ConocoPhillips (COP)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-26 close of $151.37, ConocoPhillips is a large, globally diversified oil and gas producer, and FairStock's computed Lynch category is CYCLICAL — Oil & Gas E&P because earnings follow the economic cycle. I see a financially sturdy operator: debt/equity is 0.36, Piotroski F-score is 9/9, Altman Z-score is 3.04, and trailing free cash flow is $10.1B, a 5.5% FCF yield. But this is a commodity business; scale and cost discipline help, yet there is no durable pricing power. Filed results show the swing: in fiscal 2025 (period ended 2025-12-31), revenue was $51.8B, net income $8.0B, and diluted EPS $6.35, down from $9.2B and $7.81 in fiscal 2024 and $11.0B and $9.06 in fiscal 2023. The latest filed quarter was much stronger: in fiscal Q2 2026 (quarter ended 2026-06-30), revenue was $18.1B, net income $3.9B, and diluted EPS $3.23, versus $12.6B, $2.0B, and $1.56 in fiscal Q2 2025. Valuation is the rub. FairStock shows P/E 20.05, P/B 2.78, ROE 14.18%, ROCE 7.53%, EV/EBITDA 7.12, and a Graham Number of $96.13; at $151.37 the price is about 57% above that conservative anchor, a negative margin of safety of -56.87%. The 2.55% dividend yield is respectable, but the 50/100 FairStock score says the merits are balanced. I admire the balance sheet and cash generation; I do not find the price cheap for a cyclical at this point in the cycle.

In plain English: ConocoPhillips is a large oil and gas producer that finds, drills, and sells crude oil, natural gas, and related products. The business is financially solid and generates good cash, but its profits rise and fall with oil and gas prices; the latest full year showed lower earnings than the prior year. At the recent price, the shares look full or expensive compared with the company's accounting value and earning power, not a clear bargain.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer