DEVON ENERGY CORP (DY6.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DY6 - US25179M1036 - Common Stock
32.165 EUR
-0.85 (-2.57%)
Taking everything into account, DY6 scores 5 out of 10 in our fundamental rating. DY6 was compared to 71 industry peers in the Oil, Gas & Consumable Fuels industry. While DY6 belongs to the best of the industry regarding profitability, there are concerns on its financial health. DY6 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- DY6 had positive earnings in the past year.
- In the past year DY6 had a positive cash flow from operations.
- Of the past 5 years DY6 4 years were profitable.
- In the past 5 years DY6 always reported a positive cash flow from operatings.
1.2 Ratios
- DY6 has a Return On Assets of 8.71%. This is amongst the best in the industry. DY6 outperforms 91.55% of its industry peers.
- Looking at the Return On Equity, with a value of 17.71%, DY6 belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
- DY6 has a better Return On Invested Capital (11.84%) than 88.73% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DY6 is significantly above the industry average of 8.91%.
- The last Return On Invested Capital (11.84%) for DY6 is well below the 3 year average (20.63%), which needs to be investigated, but indicates that DY6 had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 17.71% | ||
| ROIC | 11.84% |
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
- The Profit Margin of DY6 (15.56%) is better than 74.65% of its industry peers.
- In the last couple of years the Profit Margin of DY6 has declined.
- Looking at the Operating Margin, with a value of 22.88%, DY6 is in the better half of the industry, outperforming 60.56% of the companies in the same industry.
- DY6's Operating Margin has improved in the last couple of years.
- DY6's Gross Margin of 47.14% is in line compared to the rest of the industry. DY6 outperforms 50.70% of its industry peers.
- DY6's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.88% | ||
| PM (TTM) | 15.56% | ||
| GM | 47.14% |
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
- DY6 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, DY6 has more shares outstanding
- Compared to 5 years ago, DY6 has more shares outstanding
- The debt/assets ratio for DY6 is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.32 indicates that DY6 is not a great score, but indicates only limited risk for bankruptcy at the moment.
- DY6's Altman-Z score of 2.32 is fine compared to the rest of the industry. DY6 outperforms 60.56% of its industry peers.
- DY6 has a debt to FCF ratio of 2.98. This is a good value and a sign of high solvency as DY6 would need 2.98 years to pay back of all of its debts.
- The Debt to FCF ratio of DY6 (2.98) is better than 74.65% of its industry peers.
- DY6 has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
- DY6 has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: DY6 outperforms 49.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.98 | ||
| Altman-Z | 2.32 |
ROIC/WACC1.45
WACC8.17%
2.3 Liquidity
- DY6 has a Current Ratio of 0.96. This is a bad value and indicates that DY6 is not financially healthy enough and could expect problems in meeting its short term obligations.
- DY6 has a worse Current ratio (0.96) than 73.24% of its industry peers.
- DY6 has a Quick Ratio of 0.96. This is a bad value and indicates that DY6 is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.87, DY6 is doing worse than 60.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The earnings per share for DY6 have decreased strongly by -16.34% in the last year.
- The Earnings Per Share has been growing by 31.25% on average over the past years. This is a very strong growth
- DY6 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.40%.
- Measured over the past years, DY6 shows a very strong growth in Revenue. The Revenue has been growing by 20.71% on average per year.
EPS 1Y (TTM)-16.34%
EPS 3Y11.12%
EPS 5Y31.25%
EPS Q2Q%-5.45%
Revenue 1Y (TTM)11.4%
Revenue growth 3Y9.3%
Revenue growth 5Y20.71%
Sales Q2Q%7.63%
3.2 Future
- DY6 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.93% yearly.
- Based on estimates for the next years, DY6 will show a small growth in Revenue. The Revenue will grow by 4.31% on average per year.
EPS Next Y-17.39%
EPS Next 2Y-12.27%
EPS Next 3Y1.26%
EPS Next 5Y2.93%
Revenue Next Year7.93%
Revenue Next 2Y0.98%
Revenue Next 3Y2.31%
Revenue Next 5Y4.31%
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
- DY6 is valuated reasonably with a Price/Earnings ratio of 8.96.
- Based on the Price/Earnings ratio, DY6 is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, DY6 is valued rather cheaply.
- DY6 is valuated reasonably with a Price/Forward Earnings ratio of 10.24.
- Based on the Price/Forward Earnings ratio, DY6 is valued a bit cheaper than 73.24% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, DY6 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DY6 is valued a bit cheaper than 74.65% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DY6 indicates a rather cheap valuation: DY6 is cheaper than 84.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 4.05 |
4.3 Compensation for Growth
- The decent profitability rating of DY6 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-12.27%
EPS Next 3Y1.26%
5. Dividend
5.1 Amount
- DY6 has a Yearly Dividend Yield of 2.53%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 5.24, DY6 has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, DY6 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
- The dividend of DY6 is nicely growing with an annual growth rate of 34.02%!
Dividend Growth(5Y)34.02%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- DY6 pays out 22.55% of its income as dividend. This is a sustainable payout ratio.
- DY6's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.55%
EPS Next 2Y-12.27%
EPS Next 3Y1.26%
DEVON ENERGY CORP / DY6.DE FAQ
What is the ChartMill fundamental rating of DEVON ENERGY CORP (DY6.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DY6.DE.
What is the valuation status for DY6 stock?
ChartMill assigns a valuation rating of 7 / 10 to DEVON ENERGY CORP (DY6.DE). This can be considered as Undervalued.
Can you provide the profitability details for DEVON ENERGY CORP?
DEVON ENERGY CORP (DY6.DE) has a profitability rating of 7 / 10.
What is the valuation of DEVON ENERGY CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DEVON ENERGY CORP (DY6.DE) is 8.96 and the Price/Book (PB) ratio is 1.56.
How financially healthy is DEVON ENERGY CORP?
The financial health rating of DEVON ENERGY CORP (DY6.DE) is 3 / 10.