EOG Resources shares fell by -3.4% during the day's morning session, and are now trading at a price of $108.07. 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.
EOG Resources Shares Are Inexpensive:
EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas in producing basins in the United States, the Republic of Trinidad and Tobago, and internationally. 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, EOG Resources has a trailing 12 month P/E ratio of 10.5 and a P/B ratio of 2.02.
EOG Resources has moved -17.8% over the last year compared to 11.8% for the S&P 500 — a difference of -29.6%. EOG Resources has a 52 week high of $138.18 and a 52 week low of $102.52.
Growing Revenues and Healthy Leverage Levels:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $17,380 | $11,032 | $18,642 | $25,702 | $24,186 | $23,698 |
| Operating Margins | 21% | -5% | 33% | 39% | 40% | 34% |
| Net Margins | 16% | -5% | 25% | 30% | 31% | 27% |
| Net Income (M) | $2,735 | -$605 | $4,664 | $7,759 | $7,594 | $6,403 |
| Net Interest Expense (M) | $31 | $10 | $178 | $179 | $148 | $138 |
| Depreciation & Amort. (M) | $3,750 | $3,400 | $3,651 | $3,542 | $3,492 | $4,108 |
| Diluted Shares (M) | 581 | 581 | 584 | 587 | 584 | 569 |
| Earnings Per Share | $4.71 | -$1.04 | $7.99 | $13.22 | $13.0 | $11.25 |
| EPS Growth | n/a | -122.08% | 868.27% | 65.46% | -1.66% | -13.46% |
| Avg. Price | $70.68 | $42.48 | $67.08 | $108.39 | $120.95 | $111.92 |
| P/E Ratio | 14.94 | -40.85 | 8.35 | 8.14 | 9.25 | 9.9 |
| Free Cash Flow (M) | $7,893 | $4,787 | $8,579 | $10,712 | $10,540 | $11,124 |
| CAPEX (M) | $270 | $221 | $212 | $381 | $800 | $1,019 |
| EV / EBITDA | 5.93 | 9.53 | 4.0 | 4.63 | 5.32 | 5.13 |
| Total Debt (M) | $5,175 | $5,816 | $5,109 | $5,078 | $3,799 | $4,752 |
| Net Debt / EBITDA | 0.42 | 0.87 | -0.01 | -0.07 | -0.11 | -0.19 |
| Current Ratio | 1.18 | 1.69 | 2.12 | 1.9 | 2.44 | 2.1 |
EOG Resources has growing revenues and increasing reinvestment in the business, strong operating margins with a positive growth rate, and generally positive cash flows. The company also benefits from an excellent current ratio of 2.1, a strong EPS growth trend, and healthy leverage levels.
