Recent News
On Dec. 30, 2025 Devon announced CEO Clay Gaspar will speak on a panel at the Goldman Sachs Energy, Cleantech & Utilities Conference, with the event webcast and replay availability noted by the company.
Technical Analysis
ADX at 24.11 indicates an emerging trend strength that gives directional indicators room to influence near-term price bias.
DI+ stands at 28.61 and shows an increasing trajectory, a bullish directional signal; DI- at 17.14 shows a decreasing trajectory, confirming reduced downside pressure and reinforcing the bullish directional reading.
MACD reads 0.55 with a dip-and-reversal pattern and sits above its signal line at 0.29; that cross above the signal line confirms a momentum pickup consistent with near-term upside bias.
MRO at -5.8 registers negative, which implies the price sits below the model target and therefore carries measured upside potential toward fair-value anchors used in valuation.
RSI at 55.76 shows a dip-and-reversal placement in neutral-to-firm territory, supporting a constructive short-term momentum picture without clear overbought extremes.
Price closed at $39.45, above the 12-day and 26-day EMAs and above the 20-day average; the price trades above the 1x upper Bollinger band ($38.58) and approaches the 2x upper band ($40.16), indicating strength with a modest short-term extension that requires volume confirmation. Short-term EMAs display a dip-and-reversal alignment consistent with the MACD signal.
Volume on the session registered ~6.8 million versus a 50-day average near 8.38 million, indicating the recent upside advanced with below-average participation and therefore benefits from additional confirming sessions to validate a sustained move.
Fundamental Analysis
Operational profit metrics remain a relative strength. EBIT totaled $1.037B, with an EBIT margin of 23.94%, above the industry peer mean EBIT margin of 14.84%; however, EBIT margin fell QoQ by 20.30% and fell YoY by 17.08%, reflecting quarter-to-quarter compression despite still-high absolute margin levels.
EBITDA reached $1.916B and operating income measured $982M; operating margin stood at 22.67% and declined YoY by 21.48%, pointing to margin pressure when compared to prior periods even as absolute profitability stays material.
Earnings per share came in at $1.04 versus an estimate of $0.94, a positive EPS difference of $0.10 and an EPS surprise of 10.64%, signaling recent upside to consensus versus expectations.
Cash generation shows constructive dynamics. Free cash flow totaled $623M, producing a free cash flow yield of 2.96%, which sits above the industry peer mean free cash flow yield of 1.86% and supports the company’s capacity for capital returns. Operating cash flow registered $745M while capital expenditures totaled -$1.067B for the period, illustrating ongoing investment alongside meaningful cash returns.
Balance-sheet and leverage metrics show manageable serviceability but elevated net leverage. Net debt stands at $7.113B with debt-to-EBITDA near 4.46x and interest coverage at 8.30x, the latter above the industry peer mean interest coverage of 7.00x and indicating adequate coverage while leverage remains a watch item.
Market multiples: trailing P/E near 32.17 and forward P/E near 30.70 reflect market expectations for continued earnings; P/B at 1.37 sits below the industry peer mean P/B of 1.55. Revenue growth registered 1.10% year-over-year while revenue growth QoQ contracted materially, and free cash flow growth shows a positive trajectory over the period examined despite short-term QoQ softness.
Capital allocation signals include a dividend yield near 0.72% with a dividend payout ratio of 21.98% and dividend coverage near 4.55x, consistent with a capacity to sustain distributions while prioritizing debt management and reinvestment.
Valuation conclusion: WMDST values the stock as under-valued, a view bolstered by above-mean free cash flow yield and high absolute margins, tempered by recent margin compression and leverage metrics that warrant monitoring.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 1.8 B |
| Operating Cash Flow | $ 745.0 M | |
| Capital Expenditures | $ -1.07 B | |
| Change In Working Capital | $ -62.00 M | |
| Dividends Paid | $ -151.00 M | |
| Cash Flow Delta | $ -481.00 M | |
| End Period Cash Flow | $ 1.3 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 4.3 B | |
| Forward Revenue | $ 1.1 B | |
| COSTS | ||
| Cost Of Revenue | $ 3.2 B | |
| Depreciation | $ 25.0 M | |
| Depreciation and Amortization | $ 25.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 3.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.1 B | |
| EBITDA | $ 1.9 B | |
| EBIT | $ 1.0 B | |
| Operating Income | $ 982.0 M | |
| Interest Income | $ 18.0 M | |
| Interest Expense | $ 125.0 M | |
| Net Interest Income | $ -109.00 M | |
| Income Before Tax | $ 912.0 M | |
| Tax Provision | $ 219.0 M | |
| Tax Rate | 24.0 % | |
| Net Income | $ 687.0 M | |
| Net Income From Continuing Operations | $ 693.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.94 | |
| EPS Actual | $ 1.04 | |
| EPS Difference | $ 0.10 | |
| EPS Surprise | 10.638 % | |
| Forward EPS | $ 1.11 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 31.2 B | |
| Intangible Assets | $ 753.0 M | |
| Net Tangible Assets | $ 14.6 B | |
| Total Current Assets | $ 3.9 B | |
| Cash and Short-Term Investments | $ 1.3 B | |
| Cash | $ 1.3 B | |
| Net Receivables | $ 1.8 B | |
| Inventory | $ 361.0 M | |
| Long-Term Investments | $ 386.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 934.0 M | |
| Short-Term Debt | $ 998.0 M | |
| Total Current Liabilities | $ 4.0 B | |
| Net Debt | $ 7.1 B | |
| Total Debt | $ 8.5 B | |
| Total Liabilities | $ 15.9 B | |
| EQUITY | ||
| Total Equity | $ 15.3 B | |
| Retained Earnings | $ 9.8 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 24.40 | |
| Shares Outstanding | 629.000 M | |
| Revenue Per-Share | $ 6.89 | |
| VALUATION | Market Capitalization | $ 21.0 B |
| Enterprise Value | $ 28.3 B | |
| Enterprise Multiple | 14.78 | |
| Enterprise Multiple QoQ | 13.797 % | |
| Enterprise Multiple YoY | 9.971 % | |
| Enterprise Multiple IPRWA | high: 63.145 mean: 30.719 median: 28.677 DVN: 14.78 low: -21.01 |
|
| EV/R | 6.539 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.034 | |
| Asset To Liability | 1.967 | |
| Debt To Capital | 0.358 | |
| Debt To Assets | 0.274 | |
| Debt To Assets QoQ | -4.402 % | |
| Debt To Assets YoY | 14464.894 % | |
| Debt To Assets IPRWA | high: 0.585 DVN: 0.274 mean: 0.228 median: 0.202 low: 0.002 |
|
| Debt To Equity | 0.557 | |
| Debt To Equity QoQ | -6.712 % | |
| Debt To Equity YoY | 13858.396 % | |
| Debt To Equity IPRWA | high: 2.001 mean: 0.719 DVN: 0.557 median: 0.427 low: 0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.371 | |
| Price To Book QoQ | -3.3 % | |
| Price To Book YoY | -27.246 % | |
| Price To Book IPRWA | high: 5.854 median: 1.736 mean: 1.547 DVN: 1.371 low: -1.698 |
|
| Price To Earnings (P/E) | 32.175 | |
| Price To Earnings QoQ | -17.811 % | |
| Price To Earnings YoY | -13.417 % | |
| Price To Earnings IPRWA | high: 161.846 median: 59.729 mean: 56.449 DVN: 32.175 low: -72.568 |
|
| PE/G Ratio | 1.351 | |
| Price To Sales (P/S) | 4.86 | |
| Price To Sales QoQ | -2.508 % | |
| Price To Sales YoY | -27.323 % | |
| Price To Sales IPRWA | high: 41.067 median: 6.142 mean: 5.793 DVN: 4.86 low: 0.013 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 30.7 | |
| Forward PE/G | 1.289 | |
| Forward P/S | 19.042 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -17.706 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.138 | |
| Asset Turnover Ratio QoQ | 0.626 % | |
| Asset Turnover Ratio YoY | -4.724 % | |
| Asset Turnover Ratio IPRWA | high: 0.505 median: 0.171 mean: 0.163 DVN: 0.138 low: 0.001 |
|
| Receivables Turnover | 2.349 | |
| Receivables Turnover Ratio QoQ | 6.607 % | |
| Receivables Turnover Ratio YoY | -1.71 % | |
| Receivables Turnover Ratio IPRWA | high: 6.116 DVN: 2.349 mean: 2.151 median: 2.125 low: 0.185 |
|
| Inventory Turnover | 9.381 | |
| Inventory Turnover Ratio QoQ | -2.493 % | |
| Inventory Turnover Ratio YoY | -4.493 % | |
| Inventory Turnover Ratio IPRWA | high: 19.661 DVN: 9.381 mean: 2.925 median: 2.449 low: 0.169 |
|
| Days Sales Outstanding (DSO) | 38.851 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 22.573 | |
| Cash Conversion Cycle Days QoQ | -10.91 % | |
| Cash Conversion Cycle Days YoY | 27.751 % | |
| Cash Conversion Cycle Days IPRWA | high: 168.196 DVN: 22.573 median: 3.362 mean: -1.399 low: -100.341 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -24.749 | |
| CapEx To Revenue | -0.246 | |
| CapEx To Depreciation | -42.68 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 22.7 B | |
| Net Invested Capital | $ 23.7 B | |
| Invested Capital | $ 23.7 B | |
| Net Tangible Assets | $ 14.6 B | |
| Net Working Capital | $ -175.00 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.316 | |
| Current Ratio | 0.957 | |
| Current Ratio QoQ | -21.724 % | |
| Current Ratio YoY | -13.98 % | |
| Current Ratio IPRWA | high: 3.911 mean: 1.237 median: 1.193 DVN: 0.957 low: 0.331 |
|
| Quick Ratio | 0.867 | |
| Quick Ratio QoQ | -23.224 % | |
| Quick Ratio YoY | -14.235 % | |
| Quick Ratio IPRWA | high: 2.792 mean: 0.952 median: 0.892 DVN: 0.867 low: 0.285 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 4.462 | |
| Cost Of Debt | 1.083 % | |
| Interest Coverage Ratio | 8.296 | |
| Interest Coverage Ratio QoQ | -18.78 % | |
| Interest Coverage Ratio YoY | -30.034 % | |
| Interest Coverage Ratio IPRWA | high: 20.571 DVN: 8.296 mean: 7.003 median: 6.237 low: -10.268 |
|
| Operating Cash Flow Ratio | 0.184 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 26.18 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.55 | |
| Dividend Payout Ratio | 0.22 | |
| Dividend Rate | $ 0.24 | |
| Dividend Yield | 0.007 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.538 % | |
| Revenue Growth | 1.097 % | |
| Revenue Growth QoQ | -129.067 % | |
| Revenue Growth YoY | -59.846 % | |
| Revenue Growth IPRWA | high: 37.34 % median: 4.2 % mean: 4.144 % DVN: 1.097 % low: -20.802 % |
|
| Earnings Growth | 23.81 % | |
| Earnings Growth QoQ | -177.864 % | |
| Earnings Growth YoY | -208.296 % | |
| Earnings Growth IPRWA | high: 200.0 % DVN: 23.81 % median: 14.634 % mean: 9.651 % low: -250.0 % |
|
| MARGINS | ||
| Gross Margin | 25.491 % | |
| Gross Margin QoQ | -1.973 % | |
| Gross Margin YoY | -22.172 % | |
| Gross Margin IPRWA | high: 81.109 % DVN: 25.491 % mean: 24.008 % median: 22.601 % low: -15.694 % |
|
| EBIT Margin | 23.944 % | |
| EBIT Margin QoQ | -20.298 % | |
| EBIT Margin YoY | -17.083 % | |
| EBIT Margin IPRWA | high: 96.372 % DVN: 23.944 % mean: 14.835 % median: 13.227 % low: -70.544 % |
|
| Return On Sales (ROS) | 22.674 % | |
| Return On Sales QoQ | -0.983 % | |
| Return On Sales YoY | -21.481 % | |
| Return On Sales IPRWA | high: 47.608 % DVN: 22.674 % mean: 13.377 % median: 11.014 % low: -22.163 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 623.0 M | |
| Free Cash Flow Yield | 2.96 % | |
| Free Cash Flow Yield QoQ | 10.324 % | |
| Free Cash Flow Yield YoY | -128.285 % | |
| Free Cash Flow Yield IPRWA | high: 20.745 % DVN: 2.96 % mean: 1.859 % median: 1.607 % low: -13.048 % |
|
| Free Cash Growth | 8.726 % | |
| Free Cash Growth QoQ | -120.436 % | |
| Free Cash Growth YoY | -101.327 % | |
| Free Cash Growth IPRWA | high: 279.983 % mean: 15.367 % median: 15.075 % DVN: 8.726 % low: -454.42 % |
|
| Free Cash To Net Income | 0.907 | |
| Cash Flow Margin | 17.202 % | |
| Cash Flow To Earnings | 1.084 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 2.195 % | |
| Return On Assets QoQ | -23.917 % | |
| Return On Assets YoY | -25.085 % | |
| Return On Assets IPRWA | high: 6.589 % DVN: 2.195 % median: 1.226 % mean: 1.078 % low: -3.499 % |
|
| Return On Capital Employed (ROCE) | 3.815 % | |
| Return On Equity (ROE) | 0.045 | |
| Return On Equity QoQ | -25.013 % | |
| Return On Equity YoY | -21.294 % | |
| Return On Equity IPRWA | high: 0.131 DVN: 0.045 median: 0.029 mean: 0.026 low: -0.061 |
|
| DuPont ROE | 4.518 % | |
| Return On Invested Capital (ROIC) | 3.32 % | |
| Return On Invested Capital QoQ | -21.809 % | |
| Return On Invested Capital YoY | -102.267 % | |
| Return On Invested Capital IPRWA | high: 8.109 % DVN: 3.32 % mean: 2.613 % median: 2.588 % low: -6.505 % |
|