Taking everything into account, EOG scores 7 out of 10 in our fundamental rating. EOG was compared to 207 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 is valued correctly, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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 has a better Return On Assets (10.59%) than 89.86% of its industry peers.
The Return On Equity of EOG (18.26%) is better than 85.99% of its industry peers.
With an excellent Return On Invested Capital value of 12.38%, EOG belongs to the best of the industry, outperforming 89.37% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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's Profit Margin of 24.45% is amongst the best of the industry. EOG outperforms 83.09% of its industry peers.
EOG's Profit Margin has improved in the last couple of years.
EOG's Operating Margin of 33.18% is amongst the best of the industry. EOG outperforms 80.19% of its industry peers.
In the last couple of years the Operating Margin of EOG has grown nicely.
EOG has a Gross Margin of 62.11%. This is in the better half of the industry: EOG outperforms 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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

An Altman-Z score of 3.35 indicates that EOG is not in any danger for bankruptcy at the moment.
EOG has a Altman-Z score of 3.35. This is amongst the best in the industry. EOG outperforms 85.02% of its industry peers.
EOG has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
EOG has a Debt to FCF ratio of 1.98. This is amongst the best in the industry. EOG outperforms 83.09% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that EOG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.25, EOG is doing good in the industry, outperforming 67.15% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.25
Debt/FCF	1.98
Altman-Z	3.35

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.
With a decent Current ratio value of 1.62, EOG is doing good in the industry, outperforming 69.08% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.43, EOG is in the better half of the industry, outperforming 70.53% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.62
Quick Ratio	1.43

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
The Earnings Per Share has been growing by 18.45% on average over the past years. This is quite good.
EOG shows a decrease in Revenue. In the last year, the revenue decreased by -7.41%.
EOG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.54% yearly.

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

Based on estimates for the next years, EOG will show a small growth in Earnings Per Share. The EPS will grow by 5.25% on average per year.
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-10.98%

EPS Next 2Y-4.19%

EPS Next 3Y2.91%

EPS Next 5Y5.25%

Revenue Next Year-3.65%

Revenue Next 2Y1.73%

Revenue Next 3Y3.08%

Revenue Next 5Y5.16%

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.18 indicates a reasonable valuation of EOG.
Compared to the rest of the industry, the Price/Earnings ratio of EOG indicates a rather cheap valuation: EOG is cheaper than 82.61% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EOG to the average of the S&P500 Index (27.21), we can say EOG is valued rather cheaply.
A Price/Forward Earnings ratio of 10.16 indicates a reasonable valuation of EOG.
Based on the Price/Forward Earnings ratio, EOG is valued a bit cheaper than 79.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of EOG to the average of the S&P500 Index (24.26), we can say EOG is valued rather cheaply.

		Industry Rank	Sector Rank
PE	10.18
Fwd PE	10.16

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, EOG is valued a bit cheaper than the industry average as 75.36% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EOG is valued a bit cheaper than 62.80% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	15.11
EV/EBITDA	5.26

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-4.19%

EPS Next 3Y2.91%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.84%, EOG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.75, 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 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 38.34% 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.

DP38.34%

EPS Next 2Y-4.19%

EPS Next 3Y2.91%

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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 -10.98% 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%.