Devon Energy (NYSE:DVN) Shareholder Returns Have Been Stellar, Earning 159% in 3 Years
Devon Energy (NYSE:DVN) Shareholder Returns Have Been Stellar, Earning 159% in 3 Years
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But if you buy shares in a really great company, you can more than double your money. For instance the Devon Energy Corporation (NYSE:DVN) share price is 114% higher than it was three years ago. How nice for those who held the stock! In more good news, the share price has risen 13% in thirty days.
Since the stock has added US$1.0b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Devon Energy became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. It might be well worthwhile taking a look at our free report on Devon Energy's earnings, revenue and cash flow.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Devon Energy the TSR over the last 3 years was 159%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
Devon Energy shareholders are up 5.9% for the year (even including dividends). But that return falls short of the market. If we look back over five years, the returns are even better, coming in at 16% per year for five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. It's always interesting to track share price performance over the longer term. But to understand Devon Energy better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Devon Energy (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process.
Devon Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
在買入公司股票(假設沒有槓桿作用)之後,最糟糕的結果是你損失了所有投入的錢。但是,如果你購買一家非常棒的公司的股票,你可以 更多 比你的錢翻一番。例如,德文能源公司(紐約證券交易所代碼:DVN)的股價比三年前高出114%。對於那些持有股票的人來說真是太棒了!更多好消息是,股價在三十天內上漲了13%。
由於該股僅在過去一週的市值就增加了10億美元,因此讓我們看看基礎表現是否推動了長期回報。
不可否認,市場有時是有效的,但價格並不總是能反映潛在的業務表現。通過比較每股收益(EPS)和一段時間內的股價變化,我們可以了解投資者對公司的態度是如何隨着時間的推移而變化的。
德文能源在過去三年中實現了盈利。正如我們在這裏看到的那樣,這種轉變可能是一個轉折點,可以證明股價的強勁上漲是合理的。
該公司的每股收益(隨着時間的推移)如下圖所示(點擊查看確切數字)。
很高興看到在過去三個月中出現了一些大規模的內幕買盤。這是積極的。話雖如此,我們認爲收益和收入增長趨勢是更重要的考慮因素。可能值得一看我們關於德文能源收益、收入和現金流的免費報告。
分紅呢?
重要的是要考慮任何給定股票的股東總回報率和股價回報率。儘管股價回報率僅反映股價的變化,但股東總回報率包括股息的價值(假設已進行再投資)以及任何折扣融資或分拆的收益。因此,對於支付豐厚股息的公司來說,股東總回報率通常遠高於股價回報率。我們注意到,德文能源過去3年的股東總回報率爲159%,好於上述股價回報率。而且,猜測股息支付在很大程度上解釋了這種分歧是沒有好處的!
不同的視角
德文能源的股東今年上漲了5.9%(甚至包括股息)。但是這種回報不及市場。如果我們回顧五年,回報率甚至更高,五年內每年爲16%。儘管股價上漲放緩,但該業務很有可能繼續保持強勁的執行力。長期跟蹤股價表現總是很有意思的。但是,爲了更好地了解德文能源,我們需要考慮許多其他因素。例如,投資風險的幽靈無處不在。我們已經在德文能源公司發現了3個警告信號(至少有1個有點不愉快),了解它們應該是你投資過程的一部分。
德文能源並不是內部人士唯一買入的股票。因此,看看這份免費的內幕收購成長型公司名單。
請注意,本文引用的市場回報反映了目前在美國交易所交易的股票的市場加權平均回報。
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。
譯文內容由第三人軟體翻譯。
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