CONOCOPHILLIPS (COP)

US20825C1045 - Common Stock

112.01  -1.62 (-1.43%)

Fundamental Rating

5

COP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 212 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of COP get a neutral evaluation. Nothing too spectacular is happening here. COP has a valuation in line with the averages, but it does not seem to be growing.



6

1. Profitability

1.1 Basic Checks

In the past year COP was profitable.
In the past year COP had a positive cash flow from operations.
COP had positive earnings in 4 of the past 5 years.
COP had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

COP has a better Return On Assets (11.07%) than 72.04% of its industry peers.
COP has a Return On Equity of 21.39%. This is in the better half of the industry: COP outperforms 72.04% of its industry peers.
COP has a better Return On Invested Capital (11.46%) than 64.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for COP is significantly below the industry average of 38.31%.
Industry RankSector Rank
ROA 11.07%
ROE 21.39%
ROIC 11.46%
ROA(3y)13.37%
ROA(5y)9.2%
ROE(3y)26.23%
ROE(5y)18.04%
ROIC(3y)14.29%
ROIC(5y)N/A

1.3 Margins

COP has a better Profit Margin (19.13%) than 61.61% of its industry peers.
COP's Profit Margin has improved in the last couple of years.
COP's Operating Margin of 26.51% is in line compared to the rest of the industry. COP outperforms 54.98% of its industry peers.
In the last couple of years the Operating Margin of COP has grown nicely.
COP's Gross Margin of 47.26% is in line compared to the rest of the industry. COP outperforms 49.29% of its industry peers.
COP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 26.51%
PM (TTM) 19.13%
GM 47.26%
OM growth 3YN/A
OM growth 5Y2.46%
PM growth 3YN/A
PM growth 5Y2.58%
GM growth 3Y11.66%
GM growth 5Y0.18%

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), COP is creating some value.
Compared to 1 year ago, COP has less shares outstanding
Compared to 5 years ago, COP has more shares outstanding
The debt/assets ratio for COP is higher compared to a year ago.

2.2 Solvency

COP has an Altman-Z score of 3.75. This indicates that COP is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.75, COP belongs to the best of the industry, outperforming 83.41% of the companies in the same industry.
The Debt to FCF ratio of COP is 2.22, which is a good value as it means it would take COP, 2.22 years of fcf income to pay off all of its debts.
COP's Debt to FCF ratio of 2.22 is fine compared to the rest of the industry. COP outperforms 74.88% of its industry peers.
COP has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of COP (0.35) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 2.22
Altman-Z 3.75
ROIC/WACC1.37
WACC8.34%

2.3 Liquidity

COP has a Current Ratio of 1.35. This is a normal value and indicates that COP is financially healthy and should not expect problems in meeting its short term obligations.
COP has a Current ratio (1.35) which is in line with its industry peers.
COP has a Quick Ratio of 1.21. This is a normal value and indicates that COP is financially healthy and should not expect problems in meeting its short term obligations.
COP has a Quick ratio (1.21) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.35
Quick Ratio 1.21

3

3. Growth

3.1 Past

COP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.10%.
COP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.10% yearly.
COP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -26.96%.
The Revenue has been growing by 8.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-33.1%
EPS 3YN/A
EPS 5Y14.1%
EPS Q2Q%-14.71%
Revenue 1Y (TTM)-26.96%
Revenue growth 3Y44.04%
Revenue growth 5Y8.97%
Sales Q2Q%-6.71%

3.2 Future

COP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.30% yearly.
The Revenue is expected to decrease by -3.46% on average over the next years.
EPS Next Y1.17%
EPS Next 2Y5.76%
EPS Next 3Y2.53%
EPS Next 5Y3.3%
Revenue Next Year0.49%
Revenue Next 2Y1.74%
Revenue Next 3Y-0.51%
Revenue Next 5Y-3.46%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.29 indicates a correct valuation of COP.
COP's Price/Earnings is on the same level as the industry average.
COP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.24.
With a Price/Forward Earnings ratio of 11.41, the valuation of COP can be described as very reasonable.
COP's Price/Forward Earnings is on the same level as the industry average.
COP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 19.93, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.29
Fwd PE 11.41

4.2 Price Multiples

COP's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of COP is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 15.75
EV/EBITDA 6.22

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates COP does not grow enough to justify the current Price/Earnings ratio.
COP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)11.38
PEG (5Y)0.94
EPS Next 2Y5.76%
EPS Next 3Y2.53%

4

5. Dividend

5.1 Amount

COP has a Yearly Dividend Yield of 2.07%.
Compared to an average industry Dividend Yield of 6.06, COP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, COP has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.07%

5.2 History

On average, the dividend of COP grows each year by 31.61%, which is quite nice.
COP has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)31.61%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

COP pays out 47.56% of its income as dividend. This is a bit on the high side, but may be sustainable.
COP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.56%
EPS Next 2Y5.76%
EPS Next 3Y2.53%

CONOCOPHILLIPS

NYSE:COP (6/12/2024, 12:59:04 PM)

112.01

-1.62 (-1.43%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap130.41B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.07%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 13.29
Fwd PE 11.41
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)11.38
PEG (5Y)0.94
Profitability
Industry RankSector Rank
ROA 11.07%
ROE 21.39%
ROCE
ROIC
ROICexc
ROICexgc
OM 26.51%
PM (TTM) 19.13%
GM 47.26%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.35
Quick Ratio 1.21
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-33.1%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y1.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-26.96%
Revenue growth 3Y44.04%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y