Devon Energy Corp (DVN) stock analysis

P/E above its 5-year median

Devon Energy's P/E of 11.2 is above its own 5-year median of 8.1.

P/E above the industry

Devon Energy's P/E of 11.2 is above the Crude Petroleum and Natural Gas median of 10.4.

EV/EBITDA above its 5-year median

Devon Energy's EV/EBITDA of 6.1 is above its 5-year median of 4.6.

P/B below the industry

Devon Energy's price-to-book of 1.18 is below the Crude Petroleum and Natural Gas median of 1.33.

Trading above fair value

The share price of $44.95 is above our fair value estimate of $40.12.

Margin of safety under 20%

The price is 12.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -3.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -23.0% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 27.1% over the last twelve months; the Crude Petroleum and Natural Gas median is 8.7%.

Guidance lowered

Devon Energy lowered its third quarter of 2026 oil production outlook on Aug 4, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 12.6% over the last twelve months and averaged 35.4% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Devon Energy's return on equity of 12.6% is above the Crude Petroleum and Natural Gas median of 5.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 16.2% over the last twelve months, against a 5-year average of 22.5%.

Net margin above the industry

Devon Energy's net margin of 16.2% is above the Crude Petroleum and Natural Gas median of 3.8%.

Low debt

Debt is 27.3% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 149% five years ago to 27.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 84.4% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.70 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.55; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Devon Energy paid dividends worth 2.5% of the share price over the last twelve months.

Yield below Treasuries

The 2.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Devon Energy yields 2.5%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.