DIVERSIFIED ENERGY CO (DEC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DEC - GB00BQHP5P93 - Common Stock
15.04 USD
+0.3 (+2.04%)
15.04 USD
0 (0%)
Taking everything into account, DEC scores 3 out of 10 in our fundamental rating. DEC was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. DEC has a bad profitability rating. Also its financial health evaluation is rather negative. DEC has a correct valuation and a medium growth rate.
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.
DEC had a positive operating cash flow in each of the past 5 years.
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.
DEC's Return On Equity of -19.24% is on the low side compared to the rest of the industry. DEC is outperformed by 77.03% 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 66.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DEC is significantly below the industry average of 21.47%.
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 has a Operating Margin (18.42%) which is in line with its industry peers.
DEC's Operating Margin has declined in the last couple of years.
The Gross Margin of DEC (26.94%) is worse than 62.68% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DEC is still creating some value.
The number of shares outstanding for DEC has been increased compared to 1 year ago.
DEC has less shares outstanding than it did 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 0.26. This is a bad value and indicates that DEC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.26, DEC is not doing good in the industry: 66.51% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 16.57, DEC is in line with its industry, outperforming 46.89% of the companies in the same industry.
DEC has a Debt/Equity ratio of 3.52. This is a high value indicating a heavy dependency on external financing.
DEC's Debt to Equity ratio of 3.52 is on the low side compared to the rest of the industry. DEC is outperformed by 87.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.52 | ||
| Debt/FCF | 16.57 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.39
WACC8.98%
2.3 Liquidity
A Current Ratio of 0.54 indicates that DEC may have some problems paying its short term obligations.
DEC's Current ratio of 0.54 is on the low side compared to the rest of the industry. DEC is outperformed by 84.69% of its industry peers.
A Quick Ratio of 0.54 indicates that DEC may have some problems paying its short term obligations.
DEC's Quick ratio of 0.54 is on the low side compared to the rest of the industry. DEC is outperformed by 81.34% of its industry peers.
| 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.
The Revenue has grown by 60.64% in the past year. This is a very strong growth!
Measured over the past years, DEC shows a quite strong growth in Revenue. The Revenue has been growing by 11.45% on average per year.
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
Based on estimates for the next years, DEC will show a very strong growth in Earnings Per Share. The EPS will grow by 26.66% on average per year.
The Revenue is expected to grow by 18.10% on average over the next years. This is quite good.
EPS Next Y16.23%
EPS Next 2Y31.62%
EPS Next 3Y27.04%
EPS Next 5Y26.66%
Revenue Next Year111.3%
Revenue Next 2Y33.46%
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.
With a Price/Forward Earnings ratio of 6.16, the valuation of DEC can be described as very cheap.
91.87% of the companies in the same industry are more expensive than DEC, based on the Price/Forward Earnings ratio.
DEC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.16 |
4.2 Price Multiples
DEC's Enterprise Value to EBITDA is on the same level as the industry average.
DEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DEC is cheaper than 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.93 | ||
| EV/EBITDA | 7.44 |
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.
DEC's earnings are expected to grow with 27.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y31.62%
EPS Next 3Y27.04%
5. Dividend
5.1 Amount
DEC has a Yearly Dividend Yield of 7.87%, which is a nice return.
DEC's Dividend Yield is rather good when compared to the industry average which is at 5.94. DEC pays more dividend than 81.34% of the companies in the same industry.
DEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.87% |
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 2Y31.62%
EPS Next 3Y27.04%
15.04
+0.3 (+2.04%)
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 Cap1.15B
Revenue(TTM)1.20B
Net Income(TTM)-137.81M
Analysts83.08
Price Target27.81 (84.91%)
Short Float %3.72%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.87% |
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)0.61%
PT rev (3m)-2.79%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.47%
EPS NY rev (3m)-14.52%
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 | 6.16 | ||
| P/S | 0.96 | ||
| P/FCF | 6.93 | ||
| P/OCF | 2.57 | ||
| P/B | 1.61 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 7.44 |
EPS(TTM)-2.62
EYN/A
EPS(NY)2.44
Fwd EY16.23%
FCF(TTM)2.17
FCFY14.44%
OCF(TTM)5.85
OCFY38.91%
SpS15.69
BVpS9.33
TBVpS9.16
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 | 0.26 |
F-Score5
WACC8.98%
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 Y16.23%
EPS Next 2Y31.62%
EPS Next 3Y27.04%
EPS Next 5Y26.66%
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 5Y18.1%
EBIT growth 1Y1231.28%
EBIT growth 3Y-69.42%
EBIT growth 5Y-35.28%
EBIT Next Year335.81%
EBIT Next 3Y54.94%
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.
Can you provide the valuation status for DIVERSIFIED ENERGY CO?
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.
Is the dividend of DIVERSIFIED ENERGY CO sustainable?
The dividend rating of DIVERSIFIED ENERGY CO (DEC) is 6 / 10 and the dividend payout ratio is -49.87%.