ECOPETROL SA-SPONSORED ADR (EC) Stock Fundamental Analysis
NYSE:EC - New York Stock Exchange, Inc. - US2791581091 - ADR - Currency: USD
Taking everything into account, EC scores 3 out of 10 in our fundamental rating. EC was compared to 213 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
Each year in the past 5 years EC has been profitable.
EC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.68%, EC is in line with its industry, outperforming 57.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.13%, EC is in the better half of the industry, outperforming 77.93% of the companies in the same industry.
EC's Return On Invested Capital of 8.78% is fine compared to the rest of the industry. EC outperforms 70.89% 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 23.54%.
| 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
EC's Profit Margin of 10.53% is in line compared to the rest of the industry. EC outperforms 57.75% of its industry peers.
EC's Profit Margin has declined in the last couple of years.
The Operating Margin of EC (26.17%) is better than 61.03% 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 44.13% 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
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 5.00, 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.
With a decent Debt to FCF ratio value of 5.00, EC is doing good in the industry, outperforming 63.85% of the companies in the same industry.
EC has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
EC has a worse Debt to Equity ratio (1.37) than 72.30% 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 line with its industry, outperforming 59.62% 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 has a Quick ratio (1.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for EC have decreased strongly by -19.47% in the last year.
Measured over the past 5 years, EC shows a small growth in Earnings Per Share. The EPS has been growing by 2.42% on average per year.
The Revenue has decreased by -1.58% 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)-1.58%
Revenue growth 3Y13.27%
Revenue growth 5Y13.48%
Sales Q2Q%0.2%
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 -23.64% yearly.
EC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.07% yearly.
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
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 -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
EC has a Yearly Dividend Yield of 15.75%, which is a nice return.
Compared to an average industry Dividend Yield of 6.42, EC pays a better dividend. On top of this EC pays more dividend than 94.84% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.75% |
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
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-11.8%
EPS Next 3Y-23.64%
9.4
-0.05 (-0.53%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners6.24%
Inst Owner Change10.56%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.32B
Analysts48.33
Price TargetN/A
Short Float %6.84%
Short Ratio5.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.75% |
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)12.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.63%
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-3.09%
Revenue Next 2Y-2.89%
Revenue Next 3Y-2.07%
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%