EOG Resources Inc (EOG) stock analysis

P/E below its 5-year median

EOG Resources's P/E of 9.9 is below its own 5-year median of 10.7.

P/E below the industry

EOG Resources's P/E of 9.9 is below the Crude Petroleum and Natural Gas median of 10.4.

EV/EBITDA below its 5-year median

EOG Resources's EV/EBITDA of 5.3 is below its 5-year median of 5.7.

P/B above the industry

EOG Resources's price-to-book of 2.44 is above the Crude Petroleum and Natural Gas median of 1.33.

Trading below fair value

The share price of $153.77 is below our fair value estimate of $181.07.

Margin of safety under 20%

The price is 15.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -4.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -11.6% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 31.7% over the last twelve months; the Crude Petroleum and Natural Gas median is 8.7%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 25.8% over the last twelve months and averaged 24.6% over five years.

Return on capital over 10%

Return on invested capital was 23.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

EOG Resources's return on equity of 25.8% is above the Crude Petroleum and Natural Gas median of 5.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 27.5% over the last twelve months, against a 5-year average of 27.1%.

Net margin above the industry

EOG Resources's net margin of 27.5% is above the Crude Petroleum and Natural Gas median of 3.8%.

Low debt

Debt is 23.9% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 28.6% five years ago to 23.9%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 177% of total debt.

Interest well covered

Operating income covers interest expense 40.1 times.

Short-term assets cover short-term debts

Current assets are 1.90 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.22; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

EOG Resources paid dividends worth 2.7% of the share price over the last twelve months.

Yield below Treasuries

The 2.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; EOG Resources yields 2.7%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.