DIVERSIFIED ENERGY CO PLC (DEC) Stock Fundamental Analysis
NYSE:DEC - New York Stock Exchange, Inc. - GB00BQHP5P93 - Common Stock - Currency: USD
Taking everything into account, DEC scores 3 out of 10 in our fundamental rating. DEC was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of DEC have multiple concerns. DEC is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years DEC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -2.20%, DEC is not doing good in the industry: 73.46% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -19.50%, DEC is doing worse than 79.15% of the companies in the same industry.
DEC has a Return On Invested Capital of 0.33%. This is in the lower half of the industry: DEC underperforms 74.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DEC is significantly below the industry average of 23.70%.
The last Return On Invested Capital (0.33%) 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 | -2.2% | ||
| 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%
1.3 Margins
DEC's Operating Margin of 1.78% is on the low side compared to the rest of the industry. DEC is outperformed by 72.04% 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 68.72% of its industry peers.
In the last couple of years the Gross Margin of DEC has declined.
| Industry Rank | Sector 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%
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.
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 0.02, we must say that DEC is in the distress zone and has some risk of bankruptcy.
DEC has a Altman-Z score of 0.02. This is in the lower half of the industry: DEC underperforms 69.67% 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.
With a Debt to FCF ratio value of 342.50, DEC is not doing good in the industry: 61.14% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.35 is on the high side and indicates that DEC has dependencies on debt financing.
DEC has a Debt to Equity ratio of 3.35. This is amonst the worse of the industry: DEC underperforms 86.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 342.5 | ||
| Altman-Z | 0.02 |
ROIC/WACC0.04
WACC9.04%
2.3 Liquidity
DEC has a Current Ratio of 0.40. 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 Current ratio value of 0.40, DEC is not doing good in the industry: 91.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.39 indicates that DEC may have some problems paying its short term obligations.
The Quick ratio of DEC (0.39) is worse than 90.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
DEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -111.17%.
DEC shows a decrease in Revenue. In the last year, the revenue decreased by -8.46%.
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.
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 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
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
The Price/Earnings Ratio is negative for DEC. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 5.75, the valuation of DEC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DEC indicates a rather cheap valuation: DEC is cheaper than 88.15% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. DEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.75 |
4.2 Price Multiples
DEC's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DEC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 224.98 | ||
| EV/EBITDA | 10.72 |
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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.83%, DEC is a good candidate for dividend investing.
DEC's Dividend Yield is rather good when compared to the industry average which is at 6.66. DEC pays more dividend than 81.04% of the companies in the same industry.
DEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.83% |
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.
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-95.01%
EPS Next 2Y29.69%
EPS Next 3Y5.86%
14.33
-0.34 (-2.32%)
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 Cap1.14B
Analysts82.67
Price Target28.03 (95.6%)
Short Float %2.5%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.83% |
Yearly Dividend1.71
Dividend Growth(5Y)65.59%
DP-95.01%
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)1.01%
PT rev (3m)-1.47%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)28.15%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.75 | ||
| P/S | 1.44 | ||
| P/FCF | 224.98 | ||
| P/OCF | 3.3 | ||
| P/B | 2.52 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 10.72 |
EPS(TTM)-1.8
EYN/A
EPS(NY)2.49
Fwd EY17.41%
FCF(TTM)0.06
FCFY0.44%
OCF(TTM)4.34
OCFY30.28%
SpS9.98
BVpS5.68
TBVpS5.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.02 |
F-Score3
WACC9.04%
ROIC/WACC0.04
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 Year208.2%
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%