# Diversified Energy Company (DEC) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Energy / Oil, Gas & Consumable Fuels. Price $15.43, market value $1.1 billion.

## Valuation
- **P/E (trailing): 2.5×** (5-yr avg 1.9×, 3-yr avg 1.9×). Diversified Energy Company trades at 2.5× trailing earnings, well above its own five-year average of 1.9×: investors are paying up relative to the company's past. The Energy median in the September 2026 study was 16.8×. Forward P/E is 4.3×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.01**. A PEG of 0.01 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.2×**. The shares trade at 1.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.7×**. Enterprise value is 5.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 22.0%** (5-yr avg 30.7%). Free cash flow equals 22.0% of the market value, below its five-year average of 30.7%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 39.5%**. The inverse of the P/E: 39.5% of the price is earned each year.

## Profitability
- **Operating margin: 21.8%**. 21.8% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 18.6%**. 18.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 34.7%**. 34.7% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 6.6%**. Return on all capital, debt included, is 6.6%.
- **Return on assets: 1.0%**. Each dollar of assets produces 1.0% of profit.

## Growth
- **Revenue growth (1 yr): 141.5%** (3-yr -1.6%/yr). Revenue grew 141.5% over the last year.
- **EPS growth (1 yr): 311.1%**. Earnings per share rose 311.1%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 3.00**. Debt is 3.00 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 4.2×**. It would take 4.2 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Altman Z-score: 0.93**. A Z-score of 0.93 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 7.52%** ($1.16 per share, trailing). Diversified Energy Company yields 7.52%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 25%** (35% of free cash flow). 25% of earnings goes out as dividends, leaving room to keep raising it.

## Analyst view
- **Analyst consensus: strong_buy** (8 analysts). 8 analysts cover Diversified Energy Company; the consensus is strong_buy, with an average price target of $20.38 (+32% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 5.6%** (YTD 11.1%, 3-mo 11.6%). The shares are up 5.6% over twelve months including dividends.
- **From 52-week high: -18.4%** (25.1% above the low). Trading 18% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 64**. An RSI of 64 is neutral.
- **Beta (1 yr): -0.43** (volatility 40%). Beta of -0.43 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DEC · Page: https://foliofundamentals.com/stocks/dec

Not investment advice.