EOG RESOURCES INC (EOG) Stock Fundamental Analysis
NYSE:EOG - New York Stock Exchange, Inc. - US26875P1012 - Common Stock - Currency: USD
Taking everything into account, EOG scores 6 out of 10 in our fundamental rating. EOG was compared to 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
EOG had positive earnings in the past year.
EOG had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 12.93%, EOG belongs to the best of the industry, outperforming 90.05% of the companies in the same industry.
EOG's Return On Equity of 20.59% is amongst the best of the industry. EOG outperforms 85.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.33%, EOG belongs to the top of the industry, outperforming 90.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EOG is below the industry average of 23.70%.
| 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's Profit Margin of 26.13% is fine compared to the rest of the industry. EOG outperforms 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.
EOG's Gross Margin of 61.33% is fine compared to the rest of the industry. EOG outperforms 68.25% of its industry peers.
EOG's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EOG is creating value.
The number of shares outstanding for EOG has been reduced compared to 1 year ago.
The number of shares outstanding for EOG has been reduced compared to 5 years ago.
The debt/assets ratio for EOG is higher compared to a year ago.
2.2 Solvency
EOG has an Altman-Z score of 4.33. This indicates that EOG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EOG (4.33) is better than 89.57% of its industry peers.
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.
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.
EOG has a better Debt to Equity ratio (0.12) than 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.7
WACC9.03%
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 74.88% of the companies in the same industry.
A Quick Ratio of 1.71 indicates that EOG should not have too much problems paying its short term obligations.
The Quick ratio of EOG (1.71) is better than 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.
The Revenue has decreased by -3.96% 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)-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
Based on estimates for the next years, EOG will show a small growth in Earnings Per Share. The EPS will grow by 1.03% on average per year.
EOG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.36% yearly.
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
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
Based on the Price/Earnings ratio of 10.56, the valuation of EOG can be described as reasonable.
Based on the Price/Earnings ratio, EOG is valued a bit cheaper than the industry average as 71.09% of the companies are valued more expensively.
EOG is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.68, the valuation of EOG can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EOG indicates a somewhat cheap valuation: EOG is cheaper than 60.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, EOG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 11.68 |
4.2 Price Multiples
EOG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EOG is cheaper than 69.67% of the companies in the same industry.
EOG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EOG is cheaper than 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.2 | ||
| EV/EBITDA | 5.38 |
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)0.57
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 2.38, 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 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
34.56% 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.
DP34.56%
EPS Next 2Y-4.7%
EPS Next 3Y1.57%
123.15
+0.27 (+0.22%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change-47.21%
Ins Owners0.2%
Ins Owner Change0.68%
Market Cap67.21B
Analysts76.57
Price Target142.25 (15.51%)
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 | 10.56 | ||
| Fwd PE | 11.68 | ||
| P/S | 2.89 | ||
| P/FCF | 12.2 | ||
| P/OCF | 5.83 | ||
| P/B | 2.28 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 5.38 |
EPS(TTM)11.66
EY9.47%
EPS(NY)10.54
Fwd EY8.56%
FCF(TTM)10.09
FCFY8.2%
OCF(TTM)21.12
OCFY17.15%
SpS42.61
BVpS54.08
TBVpS54.08
PEG (NY)N/A
PEG (5Y)0.57
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 | 4.33 |
F-Score5
WACC9.03%
ROIC/WACC1.7
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%