DEVON ENERGY CORP (1DY6.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1DY6 - US25179M1036 - Common Stock
30.37 EUR
+1.32 (+4.54%)
1DY6 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Oil, Gas & Consumable Fuels industry. 1DY6 scores excellent on profitability, but there are 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
- 1DY6 had positive earnings in the past year.
- In the past year 1DY6 had a positive cash flow from operations.
- 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
- 1DY6's Return On Assets of 8.71% is amongst the best of the industry. 1DY6 outperforms 91.03% of its industry peers.
- The Return On Equity of 1DY6 (17.71%) is better than 87.18% of its industry peers.
- 1DY6 has a better Return On Invested Capital (11.84%) than 88.46% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1DY6 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
- 1DY6 has a better Profit Margin (15.56%) than 76.92% of its industry peers.
- In the last couple of years the Profit Margin of 1DY6 has declined.
- Looking at the Operating Margin, with a value of 22.88%, 1DY6 is in the better half of the industry, outperforming 64.10% of the companies in the same industry.
- 1DY6's Operating Margin has improved in the last couple of years.
- 1DY6 has a Gross Margin (47.14%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of 1DY6 has declined.
| 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.
- 1DY6 has more shares outstanding than it did 1 year ago.
- 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
- 1DY6 has an Altman-Z score of 2.25. This is not the best score and indicates that 1DY6 is in the grey zone with still only limited risk for bankruptcy at the moment.
- 1DY6's Altman-Z score of 2.25 is in line compared to the rest of the industry. 1DY6 outperforms 56.41% of its industry peers.
- 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 has a Debt to FCF ratio of 2.98. This is in the better half 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.
- The Debt to Equity ratio of 1DY6 (0.48) is comparable to the rest of the 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.
- A Quick Ratio of 0.87 indicates that 1DY6 may have some problems paying 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
- The earnings per share for 1DY6 have decreased strongly by -16.34% in the last year.
- 1DY6 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.25% yearly.
- 1DY6 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.40%.
- 1DY6 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.71% yearly.
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
- Based on estimates for the next years, 1DY6 will show a small growth in Earnings Per Share. The EPS will grow by 2.93% on average per year.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- With a Price/Earnings ratio of 8.30, the valuation of 1DY6 can be described as very reasonable.
- 1DY6's Price/Earnings ratio is rather cheap when compared to the industry. 1DY6 is cheaper than 88.46% of the companies in the same industry.
- 1DY6's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
- Based on the Price/Forward Earnings ratio of 8.69, the valuation of 1DY6 can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1DY6 indicates a rather cheap valuation: 1DY6 is cheaper than 84.62% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. 1DY6 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1DY6 is valued a bit cheaper than the industry average as 79.49% of the companies are valued more expensively.
- 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%.
- 1DY6's Dividend Yield is comparable with the industry average which is at 5.24.
- Compared to an average S&P500 Dividend Yield of 1.82, 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%.