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 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While BP is still in line with the averages on profitability rating, there are concerns on its financial health. BP is valued quite cheap, 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
The Return On Assets of BP (2.70%) is worse than 66.50% of its industry peers.
With a Return On Equity value of 11.00%, BP perfoms like the industry average, outperforming 49.51% of the companies in the same industry.
BP has a Return On Invested Capital of 8.98%. This is in the better half of the industry: BP outperforms 62.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BP is significantly below the industry average of 28.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 11% | ||
| ROIC | 8.98% |
ROA(3y)2.4%
ROA(5y)0.2%
ROE(3y)9.34%
ROE(5y)0.72%
ROIC(3y)11.19%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 3.66%, BP is not doing good in the industry: 66.50% of the companies in the same industry are doing better.
BP's Profit Margin has improved in the last couple of years.
BP's Operating Margin of 10.83% is on the low side compared to the rest of the industry. BP is outperformed by 65.05% of its industry peers.
In the last couple of years the Operating Margin of BP has grown nicely.
Looking at the Gross Margin, with a value of 28.22%, BP is doing worse than 61.16% of the companies in the same industry.
In the last couple of years the Gross Margin of BP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.83% | ||
| PM (TTM) | 3.66% | ||
| GM | 28.22% |
OM growth 3YN/A
OM growth 5Y22%
PM growth 3YN/A
PM growth 5Y18.22%
GM growth 3Y8.44%
GM growth 5Y15.12%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BP 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.
Compared to 1 year ago, BP has a worse debt to assets ratio.
2.2 Solvency
BP has a debt to FCF ratio of 4.02. This is a neutral value as BP would need 4.02 years to pay back of all of its debts.
BP's Debt to FCF ratio of 4.02 is fine compared to the rest of the industry. BP outperforms 64.56% of its industry peers.
BP has a Debt/Equity ratio of 0.88. This is a neutral value indicating BP is somewhat dependend on debt financing.
BP's Debt to Equity ratio of 0.88 is on the low side compared to the rest of the industry. BP is outperformed by 71.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | N/A |
ROIC/WACC1.3
WACC6.92%
2.3 Liquidity
A Current Ratio of 1.22 indicates that BP should not have too much problems paying its short term obligations.
BP has a Current ratio of 1.22. This is comparable to the rest of the industry: BP outperforms 47.09% of its industry peers.
A Quick Ratio of 0.93 indicates that BP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.93, BP is in line with its industry, outperforming 42.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
BP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.86%.
Measured over the past 5 years, BP shows a small growth in Earnings Per Share. The EPS has been growing by 4.60% on average per year.
BP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.95%.
The Revenue has been decreasing by -6.80% on average over the past years.
EPS 1Y (TTM)-25.86%
EPS 3YN/A
EPS 5Y4.6%
EPS Q2Q%-28.42%
Revenue 1Y (TTM)-12.95%
Revenue growth 3Y25.64%
Revenue growth 5Y-6.8%
Sales Q2Q%-9.27%
3.2 Future
Based on estimates for the next years, BP will show a decrease in Earnings Per Share. The EPS will decrease by -4.35% on average per year.
Based on estimates for the next years, BP will show a decrease in Revenue. The Revenue will decrease by -2.90% on average per year.
EPS Next Y-19.26%
EPS Next 2Y-6.38%
EPS Next 3Y-0.49%
EPS Next 5Y-4.35%
Revenue Next Year-14.88%
Revenue Next 2Y-9.34%
Revenue Next 3Y-5.21%
Revenue Next 5Y-2.9%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.68, the valuation of BP can be described as very cheap.
Based on the Price/Earnings ratio, BP is valued a bit cheaper than 76.70% 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 28.58.
Based on the Price/Forward Earnings ratio of 7.16, the valuation of BP can be described as very cheap.
79.61% of the companies in the same industry are more expensive than BP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.47, BP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 7.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BP is valued cheaper than 88.83% of the companies in the same industry.
86.89% 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 | 5.03 | ||
| EV/EBITDA | 2.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.67
EPS Next 2Y-6.38%
EPS Next 3Y-0.49%
5. Dividend
5.1 Amount
BP has a Yearly Dividend Yield of 5.60%, which is a nice return.
BP's Dividend Yield is a higher than the industry average which is at 6.55.
BP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
5.2 History
The dividend of BP decreases each year by -3.81%.
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)-3.81%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
66.41% of the earnings are spent on dividend by BP. This is not a sustainable payout ratio.
BP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP66.41%
EPS Next 2Y-6.38%
EPS Next 3Y-0.49%
BP PLC-SPONS ADR
NYSE:BP (1/27/2025, 11:32:09 AM)
31.19
-0.26 (-0.83%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners41.59%
Inst Owner Change-2.64%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap82.29B
Analysts72
Price Target36.92 (18.37%)
Short Float %0.53%
Short Ratio1.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
Yearly Dividend0.28
Dividend Growth(5Y)-3.81%
DP66.41%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.68%
Min EPS beat(2)-11.21%
Max EPS beat(2)7.85%
EPS beat(4)2
Avg EPS beat(4)-2.42%
Min EPS beat(4)-22.58%
Max EPS beat(4)16.25%
EPS beat(8)5
Avg EPS beat(8)1.97%
EPS beat(12)9
Avg EPS beat(12)6.83%
EPS beat(16)12
Avg EPS beat(16)16.66%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)2.68%
Revenue beat(4)2
Avg Revenue beat(4)-3.17%
Min Revenue beat(4)-17.3%
Max Revenue beat(4)4.75%
Revenue beat(8)6
Avg Revenue beat(8)7.23%
Revenue beat(12)8
Avg Revenue beat(12)7.42%
Revenue beat(16)8
Avg Revenue beat(16)-6.76%
PT rev (1m)-1.65%
PT rev (3m)-15.59%
EPS NQ rev (1m)-1.17%
EPS NQ rev (3m)-11.94%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-12.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)-3.7%
Revenue NY rev (3m)-7.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 7.16 | ||
| P/S | 0.41 | ||
| P/FCF | 5.03 | ||
| P/OCF | 2.63 | ||
| P/B | 1.23 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 2.93 |
EPS(TTM)4.06
EY13.02%
EPS(NY)4.35
Fwd EY13.96%
FCF(TTM)6.2
FCFY19.87%
OCF(TTM)11.84
OCFY37.95%
SpS76.41
BVpS25.4
TBVpS16.8
PEG (NY)N/A
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 11% | ||
| ROCE | 11.37% | ||
| ROIC | 8.98% | ||
| ROICexc | 11.02% | ||
| ROICexgc | 12.89% | ||
| OM | 10.83% | ||
| PM (TTM) | 3.66% | ||
| GM | 28.22% | ||
| FCFM | 8.11% |
ROA(3y)2.4%
ROA(5y)0.2%
ROE(3y)9.34%
ROE(5y)0.72%
ROIC(3y)11.19%
ROIC(5y)N/A
ROICexc(3y)12.92%
ROICexc(5y)N/A
ROICexgc(3y)14.88%
ROICexgc(5y)N/A
ROCE(3y)14.16%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y16.71%
ROICexc growth 3YN/A
ROICexc growth 5Y17.19%
OM growth 3YN/A
OM growth 5Y22%
PM growth 3YN/A
PM growth 5Y18.22%
GM growth 3Y8.44%
GM growth 5Y15.12%
F-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 90.23% | ||
| Cap/Sales | 7.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.49% | ||
| Profit Quality | 221.77% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | N/A |
F-Score5
WACC6.92%
ROIC/WACC1.3
Cap/Depr(3y)82.5%
Cap/Depr(5y)83.38%
Cap/Sales(3y)6.23%
Cap/Sales(5y)8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.86%
EPS 3YN/A
EPS 5Y4.6%
EPS Q2Q%-28.42%
EPS Next Y-19.26%
EPS Next 2Y-6.38%
EPS Next 3Y-0.49%
EPS Next 5Y-4.35%
Revenue 1Y (TTM)-12.95%
Revenue growth 3Y25.64%
Revenue growth 5Y-6.8%
Sales Q2Q%-9.27%
Revenue Next Year-14.88%
Revenue Next 2Y-9.34%
Revenue Next 3Y-5.21%
Revenue Next 5Y-2.9%
EBIT growth 1Y-41.29%
EBIT growth 3YN/A
EBIT growth 5Y13.71%
EBIT Next Year37.47%
EBIT Next 3Y12.45%
EBIT Next 5Y4.91%
FCF growth 1Y-20.16%
FCF growth 3YN/A
FCF growth 5Y23.55%
OCF growth 1Y0.22%
OCF growth 3Y38.11%
OCF growth 5Y6.97%