DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVN - US25179M1036 - Common Stock
36.18 USD
+0.51 (+1.43%)
36.2248 USD
+0.04 (+0.12%)
We assign a fundamental rating of 6 out of 10 to DVN. DVN was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. DVN has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DVN.
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.
Of the past 5 years DVN 4 years were profitable.
DVN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DVN has a Return On Assets of 8.71%. This is amongst the best in the industry. DVN outperforms 87.08% of its industry peers.
DVN's Return On Equity of 17.71% is amongst the best of the industry. DVN outperforms 85.17% of its industry peers.
The Return On Invested Capital of DVN (11.84%) is better than 88.04% 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 21.18%.
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 66.03% of the companies in the same industry.
In the last couple of years the Profit Margin of DVN has declined.
The Operating Margin of DVN (22.88%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DVN has grown nicely.
DVN has a Gross Margin of 47.14%. This is comparable to the rest of the industry: DVN outperforms 56.46% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DVN is creating value.
The number of shares outstanding for DVN has been increased compared to 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
An Altman-Z score of 2.26 indicates that DVN is not a great score, but indicates 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 72.25% of the companies in the same industry.
DVN has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as DVN would need 2.98 years to pay back of 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 76.08% 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.
DVN has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: DVN outperforms 48.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.47
WACC8.08%
2.3 Liquidity
DVN has a Current 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 Current ratio (0.96) which is comparable to the rest of the industry.
A Quick Ratio of 0.87 indicates that DVN may have some problems paying its short term obligations.
With a Quick ratio value of 0.87, DVN perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for DVN have decreased strongly by -16.34% in the last year.
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.
The Revenue has grown by 11.40% in the past year. This is quite good.
Measured over the past years, DVN shows a very strong growth in Revenue. The Revenue has been growing by 20.71% on average per year.
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.
The Revenue is expected to grow by 4.31% on average over the next years.
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.
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 reasonably with a Price/Earnings ratio of 8.51.
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 26.84, DVN is valued rather cheaply.
DVN is valuated reasonably with a Price/Forward Earnings ratio of 8.91.
DVN's Price/Forward Earnings ratio is rather cheap when compared to the industry. DVN is cheaper than 80.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.40. DVN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 8.91 |
4.2 Price Multiples
84.69% of the companies in the same industry are more expensive than DVN, based on the Enterprise Value to EBITDA ratio.
DVN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DVN is cheaper than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| 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)0.27
EPS Next 2Y-8.31%
EPS Next 3Y2.77%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 2.65%. Purely for dividend investing, there may be better candidates out there.
DVN's Dividend Yield is comparable with the industry average which is at 3.93.
DVN's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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
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%
36.18
+0.51 (+1.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners76.48%
Inst Owner Change-0.99%
Ins Owners0.39%
Ins Owner Change-0.03%
Market Cap22.70B
Revenue(TTM)17.47B
Net Income(TTM)2.72B
Analysts78.89
Price Target46.47 (28.44%)
Short Float %2.75%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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)0.59%
PT rev (3m)0.72%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-7.9%
EPS NY rev (1m)1.19%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-4.16%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 8.91 | ||
| P/S | 1.3 | ||
| P/FCF | 8.05 | ||
| P/OCF | 3.32 | ||
| P/B | 1.48 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 3.85 |
EPS(TTM)4.25
EY11.75%
EPS(NY)4.06
Fwd EY11.22%
FCF(TTM)4.49
FCFY12.42%
OCF(TTM)10.91
OCFY30.14%
SpS27.85
BVpS24.47
TBVpS23.27
PEG (NY)N/A
PEG (5Y)0.27
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 | 2.26 |
F-Score6
WACC8.08%
ROIC/WACC1.47
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 5Y17.74%
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 8.51 and the Price/Book (PB) ratio is 1.48.
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 -16.96% in the next year.