Diversified Energy Company Common Stock (DEC)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-13 close of $14.86, Diversified Energy is priced near the low end of its 52-week range. It produces natural gas, oil, and liquids in Appalachia and nearby basins. In fiscal 2025, the year ended 2025-12-31, it reported revenue of $1.8B, net income of $341.1M, and diluted EPS of $4.58. That followed a fiscal 2024 loss: revenue of $757.3M, net loss of $104.4M, and diluted EPS of -$2.17. By fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $811.9M, net income $246.9M, and diluted EPS $3.31. FairStock's calculations put the P/E at 2.44 and P/B at 1.12; the Graham Number is $42.72, implying a 65.22% margin of safety. The trailing FCF yield is 22.3%, with $235.0M of free cash flow against a $1.1B market cap. Yet financial health is mixed. FairStock's ROCE is only 5.41%, and debt/equity is 3.08. The Altman Z-Score of 0.10 signals distress risk, and fiscal Q1 2026, the quarter ended 2026-03-31, produced a net loss of $160.6M and diluted EPS of -$2.13. The Piotroski F-Score is 7/9, and the dividend yield is 7.76%. This is a commodity business with limited pricing power; there is no obvious wide moat in commodity production. It fits Lynch's computed TURNAROUND category because it returned to profit after a loss within the last three years. Graham would see statistical cheapness and a cash-flow cushion, but the leverage demands caution.

In plain English: Diversified Energy produces natural gas and oil in the United States. It returned to profit in fiscal 2025 after a loss in fiscal 2024 and generates a lot of cash, but it also carries a heavy debt load. At $14.86, the shares look inexpensive compared with the company's profits and cash flow, though the low price reflects real risks.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer