EOG RESOURCES INC (EOG) Stock Fundamental Analysis
NYSE:EOG - New York Stock Exchange, Inc. - US26875P1012 - Common Stock - Currency: USD
EOG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 208 industry peers in the Oil, Gas & Consumable Fuels industry. EOG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
EOG had positive earnings in the past year.
In the past year EOG had a positive cash flow from operations.
EOG had positive earnings in 4 of the past 5 years.
EOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EOG's Return On Assets of 12.93% is amongst the best of the industry. EOG outperforms 90.87% of its industry peers.
EOG has a Return On Equity of 20.59%. This is amongst the best in the industry. EOG outperforms 85.58% of its industry peers.
With an excellent Return On Invested Capital value of 15.33%, EOG belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EOG is below the industry average of 23.51%.
| 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 79.33% of its industry peers.
In the last couple of years the Profit Margin of EOG has grown nicely.
With a decent Operating Margin value of 34.82%, EOG is doing good in the industry, outperforming 79.33% of the companies in the same industry.
In the last couple of years the Operating Margin of EOG has grown nicely.
EOG has a Gross Margin of 61.33%. This is in the better half of the industry: EOG outperforms 69.23% 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
EOG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, EOG has less shares outstanding
Compared to 5 years ago, EOG has less shares outstanding
EOG has a worse debt/assets ratio than last year.
2.2 Solvency
EOG has an Altman-Z score of 4.26. This indicates that EOG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.26, EOG belongs to the top of the industry, outperforming 88.94% of the companies in the same industry.
The Debt to FCF ratio of EOG is 0.86, which is an excellent value as it means it would take EOG, only 0.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EOG (0.86) is better than 89.42% 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.
Looking at the Debt to Equity ratio, with a value of 0.12, EOG is in the better half of the industry, outperforming 75.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.73
WACC8.86%
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.
With a decent Current ratio value of 1.87, EOG is doing good in the industry, outperforming 74.52% of the companies in the same industry.
EOG has a Quick Ratio of 1.71. This is a normal value and indicates that EOG is financially healthy and should not expect problems in meeting its short term obligations.
EOG's Quick ratio of 1.71 is fine compared to the rest of the industry. EOG outperforms 74.52% 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 strongly by -13.37% in the last year.
The Earnings Per Share has been growing by 18.45% on average over the past years. This is quite good.
The Revenue has decreased by -1.70% in the past year.
Measured over the past years, EOG shows a small growth in Revenue. The Revenue has been growing by 6.54% on average per year.
EPS 1Y (TTM)-13.37%
EPS 3Y10.52%
EPS 5Y18.45%
EPS Q2Q%-26.58%
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y8.34%
Revenue growth 5Y6.54%
Sales Q2Q%-9.48%
3.2 Future
The Earnings Per Share is expected to grow by 1.03% on average over the next years.
Based on estimates for the next years, EOG will show a small growth in Revenue. The Revenue will grow by 4.70% on average per year.
EPS Next Y-15.98%
EPS Next 2Y-2.68%
EPS Next 3Y3.45%
EPS Next 5Y1.03%
Revenue Next Year-1%
Revenue Next 2Y5.73%
Revenue Next 3Y4.7%
Revenue Next 5YN/A
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. Valuation
4.1 Price/Earnings Ratio
EOG is valuated reasonably with a Price/Earnings ratio of 11.04.
EOG's Price/Earnings ratio is a bit cheaper when compared to the industry. EOG is cheaper than 70.67% of the companies in the same industry.
EOG is valuated cheaply when we compare the Price/Earnings ratio to 27.11, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.86, the valuation of EOG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EOG is valued a bit cheaper than 62.02% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.78. EOG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 10.86 |
4.2 Price Multiples
EOG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EOG is cheaper than 71.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EOG is valued a bit cheaper than 67.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.84 | ||
| EV/EBITDA | 5.22 |
4.3 Compensation for Growth
The decent profitability rating of EOG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-2.68%
EPS Next 3Y3.45%
5. Dividend
5.1 Amount
EOG has a Yearly Dividend Yield of 3.46%.
Compared to an average industry Dividend Yield of 6.33, EOG has a dividend in line with its industry peers.
EOG's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
5.2 History
On average, the dividend of EOG grows each year by 29.36%, which is quite nice.
EOG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)29.36%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EOG pays out 34.56% of its income as dividend. This is a 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-2.68%
EPS Next 3Y3.45%
119.47
+1.46 (+1.24%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners95.67%
Inst Owner Change-0.46%
Ins Owners0.2%
Ins Owner Change-0.41%
Market Cap65.21B
Analysts76
Price Target143.16 (19.83%)
Short Float %3.48%
Short Ratio5.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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)0.64%
PT rev (3m)2.81%
EPS NQ rev (1m)1.62%
EPS NQ rev (3m)0.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.12%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)5.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 10.86 | ||
| P/S | 2.8 | ||
| P/FCF | 11.84 | ||
| P/OCF | 5.66 | ||
| P/B | 2.21 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 5.22 |
EPS(TTM)10.82
EY9.06%
EPS(NY)11
Fwd EY9.2%
FCF(TTM)10.09
FCFY8.45%
OCF(TTM)21.12
OCFY17.68%
SpS42.61
BVpS54.08
TBVpS54.08
PEG (NY)N/A
PEG (5Y)0.6
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 | 4.26 |
F-Score5
WACC8.86%
ROIC/WACC1.73
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)-13.37%
EPS 3Y10.52%
EPS 5Y18.45%
EPS Q2Q%-26.58%
EPS Next Y-15.98%
EPS Next 2Y-2.68%
EPS Next 3Y3.45%
EPS Next 5Y1.03%
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y8.34%
Revenue growth 5Y6.54%
Sales Q2Q%-9.48%
Revenue Next Year-1%
Revenue Next 2Y5.73%
Revenue Next 3Y4.7%
Revenue Next 5YN/A
EBIT growth 1Y-14.2%
EBIT growth 3Y9.39%
EBIT growth 5Y15.62%
EBIT Next Year40.6%
EBIT Next 3Y20.83%
EBIT Next 5Y11.07%
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%