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 213 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
BP had positive earnings in the past year.
In the past year BP had a positive cash flow from operations.
In multiple years BP reported negative net income over the last 5 years.
Each year in the past 5 years BP had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.43%, BP is not doing good in the industry: 69.48% of the companies in the same industry are doing better.
BP's Return On Equity of -2.05% is on the low side compared to the rest of the industry. BP is outperformed by 68.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.58%, BP is doing worse than 61.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BP is significantly below the industry average of 25.87%.
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: 66.20% of the companies in the same industry are doing better.
BP's Operating Margin has declined in the last couple of years.
BP's Gross Margin of 24.35% is on the low side compared to the rest of the industry. BP is outperformed by 63.38% of its industry peers.
BP's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, BP has less shares outstanding
Compared to 5 years ago, BP has less shares outstanding
BP has a worse debt/assets ratio than last year.
2.2 Solvency
BP has a debt to FCF ratio of 6.98. This is a slightly negative value and a sign of low solvency as BP would need 6.98 years to pay back of all of its debts.
The Debt to FCF ratio of BP (6.98) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.09 is on the high side and indicates that BP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.09, BP is not doing good in the industry: 71.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC7.66%
2.3 Liquidity
BP has a Current Ratio of 1.22. This is a normal value and indicates that BP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BP (1.22) is comparable to the rest of the industry.
BP has a Quick Ratio of 1.22. 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 of 0.92. This is comparable to the rest of the industry: BP outperforms 48.83% of 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.
Measured over the past 5 years, BP shows a small growth in Earnings Per Share. The EPS has been growing by 1.51% on average per year.
The Revenue has decreased by -7.70% in the past year.
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 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 -1.65% on average per year.
EPS Next Y-1.18%
EPS Next 2Y5.37%
EPS Next 3Y8.41%
EPS Next 5Y0.43%
Revenue Next Year-8.1%
Revenue Next 2Y-3.4%
Revenue Next 3Y-1.65%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 10.21 indicates a reasonable valuation of BP.
Based on the Price/Earnings ratio, BP is valued a bit cheaper than 70.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. BP is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.86, the valuation of BP can be described as very cheap.
Based on the Price/Forward Earnings ratio, BP is valued a bit cheaper than the industry average as 75.12% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BP to the average of the S&P500 Index (21.76), we can say BP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 7.86 |
4.2 Price Multiples
BP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BP is cheaper than 75.59% of the companies 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 82.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.43 | ||
| EV/EBITDA | 4.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)6.74
EPS Next 2Y5.37%
EPS Next 3Y8.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.68%, BP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.84, BP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, BP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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
The earnings of BP are negative and hence is the payout ratio. BP will probably not be able to sustain this dividend level.
DP-421.49%
EPS Next 2Y5.37%
EPS Next 3Y8.41%
29.09
+0.15 (+0.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.39%
Inst Owner Change9.96%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap75.68B
Analysts69.68
Price Target37.68 (29.53%)
Short Float %0.59%
Short Ratio1.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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)-2.59%
PT rev (3m)2.67%
EPS NQ rev (1m)-23.69%
EPS NQ rev (3m)-27.38%
EPS NY rev (1m)1.85%
EPS NY rev (3m)-12.03%
Revenue NQ rev (1m)-9.73%
Revenue NQ rev (3m)-23.12%
Revenue NY rev (1m)-2.41%
Revenue NY rev (3m)-4.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 7.86 | ||
| P/S | 0.4 | ||
| P/FCF | 7.43 | ||
| P/OCF | 3.01 | ||
| P/B | 1.3 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 4.02 |
EPS(TTM)2.85
EY9.8%
EPS(NY)3.7
Fwd EY12.73%
FCF(TTM)3.92
FCFY13.47%
OCF(TTM)9.66
OCFY33.19%
SpS71.96
BVpS22.38
TBVpS13.14
PEG (NY)N/A
PEG (5Y)6.74
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
WACC7.66%
ROIC/WACC0.6
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 5Y0.43%
Revenue 1Y (TTM)-7.7%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-4.04%
Revenue Next Year-8.1%
Revenue Next 2Y-3.4%
Revenue Next 3Y-1.65%
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 5Y11.72%
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%