Aureus
BGood

Devon Energy Corporation(DVN)

B

Financial data as of Dec 31, 2025Declining · 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-180.7%4 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)
→
-1Significant YoY FCF decline (-180.7%)
→
-0.5Highly volatile FCF (consistency: 1.09)
→
+0.5Strong revenue growth (73.1% YoY) offsets compressed FCF margin
→
FinalB

Analysis Summary

Strengths

  • Strong FCF margin (15.7%)
  • Excellent cash conversion (254%)
  • Strong revenue growth (73.1% YoY)

Concerns

  • Net debt position ($7.2B) — 3.2x FCF, manageable
  • Current ratio below 1.0 — tight short-term liquidity
  • Significant YoY FCF decline (-180.7%)
  • Highly volatile quarterly FCF

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

-180.7% YoYDeclining (-180.7%)

Free cash flow per quarter

Sector Comparison — Energy

FCF Margin ranked against sector peers

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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-180.7%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeB
Data SourceYahoo Finance

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