Diversified Energy Co (DEC) stock analysis
Close on Nov 11, 2026Market cap $973.08MP/E 17.2Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak4 of 30 checks passed
Diversified Energy passes 4 of the 30 checks behind our score; 19 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 0/6
- Dividend
- 0/6
What stands out
Guidance raised
Diversified Energy raised its 2026 % Natural Gas outlook on Aug 5, 2026.
Return on equity above the industry
Diversified Energy's return on equity of 14.1% is above the Crude Petroleum and Natural Gas median of 5.5%.
Net margin above its 5-year average
Net margin was 4.9% over the last twelve months, against a 5-year average of -4.3%.
Net margin above the industry
Diversified Energy's net margin of 4.9% is above the Crude Petroleum and Natural Gas median of 3.8%.
What to watch
Return on capital under 10%
Return on invested capital was 6.4%, below the 10% that usually covers the cost of capital.
High debt
Debt is 429% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew -1.6% a year over the last three fiscal years, short of the 10% we look for.
Interest not well covered
Operating income covers interest expense 1.0 times; we look for at least 5.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth1/6
Revenue growing under 10% a year
Revenue grew -1.6% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growth against the industry
Needs revenue for this year and last.
Guidance raised
Diversified Energy raised its 2026 % Natural Gas outlook on Aug 5, 2026.
Gross margin trend
This company does not report gross profit.
Past performance3/6
Return on equity
Needs positive equity and five years of results.
Return on capital under 10%
Return on invested capital was 6.4%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Diversified Energy's return on equity of 14.1% is above the Crude Petroleum and Natural Gas median of 5.5%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 4.9% over the last twelve months, against a 5-year average of -4.3%.
Net margin above the industry
Diversified Energy's net margin of 4.9% is above the Crude Petroleum and Natural Gas median of 3.8%.
Financial health0/6
High debt
Debt is 429% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 18.6% of total debt; we look for at least 20%.
Interest not well covered
Operating income covers interest expense 1.0 times; we look for at least 5.
Short-term assets don't cover short-term debts
Current assets are 0.53 times current liabilities.
Bankruptcy risk (Altman Z)
Needs market value, working capital and retained earnings.
Dividend0/6
No dividend
Diversified Energy has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itWe don't publish a fair value for Diversified Energy. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $10.20M
- Value traded per 1% price move
- $6.59M
Downside
Medium risk
- Typical loss in a bad month
- 17.1%
- Volatility (annualized)
- 39%
- Sharpe ratio, 1 year
- -0.17
- Beta to the S&P 500 (5Y)
- 0.53
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2020 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +141.5% | -1.6% | – | – | |
| Free cash flow | +66.1% | – | – | – |
Returns and balance sheet
6 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2020 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 49.3% | |
| Return on assets | – | – | 6.7% | |
| Current ratio | – | – | 0.60 | |
| Debt to equity | – | – | 3.00 | |
| Net debt to EBITDA | – | – | 3.08× | |
| Interest coverage | – | – | 2.5× | |
| Inventory turnover | – | – | – | |
| Capex to revenue | – | – | 10.1% | |
| Diluted shares | – | – | 74M |
Cash use needs five years of cash flow figures
Diversified Energy does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 18.6% | 0.36× | 7.32× | 49.3% |
| FY2024 | -13.8% | 0.20× | 7.54× | -21.2% |
| FY2023 | 38.4% | 0.53× | 16.87× | 345.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$341.12M
- Cash generatingOperating cash flow above zero$464.62M
- Return on assets improvedROA up on the prior year-3.0% → 8.6%
- Earnings backed by cashOperating cash flow above net income$464.62M vs $341.12M
- Less leverageLong-term debt to assets fell37.8% → 44.0%
- Better liquidityCurrent ratio rose0.39 → 0.60
- No dilutionShare count did not rise48M → 74M
- Gross margin improvedGross margin up on the prior year14.45% → –
- More efficientAsset turnover rose0.22 → 0.46
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