Devon Energy (DVN) AI Stock Analysis

• Market Cap: $21.09B
• Dividend Yield: 2.92%
• Average Volume (3M): 7.98M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.60
• Revenue Growth: 12.06%
• EPS Growth: -16.37%
• Country: US
• Employees: 2,300
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.21
• Shares Outstanding: 642,100,000
• 10 Day Avg. Volume: 8,270,384
• 30 Day Avg. Volume: 7,979,176
• PEG Ratio: -1.89
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -30.51
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 0.95
• 1Y Price Target: $42.35
• Price Target Upside: 28.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 75 Outperform
• Price Target: $37.00 ▲(12.63%Upside)

Devon Energy's overall stock score reflects a strong financial performance and positive earnings call with robust free cash flow and operational improvements. The valuation suggests the stock is undervalued, while the technical analysis is neutral, indicating potential for growth with caution due to liquidity concerns and macroeconomic challenges.

Positive Factors

Business Optimization

A business optimization plan has been introduced to save $1 billion by year-end 2026, with 40% of the goal expected to be achieved this year.

Debt Reduction

Devon Energy sold their stake in Matterhorn Pipeline for $375 million, with proceeds going towards short-term debt reduction.

Real Estate and Pipeline Monetization

Devon Energy has successfully monetized $495 million of value from real estate and the Matterhorn pipeline, adding value that was not previously reflected in the share price.

Negative Factors

Commodity Price Concerns

The market would still like to hear a Plan B if commodity prices fall from current levels.

Macroeconomic Uncertainties

The market wants to see meaningful capital expenditure reductions until macroeconomic uncertainties clear.

Market Expectations

Despite improvements in guidance and outlook, the update is viewed as mixed relative to market expectations, indicating potential near-term pressure on the stock.

Devon Energy Business Overview & Revenue Model

Company Description

Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates approximately 5,134 gross wells. Devon Energy Corporation was incorporated in 1971 and is headquartered in Oklahoma City, Oklahoma.

How the Company Makes Money

Devon Energy makes money primarily through the production and sale of oil, natural gas, and NGLs. The company's revenue model revolves around the extraction of these resources from its owned or leased properties, which are then sold in the global commodities markets. Key revenue streams include the sale of crude oil, natural gas, and NGLs. Devon Energy also benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. The company's earnings are significantly influenced by commodity prices, production volumes, and operational efficiencies. Additionally, Devon Energy employs hedging strategies to manage price volatility and secure stable cash flows.

Devon Energy Financial Statement Overview

Summary

Devon Energy demonstrates strong profitability and effective operational management, with a solid income statement and a stable balance sheet. However, cash flow challenges due to high capital expenditures present potential liquidity risks.

Income Statement

Devon Energy's income statement shows a strong recovery trajectory with a notable revenue growth from 2020 to TTM. The gross profit margin for TTM is 26.36%, and the net profit margin is 16.98%, reflecting solid profitability. However, the revenue growth rate has seen fluctuations, with a decrease in 2025 TTM compared to 2024. The EBIT margin of 24.12% and EBITDA margin of 45.63% indicate efficient operational management despite the revenue fluctuations.

Balance Sheet

The balance sheet indicates a robust financial structure with a debt-to-equity ratio of 0.62 in TTM, showing manageable leverage. The equity ratio is 47.01%, indicating a healthy proportion of equity in the asset base. ROE stands at 19.17%, showcasing effective utilization of equity. However, total liabilities have increased over time, which could pose potential risks if not managed properly.

Cash Flow

The cash flow statement shows a mixed picture. Operating cash flow to net income ratio is strong at 2.45 for TTM, suggesting good cash generation from operations. However, free cash flow is negative, indicating high capital expenditures, which might impact liquidity. The free cash flow to net income ratio is -0.24, highlighting a potential area of concern if this trend persists.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.94B	15.26B	19.17B	12.21B	4.83B
Gross Profit	9.50B	9.78B	14.15B	7.92B	392.00M
EBITDA	7.37B	7.57B	10.40B	5.45B	-1.36B
Net Income	2.89B	3.75B	6.01B	2.81B	-2.54B
Balance Sheet
Total Assets	30.49B	24.49B	23.72B	21.02B	9.91B
Cash, Cash Equivalents and Short-Term Investments	811.00M	875.00M	1.45B	2.27B	2.24B
Total Debt	9.20B	6.48B	6.70B	6.73B	4.54B
Total Liabilities	15.79B	12.27B	12.43B	11.63B	6.89B
Stockholders Equity	14.50B	12.06B	11.17B	9.26B	2.88B
Cash Flow
Free Cash Flow	-853.00M	2.60B	3.40B	2.89B	193.00M
Operating Cash Flow	6.60B	6.54B	8.53B	4.90B	1.35B
Investing Cash Flow	-7.33B	-3.94B	-5.12B	-1.57B	-646.00M
Financing Cash Flow	706.00M	-3.18B	-4.21B	-3.29B	-306.00M

Devon Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DVN, the sentiment is Positive. The current price of 32.85 is below the 20-day moving average (MA) of 33.01, above the 50-day MA of 32.63, and below the 200-day MA of 34.50, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 27.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DVN.

Devon Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COP	77 Outperform	$115.69B	11.63	16.61%	3.40%	4.01%	-10.91%
EQT	76 Outperform	$36.93B	102.07	2.06%	1.06%	39.56%	-59.84%
FANG	76 Outperform	$41.30B	8.65	14.26%	2.83%	47.89%	-7.87%
CTRA	76 Outperform	$18.62B	14.24	9.40%	3.61%	10.33%	-0.13%
DVN	75 Outperform	$21.09B	7.47	20.88%	2.92%	12.06%	-16.37%
OXY	71 Outperform	$42.93B	17.65	9.43%	2.20%	1.35%	-33.30%
Sector *	67 Neutral	$15.20B	9.67	6.33%	5.24%	4.05%	-66.98%

Devon Energy Corporate Events

Devon Energy Elects Board at Annual Meeting

At Devon Energy‘s Annual Meeting of Stockholders on June 4, 2025, all ten nominees for the Board were elected for a one-year term. Additionally, the appointment of KPMG LLP as the independent auditor for 2025 was ratified, and the advisory vote on executive compensation was approved. However, a stockholder proposal to change the holding requirement for calling a special meeting was not approved.

The most recent analyst rating on (DVN) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Devon Energy stock, see the DVN Stock Forecast page.