Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin22.4%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin15.4%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt3.2 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$7.5B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$80M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
C
Free Cash Flow$2.8B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income148.1%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$10.2B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit25.5%
Operating Margin22.4%
Net Margin15.4%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
25.5%▼
29.5%▼
35.2%▼
43.7%•
N/A
Operating Margin %
22.4%▼
26.2%▼
32.4%▼
41.3%•
N/A
Net Income %
15.4%▼
18.1%▼
24.6%▼
31.4%•
N/A
Diluted EPS
4.17▼
4.56▼
5.84▼
9.12•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$31.6B
$30.5B
$24.5B
$23.7B
N/A
Total Debt
$8.6B▼
$9.2B▲
$6.5B▼
$6.7B•
N/A
Working Capital
-$80M▼
$118M▼
$208M▼
$786M•
N/A
Years to Pay Debt
3.25
3.18
1.72
1.11
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$2.8B▲
-$853M▼
$2.6B▼
$3.4B•
N/A
Owner Earnings
$10.2B
$13.6B
$10.2B
$13.4B
N/A
CapEx % of Net Income
148.1%
257.8%
105.3%
85.2%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
20,470
-2,310
5,400
9,680
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
7,469,000
7,379,000
7,516,000
10,324,000
Total Unusual Items
89,000
-11,000
30,000
44,000
Total Unusual Items Excluding Goodwill
89,000
-11,000
30,000
44,000
Net Income From Continuing Operation Net Minority Interest
2,642,000
2,891,000
3,747,000
6,015,000
Reconciled Depreciation
3,595,000
3,255,000
2,554,000
2,223,000
Reconciled Cost Of Revenue
12,797,000
11,230,000
9,891,000
10,800,000
EBITDA
7,558,000
7,368,000
7,546,000
10,368,000
EBIT
3,963,000
4,113,000
4,992,000
8,145,000
Net Interest Income
-455,000
-363,000
-308,000
-309,000
Interest Expense
497,000
401,000
369,000
370,000
Interest Income
56,000
62,000
55,000
38,000
Normalized Income
2,573,470
2,899,690
3,722,400
5,980,680
Net Income From Continuing And Discontinued Operation
2,642,000
2,891,000
3,747,000
6,015,000
Total Expenses
13,332,000
11,758,000
10,319,000
11,249,000
Diluted Average Shares
633,000
634,000
642,000
659,000
Basic Average Shares
632,000
632,000
639,000
657,250
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
2,642,000
2,891,000
3,747,000
6,015,000
Net Income Common Stockholders
2,642,000
2,891,000
3,747,000
6,015,000
Otherunder Preferred Stock Dividend
57,000
30,000
Net Income
2,642,000
2,891,000
3,747,000
6,015,000
Minority Interests
-39,000
-51,000
-35,000
-22,000
Net Income Including Noncontrolling Interests
2,681,000
2,942,000
3,782,000
6,037,000
Net Income Continuous Operations
2,681,000
2,942,000
3,782,000
6,037,000
Tax Provision
785,000
770,000
841,000
1,738,000
Pretax Income
3,466,000
3,712,000
4,623,000
7,775,000
Other Income Expense
65,000
-107,000
-8,000
164,000
Other Non Operating Income Expenses
-24,000
-96,000
-38,000
120,000
Special Income Charges
89,000
-11,000
30,000
44,000
Gain On Sale Of Ppe
343,000
-11,000
30,000
44,000
Other Special Charges
-30,000
Write Off
254,000
0
0
0
Restructuring And Mergern Acquisition
9,000
0
0
219,000
Net Non Operating Interest Income Expense
-455,000
-363,000
-308,000
-309,000
Total Other Finance Cost
14,000
24,000
-6,000
-23,000
Interest Expense Non Operating
497,000
401,000
369,000
370,000
Interest Income Non Operating
56,000
62,000
55,000
38,000
Operating Income
3,856,000
4,182,000
4,939,000
7,920,000
Operating Expense
535,000
528,000
428,000
449,000
Other Operating Expenses
43,000
28,000
20,000
54,000
Selling General And Administration
492,000
500,000
408,000
395,000
General And Administrative Expense
492,000
500,000
408,000
395,000
Other Gand A
233,000
215,000
408,000
395,000
Salaries And Wages
259,000
285,000
210,000
229,000
Gross Profit
4,391,000
4,710,000
5,367,000
8,369,000
Cost Of Revenue
12,797,000
11,230,000
9,891,000
10,800,000
Total Revenue
17,188,000
15,940,000
15,258,000
19,169,000
Operating Revenue
17,188,000
15,940,000
15,258,000
19,169,000
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
300
Ordinary Shares Number
622,000
651,000
635,700
653,000
Share Issued
622,000
651,000
636,000
653,000
Net Debt
6,955,000
8,037,000
5,280,000
4,986,000
Total Debt
8,586,000
9,203,000
6,450,000
6,697,000
Tangible Book Value
14,775,000
13,743,000
11,308,000
10,414,000
Invested Capital
23,917,000
23,379,000
18,216,000
17,607,000
Working Capital
-80,000
118,000
208,000
786,000
Net Tangible Assets
14,775,000
13,743,000
11,308,000
10,414,000
Capital Lease Obligations
197,000
320,000
295,000
257,000
Common Stock Equity
15,528,000
14,496,000
12,061,000
11,167,000
Total Capitalization
22,919,000
22,894,000
17,733,000
17,356,000
Total Equity Gross Minority Interest
15,528,000
14,704,000
12,217,000
11,296,000
Minority Interest
0
208,000
156,000
129,000
Stockholders Equity
15,528,000
14,496,000
12,061,000
11,167,000
Gains Losses Not Affecting Retained Earnings
-122,000
-122,000
-124,000
-116,000
Other Equity Adjustments
-122,000
-122,000
-124,000
-116,000
Treasury Stock
0
0
13,000
0
Retained Earnings
10,200,000
8,166,000
6,195,000
4,297,000
Additional Paid In Capital
5,388,000
6,387,000
5,939,000
6,921,000
Capital Stock
62,000
65,000
64,000
65,000
Common Stock
62,000
65,000
64,000
65,000
Total Liabilities Net Minority Interest
16,071,000
15,785,000
12,273,000
12,425,000
Total Non Current Liabilities Net Minority Interest
11,985,000
12,476,000
9,324,000
9,320,000
Other Non Current Liabilities
907,000
840,000
876,000
900,000
Non Current Deferred Liabilities
2,627,000
2,148,000
1,838,000
1,463,000
Non Current Deferred Taxes Liabilities
2,627,000
2,148,000
1,838,000
1,463,000
Long Term Debt And Capital Lease Obligation
7,588,000
8,718,000
5,967,000
6,446,000
Long Term Capital Lease Obligation
197,000
320,000
295,000
257,000
Long Term Debt
7,391,000
8,398,000
5,672,000
6,189,000
Long Term Provisions
863,000
770,000
643,000
511,000
Current Liabilities
4,086,000
3,309,000
2,949,000
3,105,000
Other Current Liabilities
807,000
586,000
484,000
489,000
Current Debt And Capital Lease Obligation
998,000
485,000
483,000
251,000
Current Debt
998,000
485,000
483,000
251,000
Other Current Borrowings
485,000
483,000
251,000
Payables And Accrued Expenses
2,281,000
2,238,000
1,982,000
2,365,000
Payables
2,281,000
2,238,000
1,982,000
2,365,000
Other Payable
1,491,000
1,432,000
1,222,000
1,506,000
Accounts Payable
790,000
806,000
760,000
859,000
Total Assets
31,599,000
30,489,000
24,490,000
23,721,000
Total Non Current Assets
27,593,000
27,062,000
21,333,000
19,830,000
Other Non Current Assets
395,000
268,000
319,000
307,000
Investments And Advances
727,000
727,000
666,000
440,000
Other Investments
50,000
54,000
49,000
47,000
Long Term Equity Investment
677,000
673,000
617,000
393,000
Investmentsin Joint Venturesat Cost
515,000
558,000
617,000
393,000
Investments In Other Ventures Under Equity Method
162,000
115,000
0
Goodwill And Other Intangible Assets
753,000
753,000
753,000
753,000
Goodwill
753,000
753,000
753,000
753,000
Net PPE
25,718,000
25,314,000
19,595,000
18,330,000
Accumulated Depreciation
-37,688,000
-34,121,000
-30,899,000
-28,456,000
Gross PPE
63,406,000
59,435,000
50,494,000
46,786,000
Other Properties
2,923,000
2,974,000
2,556,000
2,504,000
Current Assets
4,006,000
3,427,000
3,157,000
3,891,000
Other Current Assets
444,000
315,000
460,000
469,000
Restricted Cash
140,000
172,000
Inventory
336,000
294,000
249,000
201,000
Receivables
1,792,000
1,972,000
1,573,000
1,767,000
Taxes Receivable
83,000
Accounts Receivable
1,792,000
1,972,000
1,573,000
1,767,000
Allowance For Doubtful Accounts Receivable
-7,000
-6,000
-7,000
-9,000
Gross Accounts Receivable
1,799,000
1,978,000
1,580,000
1,776,000
Cash Cash Equivalents And Short Term Investments
1,434,000
846,000
875,000
1,454,000
Cash And Cash Equivalents
1,434,000
846,000
875,000
1,454,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
2,797,000
-853,000
2,597,000
3,405,000
Repurchase Of Capital Stock
-1,050,000
-1,057,000
-979,000
-718,000
Repayment Of Debt
-767,000
-472,000
-242,000
0
Issuance Of Debt
0
3,219,000
0
0
Capital Expenditure
-3,914,000
-7,453,000
-3,947,000
-5,125,000
Interest Paid Supplemental Data
509,000
366,000
378,000
370,000
Income Tax Paid Supplemental Data
186,000
480,000
400,000
438,000
End Cash Position
1,434,000
846,000
875,000
1,454,000
Beginning Cash Position
846,000
875,000
1,454,000
2,271,000
Effect Of Exchange Rate Changes
0
-3,000
3,000
-11,000
Changes In Cash
588,000
-26,000
-582,000
-806,000
Financing Cash Flow
-2,730,000
706,000
-3,184,000
-4,213,000
Cash Flow From Continuing Financing Activities
-2,730,000
706,000
-3,184,000
-4,213,000
Net Other Financing Charges
-294,000
-47,000
-105,000
-116,000
Cash Dividends Paid
-619,000
-937,000
-1,858,000
-3,379,000
Common Stock Dividend Paid
-619,000
-937,000
-1,858,000
-3,379,000
Net Common Stock Issuance
-1,050,000
-1,057,000
-979,000
-718,000
Common Stock Payments
-1,050,000
-1,057,000
-979,000
-718,000
Net Issuance Payments Of Debt
-767,000
2,747,000
-242,000
0
Net Long Term Debt Issuance
-767,000
2,747,000
-242,000
0
Long Term Debt Payments
-767,000
-472,000
-242,000
0
Long Term Debt Issuance
0
3,219,000
0
0
Investing Cash Flow
-3,393,000
-7,332,000
-3,942,000
-5,123,000
Cash Flow From Continuing Investing Activities
-3,393,000
-7,332,000
-3,942,000
-5,123,000
Dividends Received Cfi
38,000
68,000
32,000
39,000
Net Investment Purchase And Sale
-62,000
-118,000
-53,000
-76,000
Purchase Of Investment
-62,000
-118,000
-53,000
-76,000
Net Business Purchase And Sale
0
147,000
0
0
Sale Of Business
0
147,000
0
0
Purchase Of Business
-25,000
Net PPE Purchase And Sale
223,000
-3,784,000
-38,000
-2,544,000
Sale Of PPE
545,000
24,000
26,000
39,000
Purchase Of PPE
-322,000
-3,808,000
-64,000
-2,583,000
Capital Expenditure Reported
-3,592,000
-3,645,000
-3,883,000
-2,542,000
Operating Cash Flow
6,711,000
6,600,000
6,544,000
8,530,000
Cash Flow From Continuing Operating Activities
6,711,000
6,600,000
6,544,000
8,530,000
Change In Working Capital
151,000
-217,000
-144,000
-226,000
Change In Other Current Liabilities
125,000
19,000
-59,000
-207,000
Change In Other Current Assets
-182,000
-34,000
59,000
-29,000
Change In Payables And Accrued Expense
25,000
-32,000
-335,000
152,000
Change In Payable
25,000
-32,000
-335,000
152,000
Change In Receivables
183,000
-170,000
191,000
-142,000
Changes In Account Receivables
183,000
-170,000
191,000
-142,000
Other Non Cash Items
181,000
215,000
26,000
-1,397,000
Stock Based Compensation
99,000
99,000
93,000
88,000
Asset Impairment Charge
265,000
5,000
5,000
12,000
Deferred Tax
484,000
311,000
376,000
1,179,000
Deferred Income Tax
484,000
311,000
376,000
1,179,000
Depreciation Amortization Depletion
3,595,000
3,255,000
2,554,000
2,223,000
Operating Gains Losses
-745,000
-10,000
-148,000
614,000
Gain Loss On Investment Securities
-402,000
-21,000
-118,000
658,000
Net Income From Continuing Operations
2,681,000
2,942,000
3,782,000
6,037,000
2/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $15.5B
Warren's Owner Earnings
$10.2B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
2/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$17.2B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
0.98x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $9.12 to $4.17 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
-54.3% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $17.2Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 0.98xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $9.12 to $4.17 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what DVN is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
11.1%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
148.1%
257.8%
105.3%
85.2%
N/A
Repurchase of Capital Stock
-$1.1B
-$1.1B
-$979M
-$718M
N/A
Free Cash Flow
$2.8B▲
-$853M▼
$2.6B▼
$3.4B•
N/A•
Warren's Owner Earnings
$10.2B
$13.6B
$10.2B
$13.4B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare DVN against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
DVN (DVN) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 25.5%. Operating margin: 22.4%. Net margin: 15.4%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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