DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
NYSE:DVN - New York Stock Exchange, Inc. - US25179M1036 - Common Stock - Currency: USD
DVN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 211 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
In the past year DVN was profitable.
In the past year DVN had a positive cash flow from operations.
Of the past 5 years DVN 4 years were profitable.
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 9.02%, DVN belongs to the top of the industry, outperforming 81.04% of the companies in the same industry.
With an excellent Return On Equity value of 19.17%, DVN belongs to the best of the industry, outperforming 83.41% of the companies in the same industry.
DVN has a better Return On Invested Capital (12.88%) than 88.15% of its industry peers.
DVN had an Average Return On Invested Capital over the past 3 years of 20.63%. This is below the industry average of 23.70%.
The last Return On Invested Capital (12.88%) for DVN is well below the 3 year average (20.63%), which needs to be investigated, but indicates that DVN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.02% | ||
| ROE | 19.17% | ||
| ROIC | 12.88% |
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 (16.61%) is better than 67.77% of its industry peers.
In the last couple of years the Profit Margin of DVN has declined.
With a decent Operating Margin value of 26.00%, DVN is doing good in the industry, outperforming 60.19% 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 (49.75%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DVN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26% | ||
| PM (TTM) | 16.61% | ||
| GM | 49.75% |
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.
DVN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DVN has more shares outstanding
DVN has a worse debt/assets ratio than last year.
2.2 Solvency
DVN has an Altman-Z score of 2.15. 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.
With a decent Altman-Z score value of 2.15, DVN is doing good in the industry, outperforming 70.62% of the companies in the same industry.
DVN has a Debt/Equity ratio of 0.58. This is a neutral value indicating DVN is somewhat dependend on debt financing.
DVN has a Debt to Equity ratio (0.58) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.15 |
ROIC/WACC1.57
WACC8.21%
2.3 Liquidity
DVN has a Current Ratio of 1.08. 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 (1.08) is comparable to the rest of the industry.
DVN has a Quick Ratio of 1.08. This is a bad value and indicates that DVN is not financially healthy enough and could expect problems in meeting its short term obligations.
DVN's Quick ratio of 0.99 is in line compared to the rest of the industry. DVN outperforms 51.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
DVN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.63%.
DVN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.25% yearly.
DVN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.92%.
DVN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.71% yearly.
EPS 1Y (TTM)-9.63%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%4.31%
Revenue 1Y (TTM)-10.92%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%23.8%
3.2 Future
DVN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.06% yearly.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y-18.41%
EPS Next 2Y-6.95%
EPS Next 3Y1.96%
EPS Next 5Y1.06%
Revenue Next Year5.2%
Revenue Next 2Y2.3%
Revenue Next 3Y3.25%
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
A Price/Earnings ratio of 6.52 indicates a rather cheap valuation of DVN.
Based on the Price/Earnings ratio, DVN is valued cheaper than 83.41% of the companies in the same industry.
DVN is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.61, the valuation of DVN can be described as very cheap.
Based on the Price/Forward Earnings ratio, DVN is valued a bit cheaper than 79.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, DVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVN is valued cheaper than 81.99% 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)0.21
EPS Next 2Y-6.95%
EPS Next 3Y1.96%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 2.96%.
DVN's Dividend Yield is comparable with the industry average which is at 6.66.
DVN's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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 28.72% of its income as dividend. This is a sustainable payout ratio.
The dividend of DVN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.72%
EPS Next 2Y-6.95%
EPS Next 3Y1.96%
31.81
-0.44 (-1.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.86%
Inst Owner Change-0.43%
Ins Owners0.4%
Ins Owner Change0.52%
Market Cap20.43B
Analysts78.24
Price Target45.07 (41.69%)
Short Float %2.69%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend1.46
Dividend Growth(5Y)34.02%
DP28.72%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.1%
Min EPS beat(2)-4.28%
Max EPS beat(2)14.49%
EPS beat(4)2
Avg EPS beat(4)5.17%
Min EPS beat(4)-4.28%
Max EPS beat(4)14.49%
EPS beat(8)4
Avg EPS beat(8)3.4%
EPS beat(12)7
Avg EPS beat(12)2.94%
EPS beat(16)11
Avg EPS beat(16)5.09%
Revenue beat(2)2
Avg Revenue beat(2)1.9%
Min Revenue beat(2)0.2%
Max Revenue beat(2)3.6%
Revenue beat(4)3
Avg Revenue beat(4)2.48%
Min Revenue beat(4)-0.38%
Max Revenue beat(4)6.51%
Revenue beat(8)6
Avg Revenue beat(8)1.75%
Revenue beat(12)9
Avg Revenue beat(12)2.61%
Revenue beat(16)12
Avg Revenue beat(16)2.98%
PT rev (1m)-0.99%
PT rev (3m)-10.66%
EPS NQ rev (1m)1.62%
EPS NQ rev (3m)-24.08%
EPS NY rev (1m)-1.93%
EPS NY rev (3m)-18%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)-5.65%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-4.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 7.61 | ||
| P/S | 1.22 | ||
| P/FCF | N/A | ||
| P/OCF | 3 | ||
| P/B | 1.4 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 3.6 |
EPS(TTM)4.88
EY15.34%
EPS(NY)4.18
Fwd EY13.15%
FCF(TTM)-1.07
FCFYN/A
OCF(TTM)10.6
OCFY33.31%
SpS26.16
BVpS22.65
TBVpS21.48
PEG (NY)N/A
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.02% | ||
| ROE | 19.17% | ||
| ROCE | 15.99% | ||
| ROIC | 12.88% | ||
| ROICexc | 13.47% | ||
| ROICexgc | 13.87% | ||
| OM | 26% | ||
| PM (TTM) | 16.61% | ||
| GM | 49.75% | ||
| 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 217.5% | ||
| Cap/Sales | 44.61% | ||
| Interest Coverage | 9.43 | ||
| Cash Conversion | 87.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.15 |
F-Score5
WACC8.21%
ROIC/WACC1.57
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)-9.63%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%4.31%
EPS Next Y-18.41%
EPS Next 2Y-6.95%
EPS Next 3Y1.96%
EPS Next 5Y1.06%
Revenue 1Y (TTM)-10.92%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%23.8%
Revenue Next Year5.2%
Revenue Next 2Y2.3%
Revenue Next 3Y3.25%
Revenue Next 5YN/A
EBIT growth 1Y-24.78%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year78.23%
EBIT Next 3Y23.94%
EBIT Next 5Y16.95%
FCF growth 1Y-124.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-18.71%
OCF growth 3Y10.44%
OCF growth 5Y26.09%