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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
19.0%
Sector: 6.7%
Dividend Analysis audit
INCOME
2.68%
Trailing Yield
$2.68
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
27%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, DEVON ENERGY CORP/DE (DVN) receives a "Buy" rating with a composite score of 52.6/100, ranked #55 out of 4446 stocks. Key factor scores: Quality 50/100, Value 67/100, Momentum 59/100. This is quantitative analysis only — not investment advice.
DEVON ENERGY CORP/DE (DVN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does DEVON ENERGY CORP/DE Do?
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. DEVON ENERGY CORP/DE (DVN) is classified as a large-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO Richard E. Muncrief and employs approximately 1,800 people, headquartered in Oklahoma City, Oklahoma. With a market capitalization of $30.1B, DVN is one of the prominent companies in the Energy sector.
DEVON ENERGY CORP/DE (DVN) Stock Rating — Buy (April 2026)
As of April 2026, DEVON ENERGY CORP/DE receives a Buy rating with a composite score of 52.6/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.DVN ranks #55 out of 4,446 stocks in our coverage universe. Within the Energy sector, DEVON ENERGY CORP/DE ranks #8 of 128 stocks, placing it in the top 10% of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
DVN Stock Price and 52-Week Range
DEVON ENERGY CORP/DE (DVN) currently trades at $47.81. The stock lost $0.07 (0.1%) in the most recent trading session. The 52-week high for DVN is $48.17, which means the stock is currently trading -0.7% from its annual peak. The 52-week low is $25.89, putting the stock 84.7% above its annual trough. Recent trading volume was 10.3M shares, indicating strong institutional interest and high liquidity.
Is DVN Overvalued or Undervalued? — Valuation Analysis
DEVON ENERGY CORP/DE (DVN) carries a value factor score of 67/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 10.11x, compared to the Energy sector average of 19.63x — a discount of 48%. The price-to-book ratio stands at 1.92x, versus the sector average of 1.64x. The price-to-sales ratio is 1.74x, compared to 0.47x for the average Energy stock. On an enterprise value basis, DVN trades at 11.99x EV/EBITDA, versus 3.50x for the sector.
Overall, DVN's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
DEVON ENERGY CORP/DE Profitability — ROE, Margins, and Quality Score
DEVON ENERGY CORP/DE (DVN) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 19.0%, compared to the Energy sector average of 6.7%, which is within a healthy range. Return on assets (ROA) comes in at 9.3% versus the sector average of 3.7%.
On a margin basis, DEVON ENERGY CORP/DE reports gross margins of 46.0%, compared to 52.7% for the sector. The operating margin is 18.8% (sector: 10.7%). Net profit margin stands at 17.3%, versus 6.4% for the average Energy stock. Revenue growth is running at 10.6% on a trailing basis, compared to -1.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
DVN Debt, Balance Sheet, and Financial Health
DEVON ENERGY CORP/DE has a debt-to-equity ratio of 54.0%, compared to the Energy sector average of 55.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 0.98x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $8.39B. Cash and equivalents stand at $1.28B.
DVN has a beta of 1.10, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for DEVON ENERGY CORP/DE is 61/100, reflecting average volatility within the normal range for its sector.
DEVON ENERGY CORP/DE Revenue and Earnings History — Quarterly Trend
In TTM 2026, DEVON ENERGY CORP/DE reported revenue of $17.09B and earnings per share (EPS) of $4.18. Net income for the quarter was $2.94B. Gross margin was 46.0%. Operating income came in at $3.18B.
In FY 2025, DEVON ENERGY CORP/DE reported revenue of $17.19B and earnings per share (EPS) of $4.18. Net income for the quarter was $2.68B. Revenue grew 7.8% year-over-year compared to FY 2024. Operating income came in at $2.68B.
In Q3 2025, DEVON ENERGY CORP/DE reported revenue of $4.33B and earnings per share (EPS) of $1.09. Net income for the quarter was $693M. Revenue grew 7.6% year-over-year compared to Q3 2024. Operating income came in at $693M.
In Q2 2025, DEVON ENERGY CORP/DE reported revenue of $4.28B and earnings per share (EPS) of $1.42. Net income for the quarter was $917M. Revenue grew 9.4% year-over-year compared to Q2 2024. Operating income came in at $917M.
Over the past 8 quarters, DEVON ENERGY CORP/DE has demonstrated a growth trajectory, with revenue expanding from $3.92B to $17.09B. Investors analyzing DVN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
DVN Dividend Yield and Income Analysis
DEVON ENERGY CORP/DE (DVN) currently pays a dividend yield of 2.7%. At this yield, a $10,000 investment in DVN stock would generate approximately $$268.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning DVN offers above-average income for its sector. With a net margin of 17.3%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
DVN Momentum and Technical Analysis Profile
DEVON ENERGY CORP/DE (DVN) has a momentum factor score of 59/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 39/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
DVN vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing DVN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full DVN vs S&P 500 (SPY) comparison to assess how DEVON ENERGY CORP/DE stacks up against the broader market across all factor dimensions.
DVN Next Earnings Date
No upcoming earnings date has been announced for DEVON ENERGY CORP/DE (DVN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy DVN? — Investment Thesis Summary
The bull case for DEVON ENERGY CORP/DE rests on several quantitative strengths. The value score of 67/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 61/100) reduces downside risk.
In summary, DEVON ENERGY CORP/DE (DVN) earns a Buy rating with a composite score of 52.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on DVN stock.
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Institutional Research Dossier
DEVON ENERGY CORP/DE (DVN) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
Devon Energy Corporation (DVN) is a leading independent oil and gas exploration and production company in the United States. Our proprietary research model rates DVN as a 4-star Buy, with a Composite Score of 52.6/100, ranking it #75 out of 4,446 companies in our coverage universe. The core rationale for our Buy rating is DVN's attractive valuation, strong momentum, and solid profitability, which we believe outweigh the company's modest capital allocation and investment profile.
The most critical takeaway is that DVN appears poised to continue generating substantial free cash flow and shareholder returns, underpinned by its high-quality asset base, disciplined capital discipline, and favorable industry dynamics. However, investors should monitor the company's ability to navigate volatile commodity prices and potential regulatory headwinds.
Business Strategy & Overview
Devon Energy Corporation is an independent energy company primarily engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs) in the United States. The company operates approximately 5,134 gross wells across its core assets in the Permian Basin, Eagle Ford Shale, Williston Basin, and Anadarko Basin.
Devon's business model is centered on maintaining a diverse, high-quality asset portfolio and employing a disciplined approach to capital allocation and cost management. The company focuses on optimizing production from its existing wells while selectively investing in new drilling opportunities that meet its strict financial and operational criteria. This strategy has enabled Devon to generate robust cash flows and returns on capital even in a volatile commodity price environment.
In recent years, Devon has also made a concerted effort to transition its portfolio towards higher-margin, higher-return oil production, which now accounts for the majority of its total output. The company's product mix is further diversified by its substantial natural gas and NGL production, providing some natural hedging against oil price fluctuations.
Looking ahead, Devon plans to continue investing in its core acreage positions, leveraging its operational expertise and technological capabilities to drive efficiency improvements and production growth. The company is also actively exploring opportunities to expand its footprint through strategic acquisitions that complement its existing asset base and capital allocation priorities.
Overall, Devon's business strategy is centered on maintaining a disciplined, returns-focused approach to capital deployment while optimizing the performance of its high-quality asset portfolio. This strategy has enabled the company to navigate volatile industry conditions and consistently generate strong cash flows and shareholder returns.
Devon's industry positioning is further bolstered by favorable macro trends, including the ongoing recovery in global energy demand, the need for reliable domestic energy production, and the increasing focus on environmental, social, and governance (ESG) considerations in the oil and gas sector. These dynamics provide a supportive backdrop for Devon's long-term growth and value creation objectives.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
10.6%
Sector: -1.2%
-1003% VS SCTR
Economic Moat Analysis
We believe Devon Energy Corporation has a narrow economic moat, underpinned by its scale, operational expertise, and strategic asset positioning within key North American oil and gas basins.
One of the key drivers of Devon's moat is its significant scale and operational capabilities. As one of the largest independent oil and gas producers in the United States, the company benefits from economies of scale in areas such as procurement, infrastructure, and administrative overhead. This allows Devon to maintain a cost advantage over smaller competitors, particularly in the current environment of elevated inflation and supply chain disruptions.
Devon's deep technical expertise and institutional knowledge in its core operating regions, such as the Permian Basin and Eagle Ford Shale, also confer a significant advantage. The company's decades-long presence in these basins has enabled it to develop proprietary geological and operational insights, which translate into superior well productivity, capital efficiency, and overall returns on investment.
Additionally, Devon's strategically positioned asset base, which is largely concentrated in premier North American shale plays, provides the company with a competitive edge. The high-quality, low-cost nature of these resources allows Devon to generate attractive margins and cash flows even in a lower commodity price environment. This, in turn, enhances the company's ability to fund ongoing development, return capital to shareholders, and weather industry downturns.
That said, Devon's moat is considered narrow rather than wide, as the company operates in a commodity-driven industry with limited product differentiation. While the company's scale, expertise, and asset positioning create meaningful barriers to entry, they do not necessarily translate into an unassailable competitive advantage. Larger, well-capitalized peers or new entrants with access to cutting-edge technology could potentially erode Devon's relative cost advantage and market share over time.
Financial Health & Profitability
Devon Energy has demonstrated a strong financial profile, with solid profitability and cash flow generation that exceeds sector averages. Over the past three years, the company's revenue has grown at a compound annual rate of 10.6%, outpacing the broader energy sector's decline of 1.7%. This top-line growth, coupled with the company's disciplined cost management, has enabled Devon to consistently maintain industry-leading profit margins.
In the most recent fiscal year, Devon reported a gross margin of 46.0%, compared to the sector average of 55.1%, and an operating margin of 18.8%, well above the 10.6% industry benchmark. The company's net margin of 17.3% is also significantly higher than the 6.3% sector average, underscoring its ability to convert revenue into profitable and sustainable earnings.
Devon's balance sheet is further bolstered by a relatively conservative leverage profile, with a debt-to-equity ratio of 54.0% compared to the sector's 55.0%. This financial flexibility, combined with the company's substantial free cash flow generation, has enabled Devon to maintain a strong liquidity position and fund its ongoing capital expenditures and shareholder returns.
Looking ahead, the company's quarterly financial performance has exhibited some volatility, as evidenced by the fluctuations in its operating margins over the past year. This is not unexpected given the inherent cyclicality of the oil and gas industry. However, Devon's overall financial health and cash flow resiliency remain robust, underpinning our confidence in the company's ability to navigate industry headwinds and continue delivering shareholder value.
Valuation Assessment
Our valuation assessment indicates that Devon Energy's stock is currently undervalued compared to its growth potential and industry peers. The company's forward P/E ratio of 11.6x is significantly lower than the sector average of 19.5x, suggesting that the market has not fully priced in Devon's strong operational performance and cash flow generation capabilities.
Similarly, Devon's EV/EBITDA multiple of 3.6x is slightly above the 3.5x sector benchmark, but still well within the range of fair valuation. This metric highlights the company's ability to translate its robust EBITDA margins into shareholder value, especially when considering its disciplined approach to capital allocation and deleveraging.
From a free cash flow perspective, Devon's TTM FCF yield of 3.9% is also quite attractive, particularly in the context of the company's growth prospects and the industry's generally higher capital intensity. This FCF profile provides Devon with the financial flexibility to fund its organic development, pursue strategic acquisitions, and return capital to shareholders through dividends and share repurchases.
Overall, our analysis suggests that Devon Energy's current valuation represents a compelling entry point for investors, as the market has not yet fully recognized the company's operational excellence, financial resilience, and long-term growth potential. While there are always risks inherent in the oil and gas industry, we believe Devon's attractive valuation, combined with its strong competitive positioning and cash flow generation, make it a compelling investment opportunity.
Risk & Uncertainty
The primary risks and uncertainties facing Devon Energy Corporation are primarily related to the cyclical and volatile nature of the oil and gas industry, as well as potential regulatory changes that could impact the company's operations and growth trajectory.
One key risk factor is the inherent volatility in commodity prices, which can have a significant impact on Devon's revenue, profitability, and cash flow generation. While the company has demonstrated the ability to navigate these cycles, a prolonged downturn in oil and natural gas prices could put pressure on its financial performance and ability to fund ongoing development and shareholder returns.
Additionally, Devon's operations are subject to various environmental regulations and emissions reduction targets, both at the federal and state levels. Any material changes to the regulatory landscape, such as stricter emissions standards or limitations on hydraulic fracturing, could increase the company's compliance costs and constrain its ability to efficiently develop its resource base.
Furthermore, Devon's business model is dependent on its ability to maintain a diverse, high-quality asset portfolio and continue optimizing the performance of its existing wells. The company's future growth and profitability could be impacted if it is unable to successfully execute on its development plans, either due to operational challenges or increased competition for prime acreage positions.
Bulls Say / Bears Say
The Bull Case
BULL VIEWDevon Energy's attractive valuation, strong cash flow generation, and shareholder-friendly capital allocation strategy make it a compelling investment opportunity in the current energy market.
BULL VIEWThe company's operational excellence, technological capabilities, and strategic asset positioning in premier North American basins provide a sustainable competitive advantage that should enable it to continue outperforming its peers.
BULL VIEWWith a focus on low-cost, high-margin oil production, Devon is well-positioned to capitalize on the ongoing recovery in global energy demand and the industry's heightened emphasis on environmental, social, and governance (ESG) considerations.
The Bear Case
BEAR VIEWThe inherent volatility and cyclicality of the oil and gas industry pose significant risks to Devon Energy's financial performance and long-term growth prospects, particularly in the event of a prolonged downturn in commodity prices.
BEAR VIEWIncreased regulatory scrutiny and stricter environmental standards could increase Devon's compliance costs and limit its ability to efficiently develop its resource base, thereby constraining its growth potential.
BEAR VIEWDevon's reliance on a concentrated asset base in select North American basins exposes the company to regional production challenges and potential competition from larger, better-capitalized players that could erode its market share over time.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score DVN and 4,400+ other equities.
DEVON ENERGY CORP/DE exhibits a 120% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
9.3%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
46.0%
Sector: 52.7%
Operating Margin
Core business profitability
18.8%
Sector: 10.7%
Net Margin
Bottom-line profitability
17.3%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+42%
Income Projection audit
A $10,000 investment would generate approximately $268 annually in dividends at the current trailing rate.
