DEVON ENERGY CORP (DVN)
US25179M1036 - Common Stock
Overall DVN gets a fundamental rating of 5 out of 10. We evaluated DVN against 204 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
In the past year DVN was profitable.
DVN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: DVN reported negative net income in multiple years.
In the past 5 years DVN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.25%, DVN is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
The Return On Equity of DVN (23.84%) is better than 77.34% of its industry peers.
DVN's Return On Invested Capital of 13.78% is amongst the best of the industry. DVN outperforms 81.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DVN is in line with the industry average of 22.54%.
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
The Profit Margin of DVN (21.71%) is better than 68.47% of its industry peers.
DVN's Profit Margin has declined in the last couple of years.
The Operating Margin of DVN (30.15%) is better than 63.05% 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
DVN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
DVN has less shares outstanding than it did 1 year ago.
DVN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DVN has an improved debt to assets ratio.
2.2 Solvency
DVN has an Altman-Z score of 2.35. This is not the best score and indicates that DVN is in the grey zone with still only limited risk for bankruptcy at the moment.
DVN's Altman-Z score of 2.35 is fine compared to the rest of the industry. DVN outperforms 65.52% 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 61.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.35 |
ROIC/WACC1.69
WACC8.13%
2.3 Liquidity
A Current Ratio of 1.11 indicates that DVN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, DVN perfoms like the industry average, outperforming 44.34% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that DVN should not have too much problems paying its short term obligations.
DVN's Quick ratio of 1.01 is in line compared to the rest of the industry. DVN outperforms 49.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
DVN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.62%.
Measured over the past years, DVN shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.60% on average per year.
DVN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.47%.
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 -3.13% on average per year.
Based on estimates for the next years, DVN will show a small growth in Revenue. The Revenue will grow by 5.06% on average per year.
EPS Next Y-12.93%
EPS Next 2Y-6.87%
EPS Next 3Y-2.98%
EPS Next 5Y-3.13%
Revenue Next Year2.65%
Revenue Next 2Y5.6%
Revenue Next 3Y5.06%
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
With a Price/Earnings ratio of 7.62, the valuation of DVN can be described as very cheap.
DVN's Price/Earnings ratio is a bit cheaper when compared to the industry. DVN is cheaper than 75.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of DVN to the average of the S&P500 Index (28.96), we can say DVN is valued rather cheaply.
The Price/Forward Earnings ratio is 7.83, which indicates a rather cheap valuation of DVN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DVN indicates a somewhat cheap valuation: DVN is cheaper than 76.85% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. DVN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
70.94% of the companies in the same industry are more expensive than DVN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.4 |
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 -2.98% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-6.87%
EPS Next 3Y-2.98%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 3.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.45, DVN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, DVN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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-6.87%
EPS Next 3Y-2.98%
DEVON ENERGY CORP
NYSE:DVN (11/21/2024, 6:40:00 PM)
After market: 38.75 +0.05 (+0.13%)38.7
+0.4 (+1.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 23.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.15% | ||
| PM (TTM) | 21.71% | ||
| GM | 51.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-14.62%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-12.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.47%
Revenue growth 3Y46.75%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y