Why Diversified Gas & Oil PLC (LON:DGOC) Could Be Your Next Investment

I've been keeping an eye on Diversified Gas & Oil PLC (LON:DGOC) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe DGOC has a lot to offer. Basically, it is a notable dividend-paying company with a strong history of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Diversified Gas & Oil here.

Outstanding track record, good value and pays a dividend

DGOC delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 25%, which is an optimistic signal for the future. DGOC's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if DGOC's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the energy industry, DGOC is also trading below its peers, relative to earnings generated. This further reaffirms that DGOC is potentially undervalued.

DGOC's high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.

Next Steps:

For Diversified Gas & Oil, I've put together three fundamental factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for DGOC’s future growth? Take a look at our free research report of analyst consensus for DGOC’s outlook.
2. Financial Health: Are DGOC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DGOC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.