DEVON ENERGY CORP (DY6.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DY6 - US25179M1036 - Common Stock
33.015 EUR
+1.37 (+4.31%)
Taking everything into account, DY6 scores 5 out of 10 in our fundamental rating. DY6 was compared to 75 industry peers in the Oil, Gas & Consumable Fuels industry. DY6 scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DY6.
1. Profitability
1.1 Basic Checks
- DY6 had positive earnings in the past year.
- DY6 had a positive operating cash flow in the past year.
- Of the past 5 years DY6 4 years were profitable.
- Each year in the past 5 years DY6 had a positive operating cash flow.
1.2 Ratios
- DY6 has a Return On Assets of 8.71%. This is amongst the best in the industry. DY6 outperforms 90.67% of its industry peers.
- With an excellent Return On Equity value of 17.71%, DY6 belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- DY6 has a Return On Invested Capital of 11.84%. This is amongst the best in the industry. DY6 outperforms 88.00% 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 8.82%.
- The 3 year average ROIC (20.63%) for DY6 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
- DY6 has a Profit Margin of 15.56%. This is in the better half of the industry: DY6 outperforms 76.00% of its industry peers.
- In the last couple of years the Profit Margin of DY6 has declined.
- With a decent Operating Margin value of 22.88%, DY6 is doing good in the industry, outperforming 62.67% of the companies in the same industry.
- DY6's Operating Margin has improved in the last couple of years.
- DY6 has a Gross Margin (47.14%) which is in line with its industry peers.
- DY6's Gross Margin has declined in the last couple of years.
| 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
- DY6 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, DY6 has more shares outstanding
- The number of shares outstanding for DY6 has been increased compared to 5 years ago.
- The debt/assets ratio for DY6 is higher compared to a year ago.
2.2 Solvency
- DY6 has an Altman-Z score of 2.29. 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.
- Looking at the Altman-Z score, with a value of 2.29, DY6 is in line with its industry, outperforming 57.33% of the companies in the same industry.
- DY6 has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as DY6 would need 2.98 years to pay back of all of its debts.
- DY6's Debt to FCF ratio of 2.98 is fine compared to the rest of the industry. DY6 outperforms 76.00% of its industry peers.
- DY6 has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.48, DY6 perfoms like the industry average, outperforming 50.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.29 |
ROIC/WACC1.47
WACC8.04%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that DY6 may have some problems paying its short term obligations.
- DY6 has a worse Current ratio (0.96) than 74.67% of its industry peers.
- DY6 has a Quick Ratio of 0.96. This is a bad value and indicates that DY6 is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of DY6 (0.87) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- DY6 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
- The Revenue has grown by 11.40% in the past year. This is quite good.
- DY6 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
- DY6 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.93% yearly.
- 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 2Y1.9%
Revenue Next 3Y3%
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
- DY6 is valuated reasonably with a Price/Earnings ratio of 9.10.
- Based on the Price/Earnings ratio, DY6 is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, DY6 is valued rather cheaply.
- DY6 is valuated reasonably with a Price/Forward Earnings ratio of 9.52.
- 78.67% of the companies in the same industry are more expensive than DY6, based on the Price/Forward Earnings ratio.
- DY6's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.1 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DY6 indicates a somewhat cheap valuation: DY6 is cheaper than 77.33% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, DY6 is valued cheaper than 85.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.6 | ||
| EV/EBITDA | 3.96 |
4.3 Compensation for Growth
- The decent profitability rating of DY6 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 2.64%, DY6 has a reasonable but not impressive dividend return.
- DY6's Dividend Yield is comparable with the industry average which is at 5.11.
- Compared to an average S&P500 Dividend Yield of 1.82, DY6 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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
- DY6 pays out 22.55% of its income as dividend. This is a sustainable payout ratio.
- The dividend of DY6 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%
DEVON ENERGY CORP / DY6.DE FAQ
What is the ChartMill fundamental rating of DEVON ENERGY CORP (DY6.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DY6.DE.
What is the valuation status for DY6 stock?
ChartMill assigns a valuation rating of 7 / 10 to DEVON ENERGY CORP (DY6.DE). This can be considered as Undervalued.
Can you provide the profitability details for DEVON ENERGY CORP?
DEVON ENERGY CORP (DY6.DE) has a profitability rating of 7 / 10.
What is the valuation of DEVON ENERGY CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DEVON ENERGY CORP (DY6.DE) is 9.1 and the Price/Book (PB) ratio is 1.58.
How financially healthy is DEVON ENERGY CORP?
The financial health rating of DEVON ENERGY CORP (DY6.DE) is 3 / 10.