Don't Take a Position in BP p.l.c. Stocks Without Knowing Its Fundamentals!

BP p.l.c. logged a 0.6% change during today's afternoon session, and is now trading at a price of $35.34 per share.

Over the last year, BP p.l.c. logged a 3.1% change, with its stock price reaching a high of $41.38 and a low of $33.53. Over the same period, the stock underperformed the S&P 500 index by -21.0%. As of April 2023, the company's 50-day average price was $36.77. BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. Based in London, United Kingdom, the large-cap Energy company has 67,600 full time employees. BP p.l.c. has returned a 0.8% dividend yield over the last 12 months, but the company's patchy cash flow history may not sustain it for much longer.

Negative Cash Flows With a Flat Trend:

2015 2016
Revenue (MM) $225,982 $225,982
Revenue Growth n/a 0.0%
Operating Margins -4% 0%
Net Margins -3% 0%
Net Income (MM) -$6,400 $172
Net Interest Expense (MM) $1,065 $1,221
Depreciation & Amort. (MM) $15,219 $15,219
Free Cash Flow (MM) -$947 -$2,071
Capital Expenditures (MM) $20,080 $21,204

BP p.l.c. has consistently negative margins with a positive growth rate, negative expected EPS Growth, and a highly leveraged balance sheet. BP p.l.c. has weak revenue growth and a flat capital expenditure trend.

BP p.l.c. Is Fairly Priced to Earnings but Overpriced Compared to Its Book Value:

BP p.l.c. has a trailing twelve month P/E ratio of 4.4, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $5.27, the company has a forward P/E ratio of 7.0. Furthermore, BP p.l.c. is likely overvalued compared to the book value of its equity, since its P/B ratio of 8.4 is higher than the sector average of 1.78.

BP p.l.c. Has an Average Rating of Buy:

The 15 analysts following BP p.l.c. have set target prices ranging from $38.0 to $62.0 per share, for an average of $44.77 with a buy rating. As of April 2023, the company is trading -17.9% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

The largest shareholder is State Street Corporation, whose 1% stake in the company is worth $758,170,319.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.