ConocoPhillips logged a -0.7% change during today's morning session, and is now trading at a price of $107.88 per share.
ConocoPhillips returned losses of -8.4% last year, 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 -29.7%. As of April 2023, the company's 50-day average price was $114.93. 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 4.9% dividend yield over the last 12 months.
The Business Runs With Healthy Debt Levels:
| 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% | -14% | 18% | 24% | 19% |
| Net Income (MM) | $6,257 | $7,189 | -$2,701 | $8,079 | $18,680 | $11,199 |
| Net Interest Expense (MM) | $735 | $778 | $806 | $884 | $805 | $739 |
| Depreciation & Amort. (MM) | $5,956 | $6,090 | $5,521 | $7,208 | $7,504 | $8,046 |
| Earnings Per Share | $5.32 | $6.4 | -$2.51 | $6.07 | $14.57 | $9.21 |
| EPS Growth | n/a | 20.3% | -139.22% | 341.83% | 140.03% | -36.79% |
| Diluted Shares (MM) | 1,176 | 1,124 | 1,078 | 1,328 | 1,278 | 1,200 |
| Free Cash Flow (MM) | $6,184 | $4,468 | $87 | $11,672 | $18,155 | $21,294 |
| Current Ratio | 1.79 | 2.4 | 2.25 | 1.34 | 1.46 | 1.66 |
| Total Debt (MM) | $14,968 | $14,895 | $15,369 | $19,934 | $16,643 | $19,063 |
ConocoPhillips benefits from growing revenues and no capital expenditures, healthy debt levels, and positive EPS growth. The company's financial statements show positive cash flows and a decent current ratio. Furthermore, ConocoPhillips has average net margins with a stable trend.
ConocoPhillips's Valuation Is in Line With Its Sector Averages:
ConocoPhillips has a trailing twelve month P/E ratio of 12.5, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $9.36, the company has a forward P/E ratio of 12.3. The 8.4% compound average growth rate of ConocoPhillips's historical and projected earnings per share yields a PEG ratio of 1.49. This implies that the shares are fairly valued. Furthermore, ConocoPhillips is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.68 is higher than the sector average of 1.78. The company's shares are currently trading 18.8% above their Graham number. 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.
ConocoPhillips Has an Analyst Consensus of Strong Upside Potential:
The 26 analysts following ConocoPhillips have set target prices ranging from $111.0 to $173.0 per share, for an average of $136.96 with a buy rating. As of April 2023, the company is trading -16.1% 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 1.1% of the company's shares are sold short. Institutions own 82.6% of the company's shares, and the insider ownership rate stands at 0.14%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $11,915,022,804.
