ECOPETROL SA-SPONSORED ADR (EC) Stock Fundamental Analysis
NYSE:EC - New York Stock Exchange, Inc. - US2791581091 - ADR - Currency: USD
We assign a fundamental rating of 3 out of 10 to EC. EC was compared to 208 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
Each year in the past 5 years EC has been profitable.
In the past 5 years EC always reported a positive cash flow from operatings.
1.2 Ratios
EC has a Return On Assets of 4.68%. This is comparable to the rest of the industry: EC outperforms 57.69% of its industry peers.
EC has a better Return On Equity (18.13%) than 78.37% of its industry peers.
The Return On Invested Capital of EC (8.78%) is better than 71.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EC is significantly below the industry average of 23.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 18.13% | ||
| ROIC | 8.78% |
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
Looking at the Profit Margin, with a value of 10.53%, EC is in line with its industry, outperforming 57.69% of the companies in the same industry.
In the last couple of years the Profit Margin of EC has declined.
EC's Operating Margin of 26.17% is fine compared to the rest of the industry. EC outperforms 60.58% of its industry peers.
EC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 33.94%, EC is in line with its industry, outperforming 44.23% of the companies in the same industry.
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 | 26.17% | ||
| PM (TTM) | 10.53% | ||
| GM | 33.94% |
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
Compared to 1 year ago, EC has about the same amount of shares outstanding.
Compared to 5 years ago, EC has about the same amount of shares outstanding.
The debt/assets ratio for EC is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of EC is 5.00, which is a neutral value as it means it would take EC, 5.00 years of fcf income to pay off all of its debts.
EC has a better Debt to FCF ratio (5.00) than 62.50% of its industry peers.
EC has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
EC's Debt to Equity ratio of 1.37 is on the low side compared to the rest of the industry. EC is outperformed by 71.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 5 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
EC has a Current Ratio of 1.33. This is a normal value and indicates that EC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.33, EC is in the better half of the industry, outperforming 60.58% of the companies in the same industry.
EC has a Quick Ratio of 1.10. This is a normal value and indicates that EC is financially healthy and should not expect problems in meeting its short term obligations.
EC's Quick ratio of 1.10 is in line compared to the rest of the industry. EC outperforms 59.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
EC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.47%.
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 -1.58%.
The Revenue has been growing by 13.48% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.47%
EPS 3Y-3.65%
EPS 5Y2.42%
EPS Q2Q%-22.12%
Revenue 1Y (TTM)-1.58%
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
EC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.76% yearly.
EPS Next Y-25.31%
EPS Next 2Y-11.8%
EPS Next 3Y-23.64%
EPS Next 5YN/A
Revenue Next Year-4.75%
Revenue Next 2Y-3.42%
Revenue Next 3Y-2.76%
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.
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
| 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 12.19%, EC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.34, EC pays a better dividend. On top of this EC pays more dividend than 94.23% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, EC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.19% |
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.
Dividend Growth(5Y)2.34%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
116.14% of the earnings are spent on dividend by EC. 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.
DP116.14%
EPS Next 2Y-11.8%
EPS Next 3Y-23.64%
8.35
+0.06 (+0.72%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners6.24%
Inst Owner Change3.41%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap17.17B
Analysts47.27
Price TargetN/A
Short Float %6.86%
Short Ratio7.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.19% |
Yearly DividendN/A
Dividend Growth(5Y)2.34%
DP116.14%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)50.77%
Min EPS beat(2)42.57%
Max EPS beat(2)58.98%
EPS beat(4)2
Avg EPS beat(4)20.26%
Min EPS beat(4)-17.84%
Max EPS beat(4)58.98%
EPS beat(8)4
Avg EPS beat(8)10.26%
EPS beat(12)6
Avg EPS beat(12)6.77%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-3.25%
Max Revenue beat(2)2.62%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-5.25%
Max Revenue beat(4)3.39%
Revenue beat(8)2
Avg Revenue beat(8)-3.59%
Revenue beat(12)2
Avg Revenue beat(12)-22.38%
Revenue beat(16)4
Avg Revenue beat(16)-21.23%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)94.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.51%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-1.71%
Revenue NY rev (3m)-4.01%
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 | 4.68% | ||
| ROE | 18.13% | ||
| ROCE | 13.84% | ||
| ROIC | 8.78% | ||
| ROICexc | 9.42% | ||
| ROICexgc | 10.31% | ||
| OM | 26.17% | ||
| PM (TTM) | 10.53% | ||
| GM | 33.94% | ||
| FCFM | 17.8% |
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-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 5 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 138.53% | ||
| Cap/Sales | 16.11% | ||
| Interest Coverage | 4.4 | ||
| Cash Conversion | 89.7% | ||
| Profit Quality | 168.99% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | N/A |
F-Score5
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)-1.58%
Revenue growth 3Y13.27%
Revenue growth 5Y13.48%
Sales Q2Q%0.2%
Revenue Next Year-4.75%
Revenue Next 2Y-3.42%
Revenue Next 3Y-2.76%
Revenue Next 5YN/A
EBIT growth 1Y-12.35%
EBIT growth 3Y6.77%
EBIT growth 5Y11.17%
EBIT Next Year41.93%
EBIT Next 3Y9.46%
EBIT Next 5YN/A
FCF growth 1Y118.99%
FCF growth 3Y36.14%
FCF growth 5Y11.17%
OCF growth 1Y31.04%
OCF growth 3Y26.04%
OCF growth 5Y10.24%