DEVON ENERGY CORP (DY6.DE) Stock Fundamental Analysis
FRA:DY6 - Deutsche Boerse Ag - US25179M1036 - Common Stock - Currency: EUR
DY6 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 62 industry peers in the Oil, Gas & Consumable Fuels industry. DY6 has an excellent profitability rating, but there are concerns on its financial health. DY6 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DY6 was profitable.
In the past year DY6 had a positive cash flow from operations.
DY6 had positive earnings in 4 of the past 5 years.
DY6 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DY6 (9.48%) is better than 73.02% of its industry peers.
The Return On Equity of DY6 (19.94%) is better than 69.84% of its industry peers.
The Return On Invested Capital of DY6 (12.39%) is better than 73.02% of its industry peers.
DY6 had an Average Return On Invested Capital over the past 3 years of 20.63%. This is significantly above the industry average of 11.89%.
The 3 year average ROIC (20.63%) for DY6 is well above the current ROIC(12.39%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 19.94% | ||
| ROIC | 12.39% |
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
DY6 has a Profit Margin of 18.14%. This is in the better half of the industry: DY6 outperforms 69.84% of its industry peers.
In the last couple of years the Profit Margin of DY6 has declined.
DY6's Operating Margin of 26.24% is fine compared to the rest of the industry. DY6 outperforms 65.08% of its industry peers.
DY6's Operating Margin has improved in the last couple of years.
DY6 has a Gross Margin of 49.96%. This is comparable to the rest of the industry: DY6 outperforms 58.73% of its industry peers.
In the last couple of years the Gross Margin of DY6 has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.24% | ||
| PM (TTM) | 18.14% | ||
| GM | 49.96% |
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 DY6 is creating value.
DY6 has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DY6 has been increased compared to 5 years ago.
Compared to 1 year ago, DY6 has a worse debt to assets ratio.
2.2 Solvency
DY6 has an Altman-Z score of 2.20. This is not the best score and indicates that DY6 is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of DY6 (2.20) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that DY6 is somewhat dependend on debt financing.
DY6 has a worse Debt to Equity ratio (0.60) than 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.2 |
ROIC/WACC1.61
WACC7.68%
2.3 Liquidity
DY6 has a Current Ratio of 1.04. This is a normal value and indicates that DY6 is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.04, DY6 is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
A Quick Ratio of 0.95 indicates that DY6 may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, DY6 is doing worse than 65.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for DY6 have decreased strongly by -15.26% in the last year.
DY6 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.25% yearly.
The Revenue for DY6 has decreased by -16.46% in the past year. This is quite bad
DY6 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.71% yearly.
EPS 1Y (TTM)-15.26%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-17.73%
Revenue 1Y (TTM)-16.46%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%6.22%
3.2 Future
Based on estimates for the next years, DY6 will show a small growth in Earnings Per Share. The EPS will grow by 7.92% on average per year.
DY6 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.54% yearly.
EPS Next Y0.8%
EPS Next 2Y5.2%
EPS Next 3Y2.06%
EPS Next 5Y7.92%
Revenue Next Year10.31%
Revenue Next 2Y5.81%
Revenue Next 3Y1.54%
Revenue Next 5YN/A
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 7.16, the valuation of DY6 can be described as very cheap.
Based on the Price/Earnings ratio, DY6 is valued a bit cheaper than the industry average as 69.84% of the companies are valued more expensively.
DY6's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
Based on the Price/Forward Earnings ratio of 7.10, the valuation of DY6 can be described as very cheap.
Based on the Price/Forward Earnings ratio, DY6 is valued a bit cheaper than 73.02% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DY6 to the average of the S&P500 Index (22.10), we can say DY6 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.16 | ||
| Fwd PE | 7.1 |
4.2 Price Multiples
DY6's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
DY6 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.97
PEG (5Y)0.23
EPS Next 2Y5.2%
EPS Next 3Y2.06%
5. Dividend
5.1 Amount
DY6 has a Yearly Dividend Yield of 3.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 60.92, DY6 is paying slightly less dividend.
DY6's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
On average, the dividend of DY6 grows each year by 34.02%, which is quite nice.
Dividend Growth(5Y)34.02%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
32.41% of the earnings are spent on dividend by DY6. This is a low number and sustainable payout ratio.
DY6's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.41%
EPS Next 2Y5.2%
EPS Next 3Y2.06%
FRA:DY6 (3/7/2025, 7:00:00 PM)
31.85
+0.69 (+2.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.02%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner ChangeN/A
Market Cap20.67B
Analysts77.71
Price Target48.28 (51.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend1.34
Dividend Growth(5Y)34.02%
DP32.41%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.23%
Min EPS beat(2)-0.04%
Max EPS beat(2)14.49%
EPS beat(4)3
Avg EPS beat(4)7.13%
Min EPS beat(4)-0.04%
Max EPS beat(4)14.49%
EPS beat(8)5
Avg EPS beat(8)4.53%
EPS beat(12)8
Avg EPS beat(12)3.84%
EPS beat(16)12
Avg EPS beat(16)7.53%
Revenue beat(2)2
Avg Revenue beat(2)5.06%
Min Revenue beat(2)3.6%
Max Revenue beat(2)6.51%
Revenue beat(4)3
Avg Revenue beat(4)3.07%
Min Revenue beat(4)-0.38%
Max Revenue beat(4)6.51%
Revenue beat(8)6
Avg Revenue beat(8)1.75%
Revenue beat(12)8
Avg Revenue beat(12)2.29%
Revenue beat(16)11
Avg Revenue beat(16)1.65%
PT rev (1m)-0.49%
PT rev (3m)-2.83%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)10.21%
EPS NY rev (1m)0.13%
EPS NY rev (3m)5.46%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)3.17%
Revenue NY rev (1m)1.57%
Revenue NY rev (3m)2.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.16 | ||
| Fwd PE | 7.1 | ||
| P/S | 1.41 | ||
| P/FCF | N/A | ||
| P/OCF | 3.4 | ||
| P/B | 1.55 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 4.15 |
EPS(TTM)4.45
EY13.97%
EPS(NY)4.48
Fwd EY14.08%
FCF(TTM)-1.21
FCFYN/A
OCF(TTM)9.37
OCFY29.41%
SpS22.62
BVpS20.57
TBVpS19.5
PEG (NY)8.97
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.48% | ||
| ROE | 19.94% | ||
| ROCE | 15.39% | ||
| ROIC | 12.39% | ||
| ROICexc | 12.77% | ||
| ROICexgc | 13.15% | ||
| OM | 26.24% | ||
| PM (TTM) | 18.14% | ||
| GM | 49.96% | ||
| 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
ROICexcg growth 3Y-9.4%
ROICexcg 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-Score4
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 228.97% | ||
| Cap/Sales | 46.76% | ||
| Interest Coverage | 11.43 | ||
| Cash Conversion | 88.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 2.2 |
F-Score4
WACC7.68%
ROIC/WACC1.61
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)-15.26%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-17.73%
EPS Next Y0.8%
EPS Next 2Y5.2%
EPS Next 3Y2.06%
EPS Next 5Y7.92%
Revenue 1Y (TTM)-16.46%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%6.22%
Revenue Next Year10.31%
Revenue Next 2Y5.81%
Revenue Next 3Y1.54%
Revenue Next 5YN/A
EBIT growth 1Y-32.98%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year96.21%
EBIT Next 3Y26.87%
EBIT Next 5Y16.95%
FCF growth 1Y-132.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.86%
OCF growth 3Y10.44%
OCF growth 5Y26.09%