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Important Information for ConocoPhillips Investors

ConocoPhillips shares fell by -2.7% during the day's morning session, and are now trading at a price of $92.76. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.

ConocoPhillips Is Currently Undervalued:

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids. The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 18.35 and an average price to book (P/B) ratio of 1.6. In contrast, ConocoPhillips has a trailing 12 month P/E ratio of 11.8 and a P/B ratio of 1.79.

ConocoPhillips has moved -11.3% over the last year compared to 20.3% for the S&P 500 — a difference of -31.6%. ConocoPhillips has a 52 week high of $116.08 and a 52 week low of $79.88.

Growing Revenues but an Average Current Ratio:

2019 2020 2021 2022 2023 2024
Revenue (M) $36,670 $18,784 $45,828 $78,494 $56,141 $54,745
Operating Margins 26% -17% 28% 36% 28% 25%
Net Margins 20% -14% 18% 24% 20% 17%
Net Income (M) $7,189 -$2,701 $8,079 $18,680 $10,957 $9,245
Net Interest Expense (M) $778 $806 $884 $805 $780 $941
Depreciation & Amort. (M) $6,090 $5,521 $7,208 $7,504 $8,270 $9,599
Diluted Shares (M) 1,124 1,078 1,328 1,278 1,206 1,181
Earnings Per Share $6.4 -$2.51 $6.07 $14.57 $9.06 $7.81
EPS Growth n/a -139.22% 341.83% 140.03% -37.82% -13.8%
Avg. Price $52.48 $36.6 $54.29 $91.26 $115.09 $92.76
P/E Ratio 8.16 -14.58 8.91 6.24 12.68 11.86
Free Cash Flow (M) $4,468 $87 $11,672 $18,155 $8,717 $8,006
CAPEX (M) $6,636 $4,715 $5,324 $10,159 $11,248 $12,118
EV / EBITDA 4.44 21.82 4.44 3.6 6.25 5.49
Total Debt (M) $14,895 $15,369 $19,934 $16,643 $18,937 $24,324
Net Debt / EBITDA 0.63 5.2 0.75 0.29 0.54 0.8
Current Ratio 2.4 2.25 1.34 1.46 1.43 1.29

ConocoPhillips benefits from growing revenues and increasing reinvestment in the business, generally positive cash flows, and strong operating margins with a stable trend. The company's financial statements show positive EPS growth and healthy leverage levels. Furthermore, ConocoPhillips has just enough current assets to cover current liabilities, as shown by its current ratio of 1.29.

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.

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