Energy Sector Report
Market Cap: $5.5T
Stocks: 159
Median P/E: 10.1x
Median ROIC: 8.5%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
The Energy sector encompasses companies engaged in exploration, production, refining, and distribution of oil, natural gas, and renewable energy. The sector is characterized by capital intensity, commodity price sensitivity, and long investment horizons. Cash flow generation varies dramatically with commodity cycles, making balance sheet management and capital discipline critical differentiators.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | +1.5% | +1.4% |
| 1 Week | +1.8% | +2.0% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | +1.5% | +1.3% |
| 1 Year | +714.6% | +28.4% |
| 3 Years | +61.6% | +31.4% |
| 5 Years | +202.8% | +88.5% |
Today's Breadth: 80 advancing · 30 declining · 8 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 10.1x | 2.3x | 20.2x | +9% |
| P/B | 1.1x | 0.5x | 1.9x | -12% |
| P/S | 0.8x | 0.1x | 1.9x | — |
| P/FCF | 5.2x | 2.2x | 11.9x | — |
| EV/EBITDA | 5.4x | 3.9x | 8.3x | — |
| EV/EBIT | 11.1x | 7.6x | 16.8x | — |
Earnings Yield
6.4%
FCF Yield
9.0%
Below Fair Value
28% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 25.7% | 27.8% | 15.0% | 42.4% |
| Operating Margin | 11.0% | — | 2.6% | 24.7% |
| Net Margin | 6.6% | 5.3% | 0.0% | 15.0% |
| FCF Margin | 14.4% | — | 4.0% | 40.3% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | 6.7% | — | 0.0% | 14.3% |
| ROA | 2.6% | — | -1.2% | 6.4% |
| ROIC | 8.5% | 10.0% | 1.5% | 12.3% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | -1.1% | +1.2% | +12.8% |
| EPS | 0.0% | -20.4% | +18.6% |
| Free Cash Flow | +6.1% | -7.2% | +14.9% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.5x
Net Debt / EBITDA
1.1x
Interest Coverage
3.2x
Current Ratio
1.3x
Altman Z-Score
Safe (>3): 28 (19%)
Gray (1.8–3): 41 (28%)
Distress (<1.8): 79 (53%)
Piotroski F-Score
Strong (7–9): 36 (23%)
Moderate (4–6): 89 (56%)
Weak (0–3): 33 (21%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| EQNR-OL | 1 | $1.0T | 84.2x | 18.4x | 42.1% | 8.5% | -3.2% | 1.1% | — | 6/9 |
| BP | 2 | $765.6B | 430.7x | 19.0x | 10.2% | 0.7% | -1.1% | 0.9% | -2.2% | 1/9 |
| XOM | 3 | $657.1B | 17.7x | 8.1x | 10.6% | 8.7% | -5.0% | 3.4% | +3.4% | 5/9 |
| CVX | 4 | $355.8B | 22.4x | 7.6x | 6.7% | 6.5% | -6.8% | 4.6% | +0.5% | 5/9 |
| SHELL-AS | 5 | $231.1B | 10.3x | 3.8x | 11.6% | 6.7% | -6.1% | 4.6% | — | 3/9 |
| SHEL-L | 6 | $204.3B | 9.0x | 3.4x | 9.5% | 6.7% | -6.1% | 5.3% | — | 3/9 |
| TTE-PA | 7 | $183.8B | 7.9x | 3.8x | 14.0% | 7.3% | -9.5% | 6.3% | — | 3/9 |
| ENOG-L | 8 | $161.2B | — | 256.6x | 8.1% | 14.3% | +34.4% | 0.1% | — | 3/9 |
| COP | 9 | $155.5B | 14.3x | 5.3x | 10.3% | 13.6% | +7.7% | 3.5% | +2.2% | 6/9 |
| BPAQF | 10 | $125.2B | — | — | 6.5% | 0.7% | -1.1% | — | +0.4% | 1/9 |
| EQNR | 11 | $111.3B | — | — | 28.0% | 8.5% | -3.2% | — | +7.5% | 4/9 |
| SUBC-OL | 12 | $92.2B | 267.8x | 49.9x | 7.9% | 3.0% | +14.4% | 0.3% | — | 4/9 |
| BP-L | 13 | $91.0B | — | 3.4x | 10.5% | 0.0% | -1.1% | 8.4% | — | 4/9 |
| E | 14 | $82.4B | — | — | — | 114.4% | — | — | +6.8% | 1/9 |
| EIPAF | 15 | $80.5B | — | — | — | 114.4% | — | — | +7.2% | 1/9 |
| VLO | 16 | $75.1B | 21.5x | 8.3x | 9.1% | 1.9% | -5.5% | 2.8% | +0.1% | 5/9 |
| EOG | 17 | $74.8B | 11.2x | 5.3x | 19.4% | 22.0% | -4.5% | 3.9% | +2.0% | 6/9 |
| SLB | 18 | $74.5B | 16.0x | 8.5x | 11.8% | 9.4% | -1.6% | 3.0% | +3.5% | 5/9 |
| MPC | 19 | $69.0B | 12.3x | 6.7x | 15.7% | 3.0% | -3.7% | 2.3% | +1.4% | 5/9 |
| PSX | 20 | $65.5B | 11.7x | 7.3x | 10.8% | 3.2% | -6.1% | 3.8% | -0.8% | 3/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Petroleum Refining | 15 | $2.5T | 44.4% | |
| Oil & Gas Integrated | 8 | $1.8T | 31.6% | |
| Crude Petroleum & Natural Gas | 75 | $732.7B | 13.2% | |
| Oil & Gas Exploration & Production | 14 | $240.5B | 4.3% | |
| Oil & Gas Equipment & Services | 10 | $154.7B | 2.8% | |
| Oil & Gas Field Services, Nec | 20 | $127.5B | 2.3% | |
| Drilling Oil & Gas Wells | 9 | $34.9B | 0.6% | |
| Coal | 2 | $13.2B | 0.2% | |
| Uranium | 1 | $9.1B | 0.2% | |
| Miscellaneous Products Of Petroleum & Coal | 2 | $6.5B | 0.1% | |
| Oil & Gas Midstream | 1 | $5.1B | 0.1% | |
| Oil & Gas Refining & Marketing | 1 | $3.7B | 0.1% | |
| Oil & Gas Field Exploration Services | 1 | $84M | 0.0% |
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
1%
Median Piotroski F
5/9
Profitable Years
5 of 10
Dividends & Shareholder Returns
Paying Dividends
49%
Median Div Yield
3.5%
Median Buyback Yield
0.6%
Shareholder Yield
2.6%
Payout Ratio
44.0%
Div Growth (3Y)
9.8%
Div Growth (5Y)
10.0%
Strengths & Weaknesses
Strengths
- +[Cash Flow]Robust cash generation improvement with a median 5-year FCF CAGR of 14.9%, supporting capital returns and reinvestment capacity.
- +[Growth]Strong secular growth with a median 5-year revenue CAGR of 12.8%, outpacing nominal GDP.
Weaknesses
- −[Financial Health]53.4% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at 3.2x, leaving limited cushion for debt servicing if earnings decline.
- −[Quality]Only 1.3% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.
- −[Valuation]Only 27.7% of companies trade below estimated fair value, suggesting limited margin of safety at current prices.