Stock Analysis Report

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Executive Summary

As of January 15, 2021, Concho Resources Inc. More Details


Trading at 76.9% below our estimate of its fair value

Earnings are forecast to grow 61.8% per year

Risk Analysis

No risks detected for CXO from our risk checks.

Snowflake Analysis

Adequate balance sheet with moderate 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: CXO's weekly volatility (9%) has been stable over the past year.

Market Performance

7 Day Return




US Oil and Gas


US Market

1 Year Return




US Oil and Gas


US Market

Return vs Industry: CXO exceeded the US Oil and Gas industry which returned -26.7% over the past year.

Return vs Market: CXO underperformed the US Market which returned 19.5% over the past year.

Shareholder returns

7 Day-5.2%-4.8%1.4%
30 Day10.1%12.2%4.9%
90 Day48.1%35.4%14.6%
1 Year-24.4%-25.5%-20.3%-25.3%25.4%22.6%
3 Year-58.3%-59.1%-33.6%-42.5%46.8%37.0%
5 Year-24.0%-25.6%-3.1%-21.8%132.0%106.1%

Long-Term 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


Is Concho Resources undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CXO ($65.6) is trading below our estimate of fair value ($283.58)

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 (1.6x) compared to the US Oil and Gas industry average (1.1x).

Next Steps

Future Growth

How is Concho Resources forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?


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%).

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 (9.4% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: CXO's revenue (9.4% 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 (15.7%).

Next Steps

Past Performance

How has Concho Resources performed over the past 5 years?


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 (-32.7%).

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


What is Concho Resources's current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CXO's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: CXO's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (3.85%).

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 (11.2% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Tim Leach (60 yo)





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 ($USD12.96M) is about average for companies of similar size in the US market ($USD10.55M).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.

Leadership Team

Timothy Leach
Chairman of the Board & CEO14.92yrsUS$12.96m0.44%
$ 56.1m
Jack Harper
$ 13.7m
Brenda Schroer
Senior VP2yrsUS$2.93m0.031%
$ 3.9m
C. Giraud
Executive VP & COO2yrsUS$10.58m0.10%
$ 13.2m
Travis Counts
Senior VP7.67yrsUS$3.27m0.033%
$ 4.2m
Jacob Gobar
VP & Chief Accounting Officer2yrsno data0.0063%
$ 798.8k
Kang Chen
VP & Chief Information Officerno datano datano data
Scott Kidwell
Senior Vice President of Administration2yrsno data0.011%
$ 1.4m
Megan Hays
VP of Investor Relations & Public Affairs4yrsno datano data
Gayle Burleson
Senior Vice President of Business Development & Land3.67yrsno data0.029%
$ 3.7m
Erick Nelson
Senior Vice President of Operations & Production3.67yrsno data0.042%
$ 5.3m
Clay Bateman
Senior Vice President of Assets2yrsno data0.025%
$ 3.2m


Average Tenure


Average Age

Experienced Management: CXO's management team is considered experienced (3.7 years average tenure).

Board Members

Timothy Leach
Chairman of the Board & CEO14.92yrsUS$12.96m0.44%
$ 56.1m
Steven Gray
Independent Director2.5yrsUS$291.74k0.13%
$ 16.6m
Mark Puckett
Lead Independent Directorno dataUS$333.24k0.020%
$ 2.5m
William Easter
Independent Director12.92yrsUS$311.74k0.023%
$ 3.0m
Tucker Bridwell
Independent Director14.92yrsUS$291.74k0.028%
$ 3.6m
Gary Merriman
Independent Director9yrsUS$306.74k0.014%
$ 1.8m
E. Wright
$ 6.1m
Steven Beal
Independent Director14.92yrsUS$316.74k0.062%
$ 7.9m
Susan Helms
Independent Director3.83yrsUS$291.74k0.0055%
$ 699.2k


Average Tenure


Average Age

Experienced Board: CXO's board of directors are seasoned and experienced ( 11 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$12.760b
  • Shares outstanding: 194.51m
  • Website: https://www.concho.com

Number of Employees


  • Concho Resources Inc.
  • One Concho Center
  • 600 West Illinois Avenue
  • Midland
  • Texas
  • 79701
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CXONYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2007
KIJDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2007
CXO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 2007
0I2TLSE (London Stock Exchange)YesCommon StockGBUSDAug 2007
C1XO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLDec 2019


As of January 15, 2021, Concho Resources Inc. was acquired by ConocoPhillips. Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, development, and exploration of ...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/19 23:56
End of Day Share Price2021/01/15 00:00
Annual Earnings2019/12/31

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.