BP PLC-SPONS ADR (BP) Stock Fundamental Analysis
USA - NYSE:BP - US0556221044 - ADR
34.56 USD
+0.26 (+0.76%)
34.6 USD
+0.04 (+0.12%)
Taking everything into account, BP scores 3 out of 10 in our fundamental rating. BP was compared to 210 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
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.
In the past 5 years BP always reported a positive cash flow from operatings.
1.2 Ratios
BP has a Return On Assets of 0.20%. This is in the lower half of the industry: BP underperforms 67.14% of its industry peers.
BP has a Return On Equity of 0.95%. This is in the lower half of the industry: BP underperforms 64.29% of its industry peers.
BP has a Return On Invested Capital of 5.07%. This is comparable to the rest of the industry: BP outperforms 42.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BP is significantly below the industry average of 21.66%.
The last Return On Invested Capital (5.07%) for BP is well below the 3 year average (11.54%), which needs to be investigated, but indicates that BP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.95% | ||
| ROIC | 5.07% |
ROA(3y)1.57%
ROA(5y)-0.05%
ROE(3y)6.22%
ROE(5y)0.04%
ROIC(3y)11.54%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 0.30%, BP is doing worse than 66.19% of the companies in the same industry.
In the last couple of years the Profit Margin of BP has declined.
Looking at the Operating Margin, with a value of 6.90%, BP is doing worse than 65.24% of the companies in the same industry.
BP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 25.49%, BP is doing worse than 63.33% of the companies in the same industry.
BP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.9% | ||
| PM (TTM) | 0.3% | ||
| GM | 25.49% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, BP has less shares outstanding
The number of shares outstanding for BP has been reduced compared to 5 years ago.
BP has a worse debt/assets ratio than last year.
2.2 Solvency
BP has a debt to FCF ratio of 8.73. This is a slightly negative value and a sign of low solvency as BP would need 8.73 years to pay back of all of its debts.
The Debt to FCF ratio of BP (8.73) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.12 is on the high side and indicates that BP has dependencies on debt financing.
The Debt to Equity ratio of BP (1.12) is worse than 70.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 8.73 | ||
| Altman-Z | N/A |
ROIC/WACC0.65
WACC7.84%
2.3 Liquidity
BP has a Current Ratio of 1.21. This is a normal value and indicates that BP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BP (1.21) is comparable to the rest of the industry.
A Quick Ratio of 0.92 indicates that BP may have some problems paying its short term obligations.
BP's Quick ratio of 0.92 is in line compared to the rest of the industry. BP outperforms 49.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
BP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.05%.
Measured over the past 5 years, BP shows a small growth in Earnings Per Share. The EPS has been growing by 1.51% on average per year.
Looking at the last year, BP shows a decrease in Revenue. The Revenue has decreased by -7.47% 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)-37.05%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-11.76%
Revenue 1Y (TTM)-7.47%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-1.19%
3.2 Future
Based on estimates for the next years, BP will show a small growth in Earnings Per Share. The EPS will grow by 5.02% on average per year.
The Revenue is expected to grow by 0.34% on average over the next years.
EPS Next Y-17.73%
EPS Next 2Y-5.3%
EPS Next 3Y2.82%
EPS Next 5Y5.02%
Revenue Next Year-3.55%
Revenue Next 2Y-1.11%
Revenue Next 3Y0.34%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 12.75, which indicates a correct valuation of BP.
Based on the Price/Earnings ratio, BP is valued a bit cheaper than 63.81% of the companies in the same industry.
BP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 11.62, the valuation of BP can be described as reasonable.
Based on the Price/Forward Earnings ratio, BP is valued a bit cheaper than 62.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. BP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BP is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BP is valued a bit cheaper than 75.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.37 | ||
| EV/EBITDA | 4.28 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)8.43
EPS Next 2Y-5.3%
EPS Next 3Y2.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.45%, BP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.17, BP pays a bit more dividend than its industry peers.
BP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
5.2 History
The dividend of BP decreases each year by -2.32%.
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)-2.32%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
903.02% of the earnings are spent on dividend by BP. This is not a sustainable payout ratio.
DP903.02%
EPS Next 2Y-5.3%
EPS Next 3Y2.82%
34.56
+0.26 (+0.76%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.49%
Inst Owner Change4.05%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap89.08B
Analysts70
Price Target37.01 (7.09%)
Short Float %0.56%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.45% |
Yearly Dividend0.31
Dividend Growth(5Y)-2.32%
DP903.02%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.52%
Min EPS beat(2)-21.57%
Max EPS beat(2)24.61%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-21.57%
Max EPS beat(4)24.61%
EPS beat(8)4
Avg EPS beat(8)-1.14%
EPS beat(12)7
Avg EPS beat(12)1.36%
EPS beat(16)11
Avg EPS beat(16)5.16%
Revenue beat(2)2
Avg Revenue beat(2)10.77%
Min Revenue beat(2)9.7%
Max Revenue beat(2)11.84%
Revenue beat(4)4
Avg Revenue beat(4)9.26%
Min Revenue beat(4)4.4%
Max Revenue beat(4)11.84%
Revenue beat(8)6
Avg Revenue beat(8)3.04%
Revenue beat(12)10
Avg Revenue beat(12)7.91%
Revenue beat(16)12
Avg Revenue beat(16)7.88%
PT rev (1m)9.19%
PT rev (3m)6.5%
EPS NQ rev (1m)4.14%
EPS NQ rev (3m)-10.55%
EPS NY rev (1m)-16.7%
EPS NY rev (3m)-17.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.57%
Revenue NY rev (1m)5.03%
Revenue NY rev (3m)4.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 11.62 | ||
| P/S | 0.48 | ||
| P/FCF | 10.37 | ||
| P/OCF | 3.82 | ||
| P/B | 1.5 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 4.28 |
EPS(TTM)2.71
EY7.84%
EPS(NY)2.97
Fwd EY8.6%
FCF(TTM)3.33
FCFY9.64%
OCF(TTM)9.04
OCFY26.15%
SpS72.37
BVpS22.98
TBVpS13.5
PEG (NY)N/A
PEG (5Y)8.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.95% | ||
| ROCE | 6.42% | ||
| ROIC | 5.07% | ||
| ROICexc | 6.15% | ||
| ROICexgc | 7.22% | ||
| OM | 6.9% | ||
| PM (TTM) | 0.3% | ||
| GM | 25.49% | ||
| FCFM | 4.6% |
ROA(3y)1.57%
ROA(5y)-0.05%
ROE(3y)6.22%
ROE(5y)0.04%
ROIC(3y)11.54%
ROIC(5y)N/A
ROICexc(3y)13.44%
ROICexc(5y)N/A
ROICexgc(3y)15.57%
ROICexgc(5y)N/A
ROCE(3y)14.61%
ROCE(5y)N/A
ROICexcg growth 3Y11.91%
ROICexcg growth 5Y-0.03%
ROICexc growth 3Y10.04%
ROICexc growth 5Y-0.3%
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-Score4
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 8.73 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 86.49% | ||
| Cap/Sales | 7.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.96% | ||
| Profit Quality | 1528.47% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score4
WACC7.84%
ROIC/WACC0.65
Cap/Depr(3y)88.67%
Cap/Depr(5y)84.44%
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)-37.05%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-11.76%
EPS Next Y-17.73%
EPS Next 2Y-5.3%
EPS Next 3Y2.82%
EPS Next 5Y5.02%
Revenue 1Y (TTM)-7.47%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-1.19%
Revenue Next Year-3.55%
Revenue Next 2Y-1.11%
Revenue Next 3Y0.34%
Revenue Next 5YN/A
EBIT growth 1Y-41.02%
EBIT growth 3Y6.85%
EBIT growth 5Y-4.07%
EBIT Next Year73.56%
EBIT Next 3Y21.91%
EBIT Next 5Y14.37%
FCF growth 1Y-61.64%
FCF growth 3Y-1.94%
FCF growth 5Y3%
OCF growth 1Y-34.89%
OCF growth 3Y4.95%
OCF growth 5Y1.16%