$51.17
-0.67 (-1.29%)
ConocoPhillips (COP)
CAPS Rating:
An international, integrated energy company organized into six operating segments: Exploration and Production, Midstream, Refining and Marketing, LUKOIL Investment, Chemicals and Emerging Businesses.
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COP’s P/E ratio is a 4 versus industry ratio of 6…It’s dividend payout ratio is 15 (28% industry ratio) which means 15% of earnings is paid to shareholders via dividends…that means the Company has 85% of its earnings to finance the daily operations whether it be debt repymts; share buybacks, etc..It also means that COP is paying out less of its earnings than its competitors at current payout rates. LTD: equity is slightly higher than industry; however it is still manageable without diluting the existing share value in issuing additional shares…Current ratio is 1 which is comparable to industry standards and is indication that COP’s financial strength and it illustrates the company’s ability to meet its current obligations with existing assets…receivables and inventory turnover significantly better than the industry which means money is coming into the door at a faster rate than competitors.
In addition, oil prices should rise during the summer and into the fall as the glut gets worked off, and the US economy finally begins to turn around. These low ratios will go lower, meaning the price of the stock has only one direction to go and that is up.