DVN: Devon Energy Corp
Recent Range: $50/share – $75/share (Current Price: 64.57, as of close of 3/29/10)
Price/Sales (P/S) = 3.52 (6.84, Industry)
Price/Book (P/B) = 1.81 (2.32)
Gross Margin = 79.2% (63.2%)
Pre-Tax Margin = -56.5% (-39.0%)
Debt/Equity Ratio = 0.47 (0.49)
Current Ratio = 0.8 (1.5)
Return on Equity = -16.9% (2.0%)
Return on Assets = -8.9% (1.8%)
Return on Capital = -10.1% (2.5%)
Analysis: DON’T BUY.
This company seems to have some extreme conflicts. Their operations and sales seem to be good; however, they still have negative cash flow. They do not seem to have an outrageous amount of debt. I would not be surprised if management is paid really well without having to really earn it. Something is happening to this money they are making.
You can play with this stock’s trending pattern, but I still don’t like that mysterious disappearing money act.
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