Market Inference Overview -- COP Stock

ConocoPhillips logged a -2.0% change during today's morning session, and is now trading at a price of $101.62 per share.

ConocoPhillips returned gains of 18.0% last year, with its stock price reaching a high of $138.49 and a low of $78.3. Over the same period, the stock outperformed the S&P 500 index by 3.0%. More recently, the company's 50-day average price was $102.45. ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids in the United States and internationally. Based in Houston, TX, the large-cap Energy company has 9,600 full time employees. ConocoPhillips has offered a 4.9% dividend yield over the last 12 months.

Growing Revenues With Increasing Reinvestment in the Business:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $32,567 $18,784 $45,828 $78,494
Gross Margins 28.6% 4.5% 32.2% 38.2%
Operating Margins 21.7% -9.6% 26.3% 32.4%
Net Margins 22.07% -14.38% 17.63% 23.8%
Net Income (MM) $7,189 -$2,701 $8,079 $18,680
Net Interest Expense (MM) -1,104 -1,058 -1,126 -1,055
Net Interest Expense (MM) -$1,104 -$1,058 -$1,126 -$1,055
Depreciation & Amort. (MM) -$6,090 -$5,521 -$7,208 -$7,504
Earnings Per Share $6.4 -$2.51 $6.07 $12.56
EPS Growth n/a -139.22% 341.83% 106.92%
Diluted Shares (MM) 1,124 1,078 1,328 1,210
Free Cash Flow (MM) $4,468 $87 $11,672 $18,155
Capital Expenditures (MM) -$6,636 -$4,715 -$5,324 -$10,159
Net Current Assets (MM) -$18,551 -$20,703 -$29,205 -$27,077
Current Ratio 2.4 2.25 1.34 1.46
Long Term Debt (MM) $14,790 $14,750 $18,734 $16,226
Net Debt / EBITDA 0.59 3.65 0.71 0.28

ConocoPhillips has growing revenues and increasing reinvestment in the business and low leverage. Additionally, the company's financial statements display a strong EPS growth trend and generally positive cash flows. However, the firm has slimmer gross margins than its peers. Finally, we note that ConocoPhillips has average net margins with a positive growth rate and just enough current assets to cover current liabilities.

ConocoPhillips's Valuation Is in Line With Its Sector Averages:

ConocoPhillips has a trailing twelve month P/E ratio of 8.2, compared to an average of 7.54 for the Energy sector. Based on its EPS guidance of $10.27, the company has a forward P/E ratio of 10.0. The 9.9% compound average growth rate of ConocoPhillips's historical and projected earnings per share yields a PEG ratio of 0.82. This suggests that its shares are undervalued. In contrast, ConocoPhillips is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.57 is higher than the sector average of 1.68. The company's shares are currently trading 43.7% above their Graham number.

ConocoPhillips Has an Average Rating of Buy:

The 24 analysts following ConocoPhillips have set target prices ranging from $94.0 to $165.0 per share, for an average of $129.54 with a buy rating. As of April 2023, the company is trading -20.9% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

ConocoPhillips has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 82.8% of the company's shares, and the insider ownership rate stands at 0.14%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 9% stake in the company is worth $11,389,147,329.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.