Diversified Energy Stock Intrinsic Value – Diversified Energy Plunges to a 12-Month Low of GBX 93.70 in 2023.
March 22, 2023
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The London-based Diversified Energy ($LSE:DEC) Company PLC plunged to a new 12-month low of GBX 93.70 ($1.24) on Tuesday, as investors sold off their stakes in the company. A total of 5,291,000 shares traded hands during the session, indicating the extent of the bearish sentiment amongst traders. At the end of the day, the stock closed at GBX 95.00 ($1.26), down by a significant amount in comparison to the previous day’s close.
This could be attributed to a number of factors, including the recent fall in oil prices and the uncertainties surrounding the long-term viability of alternative energy sources. Despite this, Diversified Energy Company PLC remains a strong player in the industry, and is expected to continue to remain a major competitor in the market in the coming years.
Share Price
This represents a 3.3% decrease from the previous closing price of 1.0, signifying a considerable drop in stock value as investors have taken flight in response to the energy company’s performance. The drop in stock value could be attributed to a combination of factors such as lack of positive news or developments, declining demand for energy and other factors that may be affecting the industry. Despite the plunge in stock value, DIVERSIFIED ENERGY still remains a highly viable investment option for those willing to take the risk. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Diversified Energy. More…
| Total Revenues | Net Income | Net Margin |
| 1.62k | -1.18k | 43.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Diversified Energy. More…
| Operations | Investing | Financing |
| 417.05 | -629.12 | 395.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Diversified Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.03k | 4.39k | -0.44 |
Key Ratios Snapshot
Some of the financial key ratios for Diversified Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 51.1% | 75.8% | -84.7% |
| FCF Margin | ROE | ROA |
| 20.9% | -617.3% | -21.2% |
Analysis – Diversified Energy Stock Intrinsic Value
At GoodWhale, we have closely analyzed DIVERSIFIED ENERGY‘s financials and our proprietary Valuation Line estimates the fair value of their shares at around £2.0. Currently, the stock is trading at £0.9, which is significantly lower than its fair value and undervalued by 54.7%. This provides an attractive buying opportunity for investors who are looking to capitalize on the mispricing of DIVERSIFIED ENERGY shares. More…
Peers
The competition between Diversified Energy Co PLC and its competitors, Yuma Energy Inc, Amplify Energy Corp, and San Juan Basin Royalty Trust, is fierce. All of these companies are vying for a larger share of the energy industry, and each is striving to develop more advanced technology and better products to stay ahead of the competition. While the competition tightens, customers benefit from lower prices and better services.
– Yuma Energy Inc ($OTCPK:YUMAQ)
Yuma Energy Inc is an independent energy company focused on the acquisition and development of oil and natural gas properties in the United States. The company has a market cap of 46.56k as of 2023, indicating a relatively low value and a lack of investor confidence. The company’s Return on Equity (ROE) of -74.57% indicates that the company is not generating sufficient profits from its investments to cover its costs. This suggests that the company may not be able to stay afloat and could be at risk of bankruptcy or other financial distress.
– Amplify Energy Corp ($NYSE:AMPY)
Amplify Energy Corp is an independent oil and gas company that specializes in the acquisition, development, and production of oil and natural gas properties. The company has a market cap of 335.22M as of 2023, which puts them in the mid-cap range. This implies that investors are confident about the future prospects of the company. In addition, Amplify’s return on equity (ROE) of -79.87% indicates that the company is not generating a positive return on its assets, which may be a sign of financial distress.
– San Juan Basin Royalty Trust ($NYSE:SJT)
The San Juan Basin Royalty Trust is an independent energy trust that holds royalty interests in oil and gas properties located in the San Juan Basin of northwestern New Mexico. As of 2023, it has a market capitalization of 470.75M. The trust’s Return on Equity (ROE) is 171.02% which is higher than the industry average of 16.22%. This indicates that the trust is generating good returns on the amounts invested in the trust by shareholders. The trust pays quarterly distributions to its shareholders and the trust’s assets consist of royalties, overriding royalties, mineral leases, and production payments.
Summary
Investing in Diversified Energy in 2023 was a risky proposition, with the stock price plunging to a 12-month low of GBX 93.70 on the same day. This can be seen as a red flag for potential investors, as the company has seen significant losses in its share value over a relatively short period of time.
However, this does not necessarily mean that Diversified Energy is a bad investment. It is important to look at the company’s financials and analyze the fundamental factors that could be influencing its stock performance. This could include examining its debt levels, liquidity, and profitability, as well as any underlying issues that may be causing a decline in the stock price.
