EOG RESOURCES INC (EOG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EOG - US26875P1012 - Common Stock
107.795 USD
+0.2 (+0.18%)
We assign a fundamental rating of 7 out of 10 to EOG. EOG was compared to 207 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year EOG was profitable.
- EOG had a positive operating cash flow in the past year.
- EOG had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years EOG had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.59%, EOG belongs to the top of the industry, outperforming 89.86% of the companies in the same industry.
- EOG's Return On Equity of 18.26% is amongst the best of the industry. EOG outperforms 85.99% of its industry peers.
- EOG has a better Return On Invested Capital (12.38%) than 89.37% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EOG is below the industry average of 21.94%.
- The 3 year average ROIC (19.09%) for EOG is well above the current ROIC(12.38%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.59% | ||
| ROE | 18.26% | ||
| ROIC | 12.38% |
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 (24.45%) than 83.09% of its industry peers.
- EOG's Profit Margin has improved in the last couple of years.
- EOG has a better Operating Margin (33.18%) than 80.19% of its industry peers.
- EOG's Operating Margin has improved in the last couple of years.
- The Gross Margin of EOG (62.11%) is better than 71.01% of its industry peers.
- EOG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.18% | ||
| PM (TTM) | 24.45% | ||
| GM | 62.11% |
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.
- EOG has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, EOG has less shares outstanding
- The debt/assets ratio for EOG is higher compared to a year ago.
2.2 Solvency
- EOG has an Altman-Z score of 3.37. This indicates that EOG is financially healthy and has little risk of bankruptcy at the moment.
- EOG has a better Altman-Z score (3.37) than 85.02% of its industry peers.
- The Debt to FCF ratio of EOG is 1.98, which is an excellent value as it means it would take EOG, only 1.98 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.98, EOG belongs to the best of the industry, outperforming 83.09% of the companies in the same industry.
- EOG has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
- EOG has a better Debt to Equity ratio (0.25) than 67.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 3.37 |
ROIC/WACC1.46
WACC8.45%
2.3 Liquidity
- EOG has a Current Ratio of 1.62. 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 (1.62) than 69.08% of its industry peers.
- EOG has a Quick Ratio of 1.43. 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 Quick ratio value of 1.43, EOG is doing good in the industry, outperforming 70.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
- EOG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.89%.
- 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 -7.41%.
- The Revenue has been growing slightly by 6.54% on average over the past years.
EPS 1Y (TTM)-10.89%
EPS 3Y10.52%
EPS 5Y18.45%
EPS Q2Q%-6.23%
Revenue 1Y (TTM)-7.41%
Revenue growth 3Y8.34%
Revenue growth 5Y6.54%
Sales Q2Q%-1.98%
3.2 Future
- The Earnings Per Share is expected to grow by 5.25% 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 5.16% yearly.
EPS Next Y-11.67%
EPS Next 2Y-7.45%
EPS Next 3Y1.13%
EPS Next 5Y5.25%
Revenue Next Year-4.17%
Revenue Next 2Y0.43%
Revenue Next 3Y2.04%
Revenue Next 5Y5.16%
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
- With a Price/Earnings ratio of 10.13, the valuation of EOG can be described as very reasonable.
- 82.13% 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 27.25, EOG is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.84, the valuation of EOG can be described as reasonable.
- 76.33% of the companies in the same industry are more expensive than EOG, based on the Price/Forward Earnings ratio.
- EOG is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 10.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EOG is valued a bit cheaper than 75.36% 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 62.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| EV/EBITDA | 5.32 |
4.3 Compensation for Growth
- The excellent profitability rating of EOG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-7.45%
EPS Next 3Y1.13%
5. Dividend
5.1 Amount
- EOG has a Yearly Dividend Yield of 3.84%.
- Compared to an average industry Dividend Yield of 3.73, EOG pays a bit more dividend than its industry peers.
- EOG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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
- 38.34% of the earnings are spent on dividend by EOG. This is a low number and sustainable payout ratio.
- The dividend of EOG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.34%
EPS Next 2Y-7.45%
EPS Next 3Y1.13%
EOG RESOURCES INC / EOG FAQ
What is the fundamental rating for EOG stock?
ChartMill assigns a fundamental rating of 7 / 10 to EOG.
What is the valuation status of EOG RESOURCES INC (EOG) stock?
ChartMill assigns a valuation rating of 6 / 10 to EOG RESOURCES INC (EOG). This can be considered as Fairly Valued.
Can you provide the profitability details for EOG RESOURCES INC?
EOG RESOURCES INC (EOG) has a profitability rating of 8 / 10.
What is the earnings growth outlook for EOG RESOURCES INC?
The Earnings per Share (EPS) of EOG RESOURCES INC (EOG) is expected to decline by -11.67% in the next year.
How sustainable is the dividend of EOG RESOURCES INC (EOG) stock?
The dividend rating of EOG RESOURCES INC (EOG) is 6 / 10 and the dividend payout ratio is 38.34%.