DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVN - US25179M1036 - Common Stock
37.06 USD
+0.66 (+1.81%)
37.09 USD
+0.03 (+0.08%)
Overall DVN gets a fundamental rating of 6 out of 10. We evaluated DVN against 210 industry peers in the Oil, Gas & Consumable Fuels industry. DVN scores excellent on profitability, but 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
DVN had positive earnings in the past year.
DVN had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 8.71%, DVN belongs to the best of the industry, outperforming 85.24% of the companies in the same industry.
DVN's Return On Equity of 17.71% is amongst the best of the industry. DVN outperforms 82.38% of its industry peers.
The Return On Invested Capital of DVN (11.84%) is better than 87.14% 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 21.41%.
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 64.76% of the companies in the same industry.
In the last couple of years the Profit Margin of DVN has declined.
DVN has a Operating Margin of 22.88%. This is in the better half of the industry: DVN outperforms 60.48% of its industry peers.
In the last couple of years the Operating Margin of DVN has grown nicely.
DVN has a Gross Margin (47.14%) 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DVN is creating value.
The number of shares outstanding for DVN has been increased compared to 1 year ago.
DVN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DVN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.29 indicates that DVN is not a great score, but indicates only limited risk for bankruptcy at the moment.
DVN's Altman-Z score of 2.29 is fine compared to the rest of the industry. DVN outperforms 71.90% of its industry peers.
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.
DVN has a better Debt to FCF ratio (2.98) than 76.67% of its industry peers.
DVN has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
DVN has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.29 |
ROIC/WACC1.46
WACC8.09%
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 42.86% of the companies in the same industry.
DVN has a Quick Ratio of 0.96. 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 has a Quick ratio (0.87) which 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%.
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.
DVN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.40%.
The Revenue has been growing by 20.71% on average over the past years. This is a very strong growth!
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.
The Revenue is expected to grow by 4.66% on average over the next years.
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
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
Based on the Price/Earnings ratio of 8.72, the valuation of DVN can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of DVN indicates a rather cheap valuation: DVN is cheaper than 85.71% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of DVN to the average of the S&P500 Index (26.31), we can say DVN is valued rather cheaply.
The Price/Forward Earnings ratio is 9.07, which indicates a very decent valuation of DVN.
DVN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DVN is cheaper than 79.05% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, DVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 9.07 |
4.2 Price Multiples
DVN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVN is cheaper than 82.86% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DVN indicates a rather cheap valuation: DVN is cheaper than 84.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.35 | ||
| EV/EBITDA | 3.95 |
4.3 Compensation for Growth
The decent profitability rating of DVN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-8%
EPS Next 3Y1.97%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 2.73%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.90, DVN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, DVN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
The dividend of DVN is nicely growing with an annual growth rate of 34.02%!
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 22.55% 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.
DP22.55%
EPS Next 2Y-8%
EPS Next 3Y1.97%
37.06
+0.66 (+1.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.94%
Inst Owner Change-1%
Ins Owners0.4%
Ins Owner Change0.13%
Market Cap23.53B
Revenue(TTM)17.47B
Net Income(TTM)2.72B
Analysts78.89
Price Target46.19 (24.64%)
Short Float %2.92%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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)0.38%
PT rev (3m)0.46%
EPS NQ rev (1m)-8.45%
EPS NQ rev (3m)-9.01%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)-3.41%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 9.07 | ||
| P/S | 1.35 | ||
| P/FCF | 8.35 | ||
| P/OCF | 3.44 | ||
| P/B | 1.53 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 3.95 |
EPS(TTM)4.25
EY11.47%
EPS(NY)4.09
Fwd EY11.03%
FCF(TTM)4.44
FCFY11.98%
OCF(TTM)10.78
OCFY29.08%
SpS27.52
BVpS24.18
TBVpS22.99
PEG (NY)N/A
PEG (5Y)0.28
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 | 2.29 |
F-Score6
WACC8.09%
ROIC/WACC1.46
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 8.72 and the Price/Book (PB) ratio is 1.53.
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.