BP PLC-SPONS ADR (BP) Stock Fundamental Analysis
NYSE:BP - New York Stock Exchange, Inc. - US0556221044 - ADR - Currency: USD
Taking everything into account, BP scores 3 out of 10 in our fundamental rating. BP was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of BP have multiple concerns. 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.
Each year in the past 5 years BP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.43%, BP is doing worse than 69.19% of the companies in the same industry.
BP has a Return On Equity of -2.05%. This is in the lower half of the industry: BP underperforms 68.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.58%, BP is doing worse than 61.14% of the companies in the same industry.
BP had an Average Return On Invested Capital over the past 3 years of 11.54%. This is significantly below the industry average of 23.70%.
The last Return On Invested Capital (4.58%) 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 | -0.43% | ||
| ROE | -2.05% | ||
| ROIC | 4.58% |
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
BP's Profit Margin has declined in the last couple of years.
BP's Operating Margin of 6.14% is on the low side compared to the rest of the industry. BP is outperformed by 65.88% of its industry peers.
In the last couple of years the Operating Margin of BP has declined.
The Gross Margin of BP (24.35%) is worse than 63.03% of its industry peers.
BP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.14% | ||
| PM (TTM) | N/A | ||
| GM | 24.35% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BP is still creating some value.
The number of shares outstanding for BP has been reduced compared to 1 year ago.
Compared to 5 years ago, BP has less shares outstanding
Compared to 1 year ago, BP has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of BP is 6.98, which is on the high side as it means it would take BP, 6.98 years of fcf income to pay off all of its debts.
BP has a Debt to FCF ratio of 6.98. This is comparable to the rest of the industry: BP outperforms 57.35% of its industry peers.
BP has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
BP has a Debt to Equity ratio of 1.09. This is in the lower half of the industry: BP underperforms 70.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | N/A |
ROIC/WACC0.57
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.22 indicates that BP should not have too much problems paying its short term obligations.
BP's Current ratio of 1.22 is in line compared to the rest of the industry. BP outperforms 54.98% of its industry peers.
BP has a Quick Ratio of 1.22. This is a bad value and indicates that BP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.92, BP perfoms like the industry average, outperforming 48.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| 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 -32.25%.
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 -7.70% 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)-32.25%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-49.69%
Revenue 1Y (TTM)-7.7%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-4.04%
3.2 Future
The Earnings Per Share is expected to grow by 5.17% 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 -1.65% on average per year.
EPS Next Y-1.18%
EPS Next 2Y5.37%
EPS Next 3Y8.41%
EPS Next 5Y5.17%
Revenue Next Year-8.1%
Revenue Next 2Y-3.4%
Revenue Next 3Y-1.65%
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
Based on the Price/Earnings ratio of 10.85, the valuation of BP can be described as reasonable.
Based on the Price/Earnings ratio, BP is valued a bit cheaper than 69.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of BP to the average of the S&P500 Index (27.45), we can say BP is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.35, the valuation of BP can be described as very reasonable.
BP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BP is cheaper than 74.41% of the companies in the same industry.
BP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
76.78% of the companies in the same industry are more expensive than BP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BP is valued cheaply inside the industry as 81.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.89 | ||
| EV/EBITDA | 4.22 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)7.17
EPS Next 2Y5.37%
EPS Next 3Y8.41%
5. Dividend
5.1 Amount
BP has a Yearly Dividend Yield of 6.31%, which is a nice return.
Compared to an average industry Dividend Yield of 6.66, 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
5.2 History
The dividend of BP decreases each year by -2.32%.
BP has been paying a dividend for at least 10 years, so it has 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
BP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-421.49%
EPS Next 2Y5.37%
EPS Next 3Y8.41%
30.93
-0.37 (-1.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners46.49%
Inst Owner Change9.97%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap80.41B
Analysts66.67
Price Target34.05 (10.09%)
Short Float %0.48%
Short Ratio1.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.31% |
Yearly Dividend0.31
Dividend Growth(5Y)-2.32%
DP-421.49%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.17%
Min EPS beat(2)-21.57%
Max EPS beat(2)-6.77%
EPS beat(4)2
Avg EPS beat(4)-4.04%
Min EPS beat(4)-21.57%
Max EPS beat(4)7.85%
EPS beat(8)3
Avg EPS beat(8)-7.7%
EPS beat(12)7
Avg EPS beat(12)1.21%
EPS beat(16)11
Avg EPS beat(16)6.73%
Revenue beat(2)2
Avg Revenue beat(2)9.28%
Min Revenue beat(2)7.46%
Max Revenue beat(2)11.1%
Revenue beat(4)4
Avg Revenue beat(4)6.41%
Min Revenue beat(4)2.68%
Max Revenue beat(4)11.1%
Revenue beat(8)6
Avg Revenue beat(8)1.46%
Revenue beat(12)10
Avg Revenue beat(12)9.96%
Revenue beat(16)11
Avg Revenue beat(16)3.71%
PT rev (1m)-9.66%
PT rev (3m)-10.2%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-23.05%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-12.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 8.35 | ||
| P/S | 0.43 | ||
| P/FCF | 7.89 | ||
| P/OCF | 3.2 | ||
| P/B | 1.38 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 4.22 |
EPS(TTM)2.85
EY9.21%
EPS(NY)3.71
Fwd EY11.98%
FCF(TTM)3.92
FCFY12.68%
OCF(TTM)9.66
OCFY31.24%
SpS72.01
BVpS22.39
TBVpS13.15
PEG (NY)N/A
PEG (5Y)7.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.43% | ||
| ROE | -2.05% | ||
| ROCE | 5.79% | ||
| ROIC | 4.58% | ||
| ROICexc | 5.52% | ||
| ROICexgc | 6.47% | ||
| OM | 6.14% | ||
| PM (TTM) | N/A | ||
| GM | 24.35% | ||
| FCFM | 5.44% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 6.98 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 90.47% | ||
| Cap/Sales | 7.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score4
WACC8.07%
ROIC/WACC0.57
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)-32.25%
EPS 3Y-5.56%
EPS 5Y1.51%
EPS Q2Q%-49.69%
EPS Next Y-1.18%
EPS Next 2Y5.37%
EPS Next 3Y8.41%
EPS Next 5Y5.17%
Revenue 1Y (TTM)-7.7%
Revenue growth 3Y6.25%
Revenue growth 5Y3.5%
Sales Q2Q%-4.04%
Revenue Next Year-8.1%
Revenue Next 2Y-3.4%
Revenue Next 3Y-1.65%
Revenue Next 5YN/A
EBIT growth 1Y-51.54%
EBIT growth 3Y6.85%
EBIT growth 5Y-4.07%
EBIT Next Year73.56%
EBIT Next 3Y21.91%
EBIT Next 5Y12.45%
FCF growth 1Y-63.27%
FCF growth 3Y-1.94%
FCF growth 5Y3%
OCF growth 1Y-37.73%
OCF growth 3Y4.95%
OCF growth 5Y1.16%