DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - NYSE:DVN - US25179M1036 - Common Stock
32.97 USD
-0.47 (-1.41%)
32.95 USD
-0.02 (-0.06%)
Taking everything into account, DVN scores 5 out of 10 in our fundamental rating. DVN was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. While DVN has a great profitability rating, there are quite some concerns on its financial health. DVN has a correct valuation and a medium 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.
DVN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DVN has a better Return On Assets (9.06%) than 83.73% of its industry peers.
With an excellent Return On Equity value of 18.88%, DVN belongs to the best of the industry, outperforming 83.25% of the companies in the same industry.
DVN has a Return On Invested Capital of 12.18%. This is amongst the best in the industry. DVN outperforms 87.56% 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 21.61%.
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 68.42% of its industry peers.
DVN's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 24.54%, DVN is doing good in the industry, outperforming 61.72% of the companies in the same industry.
DVN's Operating Margin has improved in the last couple of years.
DVN has a Gross Margin (48.73%) which is in line with its industry peers.
DVN's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DVN is creating value.
Compared to 1 year ago, DVN has more shares outstanding
DVN has more shares outstanding than it did 5 years ago.
DVN has a worse debt/assets ratio than last year.
2.2 Solvency
DVN has an Altman-Z score of 2.20. 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 has a better Altman-Z score (2.20) than 70.81% 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 44.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.2 |
ROIC/WACC1.53
WACC7.94%
2.3 Liquidity
DVN has a Current Ratio of 1.22. This is a normal value and indicates that DVN is financially healthy and should not expect problems in meeting its short term obligations.
DVN has a Current ratio (1.22) which is in line with its industry peers.
A Quick Ratio of 1.13 indicates that DVN should not have too much problems paying its short term obligations.
The Quick ratio of DVN (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
DVN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.45%.
The Earnings Per Share has been growing by 31.25% on average over the past years. This is a very strong growth
Looking at the last year, DVN shows a quite strong growth in Revenue. The Revenue has grown by 10.77% in the last year.
DVN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.71% yearly.
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 2.71% on average over the next years.
The Revenue is expected to grow by 4.70% on average over the next years.
EPS Next Y-17.43%
EPS Next 2Y-5.83%
EPS Next 3Y2.41%
EPS Next 5Y2.71%
Revenue Next Year8.19%
Revenue Next 2Y3.49%
Revenue Next 3Y4.11%
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.
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
DVN is valuated cheaply with a Price/Earnings ratio of 7.65.
Based on the Price/Earnings ratio, DVN is valued cheaper than 85.17% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, DVN is valued rather cheaply.
DVN is valuated cheaply with a Price/Forward Earnings ratio of 7.70.
Based on the Price/Forward Earnings ratio, DVN is valued cheaply inside the industry as 84.69% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of DVN to the average of the S&P500 Index (22.92), we can say DVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
DVN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVN is cheaper than 85.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.6 |
4.3 Compensation for Growth
The decent profitability rating of DVN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-5.83%
EPS Next 3Y2.41%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 2.81%.
DVN's Dividend Yield is comparable with the industry average which is at 6.16.
DVN's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
The dividend of DVN is nicely growing with an annual growth rate of 34.02%!
DVN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)34.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
25.81% of the earnings are spent on dividend by DVN. This is a low number and sustainable payout ratio.
The dividend of DVN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.81%
EPS Next 2Y-5.83%
EPS Next 3Y2.41%
32.97
-0.47 (-1.41%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.94%
Inst Owner Change-0.07%
Ins Owners0.4%
Ins Owner Change0.07%
Market Cap20.93B
Revenue(TTM)17.16B
Net Income(TTM)2.84B
Analysts78.86
Price Target46.02 (39.58%)
Short Float %2.68%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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)-0.25%
PT rev (3m)1.92%
EPS NQ rev (1m)3.1%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | 7.7 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | 3.07 | ||
| P/B | 1.39 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 3.6 |
EPS(TTM)4.31
EY13.07%
EPS(NY)4.28
Fwd EY12.99%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)10.73
OCFY32.56%
SpS27.04
BVpS23.72
TBVpS22.54
PEG (NY)N/A
PEG (5Y)0.24
Graham Number47.96
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
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-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 | 2.2 |
F-Score5
WACC7.94%
ROIC/WACC1.53
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-17.43%
EPS Next 2Y-5.83%
EPS Next 3Y2.41%
EPS Next 5Y2.71%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%9.37%
Revenue Next Year8.19%
Revenue Next 2Y3.49%
Revenue Next 3Y4.11%
Revenue Next 5Y4.7%
EBIT growth 1Y-10.33%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year80.56%
EBIT Next 3Y25.52%
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%
DEVON ENERGY CORP / DVN FAQ
What is the fundamental rating for DVN stock?
ChartMill assigns a fundamental rating of 5 / 10 to DVN.
What is the valuation status for DVN stock?
ChartMill assigns a valuation rating of 6 / 10 to DEVON ENERGY CORP (DVN). This can be considered as Fairly Valued.
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 7.65 and the Price/Book (PB) ratio is 1.39.
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 -17.43% in the next year.