NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
- ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money, headlined by Jim Cramer, now!
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 50.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- EOG RESOURCES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EOG RESOURCES INC increased its bottom line by earning $4.08 versus $0.63 in the prior year. This year, the market expects an improvement in earnings ($4.80 versus $4.08).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 141.8% when compared to the same quarter one year prior, rising from $133.97 million to $324.01 million.
- The gross profit margin for EOG RESOURCES INC is currently very high, coming in at 80.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.90% is above that of the industry average.
- Net operating cash flow has increased to $1,077.61 million or 12.54% when compared to the same quarter last year. In addition, EOG RESOURCES INC has also modestly surpassed the industry average cash flow growth rate of 12.39%.
EOG Resources, Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad and Tobago, the United Kingdom, and the People's Republic of China. The company has a P/E ratio of 22.7, above the average energy industry P/E ratio of 19.6and above the S&P 500 P/E ratio of 17.7. EOG has a market cap of $25.06 billion and is part of the
industry. Shares are down 12.2% year to date as of the close of trading on Thursday.
You can view the full
or get investment ideas from our
--Written by a member of TheStreet Ratings Staff.
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.