Don't Take a Position in EOG Resources Stocks Without Knowing Its Fundamentals!

EOG Resources logged a -0.8% change during today's morning session, and is now trading at a price of $125.67 per share.

Over the last year, EOG Resources logged a 5.0% change, with its stock price reaching a high of $150.88 and a low of $98.52. Over the same period, the stock underperformed the S&P 500 index by -18.0%. As of April 2023, the company's 50-day average price was $128.65. EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids. Based in Houston, TX, the large-cap Energy company has 2,850 full time employees. EOG Resources has offered a 2.5% dividend yield over the last 12 months.

Low Leverage Levels and Exceptional EPS Growth:

2018-02-27 2019-02-26 2020-02-27 2021-02-25 2022-02-24 2023-02-23
Revenue (MM) $11,208 $17,275 $17,380 $11,032 $18,642 $25,702
Operating Margins 13% 28% 24% 21% 39% 44%
Net Margins 23.0% 20.0% 16.0% -5.0% 25.0% 30.0%
Net Income (MM) $2,583 $3,419 $2,735 -$605 $4,664 $7,759
Net Interest Expense (MM) -$274 -$245 -$185 -$236 -$211 -$215
Depreciation & Amort. (MM) -$3,409 -$3,435 -$3,750 -$3,400 -$3,651 -$3,542
Earnings Per Share $4.46 $5.89 $4.71 -$1.04 $7.99 $13.29
EPS Growth n/a 32.06% -20.03% -122.08% 868.27% 66.33%
Diluted Shares (MM) 579 580 581 579 584 584
Free Cash Flow (MM) $8,163 $13,618 $14,445 $8,281 $12,410 $15,744
Capital Expenditures (MM) -$3,897 -$5,849 -$6,282 -$3,273 -$3,619 -$4,651
Net Current Assets (MM) -$10,271 -$9,513 -$10,211 -$9,641 -$7,472 -$6,117
Long Term Debt (MM) $6,031 $5,170 $4,161 $5,035 $5,072 $3,795
Net Debt / EBITDA 1.15 0.55 0.4 0.44 -0.01 -0.06

EOG Resources has weak revenue growth and a flat capital expenditure trend, irregular cash flows, and a decent current ratio. We also note that the company benefits from exceptional EPS growth and low leverage. However, the firm has weak operating margins with a positive growth rate.

EOG Resources's Valuation Is in Line With Its Sector Averages:

EOG Resources has a trailing twelve month P/E ratio of 8.7, compared to an average of 7.54 for the Energy sector. Based on its EPS guidance of $13.26, the company has a forward P/E ratio of 9.7. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 22.2%. On this basis, EOG Resources's PEG ratio is 0.39. Using instead the 10.4% weighted average of EOG Resources's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 0.84, which implies that its shares may be underpriced. In contrast, EOG Resources is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.79 is higher than the sector average of 1.68. The company's shares are currently trading 11.6% above their Graham number.

EOG Resources Has an Average Rating of Buy:

The 27 analysts following EOG Resources have set target prices ranging from $113.0 to $169.0 per share, for an average of $147.56 with a buy rating. As of April 2023, the company is trading -12.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.

EOG Resources has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 91.2% of the company's shares, and the insider ownership rate stands at 0.48%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $6,821,236,301.

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.