📊 DVN Key Takeaways
Is Devon Energy Corp./de (DVN) a Good Investment?
Devon Energy demonstrates solid operational fundamentals with strong profitability metrics (20.2% operating margin, 15.4% net margin) and excellent free cash flow generation of $3.1B, providing a robust foundation for capital returns and debt reduction. The company maintains healthy leverage (0.54x debt/equity) and adequate interest coverage (7.0x), though modest revenue growth of 2.4% YoY and declining EPS suggest commodity price pressures warrant monitoring.
Devon Energy shows solid underlying fundamentals with strong free cash flow generation, healthy operating and net margins, and good returns on equity and assets. Growth quality is mixed because revenue increased modestly while net income and diluted EPS declined, but the business still appears financially sound with manageable leverage and adequate interest coverage. The main constraint is tighter short-term liquidity, which reduces balance-sheet flexibility if commodity conditions weaken.
Why Buy Devon Energy Corp./de Stock? DVN Key Strengths
- Strong free cash flow generation of $3.1B with 18.1% FCF margin indicates efficient capital deployment
- Excellent profitability with 20.2% operating margin and 15.4% net margin demonstrating operational efficiency
- Solid balance sheet with reasonable leverage (0.54x debt/equity) and adequate interest coverage (7.0x)
- Healthy returns on equity (17.0%) and assets (8.4%) showing effective capital utilization
- Strong free cash flow of $3.12B with an 18.1% FCF margin
- Solid profitability with 20.2% operating margin, 15.4% net margin, and 17.0% ROE
- Manageable leverage with 0.54x debt-to-equity and 7.0x interest coverage
DVN Stock Risks: Devon Energy Corp./de Investment Risks
- Revenue growth of only 2.4% YoY and declining net income (-1.5% YoY) suggesting sensitivity to commodity price cycles
- Weak liquidity with current ratio of 0.98x indicating potential near-term working capital constraints
- High capital expenditure requirements ($3.6B) relative to free cash flow reflect capital-intensive nature of oil and gas extraction
- EPS decline of 8.6% YoY despite revenue growth signals margin compression and operational headwinds
- Earnings quality softened as net income fell 1.5% and diluted EPS fell 8.6% despite revenue growth
- Liquidity is somewhat tight with a 0.98x current ratio and 0.90x quick ratio
- Capital intensity remains high with $3.59B of capex, leaving cash generation sensitive to operating performance
Key Metrics to Watch
- Trend in operating margins as commodity prices fluctuate
- Free cash flow sustainability and capital allocation decisions
- Current ratio improvement and working capital management
- Revenue growth acceleration indicators in oil and gas production volumes
- Free cash flow after capital expenditures
- Liquidity and debt service coverage
Devon Energy Corp./de (DVN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DVN Profit Margin, ROE & Profitability Analysis
DVN vs Energy Sector: How Devon Energy Corp./de Compares
How Devon Energy Corp./de compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Devon Energy Corp./de Stock Overvalued? DVN Valuation Analysis 2026
Based on fundamental analysis, Devon Energy Corp./de has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Devon Energy Corp./de Balance Sheet: DVN Debt, Cash & Liquidity
DVN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Devon Energy Corp./de's revenue has grown significantly by 22% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.84 reflects profitable operations.
DVN Revenue Growth, EPS Growth & YoY Performance
DVN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.8B | $687.0M | $1.09 |
| Q2 2025 | $3.9B | $844.0M | $1.34 |
| Q1 2025 | $3.7B | $494.0M | $0.77 |
| Q3 2024 | $3.8B | $812.0M | $1.30 |
| Q2 2024 | $3.5B | $690.0M | $1.07 |
| Q1 2024 | $3.7B | $596.0M | $0.94 |
| Q3 2023 | $4.0B | $910.0M | $1.42 |
| Q2 2023 | $3.5B | $690.0M | $1.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Devon Energy Corp./de Dividends, Buybacks & Capital Allocation
DVN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Devon Energy Corp./de (CIK: 0001090012)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DVN
What is the AI rating for DVN?
Devon Energy Corp./de (DVN) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DVN's key strengths?
Claude: Strong free cash flow generation of $3.1B with 18.1% FCF margin indicates efficient capital deployment. Excellent profitability with 20.2% operating margin and 15.4% net margin demonstrating operational efficiency. ChatGPT: Strong free cash flow of $3.12B with an 18.1% FCF margin. Solid profitability with 20.2% operating margin, 15.4% net margin, and 17.0% ROE.
What are the risks of investing in DVN?
Claude: Revenue growth of only 2.4% YoY and declining net income (-1.5% YoY) suggesting sensitivity to commodity price cycles. Weak liquidity with current ratio of 0.98x indicating potential near-term working capital constraints. ChatGPT: Earnings quality softened as net income fell 1.5% and diluted EPS fell 8.6% despite revenue growth. Liquidity is somewhat tight with a 0.98x current ratio and 0.90x quick ratio.
What is DVN's revenue and growth?
Devon Energy Corp./de reported revenue of $17.2B.
Does DVN pay dividends?
Devon Energy Corp./de pays dividends, with $470.0M distributed to shareholders in the trailing twelve months.
Where can I find DVN SEC filings?
Official SEC filings for Devon Energy Corp./de (CIK: 0001090012) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DVN's EPS?
Devon Energy Corp./de has a diluted EPS of $4.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DVN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Devon Energy Corp./de has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DVN stock overvalued or undervalued?
Valuation metrics for DVN: ROE of 17.0% (sector avg: 14%), net margin of 15.4% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy DVN stock in 2026?
Our dual AI analysis gives Devon Energy Corp./de a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DVN's free cash flow?
Devon Energy Corp./de's operating cash flow is $6.7B, with capital expenditures of $3.6B. FCF margin is 18.1%.
How does DVN compare to other Energy stocks?
Vs Energy sector averages: Net margin 15.4% (avg: 12%), ROE 17.0% (avg: 14%), current ratio 0.98 (avg: 1.3).