DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - NYSE:DVN - US25179M1036 - Common Stock
33.7 USD
+1.27 (+3.92%)
33.7 USD
0 (0%)
Taking everything into account, DVN scores 5 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 quite some concerns on its financial health. DVN has a decent growth rate and is not valued too expensively.
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
DVN has a Return On Assets of 9.06%. This is amongst the best in the industry. DVN outperforms 83.81% of its industry peers.
Looking at the Return On Equity, with a value of 18.88%, DVN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
DVN has a better Return On Invested Capital (12.18%) than 87.14% of its industry peers.
DVN had an Average Return On Invested Capital over the past 3 years of 20.63%. This is in line with the industry average of 21.78%.
The last Return On Invested Capital (12.18%) 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 | 9.06% | ||
| ROE | 18.88% | ||
| ROIC | 12.18% |
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
DVN has a better Profit Margin (16.57%) than 69.05% of its industry peers.
In the last couple of years the Profit Margin of DVN has declined.
The Operating Margin of DVN (24.54%) is better than 61.90% of its industry peers.
DVN's Operating Margin has improved in the last couple of years.
DVN has a Gross Margin (48.73%) which is in line with its industry peers.
DVN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.54% | ||
| PM (TTM) | 16.57% | ||
| GM | 48.73% |
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.
DVN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DVN has more shares outstanding
The debt/assets ratio for DVN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.22 indicates that DVN is not a great score, but indicates only limited risk for bankruptcy at the moment.
DVN has a better Altman-Z score (2.22) than 69.52% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that DVN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, DVN perfoms like the industry average, outperforming 43.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.22 |
ROIC/WACC1.55
WACC7.84%
2.3 Liquidity
DVN has a Current Ratio of 1.22. 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 (1.22) is comparable to the rest of the industry.
A Quick Ratio of 1.13 indicates that DVN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, DVN perfoms like the industry average, outperforming 59.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.13 |
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
DVN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.47%.
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)4.47%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%7.63%
3.2 Future
DVN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.54% yearly.
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
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 7.93 indicates a rather cheap valuation of DVN.
Based on the Price/Earnings ratio, DVN is valued cheaper than 86.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of DVN to the average of the S&P500 Index (26.06), we can say DVN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.24, the valuation of DVN can be described as reasonable.
Based on the Price/Forward Earnings ratio, DVN is valued cheaper than 84.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DVN to the average of the S&P500 Index (32.73), we can say DVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 8.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DVN indicates a rather cheap valuation: DVN is cheaper than 83.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.66 |
4.3 Compensation for Growth
The decent profitability rating of DVN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-8%
EPS Next 3Y1.97%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 2.96%. Purely for dividend investing, there may be better candidates out there.
DVN's Dividend Yield is comparable with the industry average which is at 6.14.
DVN's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| 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 25.81% 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.
DP25.81%
EPS Next 2Y-8%
EPS Next 3Y1.97%
33.7
+1.27 (+3.92%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.94%
Inst Owner Change-1.94%
Ins Owners0.4%
Ins Owner Change0.07%
Market Cap21.39B
Revenue(TTM)15.94B
Net Income(TTM)2.84B
Analysts78.89
Price Target45.99 (36.47%)
Short Float %2.63%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend1.46
Dividend Growth(5Y)34.02%
DP25.81%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.17%
Min EPS beat(2)-4.28%
Max EPS beat(2)-2.06%
EPS beat(4)1
Avg EPS beat(4)2.03%
Min EPS beat(4)-4.28%
Max EPS beat(4)14.49%
EPS beat(8)4
Avg EPS beat(8)3.22%
EPS beat(12)6
Avg EPS beat(12)2.13%
EPS beat(16)10
Avg EPS beat(16)4.13%
Revenue beat(2)2
Avg Revenue beat(2)2.82%
Min Revenue beat(2)0.2%
Max Revenue beat(2)5.44%
Revenue beat(4)4
Avg Revenue beat(4)3.94%
Min Revenue beat(4)0.2%
Max Revenue beat(4)6.51%
Revenue beat(8)7
Avg Revenue beat(8)3%
Revenue beat(12)9
Avg Revenue beat(12)1.7%
Revenue beat(16)12
Avg Revenue beat(16)3.21%
PT rev (1m)-0.07%
PT rev (3m)0.75%
EPS NQ rev (1m)1.28%
EPS NQ rev (3m)-2.14%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-1.72%
Revenue NQ rev (1m)-1.28%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 8.24 | ||
| P/S | 1.25 | ||
| P/FCF | N/A | ||
| P/OCF | 3.14 | ||
| P/B | 1.42 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 3.66 |
EPS(TTM)4.25
EY12.61%
EPS(NY)4.09
Fwd EY12.13%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)10.73
OCFY31.85%
SpS27.04
BVpS23.72
TBVpS22.54
PEG (NY)N/A
PEG (5Y)0.25
Graham Number47.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 18.88% | ||
| ROCE | 15.12% | ||
| ROIC | 12.18% | ||
| ROICexc | 13% | ||
| ROICexgc | 13.39% | ||
| OM | 24.54% | ||
| PM (TTM) | 16.57% | ||
| GM | 48.73% | ||
| 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
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-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 207.05% | ||
| Cap/Sales | 43.32% | ||
| Interest Coverage | 9.32 | ||
| Cash Conversion | 87.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.22 |
F-Score5
WACC7.84%
ROIC/WACC1.55
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)4.47%
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-10.33%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year80.56%
EBIT Next 3Y25.52%
EBIT Next 5Y16.65%
FCF growth 1Y-158.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.99%
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 5 / 10 to DVN.
What is the valuation status for DVN stock?
ChartMill assigns a valuation rating of 6 / 10 to DEVON ENERGY CORP (DVN). This can be considered as Fairly Valued.
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 7.93 and the Price/Book (PB) ratio is 1.42.
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.