EOG RESOURCES INC (EOG)

US26875P1012 - Common Stock

127.26  +0.87 (+0.69%)

Fundamental Rating

7

EOG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 214 industry peers in the Oil, Gas & Consumable Fuels industry. EOG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. EOG has a valuation in line with the averages, but on the other hand it scores bad on growth.



8

1. Profitability

1.1 Basic Checks

In the past year EOG was profitable.
EOG had a positive operating cash flow in the past year.
Of the past 5 years EOG 4 years were profitable.
Each year in the past 5 years EOG had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 17.32%, EOG belongs to the best of the industry, outperforming 82.63% of the companies in the same industry.
EOG has a Return On Equity of 27.03%. This is in the better half of the industry: EOG outperforms 74.65% of its industry peers.
With an excellent Return On Invested Capital value of 19.13%, EOG belongs to the best of the industry, outperforming 84.04% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EOG is significantly below the industry average of 48.71%.
The last Return On Invested Capital (19.13%) for EOG is above the 3 year average (18.80%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 17.32%
ROE 27.03%
ROIC 19.13%
ROA(3y)16.09%
ROA(5y)10.79%
ROE(3y)26.46%
ROE(5y)17.81%
ROIC(3y)18.8%
ROIC(5y)14.02%

1.3 Margins

EOG's Profit Margin of 31.52% is fine compared to the rest of the industry. EOG outperforms 71.36% of its industry peers.
In the last couple of years the Profit Margin of EOG has grown nicely.
EOG has a Operating Margin of 40.31%. This is in the better half of the industry: EOG outperforms 73.71% of its industry peers.
EOG's Operating Margin has improved in the last couple of years.
EOG's Gross Margin of 63.44% is fine compared to the rest of the industry. EOG outperforms 65.73% of its industry peers.
In the last couple of years the Gross Margin of EOG has grown nicely.
Industry RankSector Rank
OM 40.31%
PM (TTM) 31.52%
GM 63.44%
OM growth 3Y40.71%
OM growth 5Y8.23%
PM growth 3YN/A
PM growth 5Y9.53%
GM growth 3Y4.82%
GM growth 5Y2.9%

9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EOG is creating value.
EOG has less shares outstanding than it did 1 year ago.
EOG has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, EOG has an improved debt to assets ratio.

2.2 Solvency

EOG has an Altman-Z score of 4.95. This indicates that EOG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.95, EOG belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
The Debt to FCF ratio of EOG is 0.74, which is an excellent value as it means it would take EOG, only 0.74 years of fcf income to pay off all of its debts.
EOG's Debt to FCF ratio of 0.74 is amongst the best of the industry. EOG outperforms 85.92% of its industry peers.
EOG has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
EOG's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. EOG outperforms 77.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 0.74
Altman-Z 4.95
ROIC/WACC2.24
WACC8.54%

2.3 Liquidity

A Current Ratio of 2.44 indicates that EOG has no problem at all paying its short term obligations.
EOG has a better Current ratio (2.44) than 78.87% of its industry peers.
EOG has a Quick Ratio of 2.13. This indicates that EOG is financially healthy and has no problem in meeting its short term obligations.
EOG's Quick ratio of 2.13 is fine compared to the rest of the industry. EOG outperforms 78.40% of its industry peers.
Industry RankSector Rank
Current Ratio 2.44
Quick Ratio 2.13

3

3. Growth

3.1 Past

EOG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.98%.
EOG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.07% yearly.
EOG shows a decrease in Revenue. In the last year, the revenue decreased by -6.00%.
The Revenue has been growing slightly by 7.09% on average over the past years.
EPS 1Y (TTM)-14.98%
EPS 3Y100.06%
EPS 5Y16.07%
EPS growth Q2Q-6.97%
Revenue 1Y (TTM)-6%
Revenue growth 3Y29.55%
Revenue growth 5Y7.09%
Revenue growth Q2Q-5.77%

3.2 Future

The Earnings Per Share is expected to grow by 1.71% on average over the next years.
EOG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.14% yearly.
EPS Next Y-4.57%
EPS Next 2Y1.78%
EPS Next 3Y3.2%
EPS Next 5Y1.71%
Revenue Next Year2.54%
Revenue Next 2Y4.6%
Revenue Next 3Y4.14%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.89, the valuation of EOG can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of EOG is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.42. EOG is valued rather cheaply when compared to this.
EOG is valuated reasonably with a Price/Forward Earnings ratio of 11.41.
EOG's Price/Forward Earnings ratio is in line with the industry average.
EOG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.89
Fwd PE 11.41

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EOG is on the same level as its industry peers.
EOG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 14.32
EV/EBITDA 5.44

4.3 Compensation for Growth

The excellent profitability rating of EOG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y1.78%
EPS Next 3Y3.2%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.89%, EOG has a reasonable but not impressive dividend return.
EOG's Dividend Yield is comparable with the industry average which is at 5.86.
EOG's Dividend Yield is a higher than the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.89%

5.2 History

The dividend of EOG is nicely growing with an annual growth rate of 50.26%!
EOG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)50.26%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

44.59% of the earnings are spent on dividend by EOG. This is a bit on the high side, but may be sustainable.
The dividend of EOG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.59%
EPS Next 2Y1.78%
EPS Next 3Y3.2%

EOG RESOURCES INC

NYSE:EOG (3/28/2024, 12:02:07 PM)

127.26

+0.87 (+0.69%)

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 Cap73.81B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.89%
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 10.89
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)N/A
PEG (5Y)0.68
Profitability
Industry RankSector Rank
ROA 17.32%
ROE 27.03%
ROCE
ROIC
ROICexc
ROICexgc
OM 40.31%
PM (TTM) 31.52%
GM 63.44%
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 Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.44
Quick Ratio 2.13
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)
Growth
EPS 1Y (TTM)-14.98%
EPS 3Y100.06%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6%
Revenue growth 3Y29.55%
Revenue growth 5Y
Revenue growth 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