NYSE · Energy

Devon Energy Corporation

DVN · Oil & Gas E&P

$42.12

▼ -0.46 (-1.08%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

F⤢

Gross Profit Margin 12.1%

Operating Margin 8.2%

Net Income Margin 3.2%

Fin. Health

D⤢

Years to Pay Off Debt 71.6 yrs

Working Capital vs Long-Term Debt -$7.4B

Working Capital $28M

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 3.15x

Cash Flow

C⤢

Free Cash Flow $626M

CapEx % of Net Income 857.5%

Owner Earnings $2.1B

Profitability

Gross Profit Margin 12.1%

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 8.2%

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 3.2%

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

Years to Pay Off Debt 71.6 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 -$7.4B

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 $28M

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.

Cash Flow

Free Cash Flow $626M

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 857.5%

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 $2.1B

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.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Devon Energy Corporation

Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. The company operates in Delaware Basin located in southeast New Mexico and west Texas, Eagle Ford located in North America, Anadarko Basin located in western Oklahoma, Williston Basin located in North Dakota, and Powder River Basin located in Wyoming. Devon Energy Corporation was founded in 1971 and is headquartered in Houston, Texas.

Market Data

Market Cap $48.6B

Enterprise Value $33.6B

P/E (TTM) 11.73

Dividend Yield 2.25%

Exchange NYSE

Key Margins

Gross Profit 12.1%

Operating Margin 8.2%

Net Margin 3.2%

Company Info

Sector Energy

Industry Oil & Gas E&P

Employees 2200

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Devon Energy Corporation at $42.12.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $42.12, the stock trades at a 457% premium to its Graham Number of $7.56. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	12.1%▼	23.8%•	N/A
Operating Margin %	8.2%▼	20.4%•	N/A
Net Income %	3.2%▼	13.6%•	N/A
Diluted EPS	0.19▼	0.90•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$32.5B	$31.6B	N/A
Total Debt	$8.6B▲	$8.6B•	N/A
Working Capital	$28M▲	-$80M•	N/A
Years to Pay Debt	71.60	15.28	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$626M▲	$601M•	N/A
Owner Earnings	$2.1B	$2.4B	N/A
CapEx % of Net Income	857.5%	166.0%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-5,600	248
Tax Rate For Calcs	0	0
Normalized EBITDA	1,208,000	1,755,000
Total Unusual Items	-20,000	1,000
Total Unusual Items Excluding Goodwill	-20,000	1,000
Net Income From Continuing Operation Net Minority Interest	120,000	562,000
Reconciled Depreciation	904,000	890,000
Reconciled Cost Of Revenue	3,345,000	3,140,000
EBITDA	1,188,000	1,756,000
EBIT	284,000	866,000
Net Interest Income	-109,000	-107,000
Interest Expense	118,000	119,000
Interest Income	14,000	14,000
Normalized Income	134,400	561,248
Net Income From Continuing And Discontinued Operation	120,000	562,000
Total Expenses	3,495,000	3,280,000
Diluted Average Shares	636,000	622,000
Basic Average Shares	635,000	621,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	120,000	562,000
Net Income Common Stockholders	120,000	562,000
Net Income	120,000	562,000
Minority Interests	0	0
Net Income Including Noncontrolling Interests	120,000	562,000
Net Income Continuous Operations	120,000	562,000
Tax Provision	46,000	185,000
Pretax Income	166,000	747,000
Other Income Expense	-37,000	13,000
Other Non Operating Income Expenses	-17,000	12,000
Special Income Charges	-20,000	1,000
Gain On Sale Of Ppe	-1,000	1,000
Write Off	0	0
Restructuring And Mergern Acquisition	19,000		1,000
Net Non Operating Interest Income Expense	-109,000	-107,000
Total Other Finance Cost	5,000	2,000
Interest Expense Non Operating	118,000	119,000
Interest Income Non Operating	14,000	14,000
Operating Income	312,000	841,000
Operating Expense	150,000	140,000
Other Operating Expenses	25,000	5,000
Selling General And Administration	125,000	135,000
General And Administrative Expense	125,000	135,000
Other Gand A	61,000	65,000
Salaries And Wages	64,000	70,000
Gross Profit	462,000	981,000
Cost Of Revenue	3,345,000	3,140,000
Total Revenue	3,807,000	4,121,000
Operating Revenue	3,807,000	4,121,000

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	621,440	622,000
Share Issued	621,440	622,000
Net Debt	6,571,000	6,955,000
Total Debt	8,592,000	8,586,000
Tangible Book Value	14,675,000	14,775,000
Invested Capital	23,814,000	23,917,000
Working Capital	28,000	-80,000
Net Tangible Assets	14,675,000	14,775,000
Capital Lease Obligations	206,000	197,000
Common Stock Equity	15,428,000	15,528,000
Total Capitalization	22,815,000	22,919,000
Total Equity Gross Minority Interest	15,428,000	15,528,000
Minority Interest	0	0
Stockholders Equity	15,428,000	15,528,000
Gains Losses Not Affecting Retained Earnings	-121,000	-122,000
Other Equity Adjustments	-121,000	-122,000
Retained Earnings	10,171,000	10,200,000
Additional Paid In Capital	5,316,000	5,388,000
Capital Stock	62,000	62,000
Common Stock	62,000	62,000
Total Liabilities Net Minority Interest	17,115,000	16,071,000
Total Non Current Liabilities Net Minority Interest	12,381,000	11,985,000
Other Non Current Liabilities	940,000	907,000
Non Current Deferred Liabilities	2,862,000	2,627,000
Non Current Deferred Taxes Liabilities	2,862,000	2,627,000
Long Term Debt And Capital Lease Obligation	7,593,000	7,588,000
Long Term Capital Lease Obligation	206,000	197,000
Long Term Debt	7,387,000	7,391,000
Long Term Provisions	986,000	863,000
Current Liabilities	4,734,000	4,086,000
Other Current Liabilities	1,082,000	807,000
Current Debt And Capital Lease Obligation	999,000	998,000
Current Debt	999,000	998,000
Other Current Borrowings			485,000
Payables And Accrued Expenses	2,653,000	2,281,000
Payables	2,653,000	2,281,000
Other Payable	1,678,000	1,491,000
Total Tax Payable
Income Tax Payable
Accounts Payable	975,000	790,000
Total Assets	32,543,000	31,599,000
Total Non Current Assets	27,781,000	27,593,000
Other Non Current Assets	403,000	395,000
Investments And Advances	715,000	727,000
Other Investments	45,000	50,000
Long Term Equity Investment	670,000	677,000
Investmentsin Joint Venturesat Cost	507,000	515,000
Investments In Other Ventures Under Equity Method	163,000	162,000
Goodwill And Other Intangible Assets	753,000	753,000
Goodwill	753,000	753,000
Net PPE	25,910,000	25,718,000
Accumulated Depreciation	-38,356,000	-37,688,000
Gross PPE	64,266,000	63,406,000
Other Properties	2,724,000	2,923,000
Current Assets	4,762,000	4,006,000
Other Current Assets	378,000	444,000
Inventory	319,000	336,000
Receivables	2,250,000	1,792,000
Accounts Receivable	2,250,000	1,792,000
Allowance For Doubtful Accounts Receivable	-7,000	-7,000
Gross Accounts Receivable	2,257,000	1,799,000
Cash Cash Equivalents And Short Term Investments	1,815,000	1,434,000
Cash And Cash Equivalents	1,815,000	1,434,000

Cash Flow

	2026	2025	2024
Free Cash Flow	626,000	601,000
Repurchase Of Capital Stock	-69,000	-250,000
Repayment Of Debt	-3,000	-8,000
Issuance Of Debt		0	0
Capital Expenditure	-1,029,000	-933,000
Interest Paid Supplemental Data	152,000	86,000
Income Tax Paid Supplemental Data	4,000	3,000
End Cash Position	1,815,000	1,434,000
Beginning Cash Position	1,434,000	1,278,000
Effect Of Exchange Rate Changes		-1,000	-1,000
Changes In Cash	381,000	157,000
Financing Cash Flow	-254,000	-407,000
Cash Flow From Continuing Financing Activities	-254,000	-407,000
Net Other Financing Charges	-27,000	0
Cash Dividends Paid	-155,000	-149,000
Common Stock Dividend Paid	-155,000	-149,000
Net Common Stock Issuance	-69,000	-250,000
Common Stock Payments	-69,000	-250,000
Net Issuance Payments Of Debt	-3,000	-8,000
Net Long Term Debt Issuance	-3,000	-8,000
Long Term Debt Payments	-3,000	-8,000
Long Term Debt Issuance		0	0
Investing Cash Flow	-1,020,000	-970,000
Cash Flow From Continuing Investing Activities	-1,020,000	-970,000
Dividends Received Cfi	9,000	11,000
Net Investment Purchase And Sale	-2,000	-50,000
Purchase Of Investment	-2,000	-50,000
Net Business Purchase And Sale		0	0
Sale Of Business		0	0
Net PPE Purchase And Sale	-188,000	-99,000
Sale Of PPE	2,000	2,000
Purchase Of PPE	-190,000	-101,000
Capital Expenditure Reported	-839,000	-832,000
Operating Cash Flow	1,655,000	1,534,000
Cash Flow From Continuing Operating Activities	1,655,000	1,534,000
Change In Working Capital	-299,000	-38,000
Change In Other Current Liabilities	-221,000	66,000
Change In Other Current Assets	5,000	7,000
Change In Payables And Accrued Expense	379,000	-154,000
Change In Payable	379,000	-154,000
Change In Account Payable
Change In Receivables	-462,000	43,000
Changes In Account Receivables	-462,000	43,000
Other Non Cash Items	-31,000	123,000
Stock Based Compensation	22,000	22,000
Asset Impairment Charge	3,000	-2,000
Deferred Tax	234,000	162,000
Deferred Income Tax	234,000	162,000
Depreciation Amortization Depletion	904,000	890,000
Depletion	878,000
Depreciation And Amortization	26,000
Depreciation	26,000
Operating Gains Losses	702,000	-185,000
Gain Loss On Investment Securities	701,000	-184,000
Net Income From Continuing Operations	120,000	562,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $4.5B ▼ $3.8B -14.5%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 26.8% ▼ 12.1% -14.6pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 7.0% ▼ 8.2% +1.2pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 11.1% ▼ 3.2% -7.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$3.8B/qtr (≈$15.2B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.01x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$626M

vs Positive

Operating Cash Flow

$1.7B

Latest quarter · Buffett's cash reality check

ROIC

0.9%

Based on latest annual operating income

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.

Market Cap / Net Assets

3.1x

Net Assets: $15.4B

Asset Context — Oil & Gas E&P

Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.

⚠️ Net margin compressed 7.9pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.

Peers & Industry

No auto-detected peers for Oil & Gas E&P. 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

Capital Allocation & Alignment

Insider Ownership

0.67%

Low — management has little skin in the game

Return on Equity (ROE)

0.8%

Weak — poor returns on equity

Return on Assets (ROA)

0.4%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$1.1B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+0.1% YoY

Debt is roughly stable

Leadership Team

Clay Gaspar

President, CEO & Director

Age 53

Pay: $2,932,695

2.444% of net income

John David Raines

Executive Vice President of Exploration & Production Permian

Age 42

Pay: $1,035,963

0.863% of net income

Larry Nichols

Co-Founder & Chairman Emeritus

Age 83

Pay: $155,177

0.129% of net income

Shannon Young III

Executive VP & CFO

Age 53

Blake Sirgo

Executive Vice President of Operations

Age 42

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	5.25%	60,507,488
Vanguard Capital Management LLC	3.50%	40,328,127
State Street Corporation	3.34%	38,564,178
Vanguard Portfolio Management LLC	2.98%	34,336,786
Charles Schwab Investment Management, Inc.	1.66%	19,171,853
Invesco Ltd.	1.64%	18,954,661
Geode Capital Management, LLC	1.45%	16,751,599
GQG Partners LLC	1.40%	16,170,345

Risk Analysis

Beta (Market Risk)

0.42

Low volatility — more stable than the market

Short Interest

2.5% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.56x

Conservative balance sheet — low financial risk

Current Ratio

1.01x

Adequate liquidity

52-Week Price Range

Low: $31.45 Current: $42.12 High: $52.71

Currently at 50% of 52-week range

Devon Energy Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis