DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
NYSE:DVN - New York Stock Exchange, Inc. - US25179M1036 - Common Stock
DVN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. DVN has only an average score on both its financial health and profitability. DVN is valued correctly, but it does not seem to be growing.
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.
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
Looking at the Return On Assets, with a value of 11.25%, DVN belongs to the top of the industry, outperforming 80.58% of the companies in the same industry.
Looking at the Return On Equity, with a value of 23.84%, DVN is in the better half of the industry, outperforming 79.13% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.78%, DVN belongs to the top of the industry, outperforming 81.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DVN is significantly below the industry average of 28.71%.
The last Return On Invested Capital (13.78%) for DVN is well below the 3 year average (21.19%), which needs to be investigated, but indicates that DVN had better years and this may not be a problem.
| 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
DVN's Profit Margin of 21.71% is fine compared to the rest of the industry. DVN outperforms 69.42% of its industry peers.
DVN's Profit Margin has declined in the last couple of years.
DVN has a Operating Margin of 30.15%. This is in the better half of the industry: DVN outperforms 65.53% of its industry peers.
In the last couple of years the Operating Margin of DVN has grown nicely.
DVN's Gross Margin of 51.89% is in line compared to the rest of the industry. DVN outperforms 57.28% of its industry peers.
In the last couple of years the Gross Margin of DVN has declined.
| 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.
Compared to 1 year ago, DVN has less shares outstanding
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 2.34 indicates that DVN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DVN (2.34) is better than 65.53% of its industry peers.
DVN has a Debt/Equity ratio of 0.64. This is a neutral value indicating DVN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, DVN is doing worse than 62.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.34 |
ROIC/WACC1.64
WACC8.4%
2.3 Liquidity
DVN has a Current Ratio of 1.11. This is a normal value and indicates that DVN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DVN (1.11) is comparable to the rest of the industry.
DVN has a Quick Ratio of 1.01. This is a normal value and indicates that DVN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.01, DVN is in line with its industry, outperforming 47.57% of the companies in the same 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.
The Earnings Per Share has been growing by 34.60% on average over the past years. This is a very strong growth
Looking at the last year, DVN shows a very negative growth in Revenue. The Revenue has decreased by -18.47% in the last year.
The Revenue has been growing by 11.39% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to decrease by -4.68% on average over the next years.
The Revenue is expected to grow by 4.95% on average over the next years.
EPS Next Y-15.47%
EPS Next 2Y-9.37%
EPS Next 3Y-2.58%
EPS Next 5Y-4.68%
Revenue Next Year4.08%
Revenue Next 2Y5.59%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 7.23, the valuation of DVN can be described as very cheap.
Based on the Price/Earnings ratio, DVN is valued a bit cheaper than 78.16% of the companies in the same industry.
When comparing the Price/Earnings ratio of DVN to the average of the S&P500 Index (28.29), we can say DVN is valued rather cheaply.
DVN is valuated cheaply with a Price/Forward Earnings ratio of 7.85.
Based on the Price/Forward Earnings ratio, DVN is valued a bit cheaper than the industry average as 74.76% of the companies are valued more expensively.
DVN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 7.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVN is valued a bit cheaper than the industry average as 72.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.37 |
4.3 Compensation for Growth
DVN has a very decent profitability rating, which 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)0.21
EPS Next 2Y-9.37%
EPS Next 3Y-2.58%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 3.24%.
DVN's Dividend Yield is comparable with the industry average which is at 6.39.
DVN's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
The dividend of DVN is nicely growing with an annual growth rate of 56.62%!
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
DVN pays out 37.66% of its income as dividend. This is a sustainable payout ratio.
DP37.66%
EPS Next 2Y-9.37%
EPS Next 3Y-2.58%
DEVON ENERGY CORP
NYSE:DVN (1/21/2025, 10:03:27 PM)
After market: 36.7219 -0.01 (-0.02%)36.73
-1.22 (-3.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.05%
Inst Owner Change-0.35%
Ins Owners0.72%
Ins Owner Change0%
Market Cap24.13B
Analysts74.86
Price Target51.25 (39.53%)
Short Float %4.12%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend2.88
Dividend Growth(5Y)56.62%
DP37.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-1.74%
PT rev (3m)-8.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.51%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 7.85 | ||
| P/S | 1.54 | ||
| P/FCF | N/A | ||
| P/OCF | 3.62 | ||
| P/B | 1.69 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 4.37 |
EPS(TTM)5.08
EY13.83%
EPS(NY)4.68
Fwd EY12.75%
FCF(TTM)-1
FCFYN/A
OCF(TTM)10.16
OCFY27.66%
SpS23.87
BVpS21.73
TBVpS20.59
PEG (NY)N/A
PEG (5Y)0.21
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 | 2.34 |
F-Score5
WACC8.4%
ROIC/WACC1.64
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 Year4.08%
Revenue Next 2Y5.59%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
EBIT growth 1Y-25.01%
EBIT growth 3YN/A
EBIT growth 5Y27.05%
EBIT Next Year57.75%
EBIT Next 3Y20.1%
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%