DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DVN - US25179M1036 - Common Stock
36.63 USD
-0.19 (-0.52%)
36.68 USD
+0.05 (+0.14%)
Taking everything into account, DVN scores 6 out of 10 in our fundamental rating. DVN was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. While DVN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DVN scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
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
Looking at the Return On Assets, with a value of 8.71%, DVN belongs to the top of the industry, outperforming 87.08% of the companies in the same industry.
DVN's Return On Equity of 17.71% is amongst the best of the industry. DVN outperforms 85.17% of its industry peers.
DVN has a Return On Invested Capital of 11.84%. This is amongst the best in the industry. DVN outperforms 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
DVN has a better Profit Margin (15.56%) than 66.51% of its industry peers.
DVN's Profit Margin has declined in the last couple of years.
DVN has a better Operating Margin (22.88%) than 60.29% of its industry peers.
In the last couple of years the Operating Margin of DVN has grown nicely.
DVN's Gross Margin of 47.14% is in line compared 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
Compared to 1 year ago, DVN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.28 indicates that DVN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DVN (2.28) is better than 72.73% of its industry peers.
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.
DVN's Debt to FCF ratio of 2.98 is fine compared to the rest of the industry. DVN outperforms 76.08% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that DVN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.48, DVN perfoms like the industry average, outperforming 49.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.46
WACC8.12%
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 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.
Looking at the Quick ratio, with a value of 0.87, DVN is in line with its industry, outperforming 45.93% of the companies in the same 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%.
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.
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
The Earnings Per Share is expected to grow by 2.93% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
DVN is valuated reasonably with a Price/Earnings ratio of 8.62.
Compared to the rest of the industry, the Price/Earnings ratio of DVN indicates a rather cheap valuation: DVN is cheaper than 85.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, DVN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.02, the valuation of DVN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DVN is valued a bit cheaper than the industry average as 79.90% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.13. DVN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVN is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
DVN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DVN is cheaper than 83.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 3.93 |
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)0.28
EPS Next 2Y-8.31%
EPS Next 3Y2.77%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 2.65%.
Compared to an average industry Dividend Yield of 3.93, DVN has a dividend in line with its industry peers.
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.
DVN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.55%
EPS Next 2Y-8.31%
EPS Next 3Y2.77%
36.63
-0.19 (-0.52%)
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 Cap22.98B
Revenue(TTM)17.47B
Net Income(TTM)2.72B
Analysts78.89
Price Target46.47 (26.86%)
Short Float %3.06%
Short Ratio2.33
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-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)0.59%
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 | 8.62 | ||
| Fwd PE | 9.02 | ||
| P/S | 1.32 | ||
| P/FCF | 8.15 | ||
| P/OCF | 3.36 | ||
| P/B | 1.5 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 3.93 |
EPS(TTM)4.25
EY11.6%
EPS(NY)4.06
Fwd EY11.08%
FCF(TTM)4.49
FCFY12.26%
OCF(TTM)10.91
OCFY29.77%
SpS27.85
BVpS24.47
TBVpS23.27
PEG (NY)N/A
PEG (5Y)0.28
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 | 2.28 |
F-Score6
WACC8.12%
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-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 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 8.62 and the Price/Book (PB) ratio is 1.5.
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.