Diversified Energy Company PLC Fundamental Analysis (NYSE: DEC)
Diversified Energy Company PLC Fundamental Analysis (NYSE: DEC)
Diversified Energy Company PLC (NYSE: DEC) shows strong financial fundamentals with a PE ratio of 1.67, profit margin of 36.99%, and ROE of 64.44%. The company generates $1.7B in annual revenue with weak year-over-year growth of 1.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DEC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentDEC demonstrates superior asset utilization.
Valuation Score
ExcellentDEC trades at attractive valuation levels.
Growth Score
WeakDEC faces weak or negative growth trends.
Financial Health Score
WeakDEC carries high financial risk with limited liquidity.
Profitability Score
ExcellentDEC achieves industry-leading margins.
Key Financial Metrics
Is DEC Expensive or Cheap?
P/E Ratio
DEC trades at 1.67 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DEC's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Diversified Energy Company PLC at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.45 times EBITDA. This is generally considered low.
How Well Does DEC Make Money?
Net Profit Margin
For every $100 in sales, Diversified Energy Company PLC keeps $36.99 as profit after all expenses.
Operating Margin
Core operations generate 34.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $64.44 in profit for every $100 of shareholder equity.
ROA
Diversified Energy Company PLC generates $10.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Diversified Energy Company PLC generates strong operating cash flow of $426.40M, reflecting robust business health.
Free Cash Flow
Diversified Energy Company PLC generates strong free cash flow of $269.95M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.73 in free cash annually.
FCF Yield
DEC converts 25.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.12
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.64
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How DEC Stacks Against Its Sector Peers
| Metric | DEC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.67 | 21.78 | Better (Cheaper) |
| ROE | 64.44% | 1231.00% | Weak |
| Net Margin | 36.99% | 1251.00% | Weak |
| Debt/Equity | 3.12 | 2.78 | Neutral |
| Current Ratio | 0.57 | 5.46 | Weak Liquidity |
| ROA | 10.20% | 4417.00% | Weak |
DEC outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Diversified Energy Company PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
85.12%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
783.81%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-9.75%
Industry Style: Cyclical, Value, Commodity
Declining