DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
NYSE:DVN - New York Stock Exchange, Inc. - US25179M1036 - Common Stock - Currency: USD
DVN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. DVN has an average financial health and profitability rating. DVN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DVN had positive earnings in the past year.
DVN had a positive operating cash flow in the past year.
In multiple years DVN reported negative net income over the last 5 years.
DVN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DVN has a Return On Assets of 11.25%. This is amongst the best in the industry. DVN outperforms 80.58% of its industry peers.
DVN has a Return On Equity of 23.84%. This is in the better half of the industry: DVN outperforms 79.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.78%, DVN belongs to the top of the industry, outperforming 81.55% of the companies in the same industry.
DVN had an Average Return On Invested Capital over the past 3 years of 21.19%. This is significantly below the industry average of 28.71%.
The 3 year average ROIC (21.19%) for DVN is well above the current ROIC(13.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 23.84% | ||
| ROIC | 13.78% |
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
DVN has a better Profit Margin (21.71%) than 69.42% of its industry peers.
DVN's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 30.15%, DVN is doing good in the industry, outperforming 65.53% of the companies in the same industry.
In the last couple of years the Operating Margin of DVN has grown nicely.
DVN has a Gross Margin of 51.89%. This is comparable to the rest of the industry: DVN outperforms 57.28% of its industry peers.
In the last couple of years the Gross Margin of DVN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.15% | ||
| PM (TTM) | 21.71% | ||
| GM | 51.89% |
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.
Compared to 1 year ago, DVN has less shares outstanding
Compared to 5 years ago, DVN has more shares outstanding
Compared to 1 year ago, DVN has an improved debt to assets ratio.
2.2 Solvency
DVN has an Altman-Z score of 2.30. This is not the best score and indicates that DVN is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.30, DVN is doing good in the industry, outperforming 66.50% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that DVN is somewhat dependend on debt financing.
DVN has a worse Debt to Equity ratio (0.64) than 62.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.3 |
ROIC/WACC1.65
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.11 indicates that DVN should not have too much problems paying its short term obligations.
The Current ratio of DVN (1.11) is comparable to the rest of the industry.
A Quick Ratio of 1.01 indicates that DVN should not have too much problems paying its short term obligations.
The Quick ratio of DVN (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for DVN have decreased strongly by -14.62% 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.
DVN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.47%.
DVN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.39% yearly.
EPS 1Y (TTM)-14.62%
EPS 3YN/A
EPS 5Y34.6%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-18.47%
Revenue growth 3Y46.75%
Revenue growth 5Y11.39%
Sales Q2Q%4.9%
3.2 Future
DVN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.68% yearly.
The Revenue is expected to grow by 4.95% on average over the next years.
EPS Next Y-15.47%
EPS Next 2Y-9.37%
EPS Next 3Y-2.58%
EPS Next 5Y-4.68%
Revenue Next Year4.08%
Revenue Next 2Y5.59%
Revenue Next 3Y4.95%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.20, the valuation of DVN can be described as very cheap.
Based on the Price/Earnings ratio, DVN is valued a bit cheaper than 78.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of DVN to the average of the S&P500 Index (28.19), we can say DVN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.81, the valuation of DVN can be described as very cheap.
Based on the Price/Forward Earnings ratio, DVN is valued a bit cheaper than 75.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.37, DVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVN is valued a bit cheaper than 73.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.24 |
4.3 Compensation for Growth
The decent profitability rating of DVN may justify a higher PE ratio.
A cheap valuation may be justified as DVN's earnings are expected to decrease with -2.58% in the coming years.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-9.37%
EPS Next 3Y-2.58%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 3.24%.
DVN's Dividend Yield is comparable with the industry average which is at 6.39.
DVN's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
On average, the dividend of DVN grows each year by 56.62%, 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)56.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
37.66% of the earnings are spent on dividend by DVN. This is a low number and sustainable payout ratio.
DP37.66%
EPS Next 2Y-9.37%
EPS Next 3Y-2.58%
DEVON ENERGY CORP
NYSE:DVN (1/23/2025, 12:06:07 PM)
36.5766
+0.12 (+0.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners71.05%
Inst Owner Change-0.35%
Ins Owners0.72%
Ins Owner Change0%
Market Cap24.03B
Analysts74.86
Price Target51.25 (40.12%)
Short Float %4.12%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend2.88
Dividend Growth(5Y)56.62%
DP37.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.24%
Min EPS beat(2)-0.04%
Max EPS beat(2)10.51%
EPS beat(4)2
Avg EPS beat(4)3.34%
Min EPS beat(4)-0.66%
Max EPS beat(4)10.51%
EPS beat(8)4
Avg EPS beat(8)1.96%
EPS beat(12)8
Avg EPS beat(12)3.55%
EPS beat(16)11
Avg EPS beat(16)0.37%
Revenue beat(2)1
Avg Revenue beat(2)3.06%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)6.51%
Revenue beat(4)3
Avg Revenue beat(4)3.68%
Min Revenue beat(4)-0.38%
Max Revenue beat(4)6.51%
Revenue beat(8)5
Avg Revenue beat(8)0.33%
Revenue beat(12)8
Avg Revenue beat(12)3.03%
Revenue beat(16)11
Avg Revenue beat(16)2.07%
PT rev (1m)-1.74%
PT rev (3m)-8.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.51%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 7.81 | ||
| P/S | 1.53 | ||
| P/FCF | N/A | ||
| P/OCF | 3.6 | ||
| P/B | 1.68 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 4.24 |
EPS(TTM)5.08
EY13.89%
EPS(NY)4.68
Fwd EY12.8%
FCF(TTM)-1
FCFYN/A
OCF(TTM)10.16
OCFY27.77%
SpS23.87
BVpS21.73
TBVpS20.59
PEG (NY)N/A
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 23.84% | ||
| ROCE | 17.28% | ||
| ROIC | 13.78% | ||
| ROICexc | 14.13% | ||
| ROICexgc | 14.54% | ||
| OM | 30.15% | ||
| PM (TTM) | 21.71% | ||
| GM | 51.89% | ||
| FCFM | N/A |
ROA(3y)17.88%
ROA(5y)4.79%
ROE(3y)38.16%
ROE(5y)3.06%
ROIC(3y)21.19%
ROIC(5y)N/A
ROICexc(3y)22.92%
ROICexc(5y)N/A
ROICexgc(3y)23.89%
ROICexgc(5y)N/A
ROCE(3y)26.57%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y18.52%
ROICexc growth 3YN/A
ROICexc growth 5Y19.02%
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%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 249.86% | ||
| Cap/Sales | 46.75% | ||
| Interest Coverage | 12.54 | ||
| Cash Conversion | 87.09% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 2.3 |
F-Score5
WACC8.36%
ROIC/WACC1.65
Cap/Depr(3y)159.36%
Cap/Depr(5y)139.41%
Cap/Sales(3y)23.02%
Cap/Sales(5y)24.86%
Profit Quality(3y)76.79%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.62%
EPS 3YN/A
EPS 5Y34.6%
EPS Q2Q%-33.33%
EPS Next Y-15.47%
EPS Next 2Y-9.37%
EPS Next 3Y-2.58%
EPS Next 5Y-4.68%
Revenue 1Y (TTM)-18.47%
Revenue growth 3Y46.75%
Revenue growth 5Y11.39%
Sales Q2Q%4.9%
Revenue Next Year4.08%
Revenue Next 2Y5.59%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
EBIT growth 1Y-25.01%
EBIT growth 3YN/A
EBIT growth 5Y27.05%
EBIT Next Year57.75%
EBIT Next 3Y20.1%
EBIT Next 5Y11.88%
FCF growth 1Y-119.38%
FCF growth 3Y137.85%
FCF growth 5Y37.26%
OCF growth 1Y-18.76%
OCF growth 3Y69.07%
OCF growth 5Y19.33%