BP PLC-SPONS ADR (BP) Stock Fundamental Analysis
NYSE:BP - New York Stock Exchange, Inc. - US0556221044 - ADR - Currency: USD
BP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of BP have multiple concerns. BP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
BP had positive earnings in the past year.
BP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: BP reported negative net income in multiple years.
Each year in the past 5 years BP had a positive operating cash flow.
1.2 Ratios
BP's Return On Assets of 0.14% is on the low side compared to the rest of the industry. BP is outperformed by 71.92% of its industry peers.
BP has a Return On Equity of 0.66%. This is in the lower half of the industry: BP underperforms 69.95% of its industry peers.
BP's Return On Invested Capital of 5.10% is on the low side compared to the rest of the industry. BP is outperformed by 62.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.66% | ||
| ROIC | 5.1% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 0.21%, BP is doing worse than 70.94% of the companies in the same industry.
BP's Profit Margin has declined in the last couple of years.
BP has a worse Operating Margin (6.82%) than 69.95% of its industry peers.
In the last couple of years the Operating Margin of BP has declined.
Looking at the Gross Margin, with a value of 24.80%, BP is doing worse than 66.01% of the companies in the same industry.
BP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.82% | ||
| PM (TTM) | 0.21% | ||
| GM | 24.8% |
OM growth 3Y0.56%
OM growth 5Y-7.32%
PM growth 3Y-64.97%
PM growth 5Y-39.42%
GM growth 3Y1.2%
GM growth 5Y-2.86%
2. Health
2.1 Basic Checks
BP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
BP has a debt to FCF ratio of 5.96. This is a neutral value as BP would need 5.96 years to pay back of all of its debts.
BP has a Debt to FCF ratio of 5.96. This is comparable to the rest of the industry: BP outperforms 56.16% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that BP has dependencies on debt financing.
BP has a worse Debt to Equity ratio (1.09) than 74.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.96 | ||
| Altman-Z | N/A |
ROIC/WACC0.65
WACC7.83%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.25, BP is in line with its industry, outperforming 52.71% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that BP may have some problems paying its short term obligations.
BP has a Quick ratio of 0.97. This is comparable to the rest of the industry: BP outperforms 47.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
BP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.56%, which is quite good.
Measured over the past years, BP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.60% on average per year.
Looking at the last year, BP shows a decrease in Revenue. The Revenue has decreased by -9.97% in the last year.
The Revenue has been growing slightly by 3.50% on average over the past years.
EPS 1Y (TTM)14.56%
EPS 3Y12.24%
EPS 5Y12.6%
EPS Q2Q%144.44%
Revenue 1Y (TTM)-9.97%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-8.55%
3.2 Future
BP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.18% yearly.
BP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.64% yearly.
EPS Next Y-31.87%
EPS Next 2Y-12.46%
EPS Next 3Y-4.59%
EPS Next 5Y5.18%
Revenue Next Year-3.52%
Revenue Next 2Y-0.42%
Revenue Next 3Y-1.64%
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
BP is valuated cheaply with a Price/Earnings ratio of 5.78.
83.74% of the companies in the same industry are more expensive than BP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.75, BP is valued rather cheaply.
A Price/Forward Earnings ratio of 8.49 indicates a reasonable valuation of BP.
70.44% of the companies in the same industry are more expensive than BP, based on the Price/Forward Earnings ratio.
BP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.78 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BP is valued a bit cheaper than the industry average as 76.35% of the companies are valued more expensively.
BP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BP is cheaper than 79.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.93 | ||
| EV/EBITDA | 3.92 |
4.3 Compensation for Growth
A cheap valuation may be justified as BP's earnings are expected to decrease with -4.59% in the coming years.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-12.46%
EPS Next 3Y-4.59%
5. Dividend
5.1 Amount
BP has a Yearly Dividend Yield of 5.42%, which is a nice return.
BP's Dividend Yield is a higher than the industry average which is at 6.95.
Compared to an average S&P500 Dividend Yield of 2.30, BP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
5.2 History
The dividend of BP decreases each year by -3.81%.
BP has paid a dividend for at least 10 years, which is a reliable track record.
BP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.81%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BP pays out 1282.82% of its income as dividend. This is not a sustainable payout ratio.
DP1282.82%
EPS Next 2Y-12.46%
EPS Next 3Y-4.59%
31.81
-1.31 (-3.96%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.39%
Inst Owner Change5.73%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap83.16B
Analysts72
Price Target36.7 (15.37%)
Short Float %0.74%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
Yearly Dividend0.28
Dividend Growth(5Y)-3.81%
DP1282.82%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)229.33%
Min EPS beat(2)4.34%
Max EPS beat(2)454.32%
EPS beat(4)3
Avg EPS beat(4)113.82%
Min EPS beat(4)-11.21%
Max EPS beat(4)454.32%
EPS beat(8)5
Avg EPS beat(8)53.76%
EPS beat(12)9
Avg EPS beat(12)44.52%
EPS beat(16)13
Avg EPS beat(16)41.54%
Revenue beat(2)2
Avg Revenue beat(2)7.75%
Min Revenue beat(2)4.4%
Max Revenue beat(2)11.1%
Revenue beat(4)3
Avg Revenue beat(4)3.84%
Min Revenue beat(4)-2.82%
Max Revenue beat(4)11.1%
Revenue beat(8)6
Avg Revenue beat(8)0.71%
Revenue beat(12)10
Avg Revenue beat(12)16.13%
Revenue beat(16)10
Avg Revenue beat(16)0.21%
PT rev (1m)0%
PT rev (3m)-2.23%
EPS NQ rev (1m)-4.01%
EPS NQ rev (3m)-5.11%
EPS NY rev (1m)-5.92%
EPS NY rev (3m)-13.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-45.04%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-3.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.78 | ||
| Fwd PE | 8.49 | ||
| P/S | 0.44 | ||
| P/FCF | 6.93 | ||
| P/OCF | 3.05 | ||
| P/B | 1.4 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 3.92 |
EPS(TTM)5.5
EY17.29%
EPS(NY)3.75
Fwd EY11.78%
FCF(TTM)4.59
FCFY14.43%
OCF(TTM)10.44
OCFY32.82%
SpS72.36
BVpS22.66
TBVpS13.28
PEG (NY)N/A
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.66% | ||
| ROCE | 6.45% | ||
| ROIC | 5.1% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 7.49% | ||
| OM | 6.82% | ||
| PM (TTM) | 0.21% | ||
| GM | 24.8% | ||
| FCFM | 6.34% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.56%
OM growth 5Y-7.32%
PM growth 3Y-64.97%
PM growth 5Y-39.42%
GM growth 3Y1.2%
GM growth 5Y-2.86%
F-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.96 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 87.97% | ||
| Cap/Sales | 8.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.12% | ||
| Profit Quality | 3076.92% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | N/A |
F-Score5
WACC7.83%
ROIC/WACC0.65
Cap/Depr(3y)87.32%
Cap/Depr(5y)83.63%
Cap/Sales(3y)6.63%
Cap/Sales(5y)7.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.56%
EPS 3Y12.24%
EPS 5Y12.6%
EPS Q2Q%144.44%
EPS Next Y-31.87%
EPS Next 2Y-12.46%
EPS Next 3Y-4.59%
EPS Next 5Y5.18%
Revenue 1Y (TTM)-9.97%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-8.55%
Revenue Next Year-3.52%
Revenue Next 2Y-0.42%
Revenue Next 3Y-1.64%
Revenue Next 5YN/A
EBIT growth 1Y-57.51%
EBIT growth 3Y6.85%
EBIT growth 5Y-4.07%
EBIT Next Year91.7%
EBIT Next 3Y22.47%
EBIT Next 5Y15.22%
FCF growth 1Y-32.41%
FCF growth 3Y-1.94%
FCF growth 5Y3%
OCF growth 1Y-14.8%
OCF growth 3Y4.95%
OCF growth 5Y1.16%