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 210 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 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.
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 12.93% is amongst the best of the industry. EOG outperforms 90.00% of its industry peers.
With an excellent Return On Equity value of 20.59%, EOG belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.33%, EOG belongs to the best of the industry, outperforming 90.48% 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 23.80%.
| 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
The Profit Margin of EOG (26.13%) is better than 78.57% of its industry peers.
EOG's Profit Margin has improved in the last couple of years.
EOG's Operating Margin of 34.82% is fine compared to the rest of the industry. EOG outperforms 77.62% of its industry peers.
In the last couple of years the Operating Margin of EOG has grown nicely.
EOG has a better Gross Margin (61.33%) than 68.10% 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.
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.
Compared to 1 year ago, EOG has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.24 indicates that EOG is not in any danger for bankruptcy at the moment.
EOG's Altman-Z score of 4.24 is amongst the best of the industry. EOG outperforms 88.57% 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.
The Debt to FCF ratio of EOG (0.86) is better than 89.52% of its industry peers.
EOG has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of EOG (0.12) is better than 75.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 4.24 |
ROIC/WACC1.67
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.87 indicates that EOG should not have too much problems paying its short term obligations.
EOG has a better Current ratio (1.87) than 75.24% 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 has a Quick ratio of 1.71. This is in the better half of the industry: EOG outperforms 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The earnings per share for EOG have decreased by -1.35% in the last year.
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.
EOG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.54% yearly.
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.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y-15.98%
EPS Next 2Y-2.68%
EPS Next 3Y3.45%
EPS Next 5Y1.03%
Revenue Next Year-1.17%
Revenue Next 2Y5.63%
Revenue Next 3Y3.87%
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.
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
A Price/Earnings ratio of 10.09 indicates a reasonable valuation of EOG.
Based on the Price/Earnings ratio, EOG is valued a bit cheaper than the industry average as 70.95% of the companies are valued more expensively.
EOG is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.70, the valuation of EOG can be described as very reasonable.
EOG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EOG is cheaper than 63.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, EOG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
69.52% of the companies in the same industry are more expensive than EOG, based on the Enterprise Value to EBITDA ratio.
69.52% of the companies in the same industry are more expensive than EOG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.66 | ||
| EV/EBITDA | 5.17 |
4.3 Compensation for Growth
The decent profitability rating of EOG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-2.68%
EPS Next 3Y3.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.35%, EOG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.41, EOG has a dividend in line with its industry peers.
EOG's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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
34.56% 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.
DP34.56%
EPS Next 2Y-2.68%
EPS Next 3Y3.45%
117.68
-0.75 (-0.63%)
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 Cap64.23B
Analysts76.57
Price Target142.25 (20.88%)
Short Float %3.53%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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)1.24%
PT rev (3m)-2.85%
EPS NQ rev (1m)2.55%
EPS NQ rev (3m)-12.42%
EPS NY rev (1m)2.01%
EPS NY rev (3m)-11.7%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)-5.7%
Revenue NY rev (1m)4.01%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 10.7 | ||
| P/S | 2.76 | ||
| P/FCF | 11.66 | ||
| P/OCF | 5.57 | ||
| P/B | 2.18 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 5.17 |
EPS(TTM)11.66
EY9.91%
EPS(NY)11
Fwd EY9.34%
FCF(TTM)10.09
FCFY8.58%
OCF(TTM)21.12
OCFY17.95%
SpS42.61
BVpS54.08
TBVpS54.08
PEG (NY)N/A
PEG (5Y)0.55
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 | 4.24 |
F-Score5
WACC9.18%
ROIC/WACC1.67
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-15.98%
EPS Next 2Y-2.68%
EPS Next 3Y3.45%
EPS Next 5Y1.03%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y8.34%
Revenue growth 5Y6.54%
Sales Q2Q%-7.41%
Revenue Next Year-1.17%
Revenue Next 2Y5.63%
Revenue Next 3Y3.87%
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%