Now trading at a price of $111.36, EOG Resources has moved -0.7% so far today.
EOG Resources returned losses of -12.9% last year, with its stock price reaching a high of $137.95 and a low of $98.52. Over the same period, the stock underperformed the S&P 500 index by -34.2%. As of April 2023, the company's 50-day average price was $121.55. 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 2.9% dividend yield over the last 12 months.
Growing Revenues With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $17,275 | $17,380 | $11,032 | $18,642 | $25,702 | $24,548 |
| Revenue Growth | n/a | 0.61% | -36.52% | 68.98% | 37.87% | -4.49% |
| Operating Margins | 26% | 21% | -5% | 33% | 39% | 41% |
| Net Margins | 20% | 16% | -5% | 25% | 30% | 32% |
| Net Income (MM) | $3,419 | $2,735 | -$605 | $4,664 | $7,759 | $7,883 |
| Net Interest Expense (MM) | $17 | $31 | $10 | $178 | $179 | $155 |
| Depreciation & Amort. (MM) | $3,435 | $3,750 | $3,400 | $3,651 | $3,542 | $3,440 |
| Earnings Per Share | $5.89 | $4.71 | -$1.04 | $7.99 | $13.22 | $13.47 |
| EPS Growth | n/a | -20.03% | -122.08% | 868.27% | 65.46% | 1.89% |
| Diluted Shares (MM) | 580 | 581 | 581 | 584 | 587 | 583 |
| Free Cash Flow (MM) | $7,531 | $7,893 | $4,787 | $8,579 | $10,712 | $10,909 |
| Capital Expenditures (MM) | $237 | $270 | $221 | $212 | $381 | $771 |
| Current Ratio | 1.36 | 1.18 | 1.69 | 2.12 | 1.9 | 2.43 |
EOG Resources benefits from growing revenues and increasing reinvestment in the business, an excellent current ratio, and a strong EPS growth trend. The company's financial statements show positive cash flows and healthy leverage. However, the firm has weak operating margins with a positive growth rate.
EOG Resources Is Currently Undervalued:
EOG Resources has a trailing twelve month P/E ratio of 9.0, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $12.4, the company has a forward P/E ratio of 9.8. According to the 11.2% compound average growth rate of EOG Resources's historical and projected earnings per share, the company's PEG ratio is 0.8. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 8.8%. On this basis, the company's PEG ratio is 1.03. This implies that the shares are fairly valued. In contrast, EOG Resources is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.34 is higher than the sector average of 1.78. The company's shares are currently trading -7.3% below their Graham number.
EOG Resources Has an Average Rating of Buy:
The 28 analysts following EOG Resources have set target prices ranging from $113.0 to $172.0 per share, for an average of $142.82 with a buy rating. As of April 2023, the company is trading -14.9% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
EOG Resources has a very low short interest because 1.3% of the company's shares are sold short. Institutions own 91.0% of the company's shares, and the insider ownership rate stands at 0.49%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $6,020,979,550.
