Diversified Energy CoDEC +3.67%65 Return-on-Tangible-Equity is 89.22% as of Dec. 2025, which is 204% above its 10-year median of 29.34. GuruFocus rates DEC with a GF Score™ of 65/100 and a GF Value™ of $16.96 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 945 Oil & Gas companies, Diversified Energy Co ranks better than 93.12% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Diversified Energy Co's annualized net income for the quarter that ended in Dec. 2025 was $751 Mil. Diversified Energy Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $842 Mil. Therefore, Diversified Energy Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 89.22%.
The historical rank and industry rank for Diversified Energy Co's Return-on-Tangible-Equity or its related term are showing as below:
DEC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -272.22 Med: 29.34 Max: 10250.43
Current: 49.17
During the past 13 years, Diversified Energy Co's highest Return-on-Tangible-Equity was 10,250.43%. The lowest was -272.22%. And the median was 29.34%.
DEC's Return-on-Tangible-Equity is ranked better than 93.12% of 945
companies
in the Oil & Gas industry
Industry Median: 6.71
vs DEC: 49.17
Diversified Energy Co (NYSE:DEC) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Diversified Energy Co Return-on-Tangible-Equity Related Terms
Diversified Energy Co Return-on-Tangible-Equity Historical Data
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The historical data trend for Diversified Energy Co's Return-on-Tangible-Equity 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-Equity Chart
DEC vs UNTC, SLNG, SKYQ: Return-on-Tangible-Equity Comparison
For the Oil & Gas Integrated subindustry, Diversified Energy Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Diversified Energy Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Diversified Energy Co's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 89.22% mean?
Diversified Energy Co (DEC) has a Return-on-Tangible-Equity of 89.22% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Diversified Energy Co and its competitors. This is 204% above median its historical median of 29.34. According to the industry distribution chart, Diversified Energy Co ranks #65 out of 945 companies in the Oil & Gas industry, placing it in the top 6.9%.
Is Diversified Energy Co's Return-on-Tangible-Equity too high?
Diversified Energy Co's current Return-on-Tangible-Equity of 89.22% is 204% above median its 10-year median of 29.34. The Oil & Gas industry median Return-on-Tangible-Equity is 6.71. Diversified Energy Co's value of 89.22% is 1229.7% above this industry median. Based on the distribution chart, Diversified Energy Co ranks #65 out of 945 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-Equity compare to UNTC and SLNG?
According to the Oil & Gas industry distribution chart, Diversified Energy Co ranks #65 out of 945 companies for Return-on-Tangible-Equity. This places Diversified Energy Co in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.71. Diversified Energy Co's value of 89.22% is 1229.7% above this benchmark. While the company's 10-year median is 29.34 vs. the industry median of 6.71, 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-Equity for an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.71, based on 945 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 89.22% is 1229.7% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Diversified Energy Co and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.71 — 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-Equity is 89.22%, which is 204% above median its own 10-year median of 29.34. 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 $16.96, compared to a current price of $12.98 — trading 23.5% below its estimated fair value. The current Return-on-Tangible-Equity is 89.22%, which is 204% above median its 10-year median of 29.34 and 1229.7% above the Oil & Gas industry median of 6.71. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Diversified Energy Co (DEC), the current Return-on-Tangible-Equity is 89.22% 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 $12.98 is trading 23.5% below its estimated GF Value™ of $16.96.
GuruFocus considers Diversified Energy Co to be Modestly Undervalued.
Key valuation signals for DEC:
Return-on-Tangible-Equity: 89.22% (204% above median its 10-year median of 29.34)
GF Value™: $16.96 vs. price of $12.98 (23.5% below fair value)
Industry Position: 1229.7% above the Oil & Gas median (#65 of 945)
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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