BP PLC-SPONS ADR (BP) Stock Fundamental Analysis
NYSE:BP - New York Stock Exchange, Inc. - US0556221044 - ADR - Currency: USD
Taking everything into account, BP scores 3 out of 10 in our fundamental rating. BP was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of BP have multiple concerns. BP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BP was profitable.
In the past year BP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BP reported negative net income in multiple years.
BP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BP (0.14%) is worse than 69.81% of its industry peers.
BP has a worse Return On Equity (0.66%) than 67.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.10%, BP is in line with its industry, outperforming 40.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.66% | ||
| ROIC | 5.1% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BP has a worse Profit Margin (0.21%) than 68.40% of its industry peers.
BP's Profit Margin has declined in the last couple of years.
BP's Operating Margin of 6.82% is on the low side compared to the rest of the industry. BP is outperformed by 66.51% of its industry peers.
In the last couple of years the Operating Margin of BP has declined.
BP's Gross Margin of 24.80% is on the low side compared to the rest of the industry. BP is outperformed by 65.57% of its industry peers.
BP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.82% | ||
| PM (TTM) | 0.21% | ||
| GM | 24.8% |
OM growth 3Y0.56%
OM growth 5Y-7.32%
PM growth 3Y-64.97%
PM growth 5Y-39.42%
GM growth 3Y1.2%
GM growth 5Y-2.86%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BP is destroying value.
There is no outstanding debt for BP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
BP has a debt to FCF ratio of 5.96. This is a neutral value as BP would need 5.96 years to pay back of all of its debts.
BP has a better Debt to FCF ratio (5.96) than 60.85% of its industry peers.
BP has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
BP has a Debt to Equity ratio of 1.09. This is in the lower half of the industry: BP underperforms 72.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.96 | ||
| Altman-Z | N/A |
ROIC/WACC0.63
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.25, BP perfoms like the industry average, outperforming 55.19% of the companies in the same industry.
BP has a Quick Ratio of 1.25. This is a bad value and indicates that BP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BP (0.97) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The earnings per share for BP have decreased strongly by -31.77% in the last year.
BP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.51% yearly.
BP shows a decrease in Revenue. In the last year, the revenue decreased by -9.97%.
BP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.50% yearly.
EPS 1Y (TTM)-31.77%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-58.89%
Revenue 1Y (TTM)-9.97%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-8.55%
3.2 Future
The Earnings Per Share is expected to grow by 0.43% on average over the next years.
Based on estimates for the next years, BP will show a decrease in Revenue. The Revenue will decrease by -2.49% on average per year.
EPS Next Y-1.18%
EPS Next 2Y5.37%
EPS Next 3Y8.41%
EPS Next 5Y0.43%
Revenue Next Year-3.05%
Revenue Next 2Y-0.28%
Revenue Next 3Y-2.49%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.93, which indicates a very decent valuation of BP.
Compared to the rest of the industry, the Price/Earnings ratio of BP indicates a somewhat cheap valuation: BP is cheaper than 71.70% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BP to the average of the S&P500 Index (28.79), we can say BP is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.02, the valuation of BP can be described as very reasonable.
BP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BP is cheaper than 69.34% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, BP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BP indicates a somewhat cheap valuation: BP is cheaper than 78.30% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BP indicates a rather cheap valuation: BP is cheaper than 84.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.36 | ||
| EV/EBITDA | 3.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.9
EPS Next 2Y5.37%
EPS Next 3Y8.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.73%, BP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.35, BP pays a bit more dividend than its industry peers.
BP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.73% |
5.2 History
The dividend of BP decreases each year by -3.81%.
BP has paid a dividend for at least 10 years, which is a reliable track record.
BP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.81%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
1282.82% of the earnings are spent on dividend by BP. This is not a sustainable payout ratio.
DP1282.82%
EPS Next 2Y5.37%
EPS Next 3Y8.41%
29.19
+0.19 (+0.66%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.39%
Inst Owner Change0.22%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap76.34B
Analysts70.67
Price Target38.68 (32.51%)
Short Float %0.48%
Short Ratio1.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.73% |
Yearly Dividend0.28
Dividend Growth(5Y)-3.81%
DP1282.82%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.22%
Min EPS beat(2)-6.77%
Max EPS beat(2)4.34%
EPS beat(4)2
Avg EPS beat(4)-1.45%
Min EPS beat(4)-11.21%
Max EPS beat(4)7.85%
EPS beat(8)4
Avg EPS beat(8)-3.88%
EPS beat(12)8
Avg EPS beat(12)6.1%
EPS beat(16)12
Avg EPS beat(16)12.72%
Revenue beat(2)2
Avg Revenue beat(2)7.75%
Min Revenue beat(2)4.4%
Max Revenue beat(2)11.1%
Revenue beat(4)3
Avg Revenue beat(4)3.84%
Min Revenue beat(4)-2.82%
Max Revenue beat(4)11.1%
Revenue beat(8)6
Avg Revenue beat(8)0.71%
Revenue beat(12)10
Avg Revenue beat(12)16.13%
Revenue beat(16)10
Avg Revenue beat(16)0.21%
PT rev (1m)2.03%
PT rev (3m)4.76%
EPS NQ rev (1m)-25.53%
EPS NQ rev (3m)-41.1%
EPS NY rev (1m)-13.92%
EPS NY rev (3m)-25.69%
Revenue NQ rev (1m)-16.04%
Revenue NQ rev (3m)-59.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 9.02 | ||
| P/S | 0.4 | ||
| P/FCF | 6.36 | ||
| P/OCF | 2.8 | ||
| P/B | 1.29 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 3.56 |
EPS(TTM)3.27
EY11.2%
EPS(NY)3.24
Fwd EY11.08%
FCF(TTM)4.59
FCFY15.72%
OCF(TTM)10.44
OCFY35.76%
SpS72.34
BVpS22.66
TBVpS13.27
PEG (NY)N/A
PEG (5Y)5.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.66% | ||
| ROCE | 6.45% | ||
| ROIC | 5.1% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 7.49% | ||
| OM | 6.82% | ||
| PM (TTM) | 0.21% | ||
| GM | 24.8% | ||
| FCFM | 6.34% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.56%
OM growth 5Y-7.32%
PM growth 3Y-64.97%
PM growth 5Y-39.42%
GM growth 3Y1.2%
GM growth 5Y-2.86%
F-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.96 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 87.97% | ||
| Cap/Sales | 8.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.12% | ||
| Profit Quality | 3076.92% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | N/A |
F-Score5
WACC8.1%
ROIC/WACC0.63
Cap/Depr(3y)87.32%
Cap/Depr(5y)83.63%
Cap/Sales(3y)6.63%
Cap/Sales(5y)7.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.77%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-58.89%
EPS Next Y-1.18%
EPS Next 2Y5.37%
EPS Next 3Y8.41%
EPS Next 5Y0.43%
Revenue 1Y (TTM)-9.97%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-8.55%
Revenue Next Year-3.05%
Revenue Next 2Y-0.28%
Revenue Next 3Y-2.49%
Revenue Next 5YN/A
EBIT growth 1Y-57.51%
EBIT growth 3Y6.85%
EBIT growth 5Y-4.07%
EBIT Next Year84.19%
EBIT Next 3Y23.76%
EBIT Next 5Y11.72%
FCF growth 1Y-32.41%
FCF growth 3Y-1.94%
FCF growth 5Y3%
OCF growth 1Y-14.8%
OCF growth 3Y4.95%
OCF growth 5Y1.16%