DEVON ENERGY CORP (1DY6.MI) Stock Fundamental Analysis
BIT:1DY6 - Euronext Milan - US25179M1036 - Common Stock - Currency: EUR
Taking everything into account, 1DY6 scores 4 out of 10 in our fundamental rating. 1DY6 was compared to 63 industry peers in the Oil, Gas & Consumable Fuels industry. While 1DY6 has a great profitability rating, there are quite some concerns on its financial health. 1DY6 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1DY6 was profitable.
1DY6 had a positive operating cash flow in the past year.
1DY6 had positive earnings in 4 of the past 5 years.
1DY6 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.48%, 1DY6 is doing good in the industry, outperforming 71.43% of the companies in the same industry.
With a decent Return On Equity value of 19.94%, 1DY6 is doing good in the industry, outperforming 68.25% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.39%, 1DY6 is doing good in the industry, outperforming 71.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1DY6 is significantly above the industry average of 12.53%.
The 3 year average ROIC (20.63%) for 1DY6 is well above the current ROIC(12.39%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 19.94% | ||
| ROIC | 12.39% |
ROA(3y)16.63%
ROA(5y)7.21%
ROE(3y)34.79%
ROE(5y)8.28%
ROIC(3y)20.63%
ROIC(5y)N/A
1.3 Margins
1DY6 has a Profit Margin of 18.14%. This is in the better half of the industry: 1DY6 outperforms 68.25% of its industry peers.
1DY6's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.24%, 1DY6 is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
In the last couple of years the Operating Margin of 1DY6 has grown nicely.
1DY6 has a Gross Margin of 49.96%. This is comparable to the rest of the industry: 1DY6 outperforms 57.14% of its industry peers.
1DY6's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.24% | ||
| PM (TTM) | 18.14% | ||
| GM | 49.96% |
OM growth 3Y-0.73%
OM growth 5Y55.24%
PM growth 3Y-7.34%
PM growth 5YN/A
GM growth 3Y1.47%
GM growth 5Y-9.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1DY6 is creating value.
1DY6 has more shares outstanding than it did 1 year ago.
1DY6 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1DY6 has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.27 indicates that 1DY6 is not a great score, but indicates only limited risk for bankruptcy at the moment.
1DY6 has a Altman-Z score of 2.27. This is in the better half of the industry: 1DY6 outperforms 68.25% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that 1DY6 is somewhat dependend on debt financing.
1DY6's Debt to Equity ratio of 0.60 is on the low side compared to the rest of the industry. 1DY6 is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.27 |
ROIC/WACC1.54
WACC8.05%
2.3 Liquidity
1DY6 has a Current Ratio of 1.04. This is a normal value and indicates that 1DY6 is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.04, 1DY6 is doing worse than 77.78% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that 1DY6 may have some problems paying its short term obligations.
1DY6 has a Quick ratio of 0.95. This is in the lower half of the industry: 1DY6 underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for 1DY6 have decreased strongly by -15.26% in the last year.
The Earnings Per Share has been growing by 31.25% on average over the past years. This is a very strong growth
1DY6 shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.46%.
The Revenue has been growing by 20.71% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-15.26%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-17.73%
Revenue 1Y (TTM)-16.46%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%6.22%
3.2 Future
1DY6 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.92% yearly.
Based on estimates for the next years, 1DY6 will show a small growth in Revenue. The Revenue will grow by 1.54% on average per year.
EPS Next Y0.8%
EPS Next 2Y5.2%
EPS Next 3Y2.06%
EPS Next 5Y7.92%
Revenue Next Year10.31%
Revenue Next 2Y5.81%
Revenue Next 3Y1.54%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1DY6 is valuated cheaply with a Price/Earnings ratio of 7.74.
Based on the Price/Earnings ratio, 1DY6 is valued a bit cheaper than the industry average as 65.08% of the companies are valued more expensively.
1DY6's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 7.68, which indicates a rather cheap valuation of 1DY6.
63.49% of the companies in the same industry are more expensive than 1DY6, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1DY6 to the average of the S&P500 Index (22.10), we can say 1DY6 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1DY6.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1DY6 does not grow enough to justify the current Price/Earnings ratio.
1DY6 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.71
PEG (5Y)0.25
EPS Next 2Y5.2%
EPS Next 3Y2.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.04%, 1DY6 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 59.75, 1DY6 is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.33, 1DY6 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of 1DY6 is nicely growing with an annual growth rate of 34.02%!
Dividend Growth(5Y)34.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
32.41% of the earnings are spent on dividend by 1DY6. This is a low number and sustainable payout ratio.
1DY6's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.41%
EPS Next 2Y5.2%
EPS Next 3Y2.06%
BIT:1DY6 (2/25/2025, 7:00:00 PM)
34.455
+0.5 (+1.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.02%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap22.36B
Analysts77.71
Price Target48.33 (40.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend1.34
Dividend Growth(5Y)34.02%
DP32.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.23%
Min EPS beat(2)-0.04%
Max EPS beat(2)14.49%
EPS beat(4)3
Avg EPS beat(4)7.13%
Min EPS beat(4)-0.04%
Max EPS beat(4)14.49%
EPS beat(8)5
Avg EPS beat(8)4.53%
EPS beat(12)8
Avg EPS beat(12)3.84%
EPS beat(16)12
Avg EPS beat(16)7.53%
Revenue beat(2)2
Avg Revenue beat(2)5.06%
Min Revenue beat(2)3.6%
Max Revenue beat(2)6.51%
Revenue beat(4)3
Avg Revenue beat(4)3.07%
Min Revenue beat(4)-0.38%
Max Revenue beat(4)6.51%
Revenue beat(8)7
Avg Revenue beat(8)14.96%
Revenue beat(12)9
Avg Revenue beat(12)11.1%
Revenue beat(16)12
Avg Revenue beat(16)8.26%
PT rev (1m)0.11%
PT rev (3m)-2.77%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)10.21%
EPS NY rev (1m)0.13%
EPS NY rev (3m)5.46%
Revenue NQ rev (1m)0.96%
Revenue NQ rev (3m)3.17%
Revenue NY rev (1m)2.97%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.68 | ||
| P/S | 1.52 | ||
| P/FCF | N/A | ||
| P/OCF | 3.68 | ||
| P/B | 1.67 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 4.39 |
EPS(TTM)4.45
EY12.92%
EPS(NY)4.48
Fwd EY13.01%
FCF(TTM)-1.21
FCFYN/A
OCF(TTM)9.37
OCFY27.19%
SpS22.62
BVpS20.57
TBVpS19.5
PEG (NY)9.71
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 19.94% | ||
| ROCE | 15.39% | ||
| ROIC | 12.39% | ||
| ROICexc | 12.77% | ||
| ROICexgc | 13.15% | ||
| OM | 26.24% | ||
| PM (TTM) | 18.14% | ||
| GM | 49.96% | ||
| FCFM | N/A |
ROA(3y)16.63%
ROA(5y)7.21%
ROE(3y)34.79%
ROE(5y)8.28%
ROIC(3y)20.63%
ROIC(5y)N/A
ROICexc(3y)21.8%
ROICexc(5y)N/A
ROICexgc(3y)22.62%
ROICexgc(5y)N/A
ROCE(3y)25.62%
ROCE(5y)N/A
ROICexcg growth 3Y-9.4%
ROICexcg growth 5Y53.9%
ROICexc growth 3Y-8.79%
ROICexc growth 5Y55.35%
OM growth 3Y-0.73%
OM growth 5Y55.24%
PM growth 3Y-7.34%
PM growth 5YN/A
GM growth 3Y1.47%
GM growth 5Y-9.16%
F-Score4
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 228.97% | ||
| Cap/Sales | 46.76% | ||
| Interest Coverage | 11.43 | ||
| Cash Conversion | 88.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.27 |
F-Score4
WACC8.05%
ROIC/WACC1.54
Cap/Depr(3y)204.69%
Cap/Depr(5y)159.27%
Cap/Sales(3y)33.12%
Cap/Sales(5y)27.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.26%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-17.73%
EPS Next Y0.8%
EPS Next 2Y5.2%
EPS Next 3Y2.06%
EPS Next 5Y7.92%
Revenue 1Y (TTM)-16.46%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%6.22%
Revenue Next Year10.31%
Revenue Next 2Y5.81%
Revenue Next 3Y1.54%
Revenue Next 5YN/A
EBIT growth 1Y-32.98%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year96.21%
EBIT Next 3Y26.87%
EBIT Next 5Y16.95%
FCF growth 1Y-132.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.86%
OCF growth 3Y10.44%
OCF growth 5Y26.09%