company background image
DVN

Devon EnergyNYSE:DVN Stock Report

Last Price

US$46.12

Market Cap

US$31.2b

7D

-8.5%

1Y

159.1%

Updated

21 Jan, 2022

Data

Company Financials +
DVN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends5/6

DVN Stock Overview

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States.

Devon Energy Competitors

EOG Resources

NYSE:EOG

US$60.6b

Pioneer Natural Resources

NYSE:PXD

US$52.5b

Hess

NYSE:HES

US$27.4b

Continental Resources

NYSE:CLR

US$18.1b

Price History & Performance

Summary of all time highs, changes and price drops for Devon Energy
Historical stock prices
Current Share PriceUS$46.12
52 Week HighUS$51.99
52 Week LowUS$16.11
Beta3.06
1 Month Change9.06%
3 Month Change14.05%
1 Year Change159.10%
3 Year Change69.25%
5 Year Change-1.12%
Change since IPO596.15%

Recent News & Updates

Jan 04

Can Devon Energy Stock Continue To Climb Or Will It Reverse?

Devon Energy's stock price has gone up as a result of positive surprises relating to the company's capital return for shareholders and financial performance. Devon Energy's share price can continue to climb this year, given its status as a high-yield dividend play. I view DVN's shares as a Buy, as its forward EV/EBITDA valuations remain attractive which implies potential for further capital appreciation upside.

Dec 01

Devon Energy Corp.: The Recent Weakness Is An Opportunity

The company announced better-than-expected adjusted earnings of $1.08 compared to a loss of $0.04 per share in the year-ago quarter. Devon Energy produced a record of 608K Boep/d in the third quarter, or 7.2% higher than the 2Q21. For the third quarter of 2021, the total dividend payment is $0.84 per share. I recommend buying DVN below $41.

Nov 13
Is Devon Energy Corporation (NYSE:DVN) Trading At A 45% Discount?

Is Devon Energy Corporation (NYSE:DVN) Trading At A 45% Discount?

How far off is Devon Energy Corporation ( NYSE:DVN ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

DVNUS Oil and GasUS Market
7D-8.5%0.4%-4.0%
1Y159.1%48.8%6.6%

Return vs Industry: DVN exceeded the US Oil and Gas industry which returned 48.8% over the past year.

Return vs Market: DVN exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is DVN's price volatile compared to industry and market?
DVN volatility
DVN Average Weekly Movement6.8%
Oil and Gas Industry Average Movement7.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: DVN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: DVN's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19711,400Rick Muncriefhttps://www.devonenergy.com

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates approximately 3,942 gross wells. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.

Devon Energy Fundamentals Summary

How do Devon Energy's earnings and revenue compare to its market cap?
DVN fundamental statistics
Market CapUS$31.21b
Earnings (TTM)US$1.22b
Revenue (TTM)US$10.41b

25.6x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DVN income statement (TTM)
RevenueUS$10.41b
Cost of RevenueUS$4.87b
Gross ProfitUS$5.55b
ExpensesUS$4.33b
EarningsUS$1.22b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 15, 2022

Earnings per share (EPS)1.80
Gross Margin53.25%
Net Profit Margin11.70%
Debt/Equity Ratio71.6%

How did DVN perform over the long term?

See historical performance and comparison

Dividends

7.3%

Current Dividend Yield

60%

Payout Ratio

Valuation

Is Devon Energy undervalued compared to its fair value and its price relative to the market?

19.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DVN ($46.12) is trading below our estimate of fair value ($56.99)

Significantly Below Fair Value: DVN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DVN is poor value based on its PE Ratio (25.6x) compared to the US Oil and Gas industry average (17.9x).

PE vs Market: DVN is poor value based on its PE Ratio (25.6x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: DVN is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: DVN is overvalued based on its PB Ratio (3.5x) compared to the US Oil and Gas industry average (2.2x).


Future Growth

How is Devon Energy forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DVN's forecast earnings growth (5.9% per year) is above the savings rate (2%).

Earnings vs Market: DVN's earnings (5.9% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: DVN's earnings are forecast to grow, but not significantly.

Revenue vs Market: DVN's revenue (8.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: DVN's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DVN's Return on Equity is forecast to be high in 3 years time (32.6%)


Past Performance

How has Devon Energy performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DVN has a large one-off loss of $2.9B impacting its September 30 2021 financial results.

Growing Profit Margin: DVN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DVN has become profitable over the past 5 years, growing earnings by -5% per year.

Accelerating Growth: DVN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DVN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (17.4%).


Return on Equity

High ROE: DVN's Return on Equity (13.8%) is considered low.


Financial Health

How is Devon Energy's financial position?


Financial Position Analysis

Short Term Liabilities: DVN's short term assets ($4.2B) exceed its short term liabilities ($3.5B).

Long Term Liabilities: DVN's short term assets ($4.2B) do not cover its long term liabilities ($8.5B).


Debt to Equity History and Analysis

Debt Level: DVN's net debt to equity ratio (48%) is considered high.

Reducing Debt: DVN's debt to equity ratio has reduced from 114.1% to 71.6% over the past 5 years.

Debt Coverage: DVN's debt is well covered by operating cash flow (56.4%).

Interest Coverage: DVN's interest payments on its debt are well covered by EBIT (12.3x coverage).


Balance Sheet


Dividend

What is Devon Energy current dividend yield, its reliability and sustainability?

7.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DVN's dividend (7.29%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: DVN's dividend (7.29%) is in the top 25% of dividend payers in the US market (3.55%)


Stability and Growth of Payments

Stable Dividend: DVN's dividend payments have been volatile in the past 10 years.

Growing Dividend: DVN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.3%), DVN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DVN's dividends in 3 years are forecast to be well covered by earnings (30.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Rick Muncrief (62 yo)

1

Tenure

Mr. Richard E. Muncrief, also known as Rick, serves as President, Chief Executive Officer & Director at Devon Energy Corporation since January 7, 2021. He has been the Chief Executive Officer of WPX Energy...


Leadership Team

Experienced Management: DVN's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: DVN's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DVN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Devon Energy Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Devon Energy Corporation
  • Ticker: DVN
  • Exchange: NYSE
  • Founded: 1971
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$31.212b
  • Shares outstanding: 676.76m
  • Website: https://www.devonenergy.com

Number of Employees


Location

  • Devon Energy Corporation
  • 333 West Sheridan Avenue
  • Oklahoma City
  • Oklahoma
  • 73102-5015
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:36
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.