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DEC

Diversified Energy LSE:DEC Stock Report

Last Price

UK£1.12

Market Cap

UK£952.8m

7D

0%

1Y

8.3%

Updated

26 Jun, 2022

Data

Company Financials +
DEC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends2/6

DEC Stock Overview

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States.

Diversified Energy Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Diversified Energy
Historical stock prices
Current Share PriceUK£1.12
52 Week HighUK£1.29
52 Week LowUK£0.94
Beta-0.12
1 Month Change-8.94%
3 Month Change-3.95%
1 Year Change8.32%
3 Year Change0.90%
5 Year Change60.86%
Change since IPO99.11%

Recent News & Updates

Shareholder Returns

DECGB Oil and GasGB Market
7D0%1.8%2.3%
1Y8.3%0.9%-8.6%

Return vs Industry: DEC exceeded the UK Oil and Gas industry which returned 0.9% over the past year.

Return vs Market: DEC exceeded the UK Market which returned -8.6% over the past year.

Price Volatility

Is DEC's price volatile compared to industry and market?
DEC volatility
DEC Average Weekly Movement4.1%
Oil and Gas Industry Average Movement8.8%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

Stable Share Price: DEC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DEC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20011,426Rusty Hutsonhttps://www.div.energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of approximately 67,000 conventional and unconventional natural gas, natural gas liquids, and oil producing wells; and approximately 17,000 miles of natural gas gathering pipelines located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, and Pennsylvania.

Diversified Energy Fundamentals Summary

How do Diversified Energy's earnings and revenue compare to its market cap?
DEC fundamental statistics
Market CapUS$1.17b
Earnings (TTM)-US$325.51m
Revenue (TTM)US$1.01b

1.2x

P/S Ratio

-3.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DEC income statement (TTM)
RevenueUS$1.01b
Cost of RevenueUS$291.21m
Gross ProfitUS$716.35m
Other ExpensesUS$1.04b
Earnings-US$325.51m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.38
Gross Margin71.10%
Net Profit Margin-32.31%
Debt/Equity Ratio152.2%

How did DEC perform over the long term?

See historical performance and comparison

Dividends

12.3%

Current Dividend Yield

-40%

Payout Ratio

Does DEC pay a reliable dividends?

See DEC dividend history and benchmarks
When do you need to buy DEC by to receive an upcoming dividend?
Diversified Energy dividend dates
Ex Dividend DateSep 01 2022
Dividend Pay DateSep 26 2022
Days until Ex dividend66 days
Days until Dividend pay date91 days

Does DEC pay a reliable dividends?

See DEC dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is DEC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DEC?

Other financial metrics that can be useful for relative valuation.

DEC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA-6.4x
PEG Ration/a

Price to Sales Ratio vs Peers

How does DEC's PS Ratio compare to its peers?

DEC PS Ratio vs Peers
The above table shows the PS ratio for DEC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.5x

Price-To-Sales vs Peers: DEC is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (1.5x).


Price to Earnings Ratio vs Industry

How does DEC's PE Ratio compare vs other companies in the U.K. Oil and Gas Industry?

Price-To-Sales vs Industry: DEC is good value based on its Price-To-Sales Ratio (1.2x) compared to the UK Oil and Gas industry average (1.8x)


Price to Sales Ratio vs Fair Ratio

What is DEC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DEC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.2x
Fair PS Ratio3.5x

Price-To-Sales vs Fair Ratio: DEC is good value based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (3.5x).


Share Price vs Fair Value

What is the Fair Price of DEC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DEC (£1.12) is trading below our estimate of fair value (£3.69)

Significantly Below Fair Value: DEC is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DEC's PEG Ratio to determine if it is good value.


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Future Growth

How is Diversified Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


81.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: DEC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DEC is expected to become profitable in the next 3 years.

Revenue vs Market: DEC's revenue (9.1% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: DEC's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DEC's Return on Equity is forecast to be low in 3 years time (18.7%).


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Past Performance

How has Diversified Energy performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-40.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DEC is currently unprofitable.

Growing Profit Margin: DEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DEC is unprofitable, and losses have increased over the past 5 years at a rate of 40.8% per year.

Accelerating Growth: Unable to compare DEC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DEC is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (344.7%).


Return on Equity

High ROE: DEC has a negative Return on Equity (-48.98%), as it is currently unprofitable.


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Financial Health

How is Diversified Energy's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DEC's short term assets ($337.1M) do not cover its short term liabilities ($773.6M).

Long Term Liabilities: DEC's short term assets ($337.1M) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: DEC's net debt to equity ratio (150.3%) is considered high.

Reducing Debt: DEC's debt to equity ratio has reduced from 409.5% to 152.2% over the past 5 years.

Debt Coverage: DEC's debt is well covered by operating cash flow (31.7%).

Interest Coverage: Insufficient data to determine if DEC's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

What is Diversified Energy current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


12.35%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 26 2022Ex Dividend DateSep 01 2022Dividend Pay DateSep 26 202225 days from Ex DividendBuy in the next 66 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: DEC's dividend (12.35%) is higher than the bottom 25% of dividend payers in the UK market (1.88%).

High Dividend: DEC's dividend (12.35%) is in the top 25% of dividend payers in the UK market (5.18%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DEC has been paying a dividend for less than 10 years.

Growing Dividend: DEC's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: DEC is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: DEC is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Rusty Hutson (52 yo)

no data

Tenure

US$2,073,000

Compensation

Mr. Robert Russell Hutson, Jr., also known as Rusty, is Co-Founder of Diversified Energy Company PLC (formerly known as Diversified Gas & Oil PLC). Mr. Hutson was Chief Executive Officer at Atlas Resources...


CEO Compensation Analysis

Compensation vs Market: Rusty's total compensation ($USD2.07M) is above average for companies of similar size in the UK market ($USD1.36M).

Compensation vs Earnings: Rusty's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: DEC's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: DEC's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Diversified Energy Company PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Diversified Energy Company PLC
  • Ticker: DEC
  • Exchange: LSE
  • Founded: 2001
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: UK£952.826m
  • Shares outstanding: 850.74m
  • Website: https://www.div.energy

Number of Employees


Location

  • Diversified Energy Company PLC
  • 1600 Corporate Drive
  • Birmingham
  • Alabama
  • 35242
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.