DEVON ENERGY CORP (DVN)

US25179M1036 - Common Stock

49.62  +0.38 (+0.77%)

After market: 49.65 +0.03 (+0.06%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to DVN. DVN was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. DVN has only an average score on both its financial health and profitability. DVN is valued correctly, but it does not seem to be growing. DVN also has an excellent dividend rating. With these ratings, DVN could be worth investigating further for dividend investing!.



6

1. Profitability

1.1 Basic Checks

DVN had positive earnings in the past year.
In the past year DVN had a positive cash flow from operations.
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

With an excellent Return On Assets value of 17.39%, DVN belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
DVN has a better Return On Equity (35.69%) than 86.85% of its industry peers.
DVN has a better Return On Invested Capital (21.32%) than 91.08% 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 43.36%.
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 RankSector 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

DVN has a Profit Margin of 23.03%. This is in the better half of the industry: DVN outperforms 65.73% of its industry peers.
In the last couple of years the Profit Margin of DVN has declined.
DVN has a better Operating Margin (30.79%) than 60.56% of its industry peers.
In the last couple of years the Operating Margin of DVN has grown nicely.
Looking at the Gross Margin, with a value of 51.09%, DVN is in line with its industry, outperforming 52.58% of the companies in the same industry.
In the last couple of years the Gross Margin of DVN has declined.
Industry RankSector 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%

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
The debt/assets ratio for DVN has been reduced compared to a year ago.

2.2 Solvency

DVN has an Altman-Z score of 3.36. This indicates that DVN is financially healthy and has little risk of bankruptcy at the moment.
DVN has a Altman-Z score of 3.36. This is in the better half of the industry: DVN outperforms 77.46% of its industry peers.
DVN has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as DVN would need 2.32 years to pay back of all of its debts.
DVN's Debt to FCF ratio of 2.32 is fine compared to the rest of the industry. DVN outperforms 72.77% 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.
The Debt to Equity ratio of DVN (0.49) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.32
Altman-Z 3.36
ROIC/WACC2.58
WACC8.25%

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 in the lower half of the industry: DVN underperforms 60.09% of its industry peers.
DVN has a Quick Ratio of 1.04. This is a bad value and indicates that DVN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DVN (0.97) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.97

3

3. Growth

3.1 Past

DVN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.56%.
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.
DVN shows a decrease in Revenue. In the last year, the revenue decreased by -1.70%.
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 growth Q2Q-20.55%
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y46.75%
Revenue growth 5Y11.39%
Revenue growth Q2Q-5.94%

3.2 Future

The Earnings Per Share is expected to decrease by -1.11% 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 1.26% on average per year.
EPS Next Y-10.76%
EPS Next 2Y-1%
EPS Next 3Y-2.97%
EPS Next 5Y-1.11%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.19, the valuation of DVN can be described as reasonable.
DVN's Price/Earnings ratio is a bit cheaper when compared to the industry. DVN is cheaper than 68.54% of the companies in the same industry.
DVN is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.88, which indicates a very decent valuation of DVN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DVN indicates a somewhat cheap valuation: DVN is cheaper than 67.14% of the companies listed in the same industry.
DVN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.15.
Industry RankSector Rank
PE 9.19
Fwd PE 8.88

4.2 Price Multiples

DVN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DVN is cheaper than 75.12% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DVN.
Industry RankSector Rank
P/FCF 11.29
EV/EBITDA 4.34

4.3 Compensation for Growth

DVN has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as DVN's earnings are expected to decrease with -2.97% in the coming years.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-1%
EPS Next 3Y-2.97%

7

5. Dividend

5.1 Amount

DVN has a Yearly Dividend Yield of 4.16%, which is a nice return.
DVN's Dividend Yield is a higher than the industry average which is at 5.80.
DVN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
Industry RankSector Rank
Dividend Yield 4.16%

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

35.94% of the earnings are spent on dividend by DVN. This is a low number and sustainable payout ratio.
DP35.94%
EPS Next 2Y-1%
EPS Next 3Y-2.97%

DEVON ENERGY CORP

NYSE:DVN (5/17/2024, 7:04:00 PM)

After market: 49.65 +0.03 (+0.06%)

49.62

+0.38 (+0.77%)

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 Cap31.39B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.16%
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 RankSector Rank
PE 9.19
Fwd PE 8.88
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)0.27
Profitability
Industry RankSector 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 RankSector 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)
Growth
EPS 1Y (TTM)-31.56%
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)-1.7%
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
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