Devon Energy Corporation (DVN) is a publicly traded company in the Energy — Oil & Gas Exploration & Production industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
As an independent energy producer, Devon Energy Corporation primarily focuses on the exploration, development, and extraction of oil, natural gas, and natural gas liquids within the United States. The company manages roughly 5,134 gross wells. Established in 1971, its corporate headquarters are located in Oklahoma City, Oklahoma.
Is Devon Energy Corporation stock overvalued or undervalued in 2026?
Devon Energy Corporation (DVN) trades at 12.4× earnings (P/E), against a median of 17.3× across the 140 energy companies above $2bn in Kaplio's universe. It trades at 20.1 times its average earnings over ten years; between the 10 times Lynch paid for a cyclical and the 25 of Graham's limit for the defensive investor, it is fairly priced.
Kaplio overview: Devon Energy Corporation
Market cap $57B · 52 weeks $32 – $52 (0 % below the high) · P/E 12.4× · 2027 expected P/E 10.0× · Dividend 2.1 % · Next earnings November 5, 2026 · expected EPS $1.31 · Closing price, Oct 30 · accounts published Aug 4.
- Valuation: P/E 12.4× (fairly priced).
- Business: 5-year ROIC 17.6 % (excellent).
- Balance sheet: Net debt/EBITDA 1.0× (solid).
- Earnings: 5 of 8 (uneven).
It trades at 20.1 times its average earnings over ten years; between the 10 times Lynch paid for a cyclical and the 25 of Graham's limit for the defensive investor, it is fairly priced.
What matters in energy: 6 of 7 pass
- Capex / Revenue 22.8 %, fails.
- FCF yield 8.8 %, passes.
- 5y avg ROIC 17.6 %, passes.
- Positive FCF through the cycle 8 de 10 ejercicios, passes, near the threshold.
- Dividend coverage (FCF / div) 4.5×, passes.
- Net debt / EBITDA 1.0×, passes.
- EV/EBITDA vs own 10y 7.7×, passes.
- P/E read in reverse (cyclicals) 12.4×, info.
Against its peers (reference peers) — Devon Energy Corporation: P/E 12.4×; EV/EBITDA 7.7×; ROIC 5.6 %; $57.4B. Diamondback Energy, Inc. (P/E 41.4×; EV/EBITDA 10.0×; ROIC 5.9 %; $59.4B), EOG Resources, Inc. (P/E 12.9×; EV/EBITDA 6.5×; ROIC 16.5 %; $86.8B), Expand Energy Corporation (P/E 7.8×; EV/EBITDA 3.9×; ROIC 10.3 %; $20.9B).
Dividend
tight (only raised recently) · Yield 2.1 % ($0.99 per share in 2025) · 5-year growth +8 % a year · Free cash flow coverage 1.3× · With $1,000 invested today you'd collect $21.50 a year ($1.79 a month).
Kaplio's reading: Devon Energy Corporation
Updated on October 31, 2026 · accounts published on August 4, 2026
A cash-generative energy business with margins well above its long-run norm
Devon Energy trades at a P/E of 12.4 over the last 12 months, 28 % below its sector median, with an 8.8 % free cash flow yield.
- Is Devon Energy expensive or cheap? Devon Energy's P/E of 12.4 over the last 12 months is 28 % below the 17.3 median of its sector.
- How is the business doing? Operating margin of 24 % over the last 12 months, against an average of just 0.7 % across fiscal 2014-2025.
- How strong is the balance sheet? Net debt was 1.0× EBITDA in fiscal 2025, and free cash flow covered the dividend 4.5 times.
- What to expect from the next earnings? Devon Energy reports on November 5, 2026; analysts expect EPS of $1.31, below the $1.57 posted last quarter.
- Does it generate cash through the cycle and cover the dividend? Free cash flow was positive in 8 of the last 10 fiscal years (2016-2025), right at energy's 8-in-10 discipline bar.
Is Devon Energy expensive or cheap?
Over the last 12 months Devon Energy trades at a P/E of 12.4, 28 % below the 17.3 median of 140 energy companies, and at an EV/EBITDA of 7.7×, under its nine-year average of 10.0×. The caution comes from the cycle. Against its own five-year average P/E of 8.2, today's 12.4 is high. That can mean earnings are depressed by the cycle, or that the market is already optimistic. The stock is up 66 % over 12 months and sits within 1 % of its 52-week high of $52.15.
How is the business doing?
Revenue grew 8 % over the last 12 months, but EPS fell 8 %, so the growth did not reach the bottom line. By Devon Energy's own history, profitability is strong. The 24 % operating margin over the last 12 months compares with 22 % in fiscal 2025 and an average of 0.7 % across 2014-2025, a stretch that included years like 2016, when ROIC was −12.4 %. Returns on capital look weaker right now. ROIC of 5.6 % over the last 12 months sits 2.0 points below the 7.6 % sector median and well short of its 17.6 % five-year average.
How strong is the balance sheet?
Debt is moderate. Net debt of $12.52 per share in fiscal 2025 equals 24 % of the current share price and 1.0× EBITDA, half the 2.0× ceiling considered healthy in energy. Debt/equity is 0.28 over the last 12 months. Two figures temper the picture. A current ratio of 0.72 means short-term liabilities exceed current assets, and the Altman Z of 2.3 sits in the grey zone. The dividend yields 2.2 % over the last 12 months, and the fiscal 2025 payout of 23 % of earnings leaves ample room.
What to expect from the next earnings?
Analysts have grown more optimistic. Over the last 30 days the 2026 EPS consensus rose 6 %, from $5.17 to $5.48 across 14 analysts, and the revenue estimate rose 5 %. Of 64 analysts covering Devon Energy, 45 recommend buying, 18 holding and none selling. The company beat EPS estimates in 5 of the last 8 quarters. On August 4, 2026 it reported EPS of $1.57 against $1.40 expected, a 12 % beat. The $1.31 expected for the next quarter implies a sequential decline, so the bar is lower this time.
Does it generate cash through the cycle and cover the dividend?
Oil and gas earnings follow the price of crude, so one good year says little. What counts is cash across the whole cycle, and whether the dividend survives the bad years. Devon Energy passes most tests. Its free cash flow yield over the last 12 months is 8.8 %, above the 8 % healthy mark, and its ROIC averaged 17.6 % over 2021-2025, against a 10 % bar. Free cash flow covered the dividend 4.5× in fiscal 2025, against a 1.2× minimum. The weak spot is investment: capex took 22.8 % of revenue in fiscal 2025, above the 10 % to 20 % healthy range.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Profitability
| Return on Equity | 14.90% |
| Return on Invested Capital | 5.61% |
| Return on Assets | 4.63% |
| Gross Margin | 34.04% |
| Operating Margin | 23.86% |
| Net Margin | 16.67% |
Financial Health
| Debt / Equity | 0.28 |
| Current Ratio | 0.72 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 2.25 |
Price Performance
| 1 month | +9.44% |
| 3 months | +17.01% |
| Year-to-date | +42.37% |
| 1 year | +60.51% |
| 3 years | +10.32% |
| 5 years | +24.23% |
| 10 years | +28.73% |
Dividend History
Paid in the last 12 months: $1.1200 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-09-15 | $0.3200 |
| 2026-06-15 | $0.3200 |
| 2026-03-13 | $0.2400 |
| 2025-12-15 | $0.2400 |
| 2025-09-15 | $0.2400 |
| 2025-06-13 | $0.2400 |
| 2025-03-14 | $0.2400 |
| 2024-12-13 | $0.2200 |
| 2024-09-13 | $0.4400 |
| 2024-06-14 | $0.3500 |
Amounts adjusted for stock splits.
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Explore sector: Energy · Oil & Gas Exploration & Production
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