BP PLC-SPONS ADR (BP) Stock Fundamental Analysis
NYSE:BP - US0556221044 - ADR
34.67 USD
-0.3 (-0.86%)
34.69 USD
+0.02 (+0.06%)
We assign a fundamental rating of 3 out of 10 to BP. BP was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. BP has a bad profitability rating. Also its financial health evaluation is rather negative. BP has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BP was profitable.
BP had a positive operating cash flow in the past year.
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
BP has a Return On Assets of 0.20%. This is in the lower half of the industry: BP underperforms 67.31% of its industry peers.
BP has a worse Return On Equity (0.95%) than 64.42% of its industry peers.
The Return On Invested Capital of BP (5.07%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for BP is significantly below the industry average of 23.39%.
The 3 year average ROIC (11.54%) for BP is well above the current ROIC(5.07%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.95% | ||
| ROIC | 5.07% |
ROA(3y)1.57%
ROA(5y)-0.05%
ROE(3y)6.22%
ROE(5y)0.04%
ROIC(3y)11.54%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of BP (0.30%) is worse than 67.79% of its industry peers.
In the last couple of years the Profit Margin of BP has declined.
With a Operating Margin value of 6.90%, BP is not doing good in the industry: 66.83% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of BP has declined.
BP has a Gross Margin of 25.49%. This is in the lower half of the industry: BP underperforms 63.94% of its industry peers.
BP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.9% | ||
| PM (TTM) | 0.3% | ||
| GM | 25.49% |
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
BP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BP has less shares outstanding
BP has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BP is 8.73, which is on the high side as it means it would take BP, 8.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.73, BP is in line with its industry, outperforming 52.88% of the companies in the same industry.
BP has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.12, BP is doing worse than 70.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 8.73 | ||
| Altman-Z | N/A |
ROIC/WACC0.64
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.21 indicates that BP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.21, BP perfoms like the industry average, outperforming 54.33% of the companies in the same industry.
BP has a Quick Ratio of 1.21. This is a bad value and indicates that BP is not financially healthy enough and could expect problems in meeting its short term obligations.
BP has a Quick ratio (0.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for BP have decreased strongly by -37.05% in the last year.
The Earnings Per Share has been growing slightly by 1.51% on average over the past years.
BP shows a decrease in Revenue. In the last year, the revenue decreased by -7.47%.
BP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.50% yearly.
EPS 1Y (TTM)-37.05%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-11.76%
Revenue 1Y (TTM)-7.47%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-1.19%
3.2 Future
Based on estimates for the next years, BP will show a small growth in Earnings Per Share. The EPS will grow by 5.02% on average per year.
BP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.38% yearly.
EPS Next Y-17.73%
EPS Next 2Y-5.3%
EPS Next 3Y2.82%
EPS Next 5Y5.02%
Revenue Next Year-3.74%
Revenue Next 2Y-1.19%
Revenue Next 3Y0.38%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.84, BP is valued correctly.
61.54% of the companies in the same industry are more expensive than BP, based on the Price/Earnings ratio.
BP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
BP is valuated reasonably with a Price/Forward Earnings ratio of 11.67.
BP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BP is cheaper than 61.06% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, BP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 11.67 |
4.2 Price Multiples
BP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BP is cheaper than 79.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BP is valued a bit cheaper than 72.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.41 | ||
| EV/EBITDA | 4.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)8.48
EPS Next 2Y-5.3%
EPS Next 3Y2.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.74%, BP is a good candidate for dividend investing.
BP's Dividend Yield is a higher than the industry average which is at 6.33.
BP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
5.2 History
The dividend of BP decreases each year by -2.32%.
BP has been paying a dividend for at least 10 years, so it has a reliable track record.
BP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-2.32%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
903.02% of the earnings are spent on dividend by BP. This is not a sustainable payout ratio.
DP903.02%
EPS Next 2Y-5.3%
EPS Next 3Y2.82%
34.67
-0.3 (-0.86%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.49%
Inst Owner Change4.05%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap89.42B
Analysts67.33
Price Target36.01 (3.87%)
Short Float %0.52%
Short Ratio1.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.74% |
Yearly Dividend0.31
Dividend Growth(5Y)-2.32%
DP903.02%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.52%
Min EPS beat(2)-21.57%
Max EPS beat(2)24.61%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-21.57%
Max EPS beat(4)24.61%
EPS beat(8)4
Avg EPS beat(8)-1.14%
EPS beat(12)7
Avg EPS beat(12)1.36%
EPS beat(16)11
Avg EPS beat(16)5.16%
Revenue beat(2)2
Avg Revenue beat(2)10.77%
Min Revenue beat(2)9.7%
Max Revenue beat(2)11.84%
Revenue beat(4)4
Avg Revenue beat(4)9.26%
Min Revenue beat(4)4.4%
Max Revenue beat(4)11.84%
Revenue beat(8)6
Avg Revenue beat(8)3.04%
Revenue beat(12)10
Avg Revenue beat(12)7.91%
Revenue beat(16)12
Avg Revenue beat(16)7.88%
PT rev (1m)5.78%
PT rev (3m)-4.43%
EPS NQ rev (1m)7.6%
EPS NQ rev (3m)-13.95%
EPS NY rev (1m)-17.76%
EPS NY rev (3m)-17.2%
Revenue NQ rev (1m)33.39%
Revenue NQ rev (3m)9.57%
Revenue NY rev (1m)4.74%
Revenue NY rev (3m)4.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 11.67 | ||
| P/S | 0.48 | ||
| P/FCF | 10.41 | ||
| P/OCF | 3.84 | ||
| P/B | 1.51 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 4.34 |
EPS(TTM)2.7
EY7.79%
EPS(NY)2.97
Fwd EY8.57%
FCF(TTM)3.33
FCFY9.61%
OCF(TTM)9.03
OCFY26.05%
SpS72.33
BVpS22.97
TBVpS13.49
PEG (NY)N/A
PEG (5Y)8.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.95% | ||
| ROCE | 6.42% | ||
| ROIC | 5.07% | ||
| ROICexc | 6.15% | ||
| ROICexgc | 7.22% | ||
| OM | 6.9% | ||
| PM (TTM) | 0.3% | ||
| GM | 25.49% | ||
| FCFM | 4.6% |
ROA(3y)1.57%
ROA(5y)-0.05%
ROE(3y)6.22%
ROE(5y)0.04%
ROIC(3y)11.54%
ROIC(5y)N/A
ROICexc(3y)13.44%
ROICexc(5y)N/A
ROICexgc(3y)15.57%
ROICexgc(5y)N/A
ROCE(3y)14.61%
ROCE(5y)N/A
ROICexcg growth 3Y11.91%
ROICexcg growth 5Y-0.03%
ROICexc growth 3Y10.04%
ROICexc growth 5Y-0.3%
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-Score4
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 8.73 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 86.49% | ||
| Cap/Sales | 7.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.96% | ||
| Profit Quality | 1528.47% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score4
WACC7.9%
ROIC/WACC0.64
Cap/Depr(3y)88.67%
Cap/Depr(5y)84.44%
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)-37.05%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-11.76%
EPS Next Y-17.73%
EPS Next 2Y-5.3%
EPS Next 3Y2.82%
EPS Next 5Y5.02%
Revenue 1Y (TTM)-7.47%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-1.19%
Revenue Next Year-3.74%
Revenue Next 2Y-1.19%
Revenue Next 3Y0.38%
Revenue Next 5YN/A
EBIT growth 1Y-41.02%
EBIT growth 3Y6.85%
EBIT growth 5Y-4.07%
EBIT Next Year73.56%
EBIT Next 3Y21.91%
EBIT Next 5Y14.37%
FCF growth 1Y-61.64%
FCF growth 3Y-1.94%
FCF growth 5Y3%
OCF growth 1Y-34.89%
OCF growth 3Y4.95%
OCF growth 5Y1.16%