Diversified Energy CoDEC +5.38%65 Return-on-Tangible-Asset is 12.72% as of Dec. 2025, which is 106% above its 10-year median of 6.17. GuruFocus rates DEC with a GF Score™ of 65/100 and a GF Value™ of $17.01 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 1,027 Oil & Gas companies, Diversified Energy Co ranks better than 75.46% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Diversified Energy Co's annualizedNet Income for the quarter that ended in Dec. 2025 was $751 Mil. Diversified Energy Co's average total tangible assets for the quarter that ended in Dec. 2025 was $5,908 Mil. Therefore, Diversified Energy Co's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 12.72%.
The historical rank and industry rank for Diversified Energy Co's Return-on-Tangible-Asset or its related term are showing as below:
DEC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -17.16 Med: 6.17 Max: 26.72
Current: 6.49
During the past 13 years, Diversified Energy Co's highest Return-on-Tangible-Asset was 26.72%. The lowest was -17.16%. And the median was 6.17%.
DEC's Return-on-Tangible-Asset is ranked better than 75.46% of 1027
companies
in the Oil & Gas industry
Industry Median: 1.96
vs DEC: 6.49
Diversified Energy Co (NYSE:DEC) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Diversified Energy Co Return-on-Tangible-Asset Related Terms
Diversified Energy Co Return-on-Tangible-Asset Historical Data
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The historical data trend for Diversified Energy Co's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Diversified Energy Co Return-on-Tangible-Asset Chart
DEC vs UNTC, SLNG, SKYQ: Return-on-Tangible-Asset Comparison
For the Oil & Gas Integrated subindustry, Diversified Energy Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Diversified Energy Co Return-on-Tangible-Asset vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Diversified Energy Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Diversified Energy Co's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 12.72% mean?
Diversified Energy Co (DEC) has a Return-on-Tangible-Asset of 12.72% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Diversified Energy Co and its competitors. This is 106% above median its historical median of 6.17. According to the industry distribution chart, Diversified Energy Co ranks #252 out of 1027 companies in the Oil & Gas industry, placing it in the top 24.5%.
Is Diversified Energy Co's Return-on-Tangible-Asset too high?
Diversified Energy Co's current Return-on-Tangible-Asset of 12.72% is 106% above median its 10-year median of 6.17. The Oil & Gas industry median Return-on-Tangible-Asset is 1.96. Diversified Energy Co's value of 12.72% is 549% above this industry median. Based on the distribution chart, Diversified Energy Co ranks #252 out of 1027 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Diversified Energy Co has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Diversified Energy Co's Return-on-Tangible-Asset compare to UNTC and SLNG?
According to the Oil & Gas industry distribution chart, Diversified Energy Co ranks #252 out of 1027 companies for Return-on-Tangible-Asset. This places Diversified Energy Co in the top 25% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 1.96. Diversified Energy Co's value of 12.72% is 549% above this benchmark. While the company's 10-year median is 6.17 vs. the industry median of 1.96, Diversified Energy Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Oil & Gas company?
The median Return-on-Tangible-Asset among Oil & Gas companies is 1.96, based on 1,027 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diversified Energy Co's current Return-on-Tangible-Asset of 12.72% is 549% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Diversified Energy Co and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Asset is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diversified Energy Co's current Return-on-Tangible-Asset is 12.72%, which is 106% above median its own 10-year median of 6.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diversified Energy Co stock overvalued right now?
Based on GuruFocus' analysis, Diversified Energy Co (DEC) is currently considered Modestly Undervalued. The stock's GF Value™ is $17.01, compared to a current price of $14.30 — trading 15.9% below its estimated fair value. The current Return-on-Tangible-Asset is 12.72%, which is 106% above median its 10-year median of 6.17 and 549% above the Oil & Gas industry median of 1.96. Diversified Energy Co's overall GF Score™ is 65/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Diversified Energy Co (DEC), the current Return-on-Tangible-Asset is 12.72% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Diversified Energy Co (DEC) Overvalued in 2026?
Based on GuruFocus' analysis, Diversified Energy Co stock appears to be undervalued.
The current stock price of $14.30 is trading 15.9% below its estimated GF Value™ of $17.01.
GuruFocus considers Diversified Energy Co to be Modestly Undervalued.
Key valuation signals for DEC:
Return-on-Tangible-Asset: 12.72% (106% above median its 10-year median of 6.17)
GF Value™: $17.01 vs. price of $14.30 (15.9% below fair value)
Industry Position: 549% above the Oil & Gas median (#252 of 1027)
No single metric tells the full story. See the DEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diversified Energy Co engaged in the production, transportation, and marketing of natural gas, NGLs, and oil, managing a diversified portfolio of mature, long-life assets located across the United States. The company derives revenues from the sale of oil, natural gas and natural gas liquids.
65GF Score
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