DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
NYSE:DVN - US25179M1036 - Common Stock
35.21 USD
+1.32 (+3.89%)
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 has a medium profitability rating, but doesn't score so well on its financial health evaluation. DVN has a correct valuation and a medium 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.
Of the past 5 years DVN 4 years were profitable.
Each year in the past 5 years DVN had a positive operating cash flow.
1.2 Ratios
DVN's Return On Assets of 9.06% is amongst the best of the industry. DVN outperforms 81.82% of its industry peers.
DVN has a Return On Equity of 18.88%. This is amongst the best in the industry. DVN outperforms 81.82% of its industry peers.
DVN's Return On Invested Capital of 12.18% is amongst the best of the industry. DVN outperforms 87.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DVN is below the industry average of 23.53%.
The last Return On Invested Capital (12.18%) for DVN is well below the 3 year average (20.63%), which needs to be investigated, but indicates that DVN had better years and this may not be a problem.
| 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's Profit Margin of 16.57% is fine compared to the rest of the industry. DVN outperforms 67.46% of its industry peers.
In the last couple of years the Profit Margin of DVN has declined.
DVN's Operating Margin of 24.54% is in line compared to the rest of the industry. DVN outperforms 57.89% of its industry peers.
DVN's Operating Margin has improved in the last couple of years.
DVN has a Gross Margin of 48.73%. This is comparable to the rest of the industry: DVN outperforms 57.89% of its industry peers.
DVN's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DVN is creating value.
The number of shares outstanding for DVN has been increased compared to 1 year ago.
The number of shares outstanding for DVN has been increased compared to 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 2.23. 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.
The Altman-Z score of DVN (2.23) is better than 73.21% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that DVN is somewhat dependend on debt financing.
DVN has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: DVN outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.23 |
ROIC/WACC1.44
WACC8.44%
2.3 Liquidity
A Current Ratio of 1.22 indicates that DVN should not have too much problems paying its short term obligations.
DVN has a Current ratio of 1.22. This is comparable to the rest of the industry: DVN outperforms 55.98% of its industry peers.
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 better Quick ratio (1.13) than 60.29% of 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
Looking at the last year, DVN shows a quite strong growth in Revenue. The Revenue has grown by 10.77% in the last year.
Measured over the past years, DVN shows a very strong growth in Revenue. The Revenue has been growing by 20.71% on average per year.
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
Based on estimates for the next years, DVN will show a decrease in Earnings Per Share. The EPS will decrease by -0.18% on average per year.
The Revenue is expected to grow by 4.22% on average over the next years.
EPS Next Y-16.5%
EPS Next 2Y-6.24%
EPS Next 3Y2.72%
EPS Next 5Y-0.18%
Revenue Next Year6.7%
Revenue Next 2Y2.69%
Revenue Next 3Y4.22%
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.
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
DVN is valuated reasonably with a Price/Earnings ratio of 8.17.
Based on the Price/Earnings ratio, DVN is valued cheaper than 83.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of DVN to the average of the S&P500 Index (26.76), we can say DVN is valued rather cheaply.
DVN is valuated reasonably with a Price/Forward Earnings ratio of 8.29.
77.03% 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 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DVN is valued cheaper than 82.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.7 |
4.3 Compensation for Growth
The decent profitability rating of DVN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-6.24%
EPS Next 3Y2.72%
5. Dividend
5.1 Amount
DVN has a Yearly Dividend Yield of 2.84%.
DVN's Dividend Yield is comparable with the industry average which is at 6.31.
Compared to an average S&P500 Dividend Yield of 2.36, DVN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
On average, the dividend of DVN grows each year by 34.02%, which is quite nice.
DVN has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)34.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
25.81% of the earnings are spent on dividend by DVN. This is a low number and sustainable payout ratio.
DP25.81%
EPS Next 2Y-6.24%
EPS Next 3Y2.72%
NYSE:DVN (8/22/2025, 3:55:05 PM)
35.21
+1.32 (+3.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.51%
Inst Owner Change-2.1%
Ins Owners0.4%
Ins Owner Change0.06%
Market Cap22.61B
Analysts78.24
Price Target45.64 (29.62%)
Short Float %2.21%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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)1.27%
PT rev (3m)0.27%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)-29.16%
EPS NY rev (1m)0%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)-6.24%
Revenue NY rev (1m)1.09%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 8.29 | ||
| P/S | 1.32 | ||
| P/FCF | N/A | ||
| P/OCF | 3.32 | ||
| P/B | 1.5 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)4.31
EY12.24%
EPS(NY)4.25
Fwd EY12.06%
FCF(TTM)-0.97
FCFYN/A
OCF(TTM)10.61
OCFY30.14%
SpS26.73
BVpS23.45
TBVpS22.28
PEG (NY)N/A
PEG (5Y)0.26
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
ROICexcg growth 3Y-9.4%
ROICexcg 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 | 2.23 |
F-Score5
WACC8.44%
ROIC/WACC1.44
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-16.5%
EPS Next 2Y-6.24%
EPS Next 3Y2.72%
EPS Next 5Y-0.18%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%9.37%
Revenue Next Year6.7%
Revenue Next 2Y2.69%
Revenue Next 3Y4.22%
Revenue Next 5YN/A
EBIT growth 1Y-10.33%
EBIT growth 3Y8.5%
EBIT growth 5Y87.39%
EBIT Next Year79.27%
EBIT Next 3Y24.99%
EBIT Next 5Y15.69%
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%