ECOPETROL SA-SPONSORED ADR (EC) Stock Fundamental Analysis
NYSE:EC - New York Stock Exchange, Inc. - US2791581091 - ADR - Currency: USD
EC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. While EC is still in line with the averages on profitability rating, there are concerns on its financial health. EC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past 5 years EC has always been profitable.
Each year in the past 5 years EC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.96%, EC is in line with its industry, outperforming 58.69% of the companies in the same industry.
With a decent Return On Equity value of 17.84%, EC is doing good in the industry, outperforming 77.46% of the companies in the same industry.
The Return On Invested Capital of EC (8.79%) is better than 70.42% of its industry peers.
EC had an Average Return On Invested Capital over the past 3 years of 11.93%. This is significantly below the industry average of 25.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 17.84% | ||
| ROIC | 8.79% |
ROA(3y)7.54%
ROA(5y)6.13%
ROE(3y)26.29%
ROE(5y)21.07%
ROIC(3y)11.93%
ROIC(5y)9.62%
1.3 Margins
With a Profit Margin value of 11.20%, EC perfoms like the industry average, outperforming 58.22% of the companies in the same industry.
EC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 27.21%, EC is in the better half of the industry, outperforming 62.44% of the companies in the same industry.
EC's Operating Margin has declined in the last couple of years.
EC's Gross Margin of 35.14% is in line compared to the rest of the industry. EC outperforms 45.54% of its industry peers.
EC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.21% | ||
| PM (TTM) | 11.2% | ||
| GM | 35.14% |
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.
The number of shares outstanding for EC remains at a similar level compared to 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 5.14, which is a neutral value as it means it would take EC, 5.14 years of fcf income to pay off all of its debts.
EC has a better Debt to FCF ratio (5.14) than 65.26% of its industry peers.
A Debt/Equity ratio of 1.31 is on the high side and indicates that EC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.31, EC is not doing good in the industry: 73.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 5.14 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
EC has a Current Ratio of 1.53. 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 1.53, EC is doing good in the industry, outperforming 67.14% of the companies in the same industry.
EC has a Quick Ratio of 1.28. This is a normal value and indicates that EC is financially healthy and should not expect problems in meeting its short term obligations.
EC has a Quick ratio of 1.28. This is in the better half of the industry: EC outperforms 65.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The earnings per share for EC have decreased strongly by -19.47% in the last year.
The Earnings Per Share has been growing slightly by 2.42% on average over the past years.
The Revenue has decreased by -6.82% in the past year.
Measured over the past years, EC shows a quite strong growth in Revenue. The Revenue has been growing by 13.48% on average per year.
EPS 1Y (TTM)-19.47%
EPS 3Y-3.65%
EPS 5Y2.42%
EPS Q2Q%-22.12%
Revenue 1Y (TTM)-6.82%
Revenue growth 3Y13.27%
Revenue growth 5Y13.48%
Sales Q2Q%0.2%
3.2 Future
The Earnings Per Share is expected to decrease by -23.64% on average over the next years. This is quite bad
Based on estimates for the next years, EC will show a decrease in Revenue. The Revenue will decrease by -2.07% on average per year.
EPS Next Y-25.31%
EPS Next 2Y-11.8%
EPS Next 3Y-23.64%
EPS Next 5YN/A
Revenue Next Year-3.09%
Revenue Next 2Y-2.89%
Revenue Next 3Y-2.07%
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 -23.64% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.8%
EPS Next 3Y-23.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.06%, EC is a good candidate for dividend investing.
EC's Dividend Yield is rather good when compared to the industry average which is at 6.84. EC pays more dividend than 91.08% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, EC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.06% |
5.2 History
The dividend of EC has a limited annual growth rate of 2.34%.
EC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of EC decreased in the last 3 years.
Dividend Growth(5Y)2.34%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
EC pays out 104.22% 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.
DP104.22%
EPS Next 2Y-11.8%
EPS Next 3Y-23.64%
8.61
+0.14 (+1.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners5.38%
Inst Owner Change8.1%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.70B
Analysts48.33
Price TargetN/A
Short Float %5.92%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.06% |
Yearly DividendN/A
Dividend Growth(5Y)2.34%
DP104.22%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.16%
Min EPS beat(2)-2.66%
Max EPS beat(2)58.98%
EPS beat(4)1
Avg EPS beat(4)6.13%
Min EPS beat(4)-17.84%
Max EPS beat(4)58.98%
EPS beat(8)4
Avg EPS beat(8)6.7%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3%
Min Revenue beat(2)2.62%
Max Revenue beat(2)3.39%
Revenue beat(4)2
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-8.44%
Max Revenue beat(4)3.39%
Revenue beat(8)2
Avg Revenue beat(8)-4.68%
Revenue beat(12)2
Avg Revenue beat(12)-30.44%
Revenue beat(16)5
Avg Revenue beat(16)-20.96%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)6.39%
EPS NQ rev (3m)-24.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.58%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)-5.54%
Revenue NY rev (1m)-2.34%
Revenue NY rev (3m)-5.74%
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 | 4.96% | ||
| ROE | 17.84% | ||
| ROCE | 13.86% | ||
| ROIC | 8.79% | ||
| ROICexc | 9.34% | ||
| ROICexgc | 10.22% | ||
| OM | 27.21% | ||
| PM (TTM) | 11.2% | ||
| GM | 35.14% | ||
| FCFM | 17.49% |
ROA(3y)7.54%
ROA(5y)6.13%
ROE(3y)26.29%
ROE(5y)21.07%
ROIC(3y)11.93%
ROIC(5y)9.62%
ROICexc(3y)12.75%
ROICexc(5y)10.3%
ROICexgc(3y)14.04%
ROICexgc(5y)11.3%
ROCE(3y)18.81%
ROCE(5y)15.16%
ROICexcg growth 3Y-1.35%
ROICexcg growth 5Y-4.89%
ROICexc growth 3Y-0.94%
ROICexc growth 5Y-6.34%
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 | 1.31 | ||
| Debt/FCF | 5.14 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 143.5% | ||
| Cap/Sales | 16.36% | ||
| Interest Coverage | 4.82 | ||
| Cash Conversion | 87.67% | ||
| Profit Quality | 156.14% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | N/A |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)166.1%
Cap/Depr(5y)149.71%
Cap/Sales(3y)15.64%
Cap/Sales(5y)16.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.47%
EPS 3Y-3.65%
EPS 5Y2.42%
EPS Q2Q%-22.12%
EPS Next Y-25.31%
EPS Next 2Y-11.8%
EPS Next 3Y-23.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.82%
Revenue growth 3Y13.27%
Revenue growth 5Y13.48%
Sales Q2Q%0.2%
Revenue Next Year-3.09%
Revenue Next 2Y-2.89%
Revenue Next 3Y-2.07%
Revenue Next 5YN/A
EBIT growth 1Y-17.03%
EBIT growth 3Y6.77%
EBIT growth 5Y11.17%
EBIT Next Year41.93%
EBIT Next 3Y9.46%
EBIT Next 5YN/A
FCF growth 1Y643.53%
FCF growth 3Y36.14%
FCF growth 5Y11.17%
OCF growth 1Y127.91%
OCF growth 3Y26.04%
OCF growth 5Y10.24%