ConocoPhillips (COP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

EQT Corp.

Antero Resources Corp.

Devon Energy Corp.

Range Resources Corp.

ConocoPhillips

Pioneer Natural Resources Co.

Diamondback Energy, Inc.

Ovintiv, Inc.

EOG Resources, Inc.

Occidental Petroleum Corp.

Marathon Oil Corp.

Why is ConocoPhillips ?

High Management Efficiency with a high ROCE of 22.00%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.80 times

Healthy long term growth as Net Sales has grown by an annual rate of 18.87% and Operating profit at 38.25%

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 19,820 MM
ROCE(HY) Lowest at 15.88%
INTEREST COVERAGE RATIO(Q) Lowest at 1,666.67

With ROCE of 16.56%, it has a expensive valuation with a 2.57 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -13.43%, its profits have fallen by -9.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.43% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ConocoPhillips should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ConocoPhillips for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

ConocoPhillips

-10.04%

-0.57

33.13%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.87%

EBIT Growth (5y)

38.25%

EBIT to Interest (avg)

12.51

Debt to EBITDA (avg)

0.80

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.83

Tax Ratio

33.41%

Dividend Payout Ratio

39.97%

Pledged Shares

Institutional Holding

84.95%

ROCE (avg)

22.00%

ROE (avg)

19.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.97

EV to EBIT

15.51

EV to EBITDA

8.84

EV to Capital Employed

2.57

EV to Sales

3.67

PEG Ratio

Dividend Yield

193.06%

ROCE (Latest)

16.56%

ROE (Latest)

14.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 19,820 MM

ROCE(HY)

Lowest at 15.88%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,666.67

RAW MATERIAL COST(Y)

Grown by 21.01% (YoY

INTEREST(Q)

Highest at USD 327 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 38.99 %

PRE-TAX PROFIT(Q)

Lowest at USD 2,999 MM

NET PROFIT(Q)

Lowest at USD 1,952.24 MM

EPS(Q)

Lowest at USD 1.56

Here's what is working for ConocoPhillips

Depreciation

Highest at USD 2,862 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for ConocoPhillips

Operating Cash Flow

Lowest at USD 19,820 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 1,666.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 327 MM

in the last five periods and Increased by 9.36% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 38.99 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 2,999 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 1,952.24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.56

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 21.01% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.24 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income