DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - NYSE:DVN - US25179M1036 - Common Stock
32.05 USD
+0.04 (+0.12%)
31.96 USD
-0.09 (-0.28%)
Taking everything into account, DVN scores 5 out of 10 in our fundamental rating. DVN was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. DVN scores excellent on profitability, but there are concerns on its financial health. DVN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DVN was profitable.
DVN had a positive operating cash flow in the past year.
DVN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DVN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of DVN (9.06%) is better than 83.73% of its industry peers.
With an excellent Return On Equity value of 18.88%, DVN belongs to the best of the industry, outperforming 83.25% of the companies in the same industry.
DVN has a better Return On Invested Capital (12.18%) than 87.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DVN is in line with the industry average of 21.71%.
The 3 year average ROIC (20.63%) for DVN is well above the current ROIC(12.18%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 18.88% | ||
| ROIC | 12.18% |
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
DVN has a better Profit Margin (16.57%) than 68.42% of its industry peers.
DVN's Profit Margin has declined in the last couple of years.
DVN's Operating Margin of 24.54% is fine compared to the rest of the industry. DVN outperforms 61.72% of its industry peers.
DVN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 48.73%, DVN perfoms like the industry average, outperforming 57.42% of the companies in the same industry.
In the last couple of years the Gross Margin of DVN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.54% | ||
| PM (TTM) | 16.57% | ||
| GM | 48.73% |
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
DVN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DVN has been increased compared to 1 year ago.
DVN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DVN is higher compared to a year ago.
2.2 Solvency
DVN has an Altman-Z score of 2.18. 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.
DVN's Altman-Z score of 2.18 is fine compared to the rest of the industry. DVN outperforms 70.33% of its industry peers.
DVN has a Debt/Equity ratio of 0.56. This is a neutral value indicating DVN is somewhat dependend on debt financing.
DVN has a Debt to Equity ratio (0.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.18 |
ROIC/WACC1.54
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.22 indicates that DVN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.22, DVN is in line with its industry, outperforming 54.55% of the companies in the same industry.
DVN has a Quick Ratio of 1.13. This is a normal value and indicates that DVN is financially healthy and should not expect problems in meeting its short term obligations.
DVN has a Quick ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
DVN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.45%.
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 10.77% in the past year. This is quite good.
DVN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.71% yearly.
EPS 1Y (TTM)-23.45%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-40.43%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%9.37%
3.2 Future
The Earnings Per Share is expected to grow by 2.71% on average over the next years.
The Revenue is expected to grow by 4.70% on average over the next years.
EPS Next Y-17.43%
EPS Next 2Y-5.83%
EPS Next 3Y2.41%
EPS Next 5Y2.71%
Revenue Next Year8.19%
Revenue Next 2Y3.49%
Revenue Next 3Y4.11%
Revenue Next 5Y4.7%
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
A Price/Earnings ratio of 7.44 indicates a rather cheap valuation of DVN.
85.65% of the companies in the same industry are more expensive than DVN, based on the Price/Earnings ratio.
DVN is valuated cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.48 indicates a rather cheap valuation of DVN.
Based on the Price/Forward Earnings ratio, DVN is valued cheaper than 86.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. DVN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.44 | ||
| Fwd PE | 7.48 |
4.2 Price Multiples
DVN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DVN is cheaper than 84.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.52 |
4.3 Compensation for Growth
DVN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-5.83%
EPS Next 3Y2.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.81%, DVN has a reasonable but not impressive dividend return.
DVN's Dividend Yield is comparable with the industry average which is at 6.15.
DVN's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
The dividend of DVN is nicely growing with an annual growth rate of 34.02%!
DVN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)34.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DVN pays out 25.81% 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.
DP25.81%
EPS Next 2Y-5.83%
EPS Next 3Y2.41%
32.05
+0.04 (+0.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.94%
Inst Owner Change-0.05%
Ins Owners0.4%
Ins Owner Change0.07%
Market Cap20.35B
Revenue(TTM)17.16B
Net Income(TTM)2.84B
Analysts78.86
Price Target46.02 (43.59%)
Short Float %2.63%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend1.46
Dividend Growth(5Y)34.02%
DP25.81%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.17%
Min EPS beat(2)-4.28%
Max EPS beat(2)-2.06%
EPS beat(4)1
Avg EPS beat(4)2.03%
Min EPS beat(4)-4.28%
Max EPS beat(4)14.49%
EPS beat(8)4
Avg EPS beat(8)3.22%
EPS beat(12)6
Avg EPS beat(12)2.13%
EPS beat(16)10
Avg EPS beat(16)4.13%
Revenue beat(2)2
Avg Revenue beat(2)2.82%
Min Revenue beat(2)0.2%
Max Revenue beat(2)5.44%
Revenue beat(4)4
Avg Revenue beat(4)3.94%
Min Revenue beat(4)0.2%
Max Revenue beat(4)6.51%
Revenue beat(8)7
Avg Revenue beat(8)3%
Revenue beat(12)9
Avg Revenue beat(12)1.7%
Revenue beat(16)12
Avg Revenue beat(16)3.21%
PT rev (1m)-0.25%
PT rev (3m)1.92%
EPS NQ rev (1m)3.1%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.44 | ||
| Fwd PE | 7.48 | ||
| P/S | 1.19 | ||
| P/FCF | N/A | ||
| P/OCF | 2.99 | ||
| P/B | 1.35 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 3.52 |
EPS(TTM)4.31
EY13.45%
EPS(NY)4.28
Fwd EY13.36%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)10.73
OCFY33.49%
SpS27.04
BVpS23.72
TBVpS22.54
PEG (NY)N/A
PEG (5Y)0.24
Graham Number47.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.06% | ||
| ROE | 18.88% | ||
| ROCE | 15.12% | ||
| ROIC | 12.18% | ||
| ROICexc | 13% | ||
| ROICexgc | 13.39% | ||
| OM | 24.54% | ||
| PM (TTM) | 16.57% | ||
| GM | 48.73% | ||
| 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
ROICexgc growth 3Y-9.4%
ROICexgc 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-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 207.05% | ||
| Cap/Sales | 43.32% | ||
| Interest Coverage | 9.32 | ||
| Cash Conversion | 87.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.18 |
F-Score5
WACC7.91%
ROIC/WACC1.54
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)-23.45%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-40.43%
EPS Next Y-17.43%
EPS Next 2Y-5.83%
EPS Next 3Y2.41%
EPS Next 5Y2.71%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%9.37%
Revenue Next Year8.19%
Revenue Next 2Y3.49%
Revenue Next 3Y4.11%
Revenue Next 5Y4.7%
EBIT growth 1Y-10.33%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year80.56%
EBIT Next 3Y25.52%
EBIT Next 5Y17.43%
FCF growth 1Y-158.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.99%
OCF growth 3Y10.44%
OCF growth 5Y26.09%
DEVON ENERGY CORP / DVN FAQ
What is the fundamental rating for DVN stock?
ChartMill assigns a fundamental rating of 5 / 10 to DVN.
What is the valuation status for DVN stock?
ChartMill assigns a valuation rating of 6 / 10 to DEVON ENERGY CORP (DVN). This can be considered as Fairly Valued.
Can you provide the profitability details for DEVON ENERGY CORP?
DEVON ENERGY CORP (DVN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of DEVON ENERGY CORP (DVN) stock?
The Price/Earnings (PE) ratio for DEVON ENERGY CORP (DVN) is 7.44 and the Price/Book (PB) ratio is 1.35.
What is the earnings growth outlook for DEVON ENERGY CORP?
The Earnings per Share (EPS) of DEVON ENERGY CORP (DVN) is expected to decline by -17.43% in the next year.