ConocoPhillips (COP) Stock

ConocoPhillips trades at a P/E ratio of 12.85, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 14.86 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 10.47 indicates a premium valuation even accounting for growth.

With a beta of 0.70, ConocoPhillips is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 1.88 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

ConocoPhillips achieves a profit margin of 15.50%, meaning it retains $15.50 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 19.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 15.90% and ROA at 8.27%, the company generates strong returns on invested capital.

ConocoPhillips's revenue grew by 2.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 21.20% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against OIL & GAS E&P industry averages for proper context.

ConocoPhillips offers a dividend yield of 3.17%, paying $3.12 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Aug 18, 2025.

The dividend sustainability can be assessed through the payout ratio - ConocoPhillips pays $3.12 per share in dividends against earnings of $7.46 per share, resulting in a payout ratio of 41.82%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Sep 2, 2025.

ConocoPhillips has a market capitalization of $119.7B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.25B shares outstanding, the company's ownership is widely distributed. As a major player in the OIL & GAS E&P industry, it competes with other firms in this sector.

ConocoPhillips's book value per share is $52.50, while the current stock price is $87.98, resulting in a price-to-book (P/B) ratio of 1.68. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

26 analysts cover COP with 85% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $116.23 implies 32.1% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:7 Strong Buy, 15 Buy, 4 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.