# Diversified Energy Company (DEC.L) fundamentals

Data as of 2026-11-04. LSE, United Kingdom. Sector: Energy / Oil, Gas & Fuels. Price 1020p, market value 704 millionp.

## Valuation
- **P/E (trailing): 2.2×** (5-yr avg 234.6×, 3-yr avg 234.6×). Diversified Energy Company trades at 2.2× trailing earnings, well below its own five-year average of 234.6×: cheap by its own standards. 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: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.0×**. The shares trade at 1.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.6×**. Enterprise value is 5.6× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 33.4%** (5-yr avg 0.3%). Free cash flow equals 33.4% of the market value, above its five-year average of 0.3%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 45.5%**. The inverse of the P/E: 45.5% of the price is earned each year.

## Profitability
- **Gross margin: -0.8%**. Diversified Energy Company keeps -0.8% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: -32.5%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: 21.2%**. 21.2% 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: -8.4%**. Return on all capital, debt included, is -8.4%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 1.0%**. Each dollar of assets produces 1.0% of profit.

## Growth
- **Revenue growth (1 yr): 102.7%** (3-yr -5.7%/yr). Revenue grew 102.7% 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.
- **Free-cash-flow growth (3 yr): -2.5%/yr**. Free cash flow has compounded at -2.5% a year over three years.

## Financial health
- **Debt to equity: 3.08**. Debt is 3.08 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 4.6×**. It would take 4.6 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: -1.5×**. Operating profit covers interest only -1.5×: fragile.
- **Current ratio: 0.60** (quick 0.58). 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: 0.61**. A Z-score of 0.61 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 8.23%** (1p per share, trailing). Diversified Energy Company yields 8.23%, 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.

## Price and momentum
- **Total return (1 yr): 13.1%** (YTD 1.1%, 3-mo 11.2%). The shares are up 13.1% over twelve months including dividends.
- **From 52-week high: -28.7%** (10.9% above the low). Trading 29% 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): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): -0.70** (volatility 39%). Beta of -0.70 against the FTSE All-Share: the shares move much less than the market.

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

Not investment advice.