Devon Energy (DVN) AI Stock Analysis

• Market Cap: $21.13B
• Dividend Yield: 3.43%
• Average Volume (3M): 7.45M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.60
• Revenue Growth: 10.98%
• EPS Growth: -19.25%
• Country: US
• Employees: 2,300
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.84
• Shares Outstanding: 634,800,000
• 10 Day Avg. Volume: 8,420,864
• 30 Day Avg. Volume: 7,450,694
• PEG Ratio: -0.32
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 1.28
• P/FCF Ratio: -23.90
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: 4.97
• 1Y Price Target: $43.21
• Price Target Upside: 29.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 73 Outperform
• Price Target: $37.00 ▲(11.18% Upside)

Devon Energy's strong earnings call and attractive valuation are the most significant factors driving the score. Financial performance is solid, but cash flow concerns and mixed technical signals slightly temper the outlook.

Positive Factors

Business Optimization

Devon Energy introduced a business optimization plan that will save $1 billion by the end of 2026 and expects to achieve 40% of the goal this year.

Financial Performance

Analyst maintains a Buy rating on Devon Energy due to its discounted valuation and peer-leading capital returns.

Operational Efficiency

Devon Energy provided a more efficient 2025 outlook with increased production guidance due to strong operational results.

Negative Factors

Commodity Price Risk

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

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.

Regional Production Challenges

Volumes in the Eagle Ford region were reset lower following the BPX joint venture dissolution, but are expected to rise in the second half of the year.

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 generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs). The company earns money by extracting hydrocarbons from its various production sites and selling them in the open market. Key revenue streams include the sale of produced oil and gas, which are influenced by market prices, production volumes, and operational efficiencies. Additionally, Devon engages in hedging strategies to manage price volatility and protect its revenue. The company also benefits from partnerships and joint ventures with other energy firms, enabling shared resources and enhanced production capabilities. Factors such as geopolitical events, changes in regulatory policies, and market demand for energy commodities further impact Devon's earnings.

Devon Energy Financial Statement Overview

Summary

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.40B	15.94B	15.14B	19.17B	12.21B	4.35B
Gross Profit	8.39B	9.50B	9.78B	14.15B	7.92B	-252.00M
EBITDA	5.59B	7.37B	7.57B	10.40B	5.45B	-1.36B
Net Income	1.95B	2.89B	3.75B	6.01B	2.81B	-2.68B
Balance Sheet
Total Assets	31.39M	30.49B	24.49B	23.72B	21.02B	9.91B
Cash, Cash Equivalents and Short-Term Investments	1.76M	811.00M	875.00M	1.45B	2.27B	2.05B
Total Debt	8.99M	9.20B	6.48B	6.70B	6.73B	4.54B
Total Liabilities	16.10M	15.79B	12.27B	12.43B	11.63B	6.89B
Stockholders Equity	15.06M	14.50B	12.06B	11.17B	9.26B	2.88B
Cash Flow
Free Cash Flow	-1.19B	-853.00M	2.60B	3.40B	2.89B	193.00M
Operating Cash Flow	5.27B	6.60B	6.54B	8.53B	4.90B	1.35B
Investing Cash Flow	-6.19B	-7.33B	-3.94B	-5.12B	-1.57B	-646.00M
Financing Cash Flow	989.58M	706.00M	-3.18B	-4.21B	-3.29B	-306.00M

Devon Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.28
• 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 33.28 is above the 20-day moving average (MA) of 32.86, above the 50-day MA of 32.91, and below the 200-day MA of 33.93, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 39.43 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	81 Outperform	$117.29B	12.60	15.88%	3.32%	2.45%	-17.08%
FANG	76 Outperform	$41.12B	10.10	13.55%	3.69%	51.78%	-27.29%
DVN	73 Outperform	$21.13B	7.45	20.60%	3.43%	10.98%	-19.25%
CTRA	73 Outperform	$18.33B	11.51	11.42%	3.58%	16.56%	20.21%
OXY	73 Outperform	$43.63B	26.04	6.98%	2.08%	-1.66%	-58.96%
EQT	70 Outperform	$32.01B	27.59	6.26%	1.23%	59.12%	12.12%
Sector *	66 Neutral	$14.89B	8.87	6.31%	5.50%	3.48%	-73.68%

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.