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 212 industry peers in the Oil, Gas & Consumable Fuels industry. EOG gets an excellent profitability rating and is at the same time showing great financial health properties. EOG is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
EOG had positive earnings in the past year.
EOG had a positive operating cash flow in the past year.
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 13.57% is amongst the best of the industry. EOG outperforms 88.21% of its industry peers.
The Return On Equity of EOG (21.82%) is better than 82.55% of its industry peers.
EOG's Return On Invested Capital of 15.80% is amongst the best of the industry. EOG outperforms 88.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EOG is significantly below the industry average of 27.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.57% | ||
| ROE | 21.82% | ||
| ROIC | 15.8% |
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
EOG's Profit Margin of 27.04% is fine compared to the rest of the industry. EOG outperforms 77.36% of its industry peers.
EOG's Profit Margin has improved in the last couple of years.
EOG has a Operating Margin of 35.71%. This is in the better half of the industry: EOG outperforms 75.94% of its industry peers.
EOG's Operating Margin has improved in the last couple of years.
The Gross Margin of EOG (61.84%) is better than 66.04% of its industry peers.
EOG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.71% | ||
| PM (TTM) | 27.04% | ||
| GM | 61.84% |
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
Compared to 1 year ago, EOG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.09 indicates that EOG is not in any danger for bankruptcy at the moment.
EOG has a Altman-Z score of 4.09. This is amongst the best in the industry. EOG outperforms 88.68% of its industry peers.
EOG has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
The Debt to FCF ratio of EOG (0.82) is better than 90.57% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that EOG is not too dependend on debt financing.
EOG has a Debt to Equity ratio of 0.14. This is in the better half of the industry: EOG outperforms 73.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.56
WACC10.14%
2.3 Liquidity
EOG has a Current Ratio of 2.10. This indicates that EOG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of EOG (2.10) is better than 77.36% of its industry peers.
A Quick Ratio of 1.91 indicates that EOG should not have too much problems paying its short term obligations.
The Quick ratio of EOG (1.91) is better than 76.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
EOG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.68%.
EOG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.45% yearly.
Looking at the last year, EOG shows a decrease in Revenue. The Revenue has decreased by -1.70% in the last 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)-0.68%
EPS 3Y10.52%
EPS 5Y18.45%
EPS Q2Q%-10.75%
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y8.34%
Revenue growth 5Y6.54%
Sales Q2Q%-10.76%
3.2 Future
The Earnings Per Share is expected to grow by 0.53% on average over the next years.
Based on estimates for the next years, EOG will show a decrease in Revenue. The Revenue will decrease by -0.39% on average per year.
EPS Next Y-12.36%
EPS Next 2Y-2.44%
EPS Next 3Y2.46%
EPS Next 5Y0.53%
Revenue Next Year-0.12%
Revenue Next 2Y1.65%
Revenue Next 3Y-0.39%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.52, the valuation of EOG can be described as very reasonable.
67.92% of the companies in the same industry are more expensive than EOG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, EOG is valued rather cheaply.
A Price/Forward Earnings ratio of 10.86 indicates a reasonable valuation of EOG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EOG indicates a somewhat cheap valuation: EOG is cheaper than 62.74% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EOG to the average of the S&P500 Index (21.08), we can say EOG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.52 | ||
| 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 69.34% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EOG is valued a bit cheaper than the industry average as 68.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.56 | ||
| EV/EBITDA | 4.66 |
4.3 Compensation for Growth
The decent profitability rating of EOG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-2.44%
EPS Next 3Y2.46%
5. Dividend
5.1 Amount
EOG has a Yearly Dividend Yield of 3.53%. Purely for dividend investing, there may be better candidates out there.
EOG's Dividend Yield is comparable with the industry average which is at 7.52.
Compared to an average S&P500 Dividend Yield of 2.52, EOG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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
32.59% 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.
DP32.59%
EPS Next 2Y-2.44%
EPS Next 3Y2.46%
110.5
+2.26 (+2.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners92.4%
Inst Owner Change0%
Ins Owners0.2%
Ins Owner Change0.28%
Market Cap60.95B
Analysts74.59
Price Target146.42 (32.51%)
Short Float %2.38%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend3.67
Dividend Growth(5Y)29.36%
DP32.59%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.3%
Min EPS beat(2)3.14%
Max EPS beat(2)5.47%
EPS beat(4)4
Avg EPS beat(4)4.39%
Min EPS beat(4)3.14%
Max EPS beat(4)5.75%
EPS beat(8)7
Avg EPS beat(8)5.39%
EPS beat(12)9
Avg EPS beat(12)4.04%
EPS beat(16)12
Avg EPS beat(16)4.22%
Revenue beat(2)2
Avg Revenue beat(2)3.63%
Min Revenue beat(2)0.48%
Max Revenue beat(2)6.78%
Revenue beat(4)4
Avg Revenue beat(4)5.2%
Min Revenue beat(4)0.48%
Max Revenue beat(4)7.33%
Revenue beat(8)8
Avg Revenue beat(8)6.27%
Revenue beat(12)11
Avg Revenue beat(12)3.71%
Revenue beat(16)15
Avg Revenue beat(16)3.2%
PT rev (1m)-2.28%
PT rev (3m)-0.88%
EPS NQ rev (1m)1.53%
EPS NQ rev (3m)5.54%
EPS NY rev (1m)-11.64%
EPS NY rev (3m)-9.13%
Revenue NQ rev (1m)1.69%
Revenue NQ rev (3m)6.41%
Revenue NY rev (1m)3.07%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.52 | ||
| Fwd PE | 10.86 | ||
| P/S | 2.57 | ||
| P/FCF | 10.56 | ||
| P/OCF | 5.02 | ||
| P/B | 2.08 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 4.66 |
EPS(TTM)11.61
EY10.51%
EPS(NY)10.17
Fwd EY9.21%
FCF(TTM)10.46
FCFY9.47%
OCF(TTM)22.02
OCFY19.92%
SpS42.94
BVpS53.22
TBVpS53.22
PEG (NY)N/A
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.57% | ||
| ROE | 21.82% | ||
| ROCE | 20.22% | ||
| ROIC | 15.8% | ||
| ROICexc | 19.02% | ||
| ROICexgc | 19.02% | ||
| OM | 35.71% | ||
| PM (TTM) | 27.04% | ||
| GM | 61.84% | ||
| FCFM | 24.37% |
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-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.82 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 155.11% | ||
| Cap/Sales | 26.91% | ||
| Interest Coverage | 60.41 | ||
| Cash Conversion | 96.64% | ||
| Profit Quality | 90.13% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | 4.09 |
F-Score4
WACC10.14%
ROIC/WACC1.56
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)-0.68%
EPS 3Y10.52%
EPS 5Y18.45%
EPS Q2Q%-10.75%
EPS Next Y-12.36%
EPS Next 2Y-2.44%
EPS Next 3Y2.46%
EPS Next 5Y0.53%
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y8.34%
Revenue growth 5Y6.54%
Sales Q2Q%-10.76%
Revenue Next Year-0.12%
Revenue Next 2Y1.65%
Revenue Next 3Y-0.39%
Revenue Next 5YN/A
EBIT growth 1Y-12.9%
EBIT growth 3Y9.39%
EBIT growth 5Y15.62%
EBIT Next Year46.69%
EBIT Next 3Y15.65%
EBIT Next 5Y8.79%
FCF growth 1Y11.95%
FCF growth 3Y5.31%
FCF growth 5Y27.09%
OCF growth 1Y7.08%
OCF growth 3Y11.37%
OCF growth 5Y8.27%