EOG RESOURCES INC (EOG) Stock Fundamental Analysis
NYSE:EOG - New York Stock Exchange, Inc. - US26875P1012 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to EOG. EOG was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making EOG a very profitable company, without any liquidiy or solvency issues. EOG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year EOG was profitable.
In the past year EOG had a positive cash flow from operations.
EOG had positive earnings in 4 of the past 5 years.
In the past 5 years EOG always reported a positive cash flow from operatings.
1.2 Ratios
EOG's Return On Assets of 12.93% is amongst the best of the industry. EOG outperforms 89.67% of its industry peers.
EOG's Return On Equity of 20.59% is amongst the best of the industry. EOG outperforms 84.51% of its industry peers.
The Return On Invested Capital of EOG (15.33%) is better than 90.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EOG is significantly below the industry average of 25.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.93% | ||
| ROE | 20.59% | ||
| ROIC | 15.33% |
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
The Profit Margin of EOG (26.13%) is better than 77.46% of its industry peers.
In the last couple of years the Profit Margin of EOG has grown nicely.
EOG's Operating Margin of 34.82% is fine compared to the rest of the industry. EOG outperforms 76.06% of its industry peers.
In the last couple of years the Operating Margin of EOG has grown nicely.
The Gross Margin of EOG (61.33%) is better than 66.67% of its industry peers.
In the last couple of years the Gross Margin of EOG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.82% | ||
| PM (TTM) | 26.13% | ||
| GM | 61.33% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EOG is creating value.
EOG has less shares outstanding than it did 1 year ago.
EOG has less shares outstanding than it did 5 years ago.
EOG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.15 indicates that EOG is not in any danger for bankruptcy at the moment.
EOG has a better Altman-Z score (4.15) than 88.73% of its industry peers.
EOG has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
The Debt to FCF ratio of EOG (0.86) is better than 90.61% of its industry peers.
EOG has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.12, EOG is doing good in the industry, outperforming 74.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.15 |
ROIC/WACC1.51
WACC10.15%
2.3 Liquidity
EOG has a Current Ratio of 1.87. This is a normal value and indicates that EOG is financially healthy and should not expect problems in meeting its short term obligations.
EOG has a better Current ratio (1.87) than 73.71% of its industry peers.
A Quick Ratio of 1.71 indicates that EOG should not have too much problems paying its short term obligations.
EOG's Quick ratio of 1.71 is fine compared to the rest of the industry. EOG outperforms 74.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The earnings per share for EOG have decreased by -1.35% in the last year.
EOG 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 -3.96% in the past year.
The Revenue has been growing slightly by 6.54% on average over the past years.
EPS 1Y (TTM)-1.35%
EPS 3Y10.52%
EPS 5Y18.45%
EPS Q2Q%1.77%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y8.34%
Revenue growth 5Y6.54%
Sales Q2Q%-7.41%
3.2 Future
Based on estimates for the next years, EOG will show a small growth in Earnings Per Share. The EPS will grow by 0.53% on average per year.
Based on estimates for the next years, EOG will show a small growth in Revenue. The Revenue will grow by 0.21% on average per year.
EPS Next Y-17.63%
EPS Next 2Y-4.85%
EPS Next 3Y3.39%
EPS Next 5Y0.53%
Revenue Next Year-5.6%
Revenue Next 2Y-0.05%
Revenue Next 3Y0.21%
Revenue Next 5YN/A
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
The Price/Earnings ratio is 9.66, which indicates a very decent valuation of EOG.
EOG's Price/Earnings ratio is a bit cheaper when compared to the industry. EOG is cheaper than 71.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of EOG to the average of the S&P500 Index (26.60), we can say EOG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.71, the valuation of EOG can be described as reasonable.
EOG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EOG is cheaper than 61.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. EOG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EOG is valued a bit cheaper than 69.95% of the companies in the same industry.
71.83% of the companies in the same industry are more expensive than EOG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.27 | ||
| EV/EBITDA | 4.96 |
4.3 Compensation for Growth
EOG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-4.85%
EPS Next 3Y3.39%
5. Dividend
5.1 Amount
EOG has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
EOG's Dividend Yield is comparable with the industry average which is at 7.05.
Compared to an average S&P500 Dividend Yield of 2.36, EOG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
On average, the dividend of EOG grows each year by 29.36%, which is quite nice.
EOG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)29.36%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
34.56% of the earnings are spent on dividend by EOG. This is a low number and sustainable payout ratio.
EOG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.56%
EPS Next 2Y-4.85%
EPS Next 3Y3.39%
112.58
-1.37 (-1.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.4%
Inst Owner Change-0.29%
Ins Owners0.2%
Ins Owner Change0.34%
Market Cap62.09B
Analysts75
Price Target139.24 (23.68%)
Short Float %2.75%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend3.67
Dividend Growth(5Y)29.36%
DP34.56%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.61%
Min EPS beat(2)1.75%
Max EPS beat(2)5.47%
EPS beat(4)4
Avg EPS beat(4)4.03%
Min EPS beat(4)1.75%
Max EPS beat(4)5.75%
EPS beat(8)7
Avg EPS beat(8)4.7%
EPS beat(12)9
Avg EPS beat(12)3.64%
EPS beat(16)12
Avg EPS beat(16)3.8%
Revenue beat(2)1
Avg Revenue beat(2)-2%
Min Revenue beat(2)-4.48%
Max Revenue beat(2)0.48%
Revenue beat(4)3
Avg Revenue beat(4)2.25%
Min Revenue beat(4)-4.48%
Max Revenue beat(4)6.78%
Revenue beat(8)7
Avg Revenue beat(8)3.99%
Revenue beat(12)11
Avg Revenue beat(12)6.02%
Revenue beat(16)14
Avg Revenue beat(16)2.88%
PT rev (1m)-4.91%
PT rev (3m)-6.81%
EPS NQ rev (1m)-13.17%
EPS NQ rev (3m)-20.3%
EPS NY rev (1m)-6.01%
EPS NY rev (3m)-16.92%
Revenue NQ rev (1m)-6.33%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)-5.49%
Revenue NY rev (3m)-3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 10.71 | ||
| P/S | 2.67 | ||
| P/FCF | 11.27 | ||
| P/OCF | 5.39 | ||
| P/B | 2.1 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 4.96 |
EPS(TTM)11.66
EY10.36%
EPS(NY)10.51
Fwd EY9.34%
FCF(TTM)9.99
FCFY8.87%
OCF(TTM)20.9
OCFY18.57%
SpS42.16
BVpS53.52
TBVpS53.52
PEG (NY)N/A
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.93% | ||
| ROE | 20.59% | ||
| ROCE | 19.62% | ||
| ROIC | 15.33% | ||
| ROICexc | 18.25% | ||
| ROICexgc | 18.25% | ||
| OM | 34.82% | ||
| PM (TTM) | 26.13% | ||
| GM | 61.33% | ||
| FCFM | 23.69% |
ROA(3y)16.55%
ROA(5y)12.03%
ROE(3y)26.72%
ROE(5y)19.64%
ROIC(3y)19.09%
ROIC(5y)15.18%
ROICexc(3y)22.63%
ROICexc(5y)17.92%
ROICexgc(3y)22.63%
ROICexgc(5y)17.92%
ROCE(3y)24.43%
ROCE(5y)19.43%
ROICexcg growth 3Y2.98%
ROICexcg growth 5Y12.73%
ROICexc growth 3Y2.98%
ROICexc growth 5Y12.73%
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%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 148.75% | ||
| Cap/Sales | 25.89% | ||
| Interest Coverage | 59.1 | ||
| Cash Conversion | 94.94% | ||
| Profit Quality | 90.65% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 4.15 |
F-Score5
WACC10.15%
ROIC/WACC1.51
Cap/Depr(3y)157.8%
Cap/Depr(5y)136.15%
Cap/Sales(3y)24.03%
Cap/Sales(5y)24.81%
Profit Quality(3y)78.85%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.35%
EPS 3Y10.52%
EPS 5Y18.45%
EPS Q2Q%1.77%
EPS Next Y-17.63%
EPS Next 2Y-4.85%
EPS Next 3Y3.39%
EPS Next 5Y0.53%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y8.34%
Revenue growth 5Y6.54%
Sales Q2Q%-7.41%
Revenue Next Year-5.6%
Revenue Next 2Y-0.05%
Revenue Next 3Y0.21%
Revenue Next 5YN/A
EBIT growth 1Y-14.2%
EBIT growth 3Y9.39%
EBIT growth 5Y15.62%
EBIT Next Year46.67%
EBIT Next 3Y15.64%
EBIT Next 5Y8.79%
FCF growth 1Y-30.31%
FCF growth 3Y5.31%
FCF growth 5Y27.09%
OCF growth 1Y-14.73%
OCF growth 3Y11.37%
OCF growth 5Y8.27%