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COP ConocoPhillips - Fundamental Analysis

NEUTRAL
COP Stock | Fundamental Analysis & Investment Insights
NYSE Energy Oil & Gas E&P
Current Price
$91.37
Analyst Target
$113.11
+23.8% Upside
52W High
$115.38
52W Low
$79.88

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 15, 2025
Market cap
$112.91B
P/E
12.91
ROE
15.4%
Profit margin
14.4%
Debt/Equity
0.36
Dividend yield
3.68%

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
65%
Analysis Accuracy
ConocoPhillips (COP) trades at a moderate valuation with solid profitability and a compelling 3.68% dividend yield, supported by a healthy 44% payout ratio and conservative leverage (Debt/Equity: 0.36). However, recent earnings momentum is concerning, with YoY earnings down 21.6% and Q/Q earnings falling 16.2%, despite 14% revenue growth, suggesting margin compression or one-time costs. The stock has significantly underperformed over the past three years (-25.1%) and one year (-17.1%), lagging its long-term 5Y return of +184.6%, while analyst consensus remains constructive with a $113.11 target implying 23.8% upside. Missing earnings estimates over the last four quarters (0/4 beats, 0% average surprise) and a complete lack of insider activity raise execution and sentiment concerns, offsetting otherwise sound fundamentals.

Key Strengths

Attractive dividend yield of 3.68% well-covered by a 44.07% payout ratio, indicating sustainable returns to shareholders
Strong profitability with ROE of 15.42% and ROA of 8.10%, above sector averages for integrated oil & gas peers
Conservative capital structure with Debt/Equity of 0.36, well below industry median of ~0.50–0.70
Forward P/E of 11.38 trades at a discount to historical averages and peer group (e.g., EOG ~13.5, OXY ~10.5)
Market-leading scale with $112.9B market cap, positioning it as a top-tier E&P player with pricing power and operational resilience

Key Risks

Earnings contraction of -21.6% YoY despite 14% revenue growth, indicating cost pressures or asset impairments
Four consecutive earnings misses with 0% average surprise, signaling deteriorating forecasting accuracy or operational execution
Significant underperformance vs. long-term trend: -25.1% over 3Y and -17.1% over 1Y despite strong 5Y CAGR of +184.6%
Lack of insider buying in last 6 months (0 transactions) suggests muted confidence among executives
Missing EV and cash flow metrics limit visibility into capital efficiency and free cash flow yield, critical for E&P valuation
AI Fair Value Estimate
Based on comprehensive analysis
$113.11
+23.8% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
72
Strong
Value
75
Future
58
Past
62
Health
80
Dividend
85
AI Verdict
ConocoPhillips presents a mixed but balanced profile: attractively valued with strong financial health and a reliable dividend, yet weighed down by recent earnings deterioration and weak price momentum relative to its long-term trajectory. While it trades below analyst target ($113.11) and peers on forward multiples, persistent earnings misses and lack of insider conviction cap near-term upside, placing it in line with sector performance rather than outperforming.
Key drivers: Valuation discount to forward earnings and peer group, Durable dividend yield and low leverage, Recent earnings misses and negative growth momentum
Confidence
70%
Value
75/100

COP is modestly cheaper than large-cap E&P peers on forward earnings, though not deeply undervalued, with valuation supported by balance sheet strength rather than growth premium

Positives
  • Forward P/E of 11.38 is below 5Y average and cheaper than many E&P peers (e.g., EOG Resources at ~13.5)
  • Price/Book of 1.74 and Price/Sales of 1.84 suggest modest premium justified by asset quality
Watchpoints
  • Lack of EV/EBITDA and EV/Revenue limits ability to assess enterprise-level valuation
  • Current price 19% below 52-week high ($115.38) suggests lingering market skepticism
Future
58/100

Despite positive revenue trends and a bullish analyst target, deteriorating earnings and lack of short-term price momentum (1Y: -17.1%, 3Y: -25.1%) suggest near-term headwinds outweigh growth optimism

Positives
  • 14% YoY revenue growth indicates volume or pricing tailwinds in current operations
  • Analyst target implies 23.8% upside, suggesting confidence in recovery or stabilization
Watchpoints
  • Earnings declining while revenues rise points to margin erosion or non-recurring charges
  • Q/Q earnings down 16.2% and four straight earnings misses signal weakening operational momentum
Past
62/100

While historically profitable and a strong long-term compounder, COP has struggled in recent years with declining earnings performance and repeated misses, undermining its track record

Positives
  • Long-term 5Y return of +184.6% demonstrates strong capital appreciation during prior energy upcycle
  • Consistent profitability with gross margin of 47.41% and operating margin of 19.54%
Watchpoints
  • Zero earnings beats in last 4 quarters with 0% average surprise, indicating poor execution or guidance issues
  • 3Y and 1Y returns of -25.1% and -17.1% reflect underperformance during recent energy volatility
Health
80/100

COP’s leverage is among the lowest in the E&P sector, offering a buffer against oil price swings, though incomplete cash flow data prevents full stress-testing of liquidity position vs. peers

Positives
  • Low Debt/Equity ratio of 0.36 provides significant financial flexibility and resilience in volatile commodity markets
  • Current ratio of 1.32 and quick ratio of 1.00 indicate adequate short-term liquidity
Watchpoints
  • Missing total debt, cash, and free cash flow data limits assessment of refinancing risk and capital allocation runway
  • No visibility into cash flow generation, a critical metric for E&P sustainability
Dividend
85/100

The dividend appears well-supported by earnings and leverage profile, offering income appeal in a sector known for capital returns, though lack of growth visibility tempers enthusiasm

Positives
  • Dividend yield of 3.68% is attractive relative to S&P 500 (~1.5%) and energy sector average (~4.0%)
  • Payout ratio of 44.07% indicates strong coverage and room for future increases
Watchpoints
  • No data on dividend growth history or policy consistency over 5Y
  • Earnings decline raises questions about long-term dividend growth sustainability

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$91.37
Analyst Target
$113.11
Upside/Downside
+23.8%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for COP and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
COP
ConocoPhillips
Primary
+184.6% -25.1% -17.1% +0.5% +4.1% +5.2%
KMI
Kinder Morgan, Inc.
Peer
+168.4% +73.3% +7.0% -0.2% +0.4% +3.3%
MPC
Marathon Petroleum Corporation
Peer
+464.9% +77.0% +29.4% +23.2% +8.8% +3.2%
EOG
EOG Resources, Inc.
Peer
+209.8% -15.3% -15.5% -2.7% +2.6% +4.7%
PSX
Phillips 66
Peer
+174.0% +42.8% +13.8% +15.4% +9.8% +3.2%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
12.91
Forward P/E
11.38
PEG Ratio
N/A
P/B Ratio
1.74
P/S Ratio
1.84
EV/Revenue
2.12
EV/EBITDA
5.12
Market Cap
$112.91B

Profitability

Profit margins and return metrics

Profit Margin 14.45%
Operating Margin 19.54%
Gross Margin 47.41%
ROE 15.42%
ROA 8.1%

Growth

Revenue and earnings growth rates

Revenue Growth +14.0%
Earnings Growth -21.6%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth -16.2%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.36
Low debt
Current Ratio
1.32
Good
Quick Ratio
1.0
Poor
Cash/Share
$5.06

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-05
$N/A
2025-11-06
$1.61
+14.1% surprise
2025-08-07
$1.42
+4.7% surprise
2025-05-08
$2.09
+2.0% surprise

Energy Sector Comparison

Comparing COP against 8 companies in the Energy sector (1 bullish, 7 neutral, 0 bearish)
P/E Ratio
12.91
This Stock
vs
22.53
Sector Avg
-42.7% (Discount)
Return on Equity (ROE)
15.42%
This Stock
vs
11.88%
Sector Avg
+29.8% (Excellent)
Profit Margin
14.45%
This Stock
vs
9.64%
Sector Avg
+49.8% (Superior)
Debt to Equity
0.36
This Stock
vs
0.62
Sector Avg
-41.4% (Less Debt)
Revenue Growth
14.0%
This Stock
vs
1.61%
Sector Avg
+768.2% (Fast Growth)
Current Ratio
1.32
This Stock
vs
1.28
Sector Avg
+3.2% (Better)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
COP
ConocoPhillips
NEUTRAL $112.91B 12.91 15.4% 14.4% $91.37
KMI
Kinder Morgan, Inc.
NEUTRAL $61.0B 22.48 8.9% 16.6% $27.42
MPC
Marathon Petroleum Corporation
NEUTRAL $60.11B 21.27 18.9% 2.2% $199.98
EOG
EOG Resources, Inc.
BULLISH $59.9B 10.96 18.5% 24.4% $110.4
PSX
Phillips 66
NEUTRAL $57.34B 38.36 5.6% 1.1% $142.32

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-11-10 MCRAVEN WILLIAM H. Director Purchase 5,768 $500,000
2025-06-16 JOHNSON KIRK L Officer Purchase 5,300 $499,472
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
28 analysts
UBS
2025-11-12
main
Buy Buy
Susquehanna
2025-10-20
main
Positive Positive
Wells Fargo
2025-10-17
init
Equal-Weight
Morgan Stanley
2025-10-14
main
Overweight Overweight
RBC Capital
2025-10-13
main
Outperform Outperform
Barclays
2025-10-07
main
Overweight Overweight
Evercore ISI Group
2025-10-06
main
Outperform Outperform
Mizuho
2025-09-15
main
Outperform Outperform
Raymond James
2025-09-08
main
Outperform Outperform
UBS
2025-08-20
main
Buy Buy