Concho Resources
Market Cap
US$8.2b
Last Updated
2020/10/30 03:47 UTC
Data Sources
Company Financials +
Executive Summary
Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, development, and exploration of oil and natural gas properties in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Concho Resources's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CXO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-10.3%
CXO
-6.8%
US Oil and Gas
-4.1%
US Market
1 Year Return
-39.2%
CXO
-48.3%
US Oil and Gas
12.0%
US Market
Return vs Industry: CXO exceeded the US Oil and Gas industry which returned -48.3% over the past year.
Return vs Market: CXO underperformed the US Market which returned 12% over the past year.
Shareholder returns
| CXO | Industry | Market | |
|---|---|---|---|
| 7 Day | -10.3% | -6.8% | -4.1% |
| 30 Day | -4.6% | -3.1% | -0.2% |
| 90 Day | -19.9% | -17.3% | 2.8% |
| 1 Year | -38.5%-39.2% | -45.0%-48.3% | 14.6%12.0% |
| 3 Year | -70.0%-70.5% | -49.5%-56.2% | 35.8%26.8% |
| 5 Year | -61.6%-62.2% | -46.6%-57.0% | 75.2%55.6% |
Price Volatility Vs. Market
How volatile is Concho Resources's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Read This Before Buying Concho Resources Inc. (NYSE:CXO) For Its Dividend1 month ago | Simply Wall St
Does This Valuation Of Concho Resources Inc. (NYSE:CXO) Imply Investors Are Overpaying?1 month ago | Simply Wall St
Concho Resources' (NYSE:CXO) Stock Price Has Reduced 57% In The Past Three YearsValuation
Is Concho Resources undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CXO ($42.11) is trading below our estimate of fair value ($150.27)
Significantly Below Fair Value: CXO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CXO is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.
PE vs Market: CXO is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CXO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CXO is overvalued based on its PB Ratio (1.1x) compared to the US Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is Concho Resources forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
61.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CXO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: CXO is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: CXO's is expected to become profitable in the next 3 years.
Revenue vs Market: CXO's revenue (11.3% per year) is forecast to grow faster than the US market (10% per year).
High Growth Revenue: CXO's revenue (11.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CXO's Return on Equity is forecast to be low in 3 years time (15.5%).
Next Steps
Past Performance
How has Concho Resources performed over the past 5 years?
-53.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CXO is currently unprofitable.
Growing Profit Margin: CXO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CXO is unprofitable, and losses have increased over the past 5 years at a rate of 53.3% per year.
Accelerating Growth: Unable to compare CXO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CXO is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-35%).
Return on Equity
High ROE: CXO has a negative Return on Equity (-131.55%), as it is currently unprofitable.
Next Steps
Financial Health
How is Concho Resources's financial position?
Financial Position Analysis
Short Term Liabilities: CXO's short term assets ($1.2B) exceed its short term liabilities ($697.0M).
Long Term Liabilities: CXO's short term assets ($1.2B) do not cover its long term liabilities ($4.1B).
Debt to Equity History and Analysis
Debt Level: CXO's debt to equity ratio (49.1%) is considered high.
Reducing Debt: CXO's debt to equity ratio has reduced from 63.7% to 49.1% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable CXO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: CXO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 26.4% per year.
Next Steps
Dividend
What is Concho Resources's current dividend yield, its reliability and sustainability?
1.90%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CXO's dividend (1.9%) is higher than the bottom 25% of dividend payers in the US market (1.69%).
High Dividend: CXO's dividend (1.9%) is low compared to the top 25% of dividend payers in the US market (4.78%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CXO has been paying a dividend for less than 10 years.
Growing Dividend: CXO's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: CXO is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: CXO's dividends in 3 years are forecast to be thoroughly covered by earnings (12.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Tim Leach (60 yo)
14.58yrs
Tenure
US$12,958,451
Compensation
Mr. Timothy A. Leach, also known as Tim, serves as Chairman and Chief Executive Officer at Concho Resources Inc. since February 2006 and served as its President from July 1, 2009 to May 18, 2017. Mr. Leach ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD12.96M) is above average for companies of similar size in the US market ($USD7.41M).
Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 14.58yrs | US$12.96m | 0.42% $ 34.1m | |
| President | 3.42yrs | US$11.37m | 0.095% $ 7.8m | |
| Senior VP | 1.75yrs | US$2.93m | 0.022% $ 1.8m | |
| Executive VP & COO | 1.75yrs | US$10.58m | 0.090% $ 7.4m | |
| Senior VP | 7.42yrs | US$3.27m | 0.025% $ 2.0m | |
| VP & Chief Accounting Officer | 1.75yrs | no data | 0.0044% $ 362.9k | |
| VP & Chief Information Officer | no data | no data | no data | |
| Senior Vice President of Administration | 1.75yrs | no data | 0.0061% $ 497.2k | |
| VP of Investor Relations & Public Affairs | 3.75yrs | no data | no data | |
| Senior Vice President of Business Development & Land | 3.42yrs | no data | 0.024% $ 2.0m | |
| Senior Vice President of Operations & Production | 3.42yrs | no data | 0.036% $ 3.0m | |
| Senior Vice President of Assets | 1.75yrs | no data | 0.022% $ 1.8m |
3.4yrs
Average Tenure
50yo
Average Age
Experienced Management: CXO's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 14.58yrs | US$12.96m | 0.42% $ 34.1m | |
| Independent Director | 2.25yrs | US$291.74k | 0.13% $ 10.4m | |
| Lead Independent Director | no data | US$333.24k | 0.018% $ 1.4m | |
| Independent Director | 12.58yrs | US$311.74k | 0.021% $ 1.8m | |
| Independent Director | 14.58yrs | US$291.74k | 0.027% $ 2.2m | |
| Independent Director | 8.75yrs | US$306.74k | 0.012% $ 998.5k | |
| Director | 3.42yrs | US$324.46k | 0.046% $ 3.7m | |
| Independent Director | 14.58yrs | US$316.74k | 0.060% $ 4.9m | |
| Independent Director | 3.58yrs | US$291.74k | 0.0037% $ 303.1k |
10.7yrs
Average Tenure
62yo
Average Age
Experienced Board: CXO's board of directors are seasoned and experienced ( 10.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CXO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Concho Resources Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Concho Resources Inc.
- Ticker: CXO
- Exchange: NYSE
- Founded: 2006
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: US$8.191b
- Shares outstanding: 194.52m
- Website: https://www.concho.com
Number of Employees
Location
- Concho Resources Inc.
- One Concho Center
- 600 West Illinois Avenue
- Midland
- Texas
- 79701
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CXO | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Aug 2007 |
| KIJ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 2007 |
| CXO * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Aug 2007 |
| 0I2T | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Aug 2007 |
| C1XO34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Dec 2019 |
Biography
Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, development, and exploration of oil and natural gas properties in the United States. The company’s principal o ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/30 03:47 |
| End of Day Share Price | 2020/10/29 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.