DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVN - US25179M1036 - Common Stock
37.4 USD
-0.17 (-0.45%)
37.3328 USD
-0.07 (-0.18%)
Overall DVN gets a fundamental rating of 6 out of 10. We evaluated DVN against 209 industry peers in the Oil, Gas & Consumable Fuels industry. While DVN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DVN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
DVN had positive earnings in the past year.
DVN had a positive operating cash flow in the past year.
Of the past 5 years DVN 4 years were profitable.
Each year in the past 5 years DVN had a positive operating cash flow.
1.2 Ratios
DVN has a Return On Assets of 8.71%. This is amongst the best in the industry. DVN outperforms 87.08% of its industry peers.
The Return On Equity of DVN (17.71%) is better than 84.69% of its industry peers.
With an excellent Return On Invested Capital value of 11.84%, DVN belongs to the best of the industry, outperforming 88.04% of the companies in the same industry.
DVN had an Average Return On Invested Capital over the past 3 years of 20.63%. This is in line with the industry average of 20.87%.
The 3 year average ROIC (20.63%) for DVN 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
DVN's Profit Margin of 15.56% is fine compared to the rest of the industry. DVN outperforms 66.03% of its industry peers.
In the last couple of years the Profit Margin of DVN has declined.
DVN has a Operating Margin of 22.88%. This is in the better half of the industry: DVN outperforms 60.29% of its industry peers.
DVN's Operating Margin has improved in the last couple of years.
DVN has a Gross Margin (47.14%) which is comparable to the rest of the industry.
DVN'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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DVN is creating value.
The number of shares outstanding for DVN has been increased compared to 1 year ago.
Compared to 5 years ago, DVN has more shares outstanding
DVN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.31 indicates that DVN is not a great score, but indicates only limited risk for bankruptcy at the moment.
DVN's Altman-Z score of 2.31 is fine compared to the rest of the industry. DVN outperforms 72.25% of its industry peers.
DVN has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as DVN would need 2.98 years to pay back of all of its debts.
DVN has a Debt to FCF ratio of 2.98. This is in the better half of the industry: DVN outperforms 76.08% of its industry peers.
DVN has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
DVN has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: DVN outperforms 48.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.46
WACC8.12%
2.3 Liquidity
DVN has a Current Ratio of 0.96. This is a bad value and indicates that DVN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.96, DVN is in line with its industry, outperforming 42.11% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that DVN may have some problems paying its short term obligations.
The Quick ratio of DVN (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
DVN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.34%.
Measured over the past years, DVN 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, DVN 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
Based on estimates for the next years, DVN will show a small growth in Earnings Per Share. The EPS will grow by 2.93% on average per year.
DVN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.31% yearly.
EPS Next Y-16.73%
EPS Next 2Y-7.54%
EPS Next 3Y3.25%
EPS Next 5Y2.93%
Revenue Next Year8.04%
Revenue Next 2Y2.02%
Revenue Next 3Y3.23%
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
A Price/Earnings ratio of 8.80 indicates a reasonable valuation of DVN.
Based on the Price/Earnings ratio, DVN is valued cheaply inside the industry as 84.69% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DVN to the average of the S&P500 Index (26.28), we can say DVN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.06, the valuation of DVN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DVN is valued cheaply inside the industry as 80.38% of the companies are valued more expensively.
DVN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVN is valued cheaper than 82.78% of the companies in the same industry.
84.69% of the companies in the same industry are more expensive than DVN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.33 | ||
| EV/EBITDA | 4.01 |
4.3 Compensation for Growth
The decent profitability rating of DVN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-7.54%
EPS Next 3Y3.25%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 2.55%. Purely for dividend investing, there may be better candidates out there.
DVN's Dividend Yield is comparable with the industry average which is at 5.71.
Compared to an average S&P500 Dividend Yield of 2.31, DVN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
5.2 History
On average, the dividend of DVN grows each year by 34.02%, which is quite nice.
DVN has paid a dividend for at least 10 years, which is a reliable track record.
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 DVN. This is a low number and sustainable payout ratio.
DVN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.55%
EPS Next 2Y-7.54%
EPS Next 3Y3.25%
37.4
-0.17 (-0.45%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners76.48%
Inst Owner Change-0.99%
Ins Owners0.39%
Ins Owner Change-0.03%
Market Cap23.46B
Revenue(TTM)17.47B
Net Income(TTM)2.72B
Analysts78.89
Price Target46.26 (23.69%)
Short Float %2.95%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend1.46
Dividend Growth(5Y)34.02%
DP22.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.57%
Min EPS beat(2)-2.06%
Max EPS beat(2)11.19%
EPS beat(4)2
Avg EPS beat(4)4.83%
Min EPS beat(4)-4.28%
Max EPS beat(4)14.49%
EPS beat(8)4
Avg EPS beat(8)4.09%
EPS beat(12)6
Avg EPS beat(12)2.92%
EPS beat(16)10
Avg EPS beat(16)3.87%
Revenue beat(2)2
Avg Revenue beat(2)4.72%
Min Revenue beat(2)4.01%
Max Revenue beat(2)5.44%
Revenue beat(4)4
Avg Revenue beat(4)3.31%
Min Revenue beat(4)0.2%
Max Revenue beat(4)5.44%
Revenue beat(8)7
Avg Revenue beat(8)3.49%
Revenue beat(12)9
Avg Revenue beat(12)1.32%
Revenue beat(16)12
Avg Revenue beat(16)3.1%
PT rev (1m)0.59%
PT rev (3m)0.68%
EPS NQ rev (1m)-4.87%
EPS NQ rev (3m)-6.52%
EPS NY rev (1m)1.48%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)-0.94%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 9.06 | ||
| P/S | 1.34 | ||
| P/FCF | 8.33 | ||
| P/OCF | 3.43 | ||
| P/B | 1.53 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 4.01 |
EPS(TTM)4.25
EY11.36%
EPS(NY)4.13
Fwd EY11.04%
FCF(TTM)4.49
FCFY12.01%
OCF(TTM)10.91
OCFY29.16%
SpS27.85
BVpS24.47
TBVpS23.27
PEG (NY)N/A
PEG (5Y)0.28
Graham Number48.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 17.71% | ||
| ROCE | 14.71% | ||
| ROIC | 11.84% | ||
| ROICexc | 12.4% | ||
| ROICexgc | 12.77% | ||
| OM | 22.88% | ||
| PM (TTM) | 15.56% | ||
| GM | 47.14% | ||
| FCFM | 16.13% |
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
ROICexgc growth 3Y-9.4%
ROICexgc 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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 109.44% | ||
| Cap/Sales | 23.03% | ||
| Interest Coverage | 14.28 | ||
| Cash Conversion | 89.16% | ||
| Profit Quality | 103.64% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.31 |
F-Score6
WACC8.12%
ROIC/WACC1.46
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)-16.34%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-5.45%
EPS Next Y-16.73%
EPS Next 2Y-7.54%
EPS Next 3Y3.25%
EPS Next 5Y2.93%
Revenue 1Y (TTM)11.4%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%7.63%
Revenue Next Year8.04%
Revenue Next 2Y2.02%
Revenue Next 3Y3.23%
Revenue Next 5Y4.31%
EBIT growth 1Y-15.46%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year80.11%
EBIT Next 3Y23.99%
EBIT Next 5Y17.74%
FCF growth 1Y-1.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.83%
OCF growth 3Y10.44%
OCF growth 5Y26.09%
DEVON ENERGY CORP / DVN FAQ
What is the fundamental rating for DVN stock?
ChartMill assigns a fundamental rating of 6 / 10 to DVN.
What is the valuation status for DVN stock?
ChartMill assigns a valuation rating of 7 / 10 to DEVON ENERGY CORP (DVN). This can be considered as Undervalued.
Can you provide the profitability details for DEVON ENERGY CORP?
DEVON ENERGY CORP (DVN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of DEVON ENERGY CORP (DVN) stock?
The Price/Earnings (PE) ratio for DEVON ENERGY CORP (DVN) is 8.8 and the Price/Book (PB) ratio is 1.53.
What is the earnings growth outlook for DEVON ENERGY CORP?
The Earnings per Share (EPS) of DEVON ENERGY CORP (DVN) is expected to decline by -16.73% in the next year.