ConocoPhillips (COP, Financial), a leading player in the Oil & Gas industry, has seen a significant surge in its stock price over the past three months. With a current market cap of $144 billion and a price of $120.25, the stock has gained 2.66% over the past week and a remarkable 17.54% over the past three months. According to the GF Value, defined by GuruFocus.com, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is currently fairly valued at $114.12. However, three months ago, the stock was modestly undervalued with a GF Value of $130.54.
Company Overview: ConocoPhillips
ConocoPhillips is a U.S.-based independent exploration and production firm. In 2022, it produced 1.2 million barrels per day of oil and natural gas liquids and 3.1 billion cubic feet per day of natural gas. The company's operations span across Alaska and the Lower 48 in the United States, Norway in Europe, and several countries in Asia-Pacific and the Middle East. As of year-end 2022, ConocoPhillips had proven reserves of 6.6 billion barrels of oil equivalent.
Profitability Analysis
ConocoPhillips has a Profitability Rank of 7/10, indicating a high level of profitability. The company's operating margin of 28.36% is better than 74.13% of companies in the industry. Its ROE, ROA, and ROIC, standing at 26.64%, 13.95%, and 15.53% respectively, are all better than the majority of companies in the industry. Over the past 10 years, ConocoPhillips has been profitable for 6 years, which is better than 59.18% of companies.
Growth Prospects
ConocoPhillips has a Growth Rank of 9/10, indicating a high level of growth. The company's 3-year and 5-year revenue growth rates per share stand at 28.40% and 13.90% respectively, both of which are better than the majority of companies in the industry. However, the company's future total revenue growth rate is estimated to be -15.30%, which is better than only 2.32% of companies. The EPS without NRI growth rate is projected to be -3.60%, which is better than 33.85% of companies.
Major Stock Holders
The top three holders of ConocoPhillips stock are Dodge & Cox, holding 1.14% of shares, Ken Fisher (Trades, Portfolio), holding 0.6% of shares, and Diamond Hill Capital (Trades, Portfolio), holding 0.51% of shares.
Competitive Landscape
ConocoPhillips faces competition from several companies in the Oil & Gas industry. Its main competitors include EOG Resources Inc with a market cap of $73.11 billion, Occidental Petroleum Corp with a market cap of $56.65 billion, and Pioneer Natural Resources Co with a market cap of $55.75 billion.
Conclusion
In conclusion, ConocoPhillips has demonstrated strong performance, profitability, and growth, positioning it well in the industry relative to its competitors. Despite the projected decline in future total revenue growth rate and EPS without NRI growth rate, the company's strong profitability and growth ranks, coupled with its fair valuation, suggest potential for future growth and profitability.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
