Is the business good?
How good a business is DVN?
Devon Energy earns 4.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
4.8%
Return on invested capital · cost of capital 9.0% · 4.2 points below what the capital costs: growth destroys value
- Operating margin
- 17%
Operating margin · Oil & Gas E&P median 30% · 12 months to Q2 2026
- Cash conversion
- 1.43×
Cash conversion · 1.10× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +48%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2022 | 31% |
| FY2023 | 25% |
| FY2024 | 18% |
| FY2025 | 16% |
Details›
- Operating margin12 months to Q2 2026
- 17%
- Net margin12 months to Q2 2026
- 17%
- Free cash flow margin
- 24%
- Revenue, trailing twelve months
- $19.7B
- Free cash flow, trailing twelve months
- $4.69B
- Net income, trailing twelve months
- $3.28B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.