Devon Energy Corp. (DVN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

EQT Corp.

Antero Resources Corp.

Devon Energy Corp.

Range Resources Corp.

ConocoPhillips

Pioneer Natural Resources Co.

Diamondback Energy, Inc.

Ovintiv, Inc.

EOG Resources, Inc.

Occidental Petroleum Corp.

Marathon Oil Corp.

Why is Devon Energy Corp. ?

High Management Efficiency with a high ROCE of 28.45%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.44 times

Healthy long term growth as Net Sales has grown by an annual rate of 22.03% and Operating profit at 45.18%

Negative results in Jun 25

INTEREST(HY) At USD 263 MM has Grown at 46.93%
ROCE(HY) Lowest at 20.6%
DIVIDEND PAYOUT RATIO(Y) Lowest at 16.98%

With ROCE of 18.47%, it has a fair valuation with a 1.28 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0.29%, its profits have fallen by -7.7%

Underperformed the market in the last 1 year

The stock has generated a return of 0.29% in the last 1 year, much lower than market (S&P 500) returns of 12.94%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Devon Energy Corp. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Devon Energy Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Devon Energy Corp.

3.91%

-0.48

41.55%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.03%

EBIT Growth (5y)

45.18%

EBIT to Interest (avg)

12.44

Debt to EBITDA (avg)

1.44

Net Debt to Equity (avg)

0.53

Sales to Capital Employed (avg)

0.81

Tax Ratio

20.84%

Dividend Payout Ratio

31.80%

Pledged Shares

Institutional Holding

83.07%

ROCE (avg)

28.45%

ROE (avg)

27.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.43

EV to EBIT

6.92

EV to EBITDA

3.76

EV to Capital Employed

1.28

EV to Sales

1.72

PEG Ratio

Dividend Yield

3.86%

ROCE (Latest)

18.47%

ROE (Latest)

20.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 9.74 times

EPS(Q)

Highest at USD 1.41

-11What is not working for the Company

INTEREST(HY)

At USD 263 MM has Grown at 46.93%

ROCE(HY)

Lowest at 20.6%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 16.98%

RAW MATERIAL COST(Y)

Grown by 31.29% (YoY

DIVIDEND PER SHARE(HY)

Lowest at USD 9.74

OPERATING PROFIT(Q)

Lowest at USD 1,668 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 41.21 %

Here's what is working for Devon Energy Corp.

EPS

Highest at USD 1.41

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Highest at 9.74 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Devon Energy Corp.

Interest

At USD 263 MM has Grown at 46.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 1,668 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 41.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Dividend per share

Lowest at USD 9.74

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Dividend Payout Ratio

Lowest at 16.98%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 31.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales