DEVON ENERGY CORP (1DY6.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1DY6 - US25179M1036 - Common Stock
30.37 EUR
+1.32 (+4.54%)
We assign a fundamental rating of 5 out of 10 to 1DY6. 1DY6 was compared to 71 industry peers in the Oil, Gas & Consumable Fuels industry. 1DY6 has an excellent profitability rating, but there are concerns on its financial health. 1DY6 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- 1DY6 had positive earnings in the past year.
- 1DY6 had a positive operating cash flow in the past year.
- Of the past 5 years 1DY6 4 years were profitable.
- In the past 5 years 1DY6 always reported a positive cash flow from operatings.
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 Return On Equity of 17.71%. This is amongst the best in the industry. 1DY6 outperforms 87.18% of its industry peers.
- With an excellent Return On Invested Capital value of 11.84%, 1DY6 belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
- 1DY6 had an Average Return On Invested Capital over the past 3 years of 20.63%. This is significantly above the industry average of 8.91%.
- 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 has a Operating Margin of 22.88%. This is in the better half 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.
- 1DY6's Gross Margin of 47.14% is in line compared to the rest of the industry. 1DY6 outperforms 56.41% of its industry peers.
- 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
- 1DY6 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, 1DY6 has more shares outstanding
- Compared to 5 years ago, 1DY6 has more shares outstanding
- 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 in line with its industry peers.
- The Debt to FCF ratio of 1DY6 is 2.98, which is a good value as it means it would take 1DY6, 2.98 years of fcf income to pay off all of its debts.
- 1DY6 has a better Debt to FCF ratio (2.98) than 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.
- Looking at the Debt to Equity ratio, with a value of 0.48, 1DY6 is in line with its industry, outperforming 51.28% of the companies in the same industry.
| 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.
- With a Quick ratio value of 0.87, 1DY6 perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The earnings per share for 1DY6 have decreased strongly by -16.34% in the last year.
- Measured over the past years, 1DY6 shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.25% on average per year.
- Looking at the last year, 1DY6 shows a quite strong growth in Revenue. The Revenue has grown by 11.40% in the last year.
- The Revenue has been growing by 20.71% on average over the past years. This is a very strong growth!
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
- The Earnings Per Share is expected to grow by 2.93% on average over the next years.
- 1DY6 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.31% yearly.
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
- The Price/Earnings ratio is 8.30, which indicates a very decent valuation of 1DY6.
- Based on the Price/Earnings ratio, 1DY6 is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of 1DY6 to the average of the S&P500 Index (27.21), we can say 1DY6 is valued rather cheaply.
- A Price/Forward Earnings ratio of 8.69 indicates a reasonable valuation of 1DY6.
- Based on the Price/Forward Earnings ratio, 1DY6 is valued cheaper than 84.62% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1DY6 to the average of the S&P500 Index (25.98), we can say 1DY6 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
- 1DY6's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1DY6 is cheaper than 79.49% of the companies in the same industry.
- 1DY6's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1DY6 is cheaper than 85.90% of the companies in the same industry.
| 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
- 1DY6 has a Yearly Dividend Yield of 2.64%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 5.24, 1DY6 has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, 1DY6 pays a bit more dividend than the S&P500 average.
| 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.
- 1DY6's earnings are growing slower than its dividend. 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%.