Devon Energy Return On Equity vs. Net Income
| DVN Stock | MXN 635.00 9.55 1.53% |
For Devon Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Devon Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Devon Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Devon Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Devon Energy over time as well as its relative position and ranking within its peers.
Devon |
Devon Energy Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Devon Energy's current stock value. Our valuation model uses many indicators to compare Devon Energy value to that of its competitors to determine the firm's financial worth. Devon Energy is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in net income category among its peers making up about 4,448,134,092 of Net Income per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Devon Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Devon Energy's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Devon Net Income vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Devon Energy |
| = | 0.63 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Devon Energy |
| = | 2.81 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Devon Net Income Comparison
Devon Energy is currently under evaluation in net income category among its peers.
Devon Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Devon Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Devon Energy will eventually generate negative long term returns. The profitability progress is the general direction of Devon Energy's change in net profit over the period of time. It can combine multiple indicators of Devon Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma. DEVON ENERGY operates under Oil Gas EP classification in Mexico and is traded on Mexico Stock Exchange. It employs 1400 people.
Devon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Devon Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Devon Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Devon Energy's important profitability drivers and their relationship over time.
Use Devon Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Devon Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Devon Energy will appreciate offsetting losses from the drop in the long position's value.Devon Energy Pair Trading
Devon Energy Pair Trading Analysis
The ability to find closely correlated positions to Devon Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Devon Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Devon Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Devon Energy to buy it.
The correlation of Devon Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Devon Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Devon Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Devon Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Devon Energy position
In addition to having Devon Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Long Short Funds Thematic Idea Now
Long Short Funds
Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Long Short Funds Theme or any other thematic opportunities.
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Additional Tools for Devon Stock Analysis
When running Devon Energy's price analysis, check to measure Devon Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Devon Energy is operating at the current time. Most of Devon Energy's value examination focuses on studying past and present price action to predict the probability of Devon Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Devon Energy's price. Additionally, you may evaluate how the addition of Devon Energy to your portfolios can decrease your overall portfolio volatility.