DEVON ENERGY CORP (DVN)
US25179M1036 - Common Stock
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. DVN has only an average score on both its financial health and profitability. DVN has a valuation in line with the averages, but on the other hand it scores bad on growth. DVN also has an excellent dividend rating. These ratings would make DVN suitable for dividend investing!
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.
In multiple years DVN reported negative net income over the last 5 years.
In the past 5 years DVN always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 17.39%, DVN belongs to the best of the industry, outperforming 86.19% of the companies in the same industry.
DVN has a better Return On Equity (35.69%) than 87.62% of its industry peers.
DVN's Return On Invested Capital of 21.32% is amongst the best of the industry. DVN outperforms 92.38% of its industry peers.
DVN had an Average Return On Invested Capital over the past 3 years of 21.19%. This is significantly below the industry average of 30.77%.
The last Return On Invested Capital (21.32%) for DVN is above the 3 year average (21.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.39% | ||
| ROE | 35.69% | ||
| ROIC | 21.32% |
ROA(3y)17.88%
ROA(5y)4.79%
ROE(3y)38.16%
ROE(5y)3.06%
ROIC(3y)21.19%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DVN (23.03%) is better than 67.62% of its industry peers.
In the last couple of years the Profit Margin of DVN has declined.
Looking at the Operating Margin, with a value of 30.79%, DVN is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
DVN's Operating Margin has improved in the last couple of years.
DVN has a Gross Margin (51.09%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DVN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.79% | ||
| PM (TTM) | 23.03% | ||
| GM | 51.09% |
OM growth 3YN/A
OM growth 5Y14.05%
PM growth 3YN/A
PM growth 5Y-6.49%
GM growth 3Y-12.21%
GM growth 5Y-9.82%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DVN is creating value.
DVN has less shares outstanding than it did 1 year ago.
DVN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, DVN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.25 indicates that DVN is not in any danger for bankruptcy at the moment.
DVN's Altman-Z score of 3.25 is fine compared to the rest of the industry. DVN outperforms 77.14% of its industry peers.
The Debt to FCF ratio of DVN is 2.32, which is a good value as it means it would take DVN, 2.32 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DVN (2.32) is better than 73.81% of its industry peers.
DVN has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.49, DVN perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.25 |
ROIC/WACC2.63
WACC8.11%
2.3 Liquidity
A Current Ratio of 1.04 indicates that DVN should not have too much problems paying its short term obligations.
DVN has a Current ratio of 1.04. This is comparable to the rest of the industry: DVN outperforms 40.95% of its industry peers.
A Quick Ratio of 0.97 indicates that DVN may have some problems paying its short term obligations.
DVN's Quick ratio of 0.97 is in line compared to the rest of the industry. DVN outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for DVN have decreased strongly by -31.56% in the last year.
DVN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.60% yearly.
Looking at the last year, DVN shows a decrease in Revenue. The Revenue has decreased by -1.70% in the last year.
Measured over the past years, DVN shows a quite strong growth in Revenue. The Revenue has been growing by 11.39% on average per year.
EPS 1Y (TTM)-31.56%
EPS 3YN/A
EPS 5Y34.6%
EPS Q2Q%-20.55%
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y46.75%
Revenue growth 5Y11.39%
Sales Q2Q%-5.94%
3.2 Future
The Earnings Per Share is expected to decrease by -3.13% on average over the next years.
Based on estimates for the next years, DVN will show a small growth in Revenue. The Revenue will grow by 2.03% on average per year.
EPS Next Y-5.56%
EPS Next 2Y0.62%
EPS Next 3Y-0.12%
EPS Next 5Y-3.13%
Revenue Next Year0.85%
Revenue Next 2Y2.71%
Revenue Next 3Y2.03%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 8.58, the valuation of DVN can be described as very reasonable.
70.48% of the companies in the same industry are more expensive than DVN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.41, DVN is valued rather cheaply.
A Price/Forward Earnings ratio of 8.03 indicates a reasonable valuation of DVN.
DVN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DVN is cheaper than 70.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DVN to the average of the S&P500 Index (20.59), we can say DVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVN is valued a bit cheaper than the industry average as 75.24% of the companies are valued more expensively.
DVN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DVN is cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.46 | ||
| EV/EBITDA | 4.06 |
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 2Y0.62%
EPS Next 3Y-0.12%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 4.23%, which is a nice return.
DVN's Dividend Yield is a higher than the industry average which is at 5.93.
Compared to an average S&P500 Dividend Yield of 2.30, DVN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
5.2 History
The dividend of DVN is nicely growing with an annual growth rate of 56.62%!
DVN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)56.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
35.94% of the earnings are spent on dividend by DVN. This is a low number and sustainable payout ratio.
DP35.94%
EPS Next 2Y0.62%
EPS Next 3Y-0.12%
DEVON ENERGY CORP
NYSE:DVN (7/26/2024, 7:26:00 PM)
After market: 46.3299 -0.01 (-0.02%)46.34
+0.06 (+0.13%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap29.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 8.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.39% | ||
| ROE | 35.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.79% | ||
| PM (TTM) | 23.03% | ||
| GM | 51.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-31.56%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-5.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y46.75%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y