Devon Energy Corporation
Find Ratings ReportsDEVON ENERGY CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the subsector. DEVON ENERGY CORP has weak liquidity. Currently, the Quick Ratio is 0.83 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 8.00% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 4145.0 | 4299.0 |
EBITDA ($mil) | 2179.0 | 2220.0 |
EBIT ($mil) | 1520.0 | 1586.0 |
Net Income ($mil) | 1152.0 | 1201.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 875.0 | 1454.0 |
Total Assets ($mil) | 24490.0 | 23721.0 |
Total Debt ($mil) | 6483.0 | 6718.0 |
Equity ($mil) | 12061.0 | 11167.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 55.32 | 54.73 |
EBITDA Margin | 52.56 | 51.63 |
Operating Margin | 36.67 | 36.89 |
Sales Turnover | 0.62 | 0.81 |
Return on Assets | 15.3 | 25.35 |
Return on Equity | 31.07 | 53.86 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.07 | 1.25 |
Debt/Capital | 0.35 | 0.38 |
Interest Expense | 87.0 | 93.0 |
Interest Coverage | 17.47 | 17.05 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 635.7 | 653.0 |
Div / share | 0.77 | 1.35 |
EPS | 1.81 | 1.83 |
Book value / share | 18.97 | 17.1 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 8578804.0 | 9263584.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 13.78 for the Oil and Gas Extraction subsector and a significant discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 2.52 indicates a significant discount versus the S&P 500 average of 4.68 and a premium versus the subsector average of 2.46. The current price-to-sales ratio is well below the S&P 500 average and is also below the subsector average, indicating a discount. The valuation analysis reveals that, DEVON ENERGY CORP seems to be trading at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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DVN 8.21 | Peers 13.78 | DVN 4.65 | Peers 5.77 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. DVN is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. DVN is trading at a discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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DVN 8.80 | Peers 11.29 | DVN NM | Peers 8.64 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. DVN is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. DVN's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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DVN 2.52 | Peers 2.46 | DVN -36.08 | Peers 5.25 | |||||||||||||||||||||
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. DVN is trading at a valuation on par with its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, DVN is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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DVN 1.99 | Peers 2.48 | DVN -20.41 | Peers -8.61 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. DVN is trading at a discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. DVN significantly trails its peers on the basis of sales growth. |
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