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 212 industry peers in the Oil, Gas & Consumable Fuels industry. BP has a bad profitability rating. Also its financial health evaluation is rather negative. BP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year BP was profitable.
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.
In the past 5 years BP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.14%, BP is doing worse than 69.34% of the companies in the same industry.
BP has a Return On Equity of 0.66%. This is in the lower half of the industry: BP underperforms 67.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.10%, BP is in line with its industry, outperforming 41.04% of the companies in the same industry.
| 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 67.92% of the companies in the same industry.
BP's Profit Margin has declined in the last couple of years.
The Operating Margin of BP (6.82%) is worse than 66.51% of its industry peers.
In the last couple of years the Operating Margin of BP has declined.
With a Gross Margin value of 24.80%, BP is not doing good in the industry: 65.09% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BP 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.
With a decent Debt to FCF ratio value of 5.96, BP is doing good in the industry, outperforming 60.85% of the companies in the same industry.
A Debt/Equity ratio of 1.09 is on the high side and indicates that BP has dependencies on debt financing.
The Debt to Equity ratio of BP (1.09) is worse than 72.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 5.96 | ||
| Altman-Z | N/A |
ROIC/WACC0.64
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BP should not have too much problems paying its short term obligations.
The Current ratio of BP (1.25) is comparable to the rest of the industry.
BP has a Quick Ratio of 1.25. This is a bad value and indicates that BP is not financially healthy enough and could expect problems in meeting its short term obligations.
BP has a Quick ratio (0.97) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
BP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.77%.
BP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.51% yearly.
Looking at the last year, BP shows a decrease in Revenue. The Revenue has decreased by -9.97% in the last year.
Measured over the past years, BP shows a small growth in Revenue. The Revenue has been growing by 3.50% on average per year.
EPS 1Y (TTM)-31.77%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-58.89%
Revenue 1Y (TTM)-9.97%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-8.55%
3.2 Future
The Earnings Per Share is expected to grow by 0.43% on average over the next years.
Based on estimates for the next years, BP will show a decrease in Revenue. The Revenue will decrease by -2.49% on average per year.
EPS Next Y6.15%
EPS Next 2Y8.91%
EPS Next 3Y10.21%
EPS Next 5Y0.43%
Revenue Next Year-3.05%
Revenue Next 2Y-0.28%
Revenue Next 3Y-2.49%
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
A Price/Earnings ratio of 8.53 indicates a reasonable valuation of BP.
Based on the Price/Earnings ratio, BP is valued a bit cheaper than 72.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of BP to the average of the S&P500 Index (28.29), we can say BP is valued rather cheaply.
BP is valuated reasonably with a Price/Forward Earnings ratio of 8.04.
Based on the Price/Forward Earnings ratio, BP is valued a bit cheaper than the industry average as 72.64% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BP to the average of the S&P500 Index (21.08), we can say BP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 8.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BP is valued a bit cheaper than 79.25% of the companies in the same industry.
84.91% of the companies in the same industry are more expensive than BP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.09 | ||
| EV/EBITDA | 3.47 |
4.3 Compensation for Growth
BP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.39
PEG (5Y)5.64
EPS Next 2Y8.91%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
BP has a Yearly Dividend Yield of 7.09%, which is a nice return.
Compared to an average industry Dividend Yield of 7.52, BP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, BP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
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
1282.82% of the earnings are spent on dividend by BP. This is not a sustainable payout ratio.
DP1282.82%
EPS Next 2Y8.91%
EPS Next 3Y10.21%
28.32
+0.66 (+2.39%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.39%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap73.06B
Analysts70.67
Price Target38.68 (36.58%)
Short Float %0.41%
Short Ratio0.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
Yearly Dividend0.28
Dividend Growth(5Y)-3.81%
DP1282.82%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.22%
Min EPS beat(2)-6.77%
Max EPS beat(2)4.34%
EPS beat(4)2
Avg EPS beat(4)-1.45%
Min EPS beat(4)-11.21%
Max EPS beat(4)7.85%
EPS beat(8)4
Avg EPS beat(8)-3.88%
EPS beat(12)8
Avg EPS beat(12)6.1%
EPS beat(16)12
Avg EPS beat(16)12.72%
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)2.03%
PT rev (3m)4.76%
EPS NQ rev (1m)-8.51%
EPS NQ rev (3m)-27.64%
EPS NY rev (1m)-6.27%
EPS NY rev (3m)-19.09%
Revenue NQ rev (1m)-8.18%
Revenue NQ rev (3m)-55.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 8.04 | ||
| P/S | 0.39 | ||
| P/FCF | 6.09 | ||
| P/OCF | 2.68 | ||
| P/B | 1.23 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 3.47 |
EPS(TTM)3.32
EY11.72%
EPS(NY)3.52
Fwd EY12.44%
FCF(TTM)4.65
FCFY16.42%
OCF(TTM)10.58
OCFY37.36%
SpS73.33
BVpS22.96
TBVpS13.45
PEG (NY)1.39
PEG (5Y)5.64
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
WACC7.98%
ROIC/WACC0.64
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)-31.77%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-58.89%
EPS Next Y6.15%
EPS Next 2Y8.91%
EPS Next 3Y10.21%
EPS Next 5Y0.43%
Revenue 1Y (TTM)-9.97%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-8.55%
Revenue Next Year-3.05%
Revenue Next 2Y-0.28%
Revenue Next 3Y-2.49%
Revenue Next 5YN/A
EBIT growth 1Y-57.51%
EBIT growth 3Y6.85%
EBIT growth 5Y-4.07%
EBIT Next Year84.19%
EBIT Next 3Y23.76%
EBIT Next 5Y11.72%
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%