EOG RESOURCES INC (EO5.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:EO5 - US26875P1012 - Common Stock
91.18 EUR
+1.01 (+1.12%)
We assign a fundamental rating of 7 out of 10 to EO5. EO5 was compared to 75 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making EO5 a very profitable company, without any liquidiy or solvency issues. EO5 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year EO5 was profitable.
- EO5 had a positive operating cash flow in the past year.
- Of the past 5 years EO5 4 years were profitable.
- EO5 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EO5 has a better Return On Assets (10.59%) than 94.67% of its industry peers.
- EO5's Return On Equity of 18.26% is amongst the best of the industry. EO5 outperforms 88.00% of its industry peers.
- EO5 has a better Return On Invested Capital (12.38%) than 89.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EO5 is significantly above the industry average of 8.82%.
- The 3 year average ROIC (19.09%) for EO5 is well above the current ROIC(12.38%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.59% | ||
| ROE | 18.26% | ||
| ROIC | 12.38% |
ROA(3y)16.55%
ROA(5y)12.03%
ROE(3y)26.72%
ROE(5y)19.64%
ROIC(3y)19.09%
ROIC(5y)15.18%
1.3 Margins
- EO5 has a Profit Margin of 24.45%. This is amongst the best in the industry. EO5 outperforms 92.00% of its industry peers.
- EO5's Profit Margin has improved in the last couple of years.
- The Operating Margin of EO5 (33.18%) is better than 85.33% of its industry peers.
- In the last couple of years the Operating Margin of EO5 has grown nicely.
- Looking at the Gross Margin, with a value of 62.11%, EO5 is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of EO5 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.18% | ||
| PM (TTM) | 24.45% | ||
| GM | 62.11% |
OM growth 3Y0.97%
OM growth 5Y8.53%
PM growth 3Y2.59%
PM growth 5Y11.27%
GM growth 3Y-1.02%
GM growth 5Y2.84%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EO5 is creating value.
- Compared to 1 year ago, EO5 has less shares outstanding
- Compared to 5 years ago, EO5 has less shares outstanding
- Compared to 1 year ago, EO5 has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.36 indicates that EO5 is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.36, EO5 is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- The Debt to FCF ratio of EO5 is 1.98, which is an excellent value as it means it would take EO5, only 1.98 years of fcf income to pay off all of its debts.
- EO5's Debt to FCF ratio of 1.98 is amongst the best of the industry. EO5 outperforms 85.33% of its industry peers.
- A Debt/Equity ratio of 0.25 indicates that EO5 is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.25, EO5 is doing good in the industry, outperforming 77.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 3.36 |
ROIC/WACC1.48
WACC8.38%
2.3 Liquidity
- EO5 has a Current Ratio of 1.62. This is a normal value and indicates that EO5 is financially healthy and should not expect problems in meeting its short term obligations.
- EO5 has a Current ratio of 1.62. This is in the better half of the industry: EO5 outperforms 68.00% of its industry peers.
- EO5 has a Quick Ratio of 1.43. This is a normal value and indicates that EO5 is financially healthy and should not expect problems in meeting its short term obligations.
- EO5 has a better Quick ratio (1.43) than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
- The earnings per share for EO5 have decreased strongly by -10.89% in the last year.
- EO5 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.45% yearly.
- The Revenue has decreased by -7.41% in the past year.
- The Revenue has been growing slightly by 6.54% on average over the past years.
EPS 1Y (TTM)-10.89%
EPS 3Y10.52%
EPS 5Y18.45%
EPS Q2Q%-6.23%
Revenue 1Y (TTM)-7.41%
Revenue growth 3Y8.34%
Revenue growth 5Y6.54%
Sales Q2Q%-2.09%
3.2 Future
- EO5 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.25% yearly.
- Based on estimates for the next years, EO5 will show a small growth in Revenue. The Revenue will grow by 5.16% on average per year.
EPS Next Y-11.67%
EPS Next 2Y-7.45%
EPS Next 3Y1.13%
EPS Next 5Y5.25%
Revenue Next Year-4.17%
Revenue Next 2Y0.43%
Revenue Next 3Y2.04%
Revenue Next 5Y5.16%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 10.06 indicates a reasonable valuation of EO5.
- EO5's Price/Earnings ratio is a bit cheaper when compared to the industry. EO5 is cheaper than 80.00% of the companies in the same industry.
- EO5 is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 10.77, the valuation of EO5 can be described as reasonable.
- EO5's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EO5 is cheaper than 72.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of EO5 to the average of the S&P500 Index (24.26), we can say EO5 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EO5 is valued a bit cheaper than the industry average as 65.33% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EO5 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.93 | ||
| EV/EBITDA | 5.29 |
4.3 Compensation for Growth
- The excellent profitability rating of EO5 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-7.45%
EPS Next 3Y1.13%
5. Dividend
5.1 Amount
- EO5 has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
- EO5's Dividend Yield is comparable with the industry average which is at 5.08.
- Compared to an average S&P500 Dividend Yield of 1.81, EO5 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
5.2 History
- On average, the dividend of EO5 grows each year by 29.36%, which is quite nice.
Dividend Growth(5Y)29.36%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 38.34% of the earnings are spent on dividend by EO5. This is a low number and sustainable payout ratio.
- The dividend of EO5 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.34%
EPS Next 2Y-7.45%
EPS Next 3Y1.13%
EOG RESOURCES INC / EO5.DE FAQ
What is the fundamental rating for EO5 stock?
ChartMill assigns a fundamental rating of 7 / 10 to EO5.DE.
Can you provide the valuation status for EOG RESOURCES INC?
ChartMill assigns a valuation rating of 6 / 10 to EOG RESOURCES INC (EO5.DE). This can be considered as Fairly Valued.
What is the profitability of EO5 stock?
EOG RESOURCES INC (EO5.DE) has a profitability rating of 9 / 10.
Can you provide the financial health for EO5 stock?
The financial health rating of EOG RESOURCES INC (EO5.DE) is 7 / 10.
Is the dividend of EOG RESOURCES INC sustainable?
The dividend rating of EOG RESOURCES INC (EO5.DE) is 6 / 10 and the dividend payout ratio is 38.34%.