DEVON ENERGY CORP (1DY6.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1DY6 - US25179M1036 - Common Stock
30.37 EUR
+1.32 (+4.54%)
Overall 1DY6 gets a fundamental rating of 5 out of 10. We evaluated 1DY6 against 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 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.
- Of the past 5 years 1DY6 4 years were profitable.
- Each year in the past 5 years 1DY6 had a positive operating cash flow.
1.2 Ratios
- 1DY6 has a better Return On Assets (8.71%) than 91.03% of its industry peers.
- 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 8.91%.
- 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
- The Profit Margin of 1DY6 (15.56%) is better than 76.92% of its industry peers.
- 1DY6's Profit Margin has declined in the last couple of years.
- The Operating Margin of 1DY6 (22.88%) is better than 64.10% of its industry peers.
- In the last couple of years the Operating Margin of 1DY6 has grown nicely.
- 1DY6 has a Gross Margin (47.14%) which is comparable to the rest of the 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
- 1DY6 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for 1DY6 has been increased compared to 1 year ago.
- 1DY6 has more shares outstanding than it did 5 years ago.
- 1DY6 has a worse debt/assets ratio than last year.
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.
- Looking at the Altman-Z score, with a value of 2.25, 1DY6 is in line with its industry, outperforming 56.41% of the companies in the same 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.
- 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.
- The Current ratio of 1DY6 (0.96) is worse than 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.
- The Quick ratio of 1DY6 (0.87) is comparable to the rest of the industry.
| 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%.
- 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.
- 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
- 1DY6 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.93% yearly.
- Based on estimates for the next years, 1DY6 will show a small growth in Revenue. The Revenue will grow by 4.31% on average per year.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
- Based on the Price/Earnings ratio, 1DY6 is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
- 1DY6 is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- 1DY6 is valuated reasonably with a Price/Forward Earnings ratio of 8.69.
- Based on the Price/Forward Earnings ratio, 1DY6 is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
- 1DY6 is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| 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.
- Based on the Price/Free Cash Flow ratio, 1DY6 is valued 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
- The decent profitability rating of 1DY6 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.
- 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
- 22.55% 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.
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%.