Devon Energy (DVN) AI Stock Analysis

• Market Cap: $20.63B
• Dividend Yield: 2.96%
• Average Volume (3M): 8.19M
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.65
• Revenue Growth: 12.06%
• EPS Growth: -16.37%
• Country: US
• Employees: 2,300
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.21
• Shares Outstanding: 642,100,000
• 10 Day Avg. Volume: 10,132,009
• 30 Day Avg. Volume: 8,193,628
• PEG Ratio: -2.01
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -32.47
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 3.11
• Enterprise Value/Ebitda: 0.99
• 1Y Price Target: $41.47
• Price Target Upside: 28.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 74 Outperform
• Price Target: $37.00 ▲(14.73%Upside)

Devon Energy's strong financial performance and attractive valuation are the most significant factors contributing to the score. The positive sentiment from the earnings call further enhances the outlook, although liquidity concerns from high capital expenditures should be monitored closely.

Positive Factors

Debt Reduction

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

Financial Guidance

Devon Energy's decision to avoid cutting activity is expected to be positively received by the market, especially with high oil production and lower capital expenditure.

Operational Performance

Devon Energy has been one of the better oil performers over the past quarter, and recent asset rationalizations and buybacks should maintain positive sentiment.

Negative Factors

Asset Impairment

The divestment of real estate properties resulted in an impairment of $254 million.

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.

Devon Energy Business Overview & Revenue Model

Company Description

Devon Energy Corporation is an independent energy company engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs). Based in the United States, the company operates primarily in onshore areas across several major oil and gas basins. Devon Energy is known for its disciplined capital allocation, technological innovation, and commitment to safety and environmental stewardship.

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 shows a solid financial performance with strong profitability and effective operational management, as seen in its income statement. The balance sheet is stable, with manageable leverage and effective equity utilization. However, cash flows indicate potential liquidity challenges due to high capital expenditures.

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	16.65B	15.94B	15.26B	19.17B	12.21B	4.83B
Gross Profit	9.57B	9.50B	9.78B	14.15B	7.92B	392.00M
EBITDA	7.49B	7.37B	7.57B	10.40B	5.45B	-1.36B
Net Income	2.79B	2.89B	3.75B	6.01B	2.81B	-2.54B
Balance Sheet
Total Assets	30.93B	30.49B	24.49B	23.72B	21.02B	9.91B
Cash, Cash Equivalents and Short-Term Investments	1.23B	811.00M	875.00M	1.45B	2.27B	2.24B
Total Debt	8.96B	9.20B	6.48B	6.70B	6.73B	4.54B
Total Liabilities	16.16B	15.79B	12.27B	12.43B	11.63B	6.89B
Stockholders Equity	14.54B	14.50B	12.06B	11.17B	9.26B	2.88B
Cash Flow
Free Cash Flow	-678.00M	-853.00M	2.60B	3.40B	2.89B	193.00M
Operating Cash Flow	6.83B	6.60B	6.54B	8.53B	4.90B	1.35B
Investing Cash Flow	-7.21B	-7.33B	-3.94B	-5.12B	-1.57B	-646.00M
Financing Cash Flow	483.00M	706.00M	-3.18B	-4.21B	-3.29B	-306.00M

Devon Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DVN, the sentiment is Negative. The current price of 32.25 is below the 20-day moving average (MA) of 32.81, above the 50-day MA of 31.92, and below the 200-day MA of 34.92, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 46.99 is Neutral, neither overbought nor oversold. The STOCH value of 7.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DVN.

Devon Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EC	83 Outperform	$19.37B	5.65	18.64%	67.53%	-2.26%	-20.04%
CTRA	76 Outperform	$19.55B	14.95	9.40%	3.39%	10.33%	-0.13%
WDS	75 Outperform	$29.39B	8.18	10.23%	6.77%	-0.93%	115.30%
DVN	74 Outperform	$20.63B	7.31	20.88%	2.96%	12.06%	-16.37%
HAL	73 Outperform	$17.68B	8.62	20.99%	3.29%	-2.54%	-17.53%
Sector *	68 Neutral	$14.83B	9.70	6.36%	5.29%	4.12%	-71.24%
VLO	66 Neutral	$42.51B	47.85	3.73%	3.30%	-8.44%	-85.95%

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.