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Market Cap

US$14.8b

Last Updated

2021/04/11 22:11 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


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Share Price & News

How has Devon Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DVN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: DVN's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-6.2%

DVN

-3.4%

US Oil and Gas

2.1%

US Market


1 Year Return

127.9%

DVN

47.6%

US Oil and Gas

56.3%

US Market

Return vs Industry: DVN exceeded the US Oil and Gas industry which returned 47.6% over the past year.

Return vs Market: DVN exceeded the US Market which returned 56.3% over the past year.


Shareholder returns

DVNIndustryMarket
7 Day-6.2%-3.4%2.1%
30 Day-9.1%-7.7%2.4%
90 Day20.2%15.9%6.8%
1 Year142.5%127.9%57.5%47.6%59.1%56.3%
3 Year-28.0%-34.4%-15.6%-27.2%65.7%55.1%
5 Year-22.0%-29.8%0.9%-18.8%122.3%97.7%

Long-Term Price Volatility Vs. Market

How volatile is Devon Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

43.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DVN ($22.04) is trading below our estimate of fair value ($38.77)

Significantly Below Fair Value: DVN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DVN is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: DVN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DVN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DVN is overvalued based on its PB Ratio (2.9x) compared to the US Oil and Gas industry average (1.4x).


Future Growth

How is Devon Energy forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

50.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DVN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: DVN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DVN's is expected to become profitable in the next 3 years.

Revenue vs Market: DVN's revenue (12.8% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: DVN's revenue (12.8% 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 (27.4%)


Past Performance

How has Devon Energy performed over the past 5 years?

48.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DVN is currently unprofitable.

Growing Profit Margin: DVN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DVN is unprofitable, but has reduced losses over the past 5 years at a rate of 48% per year.

Accelerating Growth: Unable to compare DVN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DVN is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-44.1%).


Return on Equity

High ROE: DVN has a negative Return on Equity (-84.23%), as it is currently unprofitable.


Financial Health

How is Devon Energy's financial position?


Financial Position Analysis

Short Term Liabilities: DVN's short term assets ($3.3B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: DVN's short term assets ($3.3B) do not cover its long term liabilities ($5.5B).


Debt to Equity History and Analysis

Debt Level: DVN's debt to equity ratio (142.4%) is considered high.

Reducing Debt: DVN's debt to equity ratio has increased from 118.8% to 142.4% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable DVN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: DVN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 63.6% per year.


Dividend

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

2.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DVN's dividend (2%) is higher than the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: DVN's dividend (2%) is low compared to the top 25% of dividend payers in the US market (3.5%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: DVN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: DVN's dividends in 3 years are forecast to be well covered by earnings (17.1% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Rick Muncrief (61 yo)

0.25

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 (2.3 years average tenure).


Board Members

Experienced Board: DVN's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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 been substantially diluted in the past year, with total shares outstanding growing by 75.2%.


Top Shareholders

Company Information

Devon Energy Corporation's company bio, 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
  • Market Cap: US$14.835b
  • Shares outstanding: 673.10m
  • Website: https://www.devonenergy.com

Number of Employees


Location

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

Listings


Biography

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 app...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 22:11
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
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.