DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - NYSE:DVN - US25179M1036 - Common Stock
35.16 USD
-0.12 (-0.34%)
35.23 USD
+0.07 (+0.2%)
Taking everything into account, DVN scores 6 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 some minor concerns on its financial health. DVN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year DVN was profitable.
In the past year DVN had a positive cash flow from operations.
DVN had positive earnings in 4 of the past 5 years.
In the past 5 years DVN always reported a positive cash flow from operatings.
1.2 Ratios
DVN has a Return On Assets of 8.71%. This is amongst the best in the industry. DVN outperforms 83.81% of its industry peers.
DVN has a better Return On Equity (17.71%) than 81.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.84%, DVN belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DVN is in line with the industry average of 21.66%.
The 3 year average ROIC (20.63%) for DVN is well above the current ROIC(11.84%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 17.71% | ||
| ROIC | 11.84% |
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
With a decent Profit Margin value of 15.56%, DVN is doing good in the industry, outperforming 64.29% of the companies in the same industry.
DVN's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 22.88%, 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.
Looking at the Gross Margin, with a value of 47.14%, DVN is in line with its industry, outperforming 56.67% of the companies in the same industry.
In the last couple of years the Gross Margin of DVN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.88% | ||
| PM (TTM) | 15.56% | ||
| GM | 47.14% |
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
DVN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DVN has been increased compared to 1 year ago.
The number of shares outstanding for DVN has been increased compared to 5 years ago.
The debt/assets ratio for DVN is higher compared to a year ago.
2.2 Solvency
DVN has an Altman-Z score of 2.26. 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.
Looking at the Altman-Z score, with a value of 2.26, DVN is in the better half of the industry, outperforming 70.48% of the companies in the same industry.
The Debt to FCF ratio of DVN is 2.98, which is a good value as it means it would take DVN, 2.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.98, DVN is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
DVN has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DVN (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.45
WACC8.17%
2.3 Liquidity
A Current Ratio of 0.96 indicates that DVN may have some problems paying its short term obligations.
With a Current ratio value of 0.96, DVN perfoms like the industry average, outperforming 43.81% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that DVN may have some problems paying its short term obligations.
The Quick ratio of DVN (0.87) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
DVN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.34%.
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 11.40% 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)-16.34%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-5.45%
Revenue 1Y (TTM)11.4%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%7.63%
3.2 Future
Based on estimates for the next years, DVN will show a small growth in Earnings Per Share. The EPS will grow by 2.54% on average per year.
DVN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.66% yearly.
EPS Next Y-17.94%
EPS Next 2Y-8%
EPS Next 3Y1.97%
EPS Next 5Y2.54%
Revenue Next Year7.54%
Revenue Next 2Y2.63%
Revenue Next 3Y3.73%
Revenue Next 5Y4.66%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 8.27, which indicates a very decent valuation of DVN.
85.71% of the companies in the same industry are more expensive than DVN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.07. DVN is valued rather cheaply when compared to this.
DVN is valuated reasonably with a Price/Forward Earnings ratio of 8.60.
83.81% of the companies in the same industry are more expensive than DVN, based on the Price/Forward Earnings ratio.
DVN is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.27 | ||
| Fwd PE | 8.6 |
4.2 Price Multiples
DVN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVN is cheaper than 83.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DVN is valued cheaply inside the industry as 86.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.92 | ||
| EV/EBITDA | 3.85 |
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-8%
EPS Next 3Y1.97%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 2.74%.
DVN's Dividend Yield is comparable with the industry average which is at 5.90.
DVN's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
On average, the dividend of DVN grows each year by 34.02%, which is quite nice.
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
22.55% 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.
DP22.55%
EPS Next 2Y-8%
EPS Next 3Y1.97%
35.16
-0.12 (-0.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.94%
Inst Owner Change-0.91%
Ins Owners0.4%
Ins Owner Change1.19%
Market Cap22.32B
Revenue(TTM)17.47B
Net Income(TTM)2.72B
Analysts78.89
Price Target45.99 (30.8%)
Short Float %2.92%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend1.46
Dividend Growth(5Y)34.02%
DP22.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.57%
Min EPS beat(2)-2.06%
Max EPS beat(2)11.19%
EPS beat(4)2
Avg EPS beat(4)4.83%
Min EPS beat(4)-4.28%
Max EPS beat(4)14.49%
EPS beat(8)4
Avg EPS beat(8)4.09%
EPS beat(12)6
Avg EPS beat(12)2.92%
EPS beat(16)10
Avg EPS beat(16)3.87%
Revenue beat(2)2
Avg Revenue beat(2)4.72%
Min Revenue beat(2)4.01%
Max Revenue beat(2)5.44%
Revenue beat(4)4
Avg Revenue beat(4)3.31%
Min Revenue beat(4)0.2%
Max Revenue beat(4)5.44%
Revenue beat(8)7
Avg Revenue beat(8)3.49%
Revenue beat(12)9
Avg Revenue beat(12)1.32%
Revenue beat(16)12
Avg Revenue beat(16)3.1%
PT rev (1m)-0.07%
PT rev (3m)0.75%
EPS NQ rev (1m)-2.68%
EPS NQ rev (3m)2.19%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)-2.66%
Revenue NQ rev (3m)2.65%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.27 | ||
| Fwd PE | 8.6 | ||
| P/S | 1.28 | ||
| P/FCF | 7.92 | ||
| P/OCF | 3.26 | ||
| P/B | 1.45 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 3.85 |
EPS(TTM)4.25
EY12.09%
EPS(NY)4.09
Fwd EY11.63%
FCF(TTM)4.44
FCFY12.63%
OCF(TTM)10.78
OCFY30.65%
SpS27.52
BVpS24.18
TBVpS22.99
PEG (NY)N/A
PEG (5Y)0.26
Graham Number48.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 17.71% | ||
| ROCE | 14.71% | ||
| ROIC | 11.84% | ||
| ROICexc | 12.4% | ||
| ROICexgc | 12.77% | ||
| OM | 22.88% | ||
| PM (TTM) | 15.56% | ||
| GM | 47.14% | ||
| FCFM | 16.13% |
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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 109.44% | ||
| Cap/Sales | 23.03% | ||
| Interest Coverage | 14.28 | ||
| Cash Conversion | 89.16% | ||
| Profit Quality | 103.64% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.26 |
F-Score6
WACC8.17%
ROIC/WACC1.45
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)-16.34%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-5.45%
EPS Next Y-17.94%
EPS Next 2Y-8%
EPS Next 3Y1.97%
EPS Next 5Y2.54%
Revenue 1Y (TTM)11.4%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%7.63%
Revenue Next Year7.54%
Revenue Next 2Y2.63%
Revenue Next 3Y3.73%
Revenue Next 5Y4.66%
EBIT growth 1Y-15.46%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year80.56%
EBIT Next 3Y25.52%
EBIT Next 5Y16.65%
FCF growth 1Y-1.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.83%
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 6 / 10 to DVN.
What is the valuation status for DVN stock?
ChartMill assigns a valuation rating of 7 / 10 to DEVON ENERGY CORP (DVN). This can be considered as Undervalued.
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 8.27 and the Price/Book (PB) ratio is 1.45.
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 -17.94% in the next year.