Diversified Energy Co. Plc (DGOC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Energean Plc

Diversified Energy Co. Plc

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Indus Gas Ltd.

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Capricorn Energy Plc

EnQuest Plc

Kistos Holdings Plc

Tullow Oil Plc

Pantheon Resources Plc

Why is Diversified Energy Co. Plc ?

High Management Efficiency with a high ROE of 34.97%

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt company with Weak Long Term Fundamental Strength

With a growth in Net Sales of 81.74%, the company declared Very Positive results in Jun 25

INTEREST COVERAGE RATIO(Q) Highest at 388.1
RAW MATERIAL COST(Y) Fallen by -17.39% (YoY)
CASH AND EQV(HY) Highest at GBP 32.15 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 18.65%, its profits have fallen by -19.2%

Market Beating performance in long term as well as near term

Along with generating 18.65% returns in the last 1 year, the stock has outperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Diversified Energy Co. Plc should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Diversified Energy Co. Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Diversified Energy Co. Plc

21.23%

0.14

37.24%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.38%

EBIT Growth (5y)

37.70%

EBIT to Interest (avg)

4.23

Debt to EBITDA (avg)

3.48

Net Debt to Equity (avg)

3.73

Sales to Capital Employed (avg)

0.65

Tax Ratio

61.59%

Dividend Payout Ratio

30.95%

Pledged Shares

Institutional Holding

74.54%

ROCE (avg)

23.99%

ROE (avg)

34.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.21

EV to EBIT

21.88

EV to EBITDA

7.58

EV to Capital Employed

1.05

EV to Sales

3.29

PEG Ratio

Dividend Yield

4.79%

ROCE (Latest)

4.81%

ROE (Latest)

16.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 388.1

RAW MATERIAL COST(Y)

Fallen by -17.39% (YoY

CASH AND EQV(HY)

Highest at GBP 32.15 MM

NET SALES(Q)

Highest at GBP 600.04 MM

OPERATING PROFIT(Q)

Highest at GBP 293.82 MM

OPERATING PROFIT MARGIN(Q)

Highest at 48.97 %

PRE-TAX PROFIT(Q)

Highest at GBP 94.15 MM

-6What is not working for the Company

ROCE(HY)

Lowest at -22.53%

INTEREST(Q)

Highest at GBP 75.71 MM

Here's what is working for Diversified Energy Co. Plc

Pre-Tax Profit

At GBP 94.15 MM has Grown at 487.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Net Sales

At GBP 600.04 MM has Grown at 105.85%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Interest Coverage Ratio

Highest at 388.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at GBP 600.04 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 293.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 48.97 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 94.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Cash and Eqv

Highest at GBP 32.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -17.39% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 145.24 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Diversified Energy Co. Plc

Interest

Highest at GBP 75.71 MM

in the last five periods and Increased by 26.81% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)