Diversified Energy Company PLC cash flow to debt ratio of 15.35% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Diversified Energy Company PLC's free cash flow has decreased 4.61% from $293.56M last year to $280.02M, signaling decreasing performance

Diversified Energy Company PLC's debt to equity ratio is 3.12, which means that the company's assets are unhealthy financed, signaling financial risk.

Diversified Energy Company PLC's debt has decreased relative to shareholder equity from 3.84 last year to 3.12 today, signaling strengthened financials

Diversified Energy Company PLC has a net debt to EBITDA ratio of 3.25x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Diversified Energy Company PLC's interest coverage ratio is 1.55, which means that the company struggles to meet interest obligations, signaling financial risk.

Diversified Energy Company PLC's profit margin was -11.11% last year and is 36.99% this year, signaling increasing performance

Diversified Energy Company PLC's short-term liabilities of $1.08B exceed its short-term assets of $650.16M, signaling financial risk

Diversified Energy Company PLC's return on assets of 10.20% is higher than the 5.00% threshold, indicating efficient asset utilization

Diversified Energy Company PLC's return on equity of 64.44%, is higher than 15.00%, indicating good performance

Diversified Energy Company PLC's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Diversified Energy Company PLC had positive net income in only 2 out of 5 years, indicating unstable earnings

Diversified Energy Company PLC has positive free cash flow, indicating the company generates cash after capital expenditures

Diversified Energy Company PLC has a free cash flow yield of 28.08%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Diversified Energy Company PLC's yearly earnings has increased 487.32% since last year from $-88.27M to $341.90M, signaling increasing performance

Diversified Energy Company PLC's yearly revenue has increased 102.74% since last year from $794.84M to $1.61B, signaling increasing performance

ROIC 9.65% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Diversified Energy Company PLC's 3-year revenue CAGR of -5.66% is negative, indicating declining revenue over the past 3 years

Diversified Energy Company PLC had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Diversified Energy Company PLC had positive ROE in only 2 out of 5 years, indicating inconsistent returns on equity

Diversified Energy Company PLC is undervalued relative to its fair value price of 14.68 based on Base Cash Flow Valuation (DCF) model

Diversified Energy Company PLC has an earnings yield of 62.52%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Diversified Energy Company PLC is undervalued relative to its fair value price of 46.58 based on Base EBITDA Valuation model

Diversified Energy Company PLC has an EV/EBITDA ratio of 4.32x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Diversified Energy Company PLC has insufficient data to evaluate this check.

Diversified Energy Company PLC had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Diversified Energy Company PLC has a price-to-book ratio of 1.04x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Diversified Energy Company PLC has a price-to-sales ratio of 0.59x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue