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.
