Devon Energy (DVN) AI Stock Analysis

• Market Cap: $23.18B
• Dividend Yield: 2.69%
• Average Volume (3M): 8.30M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.57
• Revenue Growth: 11.14%
• EPS Growth: -21.32%
• Country: US
• Employees: 2,300
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.04
• Shares Outstanding: 627,300,000
• 10 Day Avg. Volume: 8,097,959
• 30 Day Avg. Volume: 8,296,881
• PEG Ratio: -0.32
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 1.31
• P/FCF Ratio: -23.90
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 7.51
• Enterprise Value/Ebitda: 3.79
• 1Y Price Target: $43.55
• Price Target Upside: 21.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 4
• Revenue Forecast (FY): $16.81B

• Rating: 79 Outperform
• Price Target: $43.00 ▲(20.38% Upside)

Devon Energy's strong technical indicators and positive earnings call sentiment are the most significant factors driving the stock score. The company's robust operational performance and strategic initiatives are offset by challenges in cash flow generation and macroeconomic headwinds. The valuation remains attractive, suggesting potential upside.

Positive Factors

Operational Efficiency

Devon's reduction in operating costs enhances its operational efficiency, leading to better margins and a stronger competitive position in the market.

Debt Reduction

Reducing debt strengthens Devon's balance sheet, improving financial stability and flexibility for future investments and growth opportunities.

Free Cash Flow Generation

Strong free cash flow generation allows Devon to return capital to shareholders and invest in growth, supporting long-term financial health and shareholder value.

Negative Factors

Declining Profit Margins

Decreasing profit margins may indicate rising costs or pricing pressures, which could impact Devon's profitability and competitive edge over time.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests potential liquidity issues, which could limit Devon's ability to fund operations and future projects without external financing.

Challenging Macro Environment

Macroeconomic challenges and a well-supplied market may pressure Devon's pricing power and demand, affecting revenue and growth prospects.

Devon Energy Business Overview & Revenue Model

Company Description

Devon Energy Corporation is an independent energy company based in the United States, primarily engaged in the exploration, development, and production of oil and natural gas. The company operates in two main segments: the exploration and production of oil and natural gas, with a focus on onshore resources in the U.S. Devon is known for its expertise in shale plays, particularly in the Delaware Basin and the Anadarko Basin. The company aims to create value through strategic asset management, operational efficiency, and sustainable practices in energy production.

How the Company Makes Money

Devon Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs). The company sells its production to various customers, including major oil companies and local utilities, primarily through long-term contracts and spot market transactions. Key revenue streams include the pricing of oil and gas, which can fluctuate based on market conditions, regional demand, and geopolitical factors. Additionally, Devon's strategic investments in high-quality assets and its focus on cost management contribute to its profitability. The company also benefits from partnerships and joint ventures that help to enhance its operational capabilities and expand its resource base.

Devon Energy Financial Statement Overview

Summary

Devon Energy demonstrates strong revenue growth and operational efficiency, with solid margins and a balanced capital structure. However, declining profitability margins and negative free cash flow growth present challenges that need to be addressed to sustain long-term financial health.

Income Statement

Devon Energy has shown strong revenue growth in the TTM period with a 72.8% increase, indicating robust performance in the oil and gas sector. The company maintains healthy margins, with a gross profit margin of 25.77% and a net profit margin of 16.98%. However, these margins have decreased compared to previous years, suggesting some pressure on profitability. The EBIT and EBITDA margins remain strong at 25.19% and 46.62%, respectively, reflecting efficient operations.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.60, indicating a balanced approach to leverage. Return on equity is solid at 19.49%, showcasing effective use of shareholder funds. The equity ratio stands at 49.16%, suggesting a stable capital structure. However, the decrease in stockholders' equity over the years could pose a risk if not addressed.

Cash Flow

Devon Energy's cash flow statement reveals challenges in free cash flow generation, with a significant negative growth rate of -236.03% in the TTM period. The operating cash flow to net income ratio is healthy at 1.49, indicating strong cash generation relative to earnings. However, the negative free cash flow to net income ratio of -0.23 highlights potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.88B	15.57B	15.14B	19.83B	13.75B	4.35B
Gross Profit	3.92B	4.27B	5.20B	8.97B	5.21B	-252.00M
EBITDA	7.76B	7.43B	7.57B	10.38B	5.42B	-1.36B
Net Income	2.72B	2.89B	3.75B	6.01B	2.78B	-2.68B
Balance Sheet
Total Assets	31.22B	30.49B	24.49B	23.72B	21.02B	9.91B
Cash, Cash Equivalents and Short-Term Investments	1.28B	846.00M	875.00M	1.45B	2.10B	2.05B
Total Debt	8.55B	9.20B	6.45B	6.70B	6.73B	4.54B
Total Liabilities	15.87B	15.79B	12.27B	12.43B	11.63B	6.89B
Stockholders Equity	15.35B	14.50B	12.06B	11.17B	9.26B	2.88B
Cash Flow
Free Cash Flow	3.03B	-853.00M	2.60B	3.40B	2.89B	193.00M
Operating Cash Flow	6.84B	6.60B	6.54B	8.53B	4.90B	1.35B
Investing Cash Flow	-3.47B	-7.33B	-3.94B	-5.12B	-1.57B	-646.00M
Financing Cash Flow	-2.77B	706.00M	-3.18B	-4.21B	-3.29B	-306.00M

Devon Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 35.72 is below the 20-day moving average (MA) of 36.63, above the 50-day MA of 34.50, and above the 200-day MA of 33.25, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 28.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DVN.

Devon Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQT	81 Outperform	$33.92B	18.55	8.19%	1.17%	64.84%	219.47%
FANG	81 Outperform	$44.15B	10.71	10.92%	2.60%	60.29%	-17.62%
DVN	79 Outperform	$23.18B	8.69	18.35%	2.69%	11.14%	-21.32%
COP	78 Outperform	$117.34B	13.43	15.37%	3.35%	8.41%	-16.12%
CTRA	73 Outperform	$19.73B	11.96	11.86%	3.40%	26.13%	31.42%
OXY	67 Neutral	$40.03B	29.57	5.82%	2.36%	-2.48%	-65.26%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Devon Energy Corporate Events

Devon Energy Appoints Brent Smolik to Board

On October 1, 2025, Devon Energy Corporation appointed Brent J. Smolik to its Board of Directors. Mr. Smolik will serve on several key committees and has entered into the standard indemnity agreement for non-management directors. He will also receive compensation in line with other non-management directors, including an award of restricted stock valued at $154,384, which will vest immediately after the grant date.