DEVON ENERGY CORP (1DY6.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1DY6 • US25179M1036
30.37 EUR
+1.32 (+4.54%)
Last: Jan 8, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to 1DY6. 1DY6 was compared to 72 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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
- Looking at the Return On Assets, with a value of 8.71%, 1DY6 belongs to the top of the industry, outperforming 91.03% of the companies in the same industry.
- 1DY6 has a better Return On Equity (17.71%) than 87.18% of its industry peers.
- 1DY6 has a better Return On Invested Capital (11.84%) than 88.46% of its industry peers.
- 1DY6 had an Average Return On Invested Capital over the past 3 years of 20.63%. This is significantly above the industry average of 8.83%.
- The 3 year average ROIC (20.63%) for 1DY6 is well above the current ROIC(11.84%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 17.71% | ||
| ROIC | 11.84% |
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
- Looking at the Profit Margin, with a value of 15.56%, 1DY6 is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- 1DY6's Profit Margin has declined in the last couple of years.
- 1DY6's Operating Margin of 22.88% is fine compared to the rest of the industry. 1DY6 outperforms 64.10% of its industry peers.
- In the last couple of years the Operating Margin of 1DY6 has grown nicely.
- With a Gross Margin value of 47.14%, 1DY6 perfoms like the industry average, outperforming 56.41% of the companies in the same industry.
- 1DY6's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.88% | ||
| PM (TTM) | 15.56% | ||
| GM | 47.14% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1DY6 is creating value.
- 1DY6 has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1DY6 has been increased compared to 5 years ago.
- Compared to 1 year ago, 1DY6 has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.25 indicates that 1DY6 is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1DY6 has a Altman-Z score (2.25) which is comparable to the rest of the industry.
- 1DY6 has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as 1DY6 would need 2.98 years to pay back of all of its debts.
- 1DY6's Debt to FCF ratio of 2.98 is fine compared to the rest of the industry. 1DY6 outperforms 76.92% of its industry peers.
- 1DY6 has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
- 1DY6 has a Debt to Equity ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.5
WACC7.9%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that 1DY6 may have some problems paying its short term obligations.
- 1DY6's Current ratio of 0.96 is on the low side compared to the rest of the industry. 1DY6 is outperformed by 73.08% of its industry peers.
- 1DY6 has a Quick Ratio of 0.96. This is a bad value and indicates that 1DY6 is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1DY6 has a Quick ratio of 0.87. This is comparable to the rest of the industry: 1DY6 outperforms 42.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- 1DY6 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.34%.
- The Earnings Per Share has been growing by 31.25% on average over the past years. This is a very strong growth
- Looking at the last year, 1DY6 shows a quite strong growth in Revenue. The Revenue has grown by 11.40% in the last year.
- Measured over the past years, 1DY6 shows a very strong growth in Revenue. The Revenue has been growing by 20.71% on average per year.
EPS 1Y (TTM)-16.34%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-5.45%
Revenue 1Y (TTM)11.4%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%7.63%
3.2 Future
- 1DY6 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.93% yearly.
- The Revenue is expected to grow by 4.31% on average over the next years.
EPS Next Y-16.96%
EPS Next 2Y-8.31%
EPS Next 3Y2.77%
EPS Next 5Y2.93%
Revenue Next Year8.12%
Revenue Next 2Y1.9%
Revenue Next 3Y3%
Revenue Next 5Y4.31%
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
- Based on the Price/Earnings ratio of 8.30, the valuation of 1DY6 can be described as reasonable.
- Based on the Price/Earnings ratio, 1DY6 is valued cheaper than 88.46% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. 1DY6 is valued rather cheaply when compared to this.
- 1DY6 is valuated reasonably with a Price/Forward Earnings ratio of 8.69.
- 84.62% of the companies in the same industry are more expensive than 1DY6, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 1DY6 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
- 79.49% of the companies in the same industry are more expensive than 1DY6, based on the Enterprise Value to EBITDA ratio.
- 85.90% of the companies in the same industry are more expensive than 1DY6, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.85 | ||
| EV/EBITDA | 3.82 |
4.3 Compensation for Growth
- 1DY6 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-8.31%
EPS Next 3Y2.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.64%, 1DY6 has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 5.02, 1DY6 has a dividend in line with its industry peers.
- 1DY6's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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
- 1DY6 pays out 22.55% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 1DY6 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.55%
EPS Next 2Y-8.31%
EPS Next 3Y2.77%
DEVON ENERGY CORP / 1DY6.MI FAQ
What is the ChartMill fundamental rating of DEVON ENERGY CORP (1DY6.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1DY6.MI.
Can you provide the valuation status for DEVON ENERGY CORP?
ChartMill assigns a valuation rating of 6 / 10 to DEVON ENERGY CORP (1DY6.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for DEVON ENERGY CORP?
DEVON ENERGY CORP (1DY6.MI) has a profitability rating of 7 / 10.
What are the PE and PB ratios of DEVON ENERGY CORP (1DY6.MI) stock?
The Price/Earnings (PE) ratio for DEVON ENERGY CORP (1DY6.MI) is 8.3 and the Price/Book (PB) ratio is 1.44.
How sustainable is the dividend of DEVON ENERGY CORP (1DY6.MI) stock?
The dividend rating of DEVON ENERGY CORP (1DY6.MI) is 6 / 10 and the dividend payout ratio is 22.55%.