DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVN - US25179M1036 - Common Stock
37.92 USD
+1.08 (+2.93%)
38.3444 USD
+0.42 (+1.12%)
DVN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 208 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- 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
- DVN has a better Return On Assets (8.71%) than 87.02% of its industry peers.
- The Return On Equity of DVN (17.71%) is better than 85.10% 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 88.46% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for DVN is in line with the industry average of 21.83%.
- 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
- Looking at the Profit Margin, with a value of 15.56%, DVN is in the better half of the industry, outperforming 66.35% 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 60.10% of its industry peers.
- In the last couple of years the Operating Margin of DVN has grown nicely.
- The Gross Margin of DVN (47.14%) 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.
- DVN has more shares outstanding than it did 1 year ago.
- DVN has more shares outstanding than it did 5 years ago.
- DVN has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.31 indicates that DVN is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.31, DVN is doing good in the industry, outperforming 71.63% 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.
- DVN's Debt to FCF ratio of 2.98 is fine compared to the rest of the industry. DVN outperforms 75.96% 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's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. DVN outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.49
WACC7.93%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that DVN may have some problems paying its short term obligations.
- DVN has a Current ratio (0.96) which is in line with its industry peers.
- 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 of 0.87. This is comparable to the rest of the industry: DVN outperforms 45.19% of its industry peers.
| 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%.
- DVN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.25% yearly.
- The Revenue has grown by 11.40% in the past year. This is quite good.
- 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 2.93% on average per year.
- DVN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.31% yearly.
EPS Next Y-16.96%
EPS Next 2Y-8.31%
EPS Next 3Y2.77%
EPS Next 5Y2.93%
Revenue Next Year8.12%
Revenue Next 2Y2.17%
Revenue Next 3Y3.28%
Revenue Next 5Y4.31%
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 8.92, which indicates a very decent valuation of DVN.
- Based on the Price/Earnings ratio, DVN is valued cheaper than 85.10% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.33. DVN is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 9.34, the valuation of DVN can be described as reasonable.
- DVN's Price/Forward Earnings ratio is rather cheap when compared to the industry. DVN is cheaper than 81.73% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, DVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
- DVN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVN is cheaper than 84.62% of the companies in the same industry.
- 85.10% of the companies in the same industry are more expensive than DVN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.44 | ||
| EV/EBITDA | 4.04 |
4.3 Compensation for Growth
- The decent profitability rating of DVN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-8.31%
EPS Next 3Y2.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.66%, DVN has a reasonable but not impressive dividend return.
- DVN's Dividend Yield is comparable with the industry average which is at 3.91.
- DVN's Dividend Yield is a higher than the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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
- 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-8.31%
EPS Next 3Y2.77%
37.92
+1.08 (+2.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-16 2026-02-16/amc
Inst Owners76.44%
Inst Owner Change0.14%
Ins Owners0.39%
Ins Owner Change-0.03%
Market Cap23.79B
Revenue(TTM)17.47B
Net Income(TTM)2.72B
Analysts80.57
Price Target46.47 (22.55%)
Short Float %3.06%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend1.46
Dividend Growth(5Y)34.02%
DP22.55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0.46%
PT rev (3m)0.97%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-7.85%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-4.16%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 9.34 | ||
| P/S | 1.36 | ||
| P/FCF | 8.44 | ||
| P/OCF | 3.48 | ||
| P/B | 1.55 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 4.04 |
EPS(TTM)4.25
EY11.21%
EPS(NY)4.06
Fwd EY10.71%
FCF(TTM)4.49
FCFY11.85%
OCF(TTM)10.91
OCFY28.76%
SpS27.85
BVpS24.47
TBVpS23.27
PEG (NY)N/A
PEG (5Y)0.29
Graham Number48.37
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 | 2.31 |
F-Score6
WACC7.93%
ROIC/WACC1.49
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-16.96%
EPS Next 2Y-8.31%
EPS Next 3Y2.77%
EPS Next 5Y2.93%
Revenue 1Y (TTM)11.4%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%7.63%
Revenue Next Year8.12%
Revenue Next 2Y2.17%
Revenue Next 3Y3.28%
Revenue Next 5Y4.31%
EBIT growth 1Y-15.46%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year80.13%
EBIT Next 3Y23.92%
EBIT Next 5Y15.28%
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 of DEVON ENERGY CORP (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.
Can you provide the PE and PB ratios for DVN stock?
The Price/Earnings (PE) ratio for DEVON ENERGY CORP (DVN) is 8.92 and the Price/Book (PB) ratio is 1.55.
What is the expected EPS growth for DEVON ENERGY CORP (DVN) stock?
The Earnings per Share (EPS) of DEVON ENERGY CORP (DVN) is expected to decline by -16.96% in the next year.