DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - NYSE:DVN - US25179M1036 - Common Stock
34.97 USD
+1.2 (+3.55%)
34.736 USD
-0.23 (-0.67%)
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 scores excellent on profitability, but there are concerns on its financial health. DVN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
DVN had positive earnings in the past year.
In the past year DVN had a positive cash flow from operations.
DVN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DVN had a positive operating cash flow.
1.2 Ratios
DVN has a Return On Assets of 9.06%. This is amongst the best in the industry. DVN outperforms 82.86% of its industry peers.
DVN has a Return On Equity of 18.88%. This is amongst the best in the industry. DVN outperforms 82.86% of its industry peers.
DVN's Return On Invested Capital of 12.18% is amongst the best of the industry. DVN outperforms 87.62% of its industry peers.
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 21.90%.
The 3 year average ROIC (20.63%) for DVN is well above the current ROIC(12.18%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 18.88% | ||
| ROIC | 12.18% |
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 (16.57%) is better than 68.57% of its industry peers.
In the last couple of years the Profit Margin of DVN has declined.
With a decent Operating Margin value of 24.54%, DVN is doing good in the industry, outperforming 60.48% of the companies in the same industry.
In the last couple of years the Operating Margin of DVN has grown nicely.
DVN has a Gross Margin (48.73%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DVN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.54% | ||
| PM (TTM) | 16.57% | ||
| GM | 48.73% |
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.
Compared to 1 year ago, DVN has more shares outstanding
Compared to 5 years ago, DVN has more shares outstanding
Compared to 1 year ago, DVN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.22 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 2.22. This is in the better half of the industry: DVN outperforms 72.38% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that DVN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, DVN is in line with its industry, outperforming 45.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.22 |
ROIC/WACC1.5
WACC8.11%
2.3 Liquidity
A Current Ratio of 1.22 indicates that DVN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.22, DVN perfoms like the industry average, outperforming 55.24% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that DVN should not have too much problems paying its short term obligations.
DVN has a Quick ratio of 1.13. This is in the better half of the industry: DVN outperforms 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for DVN have decreased strongly by -23.45% in the last year.
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.
The Revenue has grown by 10.77% in the past year. This is quite good.
Measured over the past years, DVN shows a very strong growth in Revenue. The Revenue has been growing by 20.71% on average per year.
EPS 1Y (TTM)-23.45%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-40.43%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%9.37%
3.2 Future
The Earnings Per Share is expected to grow by 1.52% on average over the next years.
DVN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.70% yearly.
EPS Next Y-17.37%
EPS Next 2Y-4.96%
EPS Next 3Y4.11%
EPS Next 5Y1.52%
Revenue Next Year8.4%
Revenue Next 2Y4.01%
Revenue Next 3Y4.61%
Revenue Next 5Y4.7%
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
The Price/Earnings ratio is 8.11, which indicates a very decent valuation of DVN.
Based on the Price/Earnings ratio, DVN is valued cheaper than 85.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of DVN to the average of the S&P500 Index (27.20), we can say DVN is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.02, the valuation of DVN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DVN is valued cheaper than 82.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DVN to the average of the S&P500 Index (22.71), we can say DVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 8.02 |
4.2 Price Multiples
84.29% 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 | 3.66 |
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)0.26
EPS Next 2Y-4.96%
EPS Next 3Y4.11%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 2.72%.
DVN's Dividend Yield is comparable with the industry average which is at 6.18.
DVN's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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
DVN pays out 25.81% of its income as dividend. This is a sustainable payout ratio.
DVN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.81%
EPS Next 2Y-4.96%
EPS Next 3Y4.11%
34.97
+1.2 (+3.55%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.51%
Inst Owner Change-2.08%
Ins Owners0.4%
Ins Owner Change0.06%
Market Cap22.20B
Analysts78.86
Price Target46.13 (31.91%)
Short Float %2.59%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend1.46
Dividend Growth(5Y)34.02%
DP25.81%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.17%
Min EPS beat(2)-4.28%
Max EPS beat(2)-2.06%
EPS beat(4)1
Avg EPS beat(4)2.03%
Min EPS beat(4)-4.28%
Max EPS beat(4)14.49%
EPS beat(8)4
Avg EPS beat(8)3.22%
EPS beat(12)6
Avg EPS beat(12)2.13%
EPS beat(16)10
Avg EPS beat(16)4.13%
Revenue beat(2)2
Avg Revenue beat(2)2.82%
Min Revenue beat(2)0.2%
Max Revenue beat(2)5.44%
Revenue beat(4)4
Avg Revenue beat(4)3.94%
Min Revenue beat(4)0.2%
Max Revenue beat(4)6.51%
Revenue beat(8)7
Avg Revenue beat(8)3%
Revenue beat(12)9
Avg Revenue beat(12)1.7%
Revenue beat(16)12
Avg Revenue beat(16)3.21%
PT rev (1m)1.08%
PT rev (3m)1.11%
EPS NQ rev (1m)1.61%
EPS NQ rev (3m)1.5%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)1.27%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)1.59%
Revenue NY rev (3m)2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.11 | ||
| Fwd PE | 8.02 | ||
| P/S | 1.29 | ||
| P/FCF | N/A | ||
| P/OCF | 3.26 | ||
| P/B | 1.47 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 3.66 |
EPS(TTM)4.31
EY12.32%
EPS(NY)4.36
Fwd EY12.48%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)10.73
OCFY30.7%
SpS27.04
BVpS23.72
TBVpS22.54
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 18.88% | ||
| ROCE | 15.12% | ||
| ROIC | 12.18% | ||
| ROICexc | 13% | ||
| ROICexgc | 13.39% | ||
| OM | 24.54% | ||
| PM (TTM) | 16.57% | ||
| GM | 48.73% | ||
| FCFM | N/A |
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
ROICexcg growth 3Y-9.4%
ROICexcg 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-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 207.05% | ||
| Cap/Sales | 43.32% | ||
| Interest Coverage | 9.32 | ||
| Cash Conversion | 87.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.22 |
F-Score5
WACC8.11%
ROIC/WACC1.5
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)-23.45%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-40.43%
EPS Next Y-17.37%
EPS Next 2Y-4.96%
EPS Next 3Y4.11%
EPS Next 5Y1.52%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%9.37%
Revenue Next Year8.4%
Revenue Next 2Y4.01%
Revenue Next 3Y4.61%
Revenue Next 5Y4.7%
EBIT growth 1Y-10.33%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year79.27%
EBIT Next 3Y24.99%
EBIT Next 5Y17.43%
FCF growth 1Y-158.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.99%
OCF growth 3Y10.44%
OCF growth 5Y26.09%