EOG RESOURCES INC (EOG) Stock Analysis
EOG RESOURCES INC (EOG) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
EOG RESOURCES INC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 11.9% | Near cost of capital |
| FCF Margin | 44.4% | Strong cash generation |
| Debt/Equity | 0.3x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 44.4% provides financial flexibility for growth and shareholder returns.
Explore EOG RESOURCES INC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: EOG RESOURCES INC earns 11.9% ROIC, Top 25% in Energy
EOG RESOURCES INC's trailing-twelve-month ROIC of 11.9% ranks Top 25% in Energy companies (sector median: 6.9%), driven by NOPAT margin of 22.1% combined with asset turnover of 0.5x. Source: 10-Q filed 2025-11-06.
| Metric | EOG | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.9% | Adequate | Above sector median of 6.9% |
| Return on Equity (ROE) | 16.8% | Good | Efficient use of shareholder equity |
| Operating Margin | 28.2% | Excellent | Efficient operations |
Cash Flow: EOG RESOURCES INC generates $10.0B FCF at 44.4% margin, positive NaN/8 quarters
EOG RESOURCES INC generated $10.0B in free cash flow (TTM), a 44.4% FCF margin, a margin that ranks Top 25% in Energy. Operating cash flow exceeds net income by 2.0x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | EOG | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 44.4% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $10.0B | Good | Positive cash generation |
| OCF/Net Income | 2.0x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: EOG RESOURCES INC at 0.3x leverage
EOG RESOURCES INC's debt-to-equity ratio of 0.3x reflects conservative leverage. Total debt of $7.9B offset by $3.4B in cash. Source: 10-Q filed 2025-11-06.
| Metric | EOG | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.3x | Excellent | Conservative capital structure |
| Net Cash Position | $-4.5B | Warning | Net debt position |
Valuation: EOG RESOURCES INC trades at 11.4x earnings
EOG RESOURCES INC trades at a P/E of 11.4x. Free cash flow yield of 17.6% offers attractive cash returns relative to price.
| Metric | EOG | Rating | Context |
|---|---|---|---|
| P/E Ratio | 11.4x | Adequate | Reasonable valuation |
| EV/Sales | 2.5x | Good | Attractive revenue multiple |
| FCF Yield | 17.6% | Excellent | Attractive cash return |
| Dividend Yield | 3.8% | Adequate | Meaningful income |
Capital Allocation: EOG RESOURCES INC returns 8.3% shareholder yield
EOG RESOURCES INC's total shareholder yield is 8.3% (dividends 3.8% + buybacks 4.5%). Source: 10-Q filed 2025-11-06.
| Metric | EOG | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 8.3% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 4.5% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $4.7B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.9% | Top 25% | 1.7x above |
| Free Cash Flow Margin | 44.4% | Top 25% | 5.1x above |
| Operating Margin | 28.2% | Top 25% | 3.1x above |
| Return on Equity (ROE) | 16.8% | Top 25% | 1.9x above |
| P/E Ratio | 11.4x | N/A | - |
Financial Scorecard
| Metric | EOG | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.9% | Adequate | Top 25% of sector (median: 6.9%) |
| Free Cash Flow Margin | 44.4% | Excellent | Top 25% of sector (median: 8.8%) |
| Debt to Equity Ratio | 26.6% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 11.4x | Adequate | Attractively valued |
| Free Cash Flow Yield | 17.6% | Excellent | High cash return |
Frequently Asked Questions
Q: What is EOG RESOURCES INC's Return on Invested Capital (ROIC)?
EOG RESOURCES INC (EOG) has a trailing twelve-month Return on Invested Capital (ROIC) of 11.9%. This compares above the sector median of 6.9%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is EOG RESOURCES INC's Free Cash Flow Margin?
EOG RESOURCES INC (EOG) has a free cash flow margin of 44.4%, generating $10.0 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is EOG RESOURCES INC stock overvalued or undervalued?
EOG RESOURCES INC (EOG) trades at a P/E ratio of 11.4x, which is above the sector median of N/A. The EV/Sales multiple is 2.5x. Free cash flow yield is 17.6%, which represents an attractive cash return to investors.
Q: Does EOG RESOURCES INC pay a dividend?
EOG RESOURCES INC (EOG) currently pays a dividend yield of 3.8%. Including share buybacks, the total shareholder yield is 8.3%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is EOG RESOURCES INC's revenue and earnings growth?
EOG RESOURCES INC (EOG) declined revenue by 4.5% year-over-year. Earnings per share decreased by 19.0% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: Is EOG RESOURCES INC buying back stock?
EOG RESOURCES INC (EOG) repurchased $2.6 billion of stock over the trailing twelve months. This represents a buyback yield of 4.5%.
Q: How does EOG RESOURCES INC compare to competitors in Energy?
Compared to other companies in Energy, EOG RESOURCES INC (EOG) shows: ROIC of 11.9% is above the sector median of 6.9% (Top 24%). FCF margin of 44.4% exceeds the sector median of 8.8% (Top 23% of sector). These rankings are based on MetricDuck's analysis of all Energy companies with available SEC filings.
Q: What warning signs should I watch for with EOG RESOURCES INC?
Investors in EOG RESOURCES INC (EOG) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.