ECOPETROL SA-SPONSORED ADR (EC) Stock Fundamental Analysis
USA - NYSE:EC - US2791581091 - ADR
9.01 USD
+0.13 (+1.46%)
We assign a fundamental rating of 3 out of 10 to EC. EC was compared to 210 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 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
The Return On Assets of EC (4.68%) is better than 60.95% of its industry peers.
EC has a Return On Equity of 18.13%. This is in the better half of the industry: EC outperforms 79.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.78%, EC is in the better half of the industry, outperforming 75.71% of the companies in the same industry.
EC had an Average Return On Invested Capital over the past 3 years of 11.93%. This is significantly below the industry average of 21.71%.
| 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
The Profit Margin of EC (10.53%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of EC has declined.
Looking at the Operating Margin, with a value of 26.17%, EC is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
EC's Operating Margin has declined in the last couple of years.
EC has a Gross Margin (33.94%) which is in line with its industry peers.
EC's Gross Margin has been stable in the last couple of years.
| 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
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
EC has a debt to FCF ratio of 5.00. This is a neutral value as EC would need 5.00 years to pay back of all of its debts.
EC has a better Debt to FCF ratio (5.00) than 63.81% of its industry peers.
A Debt/Equity ratio of 1.37 is on the high side and indicates that EC has dependencies on debt 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 72.38% 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.
EC's Current ratio of 1.33 is fine compared to the rest of the industry. EC outperforms 63.33% of its industry peers.
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.
The Quick ratio of EC (1.10) is comparable to the rest of the industry.
| 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 -25.38%.
The Earnings Per Share has been growing slightly by 2.42% on average over the past years.
Looking at the last year, EC shows a decrease in Revenue. The Revenue has decreased by -6.82% in the last 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)-25.38%
EPS 3Y-3.65%
EPS 5Y2.42%
EPS Q2Q%-46.29%
Revenue 1Y (TTM)-6.82%
Revenue growth 3Y13.27%
Revenue growth 5Y13.48%
Sales Q2Q%-9.07%
3.2 Future
Based on estimates for the next years, EC will show a very negative growth in Earnings Per Share. The EPS will decrease by -11.92% on average per year.
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
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
| 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
EC has a Yearly Dividend Yield of 17.57%, which is a nice return.
Compared to an average industry Dividend Yield of 6.00, EC pays a better dividend. On top of this EC pays more dividend than 98.57% of the companies listed in the same industry.
EC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.57% |
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 116.14% 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.
DP116.14%
EPS Next 2Y-7.73%
EPS Next 3Y-11.92%
NYSE:EC (9/22/2025, 8:14:03 PM)
9.01
+0.13 (+1.46%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners6.11%
Inst Owner Change21.31%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.52B
Analysts48.33
Price TargetN/A
Short Float %5.63%
Short Ratio6.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.57% |
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)-7.14%
EPS NY rev (1m)22.2%
EPS NY rev (3m)15.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.61%
Revenue NY rev (1m)-0.42%
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 | 4.68% | ||
| 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)-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)-6.82%
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-12.35%
EBIT growth 3Y6.77%
EBIT growth 5Y11.17%
EBIT Next Year41.71%
EBIT Next 3Y10.98%
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%