Diversified Energy CoDEC +3.67%65 ROC (Joel Greenblatt) % is 18.05% as of Dec. 2025, which is 61% above its 10-year median of 11.22. 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 1,002 Oil & Gas companies, Diversified Energy Co ranks better than 59.88% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Diversified Energy Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 18.05%.
The historical rank and industry rank for Diversified Energy Co's ROC (Joel Greenblatt) % or its related term are showing as below:
DEC'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -23.44 Med: 11.22 Max: 56.06
Current: 11.74
During the past 13 years, Diversified Energy Co's highest ROC (Joel Greenblatt) % was 56.06%. The lowest was -23.44%. And the median was 11.22%.
DEC's ROC (Joel Greenblatt) % is ranked better than 59.88% of 1002
companies
in the Oil & Gas industry
Industry Median: 8.415
vs DEC: 11.74
Diversified Energy Co's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Diversified Energy Co (NYSE:DEC) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Diversified Energy Co ROC (Joel Greenblatt) % Related Terms
Diversified Energy Co ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Diversified Energy Co's ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Chart
DEC vs UNTC, SLNG, SKYQ: ROC (Joel Greenblatt) % Comparison
For the Oil & Gas Integrated subindustry, Diversified Energy Co's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Diversified Energy Co's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Diversified Energy Co's ROC (Joel Greenblatt) % falls into.
Diversified Energy Co ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 18.05% mean?
Diversified Energy Co (DEC) has a ROC (Joel Greenblatt) % of 18.05% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Diversified Energy Co and its competitors. This is 61% above median its historical median of 11.22. According to the industry distribution chart, Diversified Energy Co ranks #402 out of 1002 companies in the Oil & Gas industry, placing it in the top 40.1%.
Is Diversified Energy Co's ROC (Joel Greenblatt) % too high?
Diversified Energy Co's current ROC (Joel Greenblatt) % of 18.05% is 61% above median its 10-year median of 11.22. The Oil & Gas industry median ROC (Joel Greenblatt) % is 8.42. Diversified Energy Co's value of 18.05% is 114.5% above this industry median. Based on the distribution chart, Diversified Energy Co ranks #402 out of 1002 companies in the Oil & Gas industry, which is above the industry midpoint. 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 ROC (Joel Greenblatt) % compare to UNTC and SLNG?
According to the Oil & Gas industry distribution chart, Diversified Energy Co ranks #402 out of 1002 companies for ROC (Joel Greenblatt) %. This puts Diversified Energy Co in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 8.42. Diversified Energy Co's value of 18.05% is 114.5% above this benchmark. While the company's 10-year median is 11.22 vs. the industry median of 8.42, 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 ROC (Joel Greenblatt) % for an Oil & Gas company?
The median ROC (Joel Greenblatt) % among Oil & Gas companies is 8.42, based on 1,002 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diversified Energy Co's current ROC (Joel Greenblatt) % of 18.05% is 114.5% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Diversified Energy Co and its competitors. For the Oil & Gas industry, the median ROC (Joel Greenblatt) % is 8.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diversified Energy Co's current ROC (Joel Greenblatt) % is 18.05%, which is 61% above median its own 10-year median of 11.22. 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 ROC (Joel Greenblatt) % is 18.05%, which is 61% above median its 10-year median of 11.22 and 114.5% above the Oil & Gas industry median of 8.42. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Diversified Energy Co (DEC), the current ROC (Joel Greenblatt) % is 18.05% 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:
ROC (Joel Greenblatt) %: 18.05% (61% above median its 10-year median of 11.22)
GF Value™: $16.96 vs. price of $12.98 (23.5% below fair value)
Industry Position: 114.5% above the Oil & Gas median (#402 of 1002)
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
Get the complete analysis for DEC
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DEC has been successfully added to your 
