DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - NYSE:DVN - US25179M1036 - Common Stock
35.65 USD
+0.49 (+1.39%)
35.5021 USD
-0.15 (-0.41%)
We assign a fundamental rating of 6 out of 10 to DVN. DVN was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While DVN has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DVN.
1. Profitability
1.1 Basic Checks
In the past year DVN was profitable.
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
Looking at the Return On Assets, with a value of 8.71%, DVN belongs to the top of the industry, outperforming 83.81% of the companies in the same industry.
DVN's Return On Equity of 17.71% is amongst the best of the industry. DVN outperforms 81.43% of its industry peers.
DVN's Return On Invested Capital of 11.84% is amongst the best of the industry. DVN outperforms 86.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DVN is in line with the industry average of 21.66%.
The last Return On Invested Capital (11.84%) for DVN is well below the 3 year average (20.63%), which needs to be investigated, but indicates that DVN had better years and this may not be a problem.
| 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 DVN (15.56%) is better than 64.29% 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 60.48% of its industry peers.
In the last couple of years the Operating Margin of DVN has grown nicely.
The Gross Margin of DVN (47.14%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DVN 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
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.
The number of shares outstanding for DVN has been increased compared to 5 years ago.
The debt/assets ratio for DVN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.26 indicates that DVN is not a great score, but indicates only limited risk for bankruptcy at the moment.
DVN has a Altman-Z score of 2.26. This is in the better half of the industry: DVN outperforms 71.90% 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.
Looking at the Debt to FCF ratio, with a value of 2.98, DVN is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
DVN 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 DVN (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.45
WACC8.17%
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.
DVN has a Current ratio (0.96) which is comparable to the rest of the industry.
DVN has a Quick 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.
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%.
The Earnings Per Share has been growing by 31.25% on average over the past years. This is a very strong growth
DVN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.40%.
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
DVN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.54% yearly.
Based on estimates for the next years, DVN will show a small growth in Revenue. The Revenue will grow by 4.66% on average per year.
EPS Next Y-17.94%
EPS Next 2Y-8%
EPS Next 3Y1.97%
EPS Next 5Y2.54%
Revenue Next Year7.54%
Revenue Next 2Y2.63%
Revenue Next 3Y3.73%
Revenue Next 5Y4.66%
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
The Price/Earnings ratio is 8.39, which indicates a very decent valuation of DVN.
85.24% of the companies in the same industry are more expensive than DVN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.07, DVN is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.72, the valuation of DVN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DVN indicates a rather cheap valuation: DVN is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DVN to the average of the S&P500 Index (34.08), we can say DVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
DVN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVN is cheaper than 83.33% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DVN indicates a rather cheap valuation: DVN is cheaper than 85.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.03 | ||
| EV/EBITDA | 3.84 |
4.3 Compensation for Growth
DVN 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%
EPS Next 3Y1.97%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 2.74%.
Compared to an average industry Dividend Yield of 5.90, DVN has a dividend in line with its industry peers.
DVN's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
On average, the dividend of DVN grows each year by 34.02%, which is quite nice.
DVN has been paying a dividend for at least 10 years, so it has 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-8%
EPS Next 3Y1.97%
35.65
+0.49 (+1.39%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.94%
Inst Owner Change-0.91%
Ins Owners0.4%
Ins Owner Change1.19%
Market Cap22.63B
Revenue(TTM)17.47B
Net Income(TTM)2.72B
Analysts78.89
Price Target45.99 (29%)
Short Float %2.92%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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)-0.07%
PT rev (3m)0.75%
EPS NQ rev (1m)-2.68%
EPS NQ rev (3m)2.19%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)-2.66%
Revenue NQ rev (3m)2.65%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.39 | ||
| Fwd PE | 8.72 | ||
| P/S | 1.3 | ||
| P/FCF | 8.03 | ||
| P/OCF | 3.31 | ||
| P/B | 1.47 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 3.84 |
EPS(TTM)4.25
EY11.92%
EPS(NY)4.09
Fwd EY11.47%
FCF(TTM)4.44
FCFY12.45%
OCF(TTM)10.78
OCFY30.23%
SpS27.52
BVpS24.18
TBVpS22.99
PEG (NY)N/A
PEG (5Y)0.27
Graham Number48.09
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 | 2.26 |
F-Score6
WACC8.17%
ROIC/WACC1.45
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-17.94%
EPS Next 2Y-8%
EPS Next 3Y1.97%
EPS Next 5Y2.54%
Revenue 1Y (TTM)11.4%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%7.63%
Revenue Next Year7.54%
Revenue Next 2Y2.63%
Revenue Next 3Y3.73%
Revenue Next 5Y4.66%
EBIT growth 1Y-15.46%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year80.56%
EBIT Next 3Y25.52%
EBIT Next 5Y16.65%
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 8.39 and the Price/Book (PB) ratio is 1.47.
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 -17.94% in the next year.