ConocoPhillips logged a 0.3% change during today's evening session, and is now trading at a price of $114.9 per share.
Over the last year, ConocoPhillips logged a 3.7% change, with its stock price reaching a high of $127.35 and a low of $91.53. Over the same period, the stock underperformed the S&P 500 index by -19.9%. As of April 2023, the company's 50-day average price was $117.12. 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 9,800 full time employees. ConocoPhillips has offered a 4.7% dividend yield over the last 12 months.
Growing Revenues With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $38,727 | $36,670 | $18,784 | $45,828 | $78,494 | $59,970 |
| Revenue Growth | n/a | -5.31% | -48.78% | 143.97% | 71.28% | -23.6% |
| Net Margins | 16% | 20% | 0% | 18% | 24% | 19% |
| Net Income (MM) | $6,305 | $7,257 | $46 | $8,079 | $18,680 | $11,199 |
| Net Interest Expense (MM) | $735 | $1,358 | $806 | $884 | $805 | $739 |
| Depreciation & Amort. (MM) | $5,956 | $6,090 | $5,521 | $7,208 | $7,504 | $8,046 |
| Diluted Shares (MM) | 1 | 1 | 1,078 | 1,328 | 1,278 | 1,039 |
| Free Cash Flow (MM) | $6,184 | $4,468 | $87 | $11,672 | $18,155 | $11,135 |
| Capital Expenditures (MM) | $6,750 | $6,636 | $4,715 | $5,324 | $10,159 | $10,159 |
| Current Ratio | 1.79 | 2.4 | 2.25 | 1.34 | 1.46 | 1.66 |
| Total Debt (MM) | $14,968 | $22,783 | $15,369 | $30,240 | $29,028 | $31,943 |
| Net Debt / EBITDA | 0.57 | 1.13 | 5.2 | 1.27 | 0.63 | 0.64 |
ConocoPhillips has growing revenues and increasing reinvestment in the business, low leverage, and irregular cash flows. However, the firm has weak operating margins with a positive growth rate. Finally, we note that ConocoPhillips has positive expected EPS Growth.
ConocoPhillips's Valuation Is in Line With Its Sector Averages:
ConocoPhillips has a trailing twelve month P/E ratio of 12.8, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $10.44, the company has a forward P/E ratio of 11.2. Furthermore, ConocoPhillips is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.86 is higher than the sector average of 1.78. In conclusion, ConocoPhillips's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
Analysts Give ConocoPhillips an Average Rating of Buy:
The 26 analysts following ConocoPhillips have set target prices ranging from $117.0 to $164.0 per share, for an average of $138.31 with a buy rating. As of April 2023, the company is trading -15.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.
ConocoPhillips has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 82.6% of the company's shares, and the insider ownership rate stands at 0.15%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $12,690,066,899.
