BP PLC-SPONS ADR (BP) Stock Fundamental Analysis
NYSE:BP - New York Stock Exchange, Inc. - US0556221044 - ADR - Currency: USD
Overall BP gets a fundamental rating of 3 out of 10. We evaluated BP against 208 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BP had positive earnings in the past year.
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.
In the past 5 years BP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.43%, BP is doing worse than 69.23% of the companies in the same industry.
BP's Return On Equity of -2.05% is on the low side compared to the rest of the industry. BP is outperformed by 68.75% of its industry peers.
BP has a Return On Invested Capital of 4.58%. This is in the lower half of the industry: BP underperforms 60.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BP is significantly below the industry average of 23.99%.
The last Return On Invested Capital (4.58%) for BP is well below the 3 year average (11.54%), which needs to be investigated, but indicates that BP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.43% | ||
| ROE | -2.05% | ||
| ROIC | 4.58% |
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
BP's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.14%, BP is not doing good in the industry: 67.31% 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 24.35%. This is in the lower half of the industry: BP underperforms 62.98% of its industry peers.
In the last couple of years the Gross Margin of BP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.14% | ||
| PM (TTM) | N/A | ||
| GM | 24.35% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BP is creating some value.
The number of shares outstanding for BP has been reduced compared to 1 year ago.
Compared to 5 years ago, BP has less shares outstanding
The debt/assets ratio for BP is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of BP is 6.98, which is on the high side as it means it would take BP, 6.98 years of fcf income to pay off all of its debts.
BP's Debt to FCF ratio of 6.98 is in line compared to the rest of the industry. BP outperforms 56.73% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that BP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.09, BP is doing worse than 69.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | N/A |
ROIC/WACC0.58
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.22 indicates that BP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.22, BP perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
A Quick Ratio of 0.92 indicates that BP may have some problems paying its short term obligations.
BP has a Quick ratio (0.92) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for BP have decreased strongly by -32.25% 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 -7.70%.
The Revenue has been growing slightly by 3.50% on average over the past years.
EPS 1Y (TTM)-32.25%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-49.69%
Revenue 1Y (TTM)-7.7%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-4.04%
3.2 Future
The Earnings Per Share is expected to grow by 5.02% 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 -1.81% on average per year.
EPS Next Y-1.18%
EPS Next 2Y5.37%
EPS Next 3Y8.41%
EPS Next 5Y5.02%
Revenue Next Year-8.17%
Revenue Next 2Y-4.33%
Revenue Next 3Y-1.81%
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
Based on the Price/Earnings ratio of 11.32, the valuation of BP can be described as reasonable.
Based on the Price/Earnings ratio, BP is valued a bit cheaper than 68.75% of the companies in the same industry.
BP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
A Price/Forward Earnings ratio of 8.70 indicates a reasonable valuation of BP.
BP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BP is cheaper than 72.12% of the companies in the same industry.
BP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 8.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BP is valued a bit cheaper than 76.44% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BP is valued cheaper than 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.23 | ||
| EV/EBITDA | 4.24 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)7.48
EPS Next 2Y5.37%
EPS Next 3Y8.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.97%, BP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.34, BP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, BP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
5.2 History
The dividend of BP decreases each year by -2.32%.
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)-2.32%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-421.49%
EPS Next 2Y5.37%
EPS Next 3Y8.41%
32.49
+0.74 (+2.33%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.49%
Inst Owner Change-0.74%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap83.85B
Analysts66.67
Price Target34.05 (4.8%)
Short Float %0.55%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
Yearly Dividend0.31
Dividend Growth(5Y)-2.32%
DP-421.49%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.17%
Min EPS beat(2)-21.57%
Max EPS beat(2)-6.77%
EPS beat(4)2
Avg EPS beat(4)-4.04%
Min EPS beat(4)-21.57%
Max EPS beat(4)7.85%
EPS beat(8)3
Avg EPS beat(8)-7.7%
EPS beat(12)7
Avg EPS beat(12)1.21%
EPS beat(16)11
Avg EPS beat(16)6.73%
Revenue beat(2)2
Avg Revenue beat(2)9.28%
Min Revenue beat(2)7.46%
Max Revenue beat(2)11.1%
Revenue beat(4)4
Avg Revenue beat(4)6.41%
Min Revenue beat(4)2.68%
Max Revenue beat(4)11.1%
Revenue beat(8)6
Avg Revenue beat(8)1.46%
Revenue beat(12)10
Avg Revenue beat(12)9.96%
Revenue beat(16)11
Avg Revenue beat(16)3.71%
PT rev (1m)0%
PT rev (3m)-9.66%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)-17.46%
EPS NY rev (1m)0.56%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)2.32%
Revenue NQ rev (3m)-2%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 8.7 | ||
| P/S | 0.45 | ||
| P/FCF | 8.23 | ||
| P/OCF | 3.34 | ||
| P/B | 1.44 | ||
| P/tB | 2.45 | ||
| EV/EBITDA | 4.24 |
EPS(TTM)2.87
EY8.83%
EPS(NY)3.73
Fwd EY11.49%
FCF(TTM)3.95
FCFY12.16%
OCF(TTM)9.73
OCFY29.96%
SpS72.54
BVpS22.56
TBVpS13.25
PEG (NY)N/A
PEG (5Y)7.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.43% | ||
| ROE | -2.05% | ||
| ROCE | 5.79% | ||
| ROIC | 4.58% | ||
| ROICexc | 5.52% | ||
| ROICexgc | 6.47% | ||
| OM | 6.14% | ||
| PM (TTM) | N/A | ||
| GM | 24.35% | ||
| FCFM | 5.44% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.98 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 90.47% | ||
| Cap/Sales | 7.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score4
WACC7.88%
ROIC/WACC0.58
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)-32.25%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-49.69%
EPS Next Y-1.18%
EPS Next 2Y5.37%
EPS Next 3Y8.41%
EPS Next 5Y5.02%
Revenue 1Y (TTM)-7.7%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-4.04%
Revenue Next Year-8.17%
Revenue Next 2Y-4.33%
Revenue Next 3Y-1.81%
Revenue Next 5YN/A
EBIT growth 1Y-51.54%
EBIT growth 3Y6.85%
EBIT growth 5Y-4.07%
EBIT Next Year73.56%
EBIT Next 3Y21.91%
EBIT Next 5Y12.45%
FCF growth 1Y-63.27%
FCF growth 3Y-1.94%
FCF growth 5Y3%
OCF growth 1Y-37.73%
OCF growth 3Y4.95%
OCF growth 5Y1.16%