Devon Energy Corp (DVN) stock analysis
Devon Energy Corp (DVN) clears 8 of this site's 8 mechanical value filters, 5 of 8 Buffett-style checks and 3 of 5 Lynch-style checks. At $49.18 it trades 33.2% above this site's neutral DCF value (a margin of safety of -33.2%). Its earnings quality rates Strong and it returns +2.8% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Devon Energy do?
Devon Energy is a US oil and gas producer focused on shale, with its largest operations in the Delaware Basin of Texas and New Mexico.
What stands out about Devon Energy?
- The share price implies 15.2% yearly growth. At $49.18, DVN's free cash flow of $2.16 per share would have to grow 15.2% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
- No filter fails. DVN passes 8 of the 8 value filters. See every filter.
- The margin of safety is falling. It went from -26% on Oct 7 to -33% on Oct 23 across 5 weekly readings. See the trend.
- Strongest against peers: revenue growth. At 14.6% (peer median 11.2%) it ranks 7th of 21 among energy stocks this site tracks. See the ranking.
- Insiders have been buying. 1 open-market purchase was reported in SEC Form 4 filings in the last 90 days, about $31.6 million in all. See the Insider Buying Tracker.
How has Devon Energy's share price moved?
The interactive price chart needs JavaScript.
Is Devon Energy undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -33.2%
- Wall St. analyst rating Buy · 4.24/5 34 analysts this month: 12 strong buy, 19 buy, 2 hold, 1 sell, 0 strong sell (Finnhub). Up from 4.18 last month.
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −3.15 · accruals −13.1% of assets · 214% of profit arrived as cash · stock comp 0.6% of revenue · share count −0.7% a year. From the latest 10-K (year to Dec 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +2.8% net Latest fiscal year (2025): dividends 1.1% + buybacks 1.9% − stock comp 0.2%, as a share of today's market cap. Over 14 years its split-adjusted share count rose 53%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) $2.01 per $1 of new profit · FlightSafety-like · but only 18% return on capital Operating profit −$429M → $4.4B, capital needed $14B → $24B, 2016–2025 (3-year averages); return on capital now 18% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. Cyclical: the answer depends on where in its cycle the window starts and ends. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 0.96 · About fair P/E 16.8× ÷ 17.5% a year of growth behind it. 85th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 3 of 4 · misses capital-light Capital-light growth: not cleared (profit started from a loss); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): cleared. See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 1 flag
- Standing vs. sector peers 4 of 7 measures above the median Compared with the 20 other energy stocks this site tracks: 2 in the top third, 2 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does Devon Energy compare with its peers?
4 of 7 measures sit above the median of the 20 other energy stocks tracked here, 2 in the top third and 2 in the bottom third.
- P/E ratiolower is cheaper · peer median 17.2× 16.8× –10th of 21
- Free-cash-flow yieldhigher is cheaper · peer median 6.5% 4.4% ✕16th of 21
- Return on equityhigher is better · peer median 16% 15% –13th of 21
- Net marginhigher is better · peer median 13.5% 16.7% –9th of 21
- Revenue growthhigher is better, year on year · peer median 11.2% 14.6% ✓7th of 21
- Debt / equitylower is safer · peer median 0.45 0.27 ✓7th of 21
- Dividend yieldamong dividend payers · peer median 2.10% 1.49% ✕16th of 21
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and DVN doesn't clear enough of it yet. In its favor: DVN is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, converts sales into profit at healthy margins, earns many times its interest expense, so debt service isn't a worry, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: DVN carries more debt relative to equity than he typically tolerates, hasn't grown earnings per share fast enough over five years to impress him, and is trading above what a conservative discounted-cash-flow estimate says it's worth right now.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✕
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✓
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and DVN falls short of his bar. In its favor: DVN isn't over-leveraged for a company of its type, is cheap enough for a business with limited growth ahead of it, and converts earnings into real cash at a reasonable price. Where it comes up short: DVN doesn't pay much of a dividend, which is the main reason to own a slow grower in the first place, and isn't even growing at the modest pace he'd expect from a slow grower.
- Dividend yield > 2.5% ✕
- EPS growth 0%-10% ✕
- Debt/Equity < 0.6 ✓
- P/E < 20 ✓
- Price/FCF < 25 ✓
- Bonus: insiders buying (90d) 1 buy, ~$31.6M
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Devon Energy pass?
- Market Cap > $25B $55.1B
- Trailing P/E < 25 16.80
- PEG Ratio < 1.5 0.96
- Price/Book < 8 1.32
- Price/Sales < 7 2.80
- EPS Growth YoY > -5% +43.8%
- vs 50-day MA (±12%) +1.6%
- vs 200-day MA (±12%) +8.1%
What is Devon Energy's margin of safety?
-26% on 2026-10-07 → -33% on 2026-10-23 (5 weekly readings).
Where is Devon Energy in its 52-week range?
What is the short interest in Devon Energy?
28,433,630 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Devon Energy? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +21%
- Short interest under 5% of float 2.6%
- Passes most of the 6 fundamental filters 6/6 passed
- Price run-up backed by value, not just momentum +55% off 52wk low
- Debt/equity stable since 2016 1.23 → 0.54
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Devon Energy shareholders gained per year?
Not enough clean earnings history to compute this for DVN yet - a loss year in the window breaks the growth math rather than faking a number through it.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from DVN's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Devon Energy's 10-year financials show?
From DVN's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Devon Energy
What kind of company is Devon Energy?
Devon Energy is a US oil and gas producer focused on shale, with its largest operations in the Delaware Basin of Texas and New Mexico. This site groups it with Energy stocks.
Is Devon Energy trading above or below its DCF value?
At $49.18, DVN trades 33.2% above this site's neutral DCF value of $36.92 per share, a margin of safety of −33.2%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Devon Energy pass?
DVN passes 8 of 8. It passes Market Cap > $25B ($55.1B), Trailing P/E < 25 (16.80), PEG Ratio < 1.5 (0.96), Price/Book < 8 (1.32), Price/Sales < 7 (2.80), EPS Growth YoY > -5% (+43.8%), vs 50-day MA (±12%) (+1.6%) and vs 200-day MA (±12%) (+8.1%). The 8-filter list shows every stock that passes all of them.
What growth is Devon Energy's share price pricing in?
At $49.18, DVN's free cash flow of $2.16 per share would have to grow 15.2% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
Are Devon Energy's insiders buying its shares?
Yes: 1 open-market insider purchase of Devon Energy shares, worth about $31.6 million in total, was reported in SEC Form 4 filings in the 90 days up to this page's last update. Only open-market purchases count here, not option exercises or stock awards. See the Insider Buying Tracker.
When does Devon Energy report earnings next?
Devon Energy's next earnings report is expected on November 5, 2026 after the market closes, with analysts expecting earnings of $1.33 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 3 times, by an average of +5.0%.
Where do these numbers come from?
- Financial statements: Devon Energy's 10-K annual report for the year ended Dec 31, 2025, filed Feb 18, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Devon Energy Corp analysis
This page shows every value-investing check the site runs on Devon Energy Corp (DVN) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.