|DVN Overview
DVN

DEVON ENERGY CORP/DE

Energy • CIK: 0001090012

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Market Cap
$22.40B
P/E (TTM)
8.2x
Rev Growth (TTM)
+11.4%
Net Margin (TTM)
15.6%
FCF Yield (TTM)
14.1%
FCF Margin (TTM)
18.1%

LATEST EARNINGS

Q3 FY2025
3 months ago
View source
Revenue
Net Income
EPS
  • 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$3.2B
Q '25
$820M+39%
Q2 '25
$589M-42%
FCF Margin
TTM18.1%
Q '2518.9%+38%
Sector: 6.0%Above Avg
OCF Margin39.2%
OCF/NI2.52x
CapEx Coverage1.9x
FCF Yield14.1%
FCF Growth (2Y)-19%
Cash Conversion Cycle
40 days
DSO: 40+DIO: DPO:

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM7.6%
Div Yield2.7%
+
Buyback (TTM)4.9%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)2.7%
FCF Payout Ratio19.0%
Free Cash Flow (TTM)$3.2B
Stock Repurchases (TTM)$1.1B
Capital Return / FCF54.3%
Est. Dividends Paid (TTM)$600.6M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
58.2%
Moderate
-0.1% YoY-17.1%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
75.6%
8Q: 76.1%
Asset Turnover
0.57x
8Q: 0.58x
Leverage (1+D/E)
1.61x
D/E: 0.61x
DuPont: 68.9%58.2% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
0.70x
8Q:0.72x
-17.7%
Invested Cap Turn
0.77x
8Q:0.79x
-20.0%
CapEx Intensity
16.2%
8Q:17.1%
CapEx/Depreciation
1.00x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ 2025Q2 2025Q1 2025Q4 2024Q3 2024Q4 2024Q4 2024Q4 2023
Revenue
$17.5B
$4.3B1.1%
$4.3B3.8%
$4.5B1.1%
$4.4B9.4%
$4.0B2.7%
$3.9B8.9%
$3.6B13.2%
$4.1B
Operating Income
$17.0B
$4.2B1.1%
$4.2B3.5%
$4.3B1.7%
$4.2B8.7%
$3.9B2.7%
$3.8B9.2%
$3.5B13.7%
$4.0B
Net Income
$2.7B
$687.0M23.6%
$899.0M82.0%
$494.0M22.7%
$639.0M21.3%
$812.0M3.8%
$844.0M41.6%
$596.0M48.3%
$1.2B
Operating Cash Flow
$6.8B
$1.7B9.4%
$1.5B20.4%
$1.9B16.7%
$1.7B0.1%
$1.7B8.3%
$1.5B11.7%
$1.7B0.1%
$1.7B
Free Cash Flow
$3.2B
$820.0M39.2%
$589.0M41.6%
$1.0B36.6%
$738.0M6.1%
$786.0M33.9%
$587.0M30.5%
$844.0M2.1%
$827.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
8.2x
Valuation Lenses
Earnings
8.2x
vs sector
Cash Flow
9.6x
EV/FCF vs
Growth-Adj
0.7xPEG
Undervalued for growth
Quality-Adj
0.1P/E per %ROIC
ROIC: 58.2%
Shareholder Returns
Dividend
2.7%
Buyback
4.9%
Total Yield
7.6%
Market Cap$22.40B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
91/100
Exceptional

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

Returns on Capital

Return on Equity (ROE)Top 25%
18.5%
8Q:
Return on Invested Capital (ROIC)Top 25%
58.2%
8Q:
-17.1%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 75.6%
Asset Turnover: 0.57x

Earnings Quality

Cash Conversion

2.52x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin100.0%

Capital Efficiency

Invested Capital Turnover0.77x

Working Capital

Cash Conversion Cycle40 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
52/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
11.4%
OpInc Growth YoY
7.9%
EPS Growth YoY
-21.3%
FCF 3Y CAGR
-19.2%

Growth Quality Analysis

Working Capital Drag: FCF growth lagging revenue by 30.6%

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
100.0%
Operating
97.1%
Top 25% in sector
Net
15.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+2.5 pts
FCF: 18.1% | Net: 15.6%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $8.11B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.61x
Balance sheet risk & solvency analysis