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 211 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 it does not seem to be growing.
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.
Of the past 5 years EOG 4 years were profitable.
EOG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EOG has a Return On Assets of 12.93%. This is amongst the best in the industry. EOG outperforms 90.05% of its industry peers.
EOG has a Return On Equity of 20.59%. This is amongst the best in the industry. EOG outperforms 85.78% of its industry peers.
EOG has a better Return On Invested Capital (15.33%) than 90.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EOG is below the industry average of 23.79%.
| 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
EOG has a better Profit Margin (26.13%) than 78.67% of its industry peers.
In the last couple of years the Profit Margin of EOG has grown nicely.
The Operating Margin of EOG (34.82%) is better than 77.73% of its industry peers.
EOG's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 61.33%, EOG is doing good in the industry, outperforming 68.25% of the companies in the same industry.
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.
The number of shares outstanding for EOG has been reduced compared to 1 year ago.
EOG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EOG is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.26 indicates that EOG is not in any danger for bankruptcy at the moment.
EOG has a better Altman-Z score (4.26) than 89.10% 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.
Looking at the Debt to FCF ratio, with a value of 0.86, EOG belongs to the top of the industry, outperforming 90.05% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that EOG is not too dependend on debt financing.
The Debt to Equity ratio of EOG (0.12) is better than 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.69
WACC9.06%
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 74.88% 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 76.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
EOG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.35%.
EOG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.45% yearly.
EOG shows a decrease in Revenue. In the last year, the revenue decreased by -3.96%.
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
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 3.36% on average per year.
EPS Next Y-19.66%
EPS Next 2Y-4.7%
EPS Next 3Y1.57%
EPS Next 5Y1.03%
Revenue Next Year-2.41%
Revenue Next 2Y4.81%
Revenue Next 3Y3.36%
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.
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
The Price/Earnings ratio is 10.26, 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 71.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of EOG to the average of the S&P500 Index (27.29), we can say EOG is valued rather cheaply.
A Price/Forward Earnings ratio of 11.34 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 61.14% 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 (21.74), we can say EOG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 11.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EOG is valued a bit cheaper than the industry average as 70.62% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EOG indicates a somewhat cheap valuation: EOG is cheaper than 69.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.85 | ||
| EV/EBITDA | 5.22 |
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)0.56
EPS Next 2Y-4.7%
EPS Next 3Y1.57%
5. Dividend
5.1 Amount
EOG has a Yearly Dividend Yield of 3.31%.
Compared to an average industry Dividend Yield of 6.51, EOG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, EOG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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
EOG pays out 34.56% of its income as dividend. This is a sustainable payout ratio.
The dividend of EOG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.56%
EPS Next 2Y-4.7%
EPS Next 3Y1.57%
119.61
-3.54 (-2.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change0%
Ins Owners0.2%
Ins Owner Change0.68%
Market Cap65.28B
Analysts76.57
Price Target142.25 (18.93%)
Short Float %3.21%
Short Ratio4.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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)2.16%
PT rev (3m)-2.85%
EPS NQ rev (1m)1.89%
EPS NQ rev (3m)-16.63%
EPS NY rev (1m)-2.46%
EPS NY rev (3m)-15.57%
Revenue NQ rev (1m)1.12%
Revenue NQ rev (3m)-5.91%
Revenue NY rev (1m)2.71%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 11.34 | ||
| P/S | 2.81 | ||
| P/FCF | 11.85 | ||
| P/OCF | 5.66 | ||
| P/B | 2.21 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 5.22 |
EPS(TTM)11.66
EY9.75%
EPS(NY)10.54
Fwd EY8.82%
FCF(TTM)10.09
FCFY8.44%
OCF(TTM)21.12
OCFY17.66%
SpS42.61
BVpS54.08
TBVpS54.08
PEG (NY)N/A
PEG (5Y)0.56
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
WACC9.06%
ROIC/WACC1.69
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-19.66%
EPS Next 2Y-4.7%
EPS Next 3Y1.57%
EPS Next 5Y1.03%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y8.34%
Revenue growth 5Y6.54%
Sales Q2Q%-7.41%
Revenue Next Year-2.41%
Revenue Next 2Y4.81%
Revenue Next 3Y3.36%
Revenue Next 5YN/A
EBIT growth 1Y-14.2%
EBIT growth 3Y9.39%
EBIT growth 5Y15.62%
EBIT Next Year34.32%
EBIT Next 3Y16%
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%