DEVON ENERGY CORP (DVN)
US25179M1036 - Common Stock
Taking everything into account, DVN scores 5 out of 10 in our fundamental rating. DVN was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of DVN get a neutral evaluation. Nothing too spectacular is happening here. DVN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DVN was profitable.
DVN had a positive operating cash flow in the past year.
In multiple years DVN reported negative net income over the last 5 years.
DVN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 11.25%, DVN is doing good in the industry, outperforming 79.90% of the companies in the same industry.
The Return On Equity of DVN (23.84%) is better than 78.92% of its industry peers.
DVN has a Return On Invested Capital of 13.78%. This is amongst the best in the industry. DVN outperforms 82.35% of its industry peers.
DVN had an Average Return On Invested Capital over the past 3 years of 21.19%. This is significantly below the industry average of 29.02%.
The 3 year average ROIC (21.19%) for DVN is well above the current ROIC(13.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 23.84% | ||
| ROIC | 13.78% |
ROA(3y)17.88%
ROA(5y)4.79%
ROE(3y)38.16%
ROE(5y)3.06%
ROIC(3y)21.19%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DVN (21.71%) is better than 68.63% of its industry peers.
DVN's Profit Margin has declined in the last couple of years.
DVN's Operating Margin of 30.15% is fine compared to the rest of the industry. DVN outperforms 64.22% of its industry peers.
In the last couple of years the Operating Margin of DVN has grown nicely.
The Gross Margin of DVN (51.89%) 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 | 30.15% | ||
| PM (TTM) | 21.71% | ||
| GM | 51.89% |
OM growth 3YN/A
OM growth 5Y14.05%
PM growth 3YN/A
PM growth 5Y-6.49%
GM growth 3Y-12.21%
GM growth 5Y-9.82%
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 reduced compared to 1 year ago.
Compared to 5 years ago, DVN has more shares outstanding
The debt/assets ratio for DVN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.16 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 2.16. This is in the better half of the industry: DVN outperforms 65.20% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that DVN is somewhat dependend on debt financing.
The Debt to Equity ratio of DVN (0.64) is worse than 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.16 |
ROIC/WACC1.7
WACC8.11%
2.3 Liquidity
A Current Ratio of 1.11 indicates that DVN should not have too much problems paying its short term obligations.
DVN has a Current ratio (1.11) which is comparable to the rest of the industry.
A Quick Ratio of 1.01 indicates that DVN should not have too much problems paying its short term obligations.
DVN has a Quick ratio (1.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for DVN have decreased strongly by -14.62% in the last year.
DVN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.60% yearly.
The Revenue for DVN has decreased by -18.47% in the past year. This is quite bad
Measured over the past years, DVN shows a quite strong growth in Revenue. The Revenue has been growing by 11.39% on average per year.
EPS 1Y (TTM)-14.62%
EPS 3YN/A
EPS 5Y34.6%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-18.47%
Revenue growth 3Y46.75%
Revenue growth 5Y11.39%
Sales Q2Q%4.9%
3.2 Future
Based on estimates for the next years, DVN will show a decrease in Earnings Per Share. The EPS will decrease by -4.68% on average per year.
Based on estimates for the next years, DVN will show a small growth in Revenue. The Revenue will grow by 5.16% on average per year.
EPS Next Y-15.47%
EPS Next 2Y-9.37%
EPS Next 3Y-2.58%
EPS Next 5Y-4.68%
Revenue Next Year3.81%
Revenue Next 2Y6.04%
Revenue Next 3Y5.16%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 6.06, the valuation of DVN can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of DVN indicates a rather cheap valuation: DVN is cheaper than 81.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DVN to the average of the S&P500 Index (27.73), we can say DVN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.57, the valuation of DVN can be described as very cheap.
DVN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DVN is cheaper than 77.94% of the companies in the same industry.
DVN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.06 | ||
| Fwd PE | 6.57 |
4.2 Price Multiples
DVN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DVN is cheaper than 74.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.75 |
4.3 Compensation for Growth
The decent profitability rating of DVN may justify a higher PE ratio.
DVN's earnings are expected to decrease with -2.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-9.37%
EPS Next 3Y-2.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.03%, DVN is a good candidate for dividend investing.
The stock price of DVN dropped by -24.56% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DVN's Dividend Yield is comparable with the industry average which is at 7.08.
Compared to an average S&P500 Dividend Yield of 2.34, DVN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
5.2 History
On average, the dividend of DVN grows each year by 56.62%, which is quite nice.
DVN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)56.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
37.66% of the earnings are spent on dividend by DVN. This is a low number and sustainable payout ratio.
DP37.66%
EPS Next 2Y-9.37%
EPS Next 3Y-2.58%
DEVON ENERGY CORP
NYSE:DVN (12/20/2024, 8:06:10 PM)
After market: 30.93 +0.16 (+0.52%)30.77
+0.25 (+0.82%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.05%
Inst Owner Change4.97%
Ins Owners0.72%
Ins Owner Change0%
Market Cap20.21B
Analysts74.29
Price Target52.16 (69.52%)
Short Float %3.3%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
Dividend Growth(5Y)56.62%
DP37.66%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.24%
Min EPS beat(2)-0.04%
Max EPS beat(2)10.51%
EPS beat(4)2
Avg EPS beat(4)3.34%
Min EPS beat(4)-0.66%
Max EPS beat(4)10.51%
EPS beat(8)4
Avg EPS beat(8)1.96%
EPS beat(12)8
Avg EPS beat(12)3.55%
EPS beat(16)11
Avg EPS beat(16)0.37%
Revenue beat(2)1
Avg Revenue beat(2)3.06%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)6.51%
Revenue beat(4)3
Avg Revenue beat(4)3.68%
Min Revenue beat(4)-0.38%
Max Revenue beat(4)6.51%
Revenue beat(8)5
Avg Revenue beat(8)0.33%
Revenue beat(12)8
Avg Revenue beat(12)3.03%
Revenue beat(16)11
Avg Revenue beat(16)2.07%
PT rev (1m)-2.27%
PT rev (3m)-9.82%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-28.73%
EPS NY rev (1m)-2.91%
EPS NY rev (3m)-10.99%
Revenue NQ rev (1m)0.65%
Revenue NQ rev (3m)6.51%
Revenue NY rev (1m)1.13%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.06 | ||
| Fwd PE | 6.57 | ||
| P/S | 1.29 | ||
| P/FCF | N/A | ||
| P/OCF | 3.03 | ||
| P/B | 1.42 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 3.75 |
EPS(TTM)5.08
EY16.51%
EPS(NY)4.68
Fwd EY15.21%
FCF(TTM)-1
FCFYN/A
OCF(TTM)10.16
OCFY33.01%
SpS23.87
BVpS21.73
TBVpS20.59
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 23.84% | ||
| ROCE | 17.28% | ||
| ROIC | 13.78% | ||
| ROICexc | 14.13% | ||
| ROICexgc | 14.54% | ||
| OM | 30.15% | ||
| PM (TTM) | 21.71% | ||
| GM | 51.89% | ||
| FCFM | N/A |
ROA(3y)17.88%
ROA(5y)4.79%
ROE(3y)38.16%
ROE(5y)3.06%
ROIC(3y)21.19%
ROIC(5y)N/A
ROICexc(3y)22.92%
ROICexc(5y)N/A
ROICexgc(3y)23.89%
ROICexgc(5y)N/A
ROCE(3y)26.57%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y18.52%
ROICexc growth 3YN/A
ROICexc growth 5Y19.02%
OM growth 3YN/A
OM growth 5Y14.05%
PM growth 3YN/A
PM growth 5Y-6.49%
GM growth 3Y-12.21%
GM growth 5Y-9.82%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 249.86% | ||
| Cap/Sales | 46.75% | ||
| Interest Coverage | 12.54 | ||
| Cash Conversion | 87.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 2.16 |
F-Score5
WACC8.11%
ROIC/WACC1.7
Cap/Depr(3y)159.36%
Cap/Depr(5y)139.41%
Cap/Sales(3y)23.02%
Cap/Sales(5y)24.86%
Profit Quality(3y)76.79%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.62%
EPS 3YN/A
EPS 5Y34.6%
EPS Q2Q%-33.33%
EPS Next Y-15.47%
EPS Next 2Y-9.37%
EPS Next 3Y-2.58%
EPS Next 5Y-4.68%
Revenue 1Y (TTM)-18.47%
Revenue growth 3Y46.75%
Revenue growth 5Y11.39%
Sales Q2Q%4.9%
Revenue Next Year3.81%
Revenue Next 2Y6.04%
Revenue Next 3Y5.16%
Revenue Next 5YN/A
EBIT growth 1Y-25.01%
EBIT growth 3YN/A
EBIT growth 5Y27.05%
EBIT Next Year57.53%
EBIT Next 3Y20.08%
EBIT Next 5Y11.88%
FCF growth 1Y-119.38%
FCF growth 3Y137.85%
FCF growth 5Y37.26%
OCF growth 1Y-18.76%
OCF growth 3Y69.07%
OCF growth 5Y19.33%