# Diversified Energy Company (DEC) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Energy / Oil, Gas & Fuels. Price $13.64, market value $942 million.

## Valuation
- **P/E (trailing): 2.2×** (5-yr avg 1.9×, 3-yr avg 1.9×). Diversified Energy Company trades at 2.2× trailing earnings, close to its own five-year average of 1.9×. The Energy median in the September 2026 study was 16.8×. Forward P/E is 1.8×, lower than trailing, so analysts expect earnings to grow.
- **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: 0.6×**. Each dollar of revenue is priced at 0.6×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.0×**. The shares trade at 1.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.5×**. Enterprise value is 5.5× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 25.0%** (5-yr avg 30.7%). Free cash flow equals 25.0% of the market value, in line with its five-year average of 30.7%. Above 5% is generally attractive.
- **Earnings yield: 45.6%**. The inverse of the P/E: 45.6% 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.
- **Current ratio: 0.60** (quick 0.60). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 0.83**. A Z-score of 0.83 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 8.50%** ($1.16 per share, trailing). Diversified Energy Company yields 8.50%, 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** (7 analysts). 7 analysts cover Diversified Energy Company; the consensus is strong_buy, with an average price target of $20.43 (+50% 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): 15.5%** (YTD -1.0%, 3-mo 1.4%). The shares are up 15.5% over twelve months including dividends.
- **From 52-week high: -27.8%** (10.4% above the low). Trading 28% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): -0.42** (volatility 39%). Beta of -0.42 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.