-1.23 | -2.31%
CONOCOPHILLIPS's gross profit margin for the first quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. CONOCOPHILLIPS has weak liquidity. Currently, the Quick Ratio is 0.76 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.91% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Net Sales ($mil) | 52811.0 | 53148.0 |
| EBITDA ($mil) | 5662.0 | 6487.0 |
| EBIT ($mil) | 3451.0 | 4305.0 |
| Net Income ($mil) | 2937.0 | 3028.0 |
| Balance Sheet | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 10265.0 | 8403.0 |
| Total Assets ($mil) | 162881.0 | 159643.0 |
| Total Debt ($mil) | 32495.0 | 28048.0 |
| Equity ($mil) | 66534.0 | 69972.0 |
| Profitability | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Gross Profit Margin | 13.3 | 13.48 |
| EBITDA Margin | 10.72 | 12.21 |
| Operating Margin | 6.53 | 8.1 |
| Sales Turnover | 1.42 | 1.17 |
| Return on Assets | 7.58 | 7.7 |
| Return on Equity | 18.55 | 17.56 |
| Debt | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Current Ratio | 1.02 | 1.22 |
| Debt/Capital | 0.33 | 0.29 |
| Interest Expense | 355.0 | 374.0 |
| Interest Coverage | 9.72 | 11.51 |
| Share Data | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Shares outstanding (mil) | 1264.56 | 1413.51 |
| Div / share | 0.66 | 0.66 |
| EPS | 2.27 | 2.09 |
| Book value / share | 52.61 | 49.5 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 9875350.0 | 9548901.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 16.38 for the Oil, Gas & Consumable Fuels industry and a discount compared to the S&P 500 average of 15.19. To use another comparison, its price-to-book ratio of 0.99 indicates a discount versus the S&P 500 average of 2.12 and a significant discount versus the industry average of 5.14. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CONOCOPHILLIPS proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| COP 5.70 | Peers 16.38 | COP 3.03 | Peers 11.76 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. COP is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. COP is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| COP 7.90 | Peers 11.24 | COP NM | Peers 1.10 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. COP is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. COP's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| COP 0.99 | Peers 5.14 | COP 10.24 | Peers 94.39 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. COP is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, COP is expected to significantly trail its peers on the basis of its earnings growth rate. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| COP 0.29 | Peers 1.56 | COP 23.07 | Peers 29.11 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. COP is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. COP trails its peers on the basis of sales growth |
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