DVN

DEVON ENERGY CORP/DE

Energy • CIK: 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%

LATEST EARNINGS

Q4 2025
3 months ago
View source
Revenue
N/A
Net Income
$562.00M
EPS
$0.90
  • Production averaged 851,000 Boe per day in the fourth quarter, exceeding the top-end of guidance, driven by better-than-expected well performance, primarily in the Delaware Basin.
  • Operations generated $1.5 billion of operating cash flow and $702 million of free cash flow during the fourth quarter.
  • Invested $883 million of capital in the fourth quarter, 4 percent below midpoint guidance, due to effective cost management and timing of facility spend.
  • Achieved 85 percent of the $1 billion business optimization target in 2025 and on track to fully achieve goal by year-end 2026.

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: 7.6%Above Avg
OCF Margin38.8%
OCF/NI2.83x
CapEx Coverage1.8x
FCF Yield9.3%
FCF Growth (2Y)-6%
Cash Conversion Cycle
63 days
DSO: 42+DIO: 21DPO: 0

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

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q4 2024
Revenue
$16.5B
$3.8B7.6%
$4.1B4.8%
$4.3B1.1%
$4.3B3.8%
$4.5B1.1%
$4.4B9.4%
$4.0B2.7%
$3.9B
Operating Income
$2.3B
$120.0M78.6%
$562.0M18.9%
$693.0M24.4%
$917.0M80.2%
$509.0M22.1%
$653.0M20.8%
$825.0M3.5%
$855.0M
Net Income
$2.3B
$120.0M78.6%
$562.0M18.2%
$687.0M23.6%
$899.0M82.0%
$494.0M22.9%
$641.0M21.1%
$812.0M3.8%
$844.0M
Operating Cash Flow
$6.4B
$1.7B7.9%
$1.5B9.2%
$1.7B9.4%
$1.5B20.4%
$1.9B16.7%
$1.7B0.1%
$1.7B8.3%
$1.5B
Free Cash Flow
$2.9B
$816.0M16.2%
$702.0M14.4%
$820.0M39.2%
$589.0M41.6%
$1.0B36.6%
$738.0M6.1%
$786.0M33.9%
$587.0M
Total Equity
N/A

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
13.3x
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$39.07B
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 Margin65.3%

Capital Efficiency

Invested Capital Turnover0.63x

Working Capital

Cash Conversion Cycle63 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
65.3%
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: $7.57B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.61x
Balance sheet risk & solvency analysis