DEVON ENERGY CORP (DVN) Stock Fundamental Analysis
USA - NYSE:DVN - US25179M1036 - Common Stock
34.56 USD
+0.24 (+0.7%)
35 USD
+0.44 (+1.27%)
Taking everything into account, DVN scores 5 out of 10 in our fundamental rating. DVN was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. DVN has an excellent profitability rating, but there are concerns on its financial health. 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.
DVN had positive earnings in 4 of the past 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 9.06%. This is amongst the best in the industry. DVN outperforms 83.89% of its industry peers.
DVN's Return On Equity of 18.88% is amongst the best of the industry. DVN outperforms 82.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.18%, DVN belongs to the top of the industry, outperforming 87.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DVN is in line with the industry average of 21.55%.
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 69.19% of its industry peers.
In the last couple of years the Profit Margin of DVN has declined.
With a decent Operating Margin value of 24.54%, DVN is doing good in the industry, outperforming 62.09% of the companies in the same industry.
In the last couple of years the Operating Margin of DVN has grown nicely.
The Gross Margin of DVN (48.73%) is comparable to the rest of the 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.
Compared to 1 year ago, DVN has more shares outstanding
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 2.24. 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.
Looking at the Altman-Z score, with a value of 2.24, DVN is in the better half of the industry, outperforming 71.56% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that DVN is somewhat dependend on debt financing.
DVN's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. DVN outperforms 44.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.24 |
ROIC/WACC1.49
WACC8.17%
2.3 Liquidity
A Current Ratio of 1.22 indicates that DVN should not have too much problems paying its short term obligations.
DVN's Current ratio of 1.22 is in line compared to the rest of the industry. DVN outperforms 54.50% of its industry peers.
A Quick Ratio of 1.13 indicates that DVN should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.13, DVN is doing good in the industry, outperforming 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for DVN have decreased strongly by -23.45% in the last year.
DVN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.25% yearly.
DVN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.77%.
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
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-17.64%
EPS Next 2Y-5.35%
EPS Next 3Y4.4%
EPS Next 5Y2.71%
Revenue Next Year8.25%
Revenue Next 2Y3.99%
Revenue Next 3Y5.07%
Revenue Next 5Y4.7%
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 8.02, the valuation of DVN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of DVN indicates a rather cheap valuation: DVN is cheaper than 84.83% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. DVN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.99, the valuation of DVN can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DVN indicates a rather cheap valuation: DVN is cheaper than 82.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, DVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 7.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DVN indicates a rather cheap valuation: DVN is cheaper than 84.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.73 |
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-5.35%
EPS Next 3Y4.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.74%, DVN has a reasonable but not impressive dividend return.
DVN's Dividend Yield is comparable with the industry average which is at 6.07.
DVN's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
On average, the dividend of DVN grows each year by 34.02%, 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)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.
The dividend of DVN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.81%
EPS Next 2Y-5.35%
EPS Next 3Y4.4%
34.56
+0.24 (+0.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners74.94%
Inst Owner Change0%
Ins Owners0.4%
Ins Owner Change0.06%
Market Cap21.94B
Analysts78.86
Price Target46.02 (33.16%)
Short Float %2.42%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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)0.08%
PT rev (3m)2.11%
EPS NQ rev (1m)1.94%
EPS NQ rev (3m)1.23%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 7.99 | ||
| P/S | 1.28 | ||
| P/FCF | N/A | ||
| P/OCF | 3.22 | ||
| P/B | 1.46 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 3.73 |
EPS(TTM)4.31
EY12.47%
EPS(NY)4.33
Fwd EY12.52%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)10.73
OCFY31.06%
SpS27.04
BVpS23.72
TBVpS22.54
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 | 2.24 |
F-Score5
WACC8.17%
ROIC/WACC1.49
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-17.64%
EPS Next 2Y-5.35%
EPS Next 3Y4.4%
EPS Next 5Y2.71%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%9.37%
Revenue Next Year8.25%
Revenue Next 2Y3.99%
Revenue Next 3Y5.07%
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%