ECOPETROL SA-SPONSORED ADR (EC) Stock Fundamental Analysis
USA - NYSE:EC - US2791581091 - ADR
8.74 USD
-0.3 (-3.32%)
8.9082 USD
+0.17 (+1.92%)
We assign a fundamental rating of 3 out of 10 to EC. EC was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of EC while its profitability can be described as average. EC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past 5 years EC has always been profitable.
EC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EC has a Return On Assets (4.24%) which is comparable to the rest of the industry.
EC has a better Return On Equity (15.76%) than 76.30% of its industry peers.
With a decent Return On Invested Capital value of 7.79%, EC is doing good in the industry, outperforming 69.67% of the companies in the same industry.
EC had an Average Return On Invested Capital over the past 3 years of 11.97%. This is significantly below the industry average of 21.53%.
The last Return On Invested Capital (7.79%) for EC is well below the 3 year average (11.97%), which needs to be investigated, but indicates that EC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 15.76% | ||
| ROIC | 7.79% |
ROA(3y)7.54%
ROA(5y)6.13%
ROE(3y)26.29%
ROE(5y)21.07%
ROIC(3y)11.97%
ROIC(5y)9.64%
1.3 Margins
EC has a Profit Margin of 9.57%. This is comparable to the rest of the industry: EC outperforms 55.45% of its industry peers.
In the last couple of years the Profit Margin of EC has declined.
With a decent Operating Margin value of 23.83%, EC is doing good in the industry, outperforming 61.14% of the companies in the same industry.
EC's Operating Margin has declined in the last couple of years.
EC's Gross Margin of 31.99% is in line compared to the rest of the industry. EC outperforms 44.08% of its industry peers.
In the last couple of years the Gross Margin of EC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.83% | ||
| PM (TTM) | 9.57% | ||
| GM | 31.99% |
OM growth 3Y-5.74%
OM growth 5Y-2.03%
PM growth 3Y-14.93%
PM growth 5Y-9.75%
GM growth 3Y-3.76%
GM growth 5Y-0.78%
2. Health
2.1 Basic Checks
The number of shares outstanding for EC remains at a similar level compared to 1 year ago.
EC has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, EC has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of EC is 6.99, which is on the high side as it means it would take EC, 6.99 years of fcf income to pay off all of its debts.
EC's Debt to FCF ratio of 6.99 is in line compared to the rest of the industry. EC outperforms 57.35% of its industry peers.
EC has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
EC's Debt to Equity ratio of 1.32 is on the low side compared to the rest of the industry. EC is outperformed by 72.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
EC has a Current Ratio of 1.45. This is a normal value and indicates that EC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.45, EC is doing good in the industry, outperforming 64.45% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that EC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, EC is in the better half of the industry, outperforming 61.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
EC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.38%.
EC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.42% yearly.
EC shows a decrease in Revenue. In the last year, the revenue decreased by -2.56%.
The Revenue has been growing by 13.48% on average over the past years. This is quite good.
EPS 1Y (TTM)-25.38%
EPS 3Y-3.65%
EPS 5Y2.42%
EPS Q2Q%-46.29%
Revenue 1Y (TTM)-2.56%
Revenue growth 3Y13.27%
Revenue growth 5Y13.48%
Sales Q2Q%-9.07%
3.2 Future
EC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.92% yearly.
Based on estimates for the next years, EC will show a decrease in Revenue. The Revenue will decrease by -4.68% on average per year.
EPS Next Y-13.39%
EPS Next 2Y-7.73%
EPS Next 3Y-11.92%
EPS Next 5YN/A
Revenue Next Year-6.45%
Revenue Next 2Y-4.27%
Revenue Next 3Y-4.68%
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
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
EC's earnings are expected to decrease with -11.92% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.73%
EPS Next 3Y-11.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.41%, EC is a good candidate for dividend investing.
EC's Dividend Yield is rather good when compared to the industry average which is at 6.30. EC pays more dividend than 93.84% of the companies in the same industry.
EC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.41% |
5.2 History
The dividend of EC has a limited annual growth rate of 2.34%.
EC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EC pays out 112.67% of its income as dividend. This is not a sustainable payout ratio.
EC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP112.67%
EPS Next 2Y-7.73%
EPS Next 3Y-11.92%
8.74
-0.3 (-3.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners6.11%
Inst Owner Change-1.05%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.97B
Analysts48.33
Price TargetN/A
Short Float %5.92%
Short Ratio6.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.41% |
Yearly DividendN/A
Dividend Growth(5Y)2.34%
DP112.67%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.77%
Min EPS beat(2)-44.1%
Max EPS beat(2)42.57%
EPS beat(4)2
Avg EPS beat(4)13.7%
Min EPS beat(4)-44.1%
Max EPS beat(4)58.98%
EPS beat(8)4
Avg EPS beat(8)6.17%
EPS beat(12)5
Avg EPS beat(12)1.08%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)-1.19%
Revenue beat(4)2
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-3.25%
Max Revenue beat(4)3.39%
Revenue beat(8)2
Avg Revenue beat(8)-1.79%
Revenue beat(12)2
Avg Revenue beat(12)-14.16%
Revenue beat(16)4
Avg Revenue beat(16)-21.01%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-30.17%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)15.85%
Revenue NQ rev (1m)-6.15%
Revenue NQ rev (3m)-9.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | N/A | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)N/A
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpSN/A
BVpSN/A
TBVpSN/A
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 15.76% | ||
| ROCE | 12.24% | ||
| ROIC | 7.79% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 9.02% | ||
| OM | 23.83% | ||
| PM (TTM) | 9.57% | ||
| GM | 31.99% | ||
| FCFM | 13.18% |
ROA(3y)7.54%
ROA(5y)6.13%
ROE(3y)26.29%
ROE(5y)21.07%
ROIC(3y)11.97%
ROIC(5y)9.64%
ROICexc(3y)12.79%
ROICexc(5y)10.33%
ROICexgc(3y)14.09%
ROICexgc(5y)11.33%
ROCE(3y)18.81%
ROCE(5y)15.16%
ROICexcg growth 3Y-1.23%
ROICexcg growth 5Y-4.82%
ROICexc growth 3Y-0.83%
ROICexc growth 5Y-6.27%
OM growth 3Y-5.74%
OM growth 5Y-2.03%
PM growth 3Y-14.93%
PM growth 5Y-9.75%
GM growth 3Y-3.76%
GM growth 5Y-0.78%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 128.98% | ||
| Cap/Sales | 16.11% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 80.65% | ||
| Profit Quality | 137.72% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | N/A |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)164.17%
Cap/Depr(5y)148.55%
Cap/Sales(3y)15.42%
Cap/Sales(5y)16.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.38%
EPS 3Y-3.65%
EPS 5Y2.42%
EPS Q2Q%-46.29%
EPS Next Y-13.39%
EPS Next 2Y-7.73%
EPS Next 3Y-11.92%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.56%
Revenue growth 3Y13.27%
Revenue growth 5Y13.48%
Sales Q2Q%-9.07%
Revenue Next Year-6.45%
Revenue Next 2Y-4.27%
Revenue Next 3Y-4.68%
Revenue Next 5YN/A
EBIT growth 1Y-19.94%
EBIT growth 3Y6.77%
EBIT growth 5Y11.17%
EBIT Next Year41.71%
EBIT Next 3Y10.98%
EBIT Next 5YN/A
FCF growth 1Y150.74%
FCF growth 3Y37.84%
FCF growth 5Y12%
OCF growth 1Y21.3%
OCF growth 3Y26.04%
OCF growth 5Y10.24%