Devon Energy Corp
Exchange: NYSESector: EnergyIndustry: Oil & Gas E&P
Devon is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon's disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations.
Did you know?
Carries 6.0x more debt than cash on its balance sheet.
Current Price
$49.49
+1.85%GoodMoat Value
$129.26
161.2% undervaluedProfile
Valuation (TTM)
Market Cap$31.05B
P/E11.75
EV$37.57B
P/B2.00
Shares Out627.30M
P/Sales1.81
Revenue$17.19B
EV/EBITDA5.11
Devon Energy Corp (DVN) Stock Analysis
GoodMoat Analysis
Devon Energy is a large, established oil and gas exploration and production company. While its financial metrics like ROE and FCF yield are strong, its cyclical nature and lack of durable competitive advantages result in a low moat score, failing the initial gate for a value investor following the GoodMoat framework.
Read full analysis
Devon Energy Corp is a major independent exploration and production (E&P) company focused on developing oil and natural gas assets, primarily in the United States. Applying the GoodMoat framework's Moat Identification section reveals significant challenges. The business operates in a highly cyclical and commodity-driven sector where competitive advantages are often temporary. Key moat criteria like network effects, switching costs, proprietary data, and pricing power are largely absent in the E&P space. While the company may have scale and operational expertise, these do not constitute the durable, structural moats the framework seeks, likely resulting in a Moat Score well below the required threshold of 5. Consequently, the stock fails the 'Moat & Quality Gate' in Step 1 of the Decision Framework, indicating the business lacks the long-term protective advantages a value investor typically requires. From a valuation perspective, the GoodMoat Target of $129.26 suggests a significant margin of safety relative to the current $50.41 price. However, this potential value is secondary to the fundamental business analysis. The company's financials show strength with an ROE of 17.0% and a robust Free Cash Flow Yield of 10.6%, but these are offset by negative revenue growth of -12.1% YoY, highlighting the inherent volatility of the industry. For a value investor focused on durable competitive advantages, Devon Energy does not pass the initial screening criteria, making further in-depth valuation analysis less relevant under this specific framework.
Market Cap$31.05B
Current Price$49.49
P/E Ratio11.75
Forward P/E—
PEG Ratio-1.65
EPS$4.17
Book Value$24.75
P/B Ratio2.00
DVN Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 36.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 7.2B
Revenue
6.2B
FY19
4.8B
FY20
12.2B
FY21
19.2B
FY22
15.3B
FY23
15.9B
FY24
17.2B
FY25
Net Income
—
FY19
—
FY20
2.8B
FY21
6.0B
FY22
3.7B
FY23
2.9B
FY24
2.6B
FY25
DVN 52-Week Range
$26.12
$52.07
50-Day MA: $44.65200-Day MA: $36.73
Did you know?
Profit margin stands at 15.4%.
Devon Energy Corp (DVN) Financial Summary
Devon Energy Corp (DVN) is a Energy company in the Oil & Gas E&P industry, listed on NYSE. The stock currently trades at $49.49 with a market capitalization of $31.05B.
Key valuation metrics include a P/E ratio of 11.75, price-to-book ratio of 2.00, and EPS of $4.17. The company reports a profit margin of 15.4% and return on equity of 17.0%.
DVN Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $31.05B |
| P/E Ratio | 11.75 |
| EPS | $4.17 |
| P/B Ratio | 2.00 |
| P/S Ratio | 1.81 |
| EV/EBITDA | 5.11 |
| Dividend Yield | 1.99% |
| Profit Margin | 15.4% |
| Return on Equity | 17.0% |
| Debt/Equity | 0.55 |
DVN Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $6.22B | $-355.00M |
| FY20 | $4.83B | $-2.68B |
| FY21 | $12.21B | $2.81B |
| FY22 | $19.17B | $6.01B |
| FY23 | $15.26B | $3.75B |
| FY24 | $15.94B | $2.89B |
| FY25 | $17.19B | $2.64B |
Devon Energy Corp (DVN) Valuation
Based on GoodMoat's DCF model, Devon Energy Corp has a fair value estimate of $129.26. At the current price of $49.49, the stock appears 61.7% undervalued relative to our intrinsic value estimate.
DVN Quality Indicators
Devon Energy Corp maintains a profit margin of 15.4% and an operating margin of 23.0%. Return on equity stands at 17.0%. The current ratio is 0.98. Debt-to-equity ratio is 0.55.
About Devon Energy Corp
Devon is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon's disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations.
DVN Free Cash Flow
Devon Energy Corp generated $3.34B in trailing twelve-month free cash flow, representing an FCF yield of 10.76%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
DVN Shares Outstanding
Devon Energy Corp has 0.63 billion shares outstanding at a share price of $49.49, giving it a market capitalization of $31.05B.