The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Simply Wall Street analysis sounds rather pessimistic - any comments? I've only included the negative aspects......
Earnings vs Savings Rate: DEC's earnings are forecast to decline over the next 3 years (-77.9% per year).
Earnings vs Market: DEC's earnings are forecast to decline over the next 3 years (-77.9% per year).
Whilst DEC's Return on Equity (126.95%) is outstanding, this metric is skewed due to their high level of debt.
Debt Level: DEC's net debt to equity ratio (212.7%) is considered high.
Reducing Debt: DEC's debt to equity ratio has increased from 64.5% to 213.3% over the past 5 years
Cash Flow Coverage: With its high cash payout ratio (188.3%), DEC's dividend payments are not well covered by cash flows.
Sorry to be a little pedantic, but the commonest form of hydrogen (protium) does have components. One Proton and One electron. The proton consists of three quarks. Hydrogen-2 (deuterium) has 1 proton, 1 electron and 1 neutron (which also has 3 quarks) and therefore 6 quarks, Hydrogen - 3 (Tritium) - 1 protons, 1 electron and 2 neutrons and therefore 9 quarks.
Electrons have no components.
Corporate offices:
1600 Corporate Drive, Birmingham, AL, United States, Alabama. 1600+ USA employees, 95% from local communities. Pays state taxes in at least 10 states. If it looks like a duck and quacks like a duck .......
The following encourages me to hold onto my battered DEC holding:
Diversified Energy has had its target price and buy recommendation reiterated by house broker Peel Hunt following the open letter yesterday published by members of the US House of Representatives Committee on Energy and Commerce.
“Having reviewed the open letter, we see this as largely a rehash of a Bloomberg Green article published in October 2021,” said Peel Hunt.
“We understand that Diversified intends to respond, despite the company being under no legal obligation to respond and, in our view, a significant proportion of the questions appearing to be addressed within Diversified’s Sustainability Reports.
“We note that since the October 2021 article, Diversified has built a 15-crew well retirement company (the wholly owned subsidiary NextLVL) with the capacity to plug c.450 wells/year (vs the c.80 wells/year state requirements).
Peel Hunt adds that “DEC has in place ambitious group methane intensity reduction targets (-50% by 2030) underpinned by comprehensive GHG emissions detection and mitigation programs.”
Buy with a 3,500p target price remains Peel Hunt’s stance.