Today we're going to take a closer look at Large-Cap Energy company ConocoPhillips, whose shares are currently trading at $93.39. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
ConocoPhillips Shares Are Trading at a Discount:
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 12.5 and a P/B ratio of 1.78.
ConocoPhillips has moved -16.2% over the last year compared to 16.8% for the S&P 500 — a difference of -33.0%. ConocoPhillips has a 52 week high of $115.38 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 | $116.07 | $93.75 |
| P/E Ratio | 8.16 | -14.58 | 8.91 | 6.24 | 12.78 | 11.99 |
| 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 | 6.3 | 5.54 |
| 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.
