Aureus
AExcellent

Devon Energy Corporation(DVN)

A

Financial data as of Dec 31, 2025Stable · Energy

FCF Margin15.7%Free Cash Flow / Revenue
Cash Conversion254.0%Operating CF / Net Income
Free Cash Flow$2.8B
Revenue$17.2B
Net Cash-$7.2BNet debt position
Debt / FCF3.2xElevated debt burden
Current Ratio0.98Tight short-term liquidity
YoY FCF Growth-3.2%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (15.7%, 3.2x; 2.1x sector-adjusted)
→
-0.5Current ratio below 1.0 (0.98) (reduced — strong FCF covers short-term obligations)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (15.7%)
  • Excellent cash conversion (254%)
  • Highly consistent quarterly FCF

Concerns

  • Net debt position ($7.2B) — 3.2x FCF, manageable
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin15.7%
Net Margin15.4%
Operating CF Margin39.0%
CapEx Ratio22.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$7.2BNet debt position
Debt / FCF3.2xElevated debt burden
Current Ratio0.98Tight liquidity
Debt / Equity0.55Low leverage

Quarterly FCF Trend

-3.2% YoYStable (-3.2%)

Free cash flow per quarter

Sector Comparison — Energy

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameDevon Energy Corporation
SectorEnergy
Free Cash Flow$2.8B
Revenue$17.2B
Net Income$2.6B
Operating Cash Flow$6.7B
Capital Expenditure$3.9B
FCF Margin15.7%
Cash Conversion Rate254.0%
Net Margin15.4%
Total Debt$8.6B
Total Cash$1.4B
Net Cash-$7.2B
Current Ratio0.98
Debt / Equity0.55
Debt / FCF3.2x
YoY FCF Growth-3.2%
Positive Quarters5 of 5
Trend DirectionStable
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

Related Research

All research →
Sector Report4 min read

Energy: Still 11 A-Grades Despite Five Failures

Natural gas producers dominate the top while refiners struggle. Half the sector shows improving trends.

May 8, 2026
EQTCTRAAPAOXY+17
Sector Report4 min read

Energy: 10 A-Grades and Five Failures

Half the sector prints double-digit FCF margins. The other half can't cover its debt.

Apr 6, 2026
EQTCTRAAPAOXY+15
Sector Report4 min read

Energy: Seven A-Grades Built on Declining Margins

Half the sector is improving from catastrophic lows. The other half is sliding from great highs. Only one company is holding steady.

Feb 13, 2026
EOGWMBLNGCTRA+6