DEVON ENERGY CORP (DVN)
US25179M1036 - Common Stock
Overall DVN gets a fundamental rating of 6 out of 10. We evaluated DVN against 214 industry peers in the Oil, Gas & Consumable Fuels industry. DVN has an average financial health and profitability rating. DVN has a correct valuation and a medium growth rate. Finally 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.
DVN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: DVN reported negative net income in multiple years.
DVN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DVN (19.33%) is better than 85.45% of its industry peers.
With an excellent Return On Equity value of 39.25%, DVN belongs to the best of the industry, outperforming 86.39% of the companies in the same industry.
DVN has a better Return On Invested Capital (23.10%) than 89.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DVN is significantly below the industry average of 45.80%.
The 3 year average ROIC (21.19%) for DVN is below the current ROIC(23.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.33% | ||
| ROE | 39.25% | ||
| ROIC | 23.1% |
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 (24.81%) is better than 62.91% of its industry peers.
DVN's Profit Margin has declined in the last couple of years.
DVN has a Operating Margin of 32.70%. This is in the better half of the industry: DVN outperforms 60.56% of its industry peers.
In the last couple of years the Operating Margin of DVN has grown nicely.
DVN has a Gross Margin (52.13%) 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 | 32.7% | ||
| PM (TTM) | 24.81% | ||
| GM | 52.13% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DVN is creating value.
Compared to 1 year ago, DVN has less shares outstanding
Compared to 5 years ago, DVN has more shares outstanding
The debt/assets ratio for DVN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.58 indicates that DVN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.58, DVN is doing good in the industry, outperforming 77.93% of the companies in the same industry.
DVN has a debt to FCF ratio of 2.49. This is a good value and a sign of high solvency as DVN would need 2.49 years to pay back of all of its debts.
DVN's Debt to FCF ratio of 2.49 is fine compared to the rest of the industry. DVN outperforms 70.89% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that DVN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.49, DVN perfoms like the industry average, outperforming 48.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 3.58 |
ROIC/WACC2.72
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.07 indicates that DVN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, DVN perfoms like the industry average, outperforming 43.66% of the companies in the same industry.
DVN has a Quick Ratio of 1.07. 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's Quick ratio of 0.99 is in line compared to the rest of the industry. DVN outperforms 48.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for DVN have decreased strongly by -31.41% in the last year.
Measured over the past years, DVN shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.60% on average per year.
Looking at the last year, DVN shows a decrease in Revenue. The Revenue has decreased by -0.46% 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)-31.41%
EPS 3YN/A
EPS 5Y34.6%
EPS growth Q2Q-15.06%
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y46.75%
Revenue growth 5Y11.39%
Revenue growth Q2Q-3.58%
3.2 Future
Based on estimates for the next years, DVN will show a small growth in Earnings Per Share. The EPS will grow by 3.34% on average per year.
Based on estimates for the next years, DVN will show a small growth in Revenue. The Revenue will grow by 1.26% on average per year.
EPS Next Y-10.76%
EPS Next 2Y-1%
EPS Next 3Y-2.97%
EPS Next 5Y3.34%
Revenue Next Year-1.78%
Revenue Next 2Y1.51%
Revenue Next 3Y1.26%
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.
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
The Price/Earnings ratio is 9.14, which indicates a very decent valuation of DVN.
Compared to the rest of the industry, the Price/Earnings ratio of DVN indicates a somewhat cheap valuation: DVN is cheaper than 63.85% of the companies listed in the same industry.
DVN is valuated cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.24, which indicates a very decent valuation of DVN.
68.08% of the companies in the same industry are more expensive than DVN, based on the Price/Forward Earnings ratio.
DVN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVN is valued a bit cheaper than 71.83% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DVN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.74 | ||
| EV/EBITDA | 4.4 |
4.3 Compensation for Growth
DVN has a very decent profitability rating, which may justify a higher PE ratio.
DVN's earnings are expected to decrease with -2.97% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-1%
EPS Next 3Y-2.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.71%, DVN is a good candidate for dividend investing.
DVN's Dividend Yield is a higher than the industry average which is at 5.79.
Compared to an average S&P500 Dividend Yield of 2.45, DVN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
5.2 History
The dividend of DVN is nicely growing with an annual growth rate of 56.62%!
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
DVN pays out 39.25% of its income as dividend. This is a sustainable payout ratio.
DVN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.25%
EPS Next 2Y-1%
EPS Next 3Y-2.97%
DEVON ENERGY CORP
NYSE:DVN (4/24/2024, 7:04:00 PM)
Premarket: 51.9 -0.2 (-0.38%)52.1
-0.47 (-0.89%)
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 Cap33.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
Dividend Growth(5Y)
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Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 10.24 | ||
| 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)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.33% | ||
| ROE | 39.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.7% | ||
| PM (TTM) | 24.81% | ||
| GM | 52.13% | ||
| 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 Turnover0.78
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 | 1.07 | ||
| Quick Ratio | 0.99 | ||
| 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)
Growth
EPS 1Y (TTM)-31.41%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y46.75%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 3Y
EBIT Next 5Y
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