EOG Resources Current Valuation vs. Operating Margin
| EO5 Stock | EUR 113.82 0.12 0.11% |
For EOG Resources profitability analysis, we use financial ratios and fundamental drivers that measure the ability of EOG Resources to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well EOG Resources utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between EOG Resources's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of EOG Resources over time as well as its relative position and ranking within its peers.
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EOG Resources Operating Margin vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining EOG Resources's current stock value. Our valuation model uses many indicators to compare EOG Resources value to that of its competitors to determine the firm's financial worth. EOG Resources is rated below average in current valuation category among its peers. It is rated below average in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for EOG Resources is about 209,563,856,634 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the EOG Resources' earnings, one of the primary drivers of an investment's value.EOG Current Valuation vs. Competition
EOG Resources is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Oil & Gas E&P industry is currently estimated at about 845.14 Billion. EOG Resources holds roughly 70.22 Billion in current valuation claiming about 8% of all equities under Oil & Gas E&P industry.
EOG Operating Margin vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
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| = | 70.22 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
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| = | 0.34 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
EOG Operating Margin Comparison
EOG Resources is rated below average in operating margin category among its peers.
EOG Resources Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in EOG Resources, profitability is also one of the essential criteria for including it into their portfolios because, without profit, EOG Resources will eventually generate negative long term returns. The profitability progress is the general direction of EOG Resources' change in net profit over the period of time. It can combine multiple indicators of EOG Resources, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil and natural gas. EOG Resources, Inc. was founded in 1985 and is headquartered in Houston, Texas. EOG RESOURCES operates under Oil Gas EP classification in Germany and is traded on Frankfurt Stock Exchange. It employs 2800 people.
EOG Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on EOG Resources. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of EOG Resources position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the EOG Resources' important profitability drivers and their relationship over time.
Use EOG Resources in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if EOG Resources position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EOG Resources will appreciate offsetting losses from the drop in the long position's value.EOG Resources Pair Trading
EOG Resources Pair Trading Analysis
The ability to find closely correlated positions to EOG Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace EOG Resources when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back EOG Resources - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling EOG Resources to buy it.
The correlation of EOG Resources is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as EOG Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if EOG Resources moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for EOG Resources can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your EOG Resources position
In addition to having EOG Resources in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in EOG Stock
When determining whether EOG Resources is a strong investment it is important to analyze EOG Resources' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact EOG Resources' future performance. For an informed investment choice regarding EOG Stock, refer to the following important reports:Check out Investing Opportunities. For more detail on how to invest in EOG Stock please use our How to Invest in EOG Resources guide.You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
To fully project EOG Resources' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of EOG Resources at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include EOG Resources' income statement, its balance sheet, and the statement of cash flows.