Devon Energy Corporation
Devon Energy Corporation Fundamental Analysis
Devon Energy Corporation (DVN) shows moderate financial fundamentals with a PE ratio of 10.37, profit margin of 15.91%, and ROE of 17.47%. The company generates $16.8B in annual revenue with weak year-over-year growth of 2.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DVN's fundamental strength across five key dimensions:
Efficiency Score
WeakDVN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDVN trades at attractive valuation levels.
Growth Score
WeakDVN faces weak or negative growth trends.
Financial Health Score
ModerateDVN shows balanced financial health with some risks.
Profitability Score
ExcellentDVN achieves industry-leading margins.
Key Financial Metrics
Is DVN Expensive or Cheap?
P/E Ratio
DVN trades at 10.37 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DVN's PEG of -6.31 indicates potential undervaluation.
Price to Book
The market values Devon Energy Corporation at 1.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.76 times EBITDA. This is generally considered low.
How Well Does DVN Make Money?
Net Profit Margin
For every $100 in sales, Devon Energy Corporation keeps $15.91 as profit after all expenses.
Operating Margin
Core operations generate 19.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.47 in profit for every $100 of shareholder equity.
ROA
Devon Energy Corporation generates $8.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Devon Energy Corporation generates strong operating cash flow of $6.82B, reflecting robust business health.
Free Cash Flow
Devon Energy Corporation generates strong free cash flow of $3.08B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.91 in free cash annually.
FCF Yield
DVN converts 10.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How DVN Stacks Against Its Sector Peers
| Metric | DVN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.37 | 20.19 | Better (Cheaper) |
| ROE | 17.47% | 1019.00% | Weak |
| Net Margin | 15.91% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.57 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.98 | 4.60 | Weak Liquidity |
| ROA | 8.36% | -11655350.00% (disorted) | Weak |
DVN outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Devon Energy Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.13%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
621.24%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
105.13%
Industry Style: Cyclical, Value, Commodity
High Growth