DVN

DEVON ENERGY CORP/DE

EnergyCIK 0001090012

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Market Cap
$31.44B
P/E (TTM)
13.9x
Rev Growth (TTM)
-1.5%
Net Margin (TTM)
13.7%
FCF Yield (TTM)
9.3%
FCF Margin (TTM)
17.7%

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LATEST EARNINGS

Q3 FY2025
8 months ago
View source
Revenue
$2.80B
Net Income
$687.00M
EPS
$1.09
  • Averaged 390,000 barrels of oil production per day, reaching the top-end of guidance.
  • Invested $859 million of capital, 5 percent below midpoint guidance, and lowered operating cost 5 percent year-to-date.
  • Generated $1.7 billion of operating cash flow and $820 million of free cash flow.
  • Returned $401 million to shareholders through dividend and share repurchases.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$2.9B
Q1 '26
$816M+16%
Q4 '25
$702M-14%
FCF Margin
TTM17.7%
Q1 '2621.4%+26%
Sector: 8.5%Above Avg
OCF Margin38.8%
OCF/NI2.83x
CapEx Coverage1.8x
FCF Yield9.3%
FCF Growth (2Y)-6%
Cash Conversion Cycle
42 days
DSO: 42+DIO: DPO:

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM4.5%
Div Yield1.9%
+
Buyback (TTM)2.6%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)1.9%
FCF Payout Ratio20.5%
Free Cash Flow (TTM)$2.9B
Stock Repurchases (TTM)$818.0M
Capital Return / FCF48.8%
Est. Dividends Paid (TTM)$599.8M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
6.7%
Stable
-0.0% YoY-8.6%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
10.6%
8Q: 11.2%
Asset Turnover
0.53x
8Q: 0.57x
Leverage (1+D/E)
1.61x
D/E: 0.61x
DuPont: 9.0%6.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
0.65x
8Q:0.70x
-15.2%
Invested Cap Turn
0.63x
8Q:0.67x
-13.8%
CapEx Intensity
13.2%
8Q:14.3%
CapEx/Depreciation
0.97x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
13.9x
Volatile
8Q: 34.1x+13597%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
13.9x
vs sector
Cash Flow
13.4x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
2.1P/E per %ROIC
ROIC: 6.7%
Shareholder Returns
Dividend
1.9%
Buyback
2.6%
Total Yield
4.5%
Market Cap$31.44B
EV$39.12B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
76/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
14.9%
8Q:
Return on Invested Capital (ROIC)Top 25%
6.7%
8Q:
-8.6%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 10.6%
Asset Turnover: 0.53x

Earnings Quality

Cash Conversion

2.83x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin

Capital Efficiency

Invested Capital Turnover0.63x

Working Capital

Cash Conversion Cycle42 days

Growth Quality & Momentum

Low Quality
Growth Quality Score
45/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
-1.5%
OpInc Growth YoY
-76.4%
EPS Growth YoY
-17.3%
FCF 3Y CAGR
-6.4%

Growth Quality Analysis

Sustainability Index: 3.0/10 - Growth sustainability concerns

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
Operating
13.9%
Above Avg in sector
Net
13.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+4.0 pts
FCF: 17.7% | Net: 13.7%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $7.62B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.61x
Balance sheet risk & solvency analysis