarningsDEC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as DEC.
The rest of the industry has a similar Price/Free Cash Flow ratio as DEC.
Industry RankSector Rank
P/FCF 203.61
EV/EBITDA 10.23
DEC Per share dataDEC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

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.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.69%
EPS Next 3Y5.86%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 9.10%, DEC is a good candidate for dividend investing.
The stock price of DEC dropped by -21.06% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DEC's Dividend Yield is rather good when compared to the industry average which is at 7.27. DEC pays more dividend than 83.57% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, DEC pays a better dividend.
Industry RankSector Rank
Dividend Yield 9.1%

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
DEC Yearly Dividends per shareDEC Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

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-95.01%
EPS Next 2Y29.69%
EPS Next 3Y5.86%
DEC Yearly Income VS Free CF VS DividendDEC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M -600M

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DIVERSIFIED ENERGY CO PLC

NYSE:DEC (5/7/2025, 3:39:32 PM)

12.89

-0.04 (-0.31%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)03-17 2025-03-17/amc
Earnings (Next)05-12 2025-05-12
Inst Owners75.84%
Inst Owner Change0%
Ins Owners4.42%
Ins Owner ChangeN/A
Market Cap1.03B
Analysts82.67
Price Target27.75 (115.28%)
Short Float %2.23%
Short Ratio2.56
Dividend
Industry RankSector Rank
Dividend Yield 9.1%
Yearly Dividend1.71
Dividend Growth(5Y)65.59%
DP-95.01%
Div Incr Years5
Div Non Decr Years5
Ex-Date05-29 2025-05-29 (0.29)
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)-2.46%
PT rev (3m)-10.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)28.15%
EPS NY rev (3m)40.2%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.71%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 5.17
P/S 1.3
P/FCF 203.61
P/OCF 2.99
P/B 2.28
P/tB 2.36
EV/EBITDA 10.23
EPS(TTM)-1.8
EYN/A
EPS(NY)2.49
Fwd EY19.35%
FCF(TTM)0.06
FCFY0.49%
OCF(TTM)4.31
OCFY33.46%
SpS9.92
BVpS5.65
TBVpS5.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.2%
ROE -19.5%
ROCE 0.44%
ROIC 0.33%
ROICexc 0.33%
ROICexgc 0.33%
OM 1.78%
PM (TTM) N/A
GM 13.77%
FCFM 0.64%
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-Score3
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 3.35
Debt/FCF 342.5
Debt/EBITDA 5.6
Cap/Depr 132.79%
Cap/Sales 42.85%
Interest Coverage 0.12
Cash Conversion 127.71%
Profit Quality N/A
Current Ratio 0.4
Quick Ratio 0.39
Altman-Z 0
F-Score3
WACC10.12%
ROIC/WACC0.03
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)-111.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-179.51%
EPS Next Y77.02%
EPS Next 2Y29.69%
EPS Next 3Y5.86%
EPS Next 5Y18.89%
Revenue 1Y (TTM)-8.46%
Revenue growth 3Y-7.6%
Revenue growth 5Y11.45%
Sales Q2Q%-50.92%
Revenue Next Year35.54%
Revenue Next 2Y21.85%
Revenue Next 3Y12.05%
Revenue Next 5Y0.45%
EBIT growth 1Y-87.05%
EBIT growth 3Y-69.42%
EBIT growth 5Y-35.28%
EBIT Next Year198.54%
EBIT Next 3Y43.52%
EBIT Next 5Y11.96%
FCF growth 1Y-93.1%
FCF growth 3YN/A
FCF growth 5Y-54.02%
OCF growth 1Y-15.72%
OCF growth 3Y2.58%
OCF growth 5Y4.36%