A strong performer from today's afternoon trading session is BP p.l.c., whose shares rose 1.4% to $27.59 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.
BP p.l.c.'s Valuation Is in Line With Its Sector Averages:
BP p.l.c., an integrated energy company, provides carbon products and services. The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 13.62 and an average price to book (P/B) ratio of 1.86. In contrast, BP p.l.c. has a trailing 12 month P/E ratio of 197.1 and a P/B ratio of 7.38.
BP p.l.c. has moved -29.1% over the last year compared to 7.5% for the S&P 500 — a difference of -36.5%. BP p.l.c. has a 52 week high of $39.73 and a 52 week low of $25.22.
Summary of the Company's Finances:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $163,526 | $109,078 | $164,195 | $248,891 | $213,032 | $194,629 |
| Operating Margins | 7% | -20% | 11% | 7% | 13% | 6% |
| Net Margins | 3% | -19% | 5% | -1% | 7% | 1% |
| Net Income (M) | $4,190 | -$20,729 | $8,487 | -$1,357 | $15,880 | $1,229 |
| Diluted Shares (M) | 21,549 | 21,428 | 20,791 | 19,110 | 17,914 | 16,675 |
| Earnings Per Share | $0.2 | -$1.0 | $0.37 | -$0.13 | $0.86 | $0.02 |
| EPS Growth | n/a | -600.0% | 137.0% | -135.14% | 761.54% | -97.67% |
| Free Cash Flow (M) | $3,157 | -$2,595 | $7,612 | $10,807 | $9,338 | $158 |
| CAPEX (M) | $22,613 | $14,757 | $16,000 | $30,125 | $22,701 | $27,139 |
| Total Debt (M) | $57,237 | $72,664 | $61,176 | $46,944 | $51,954 | $59,547 |
| Net Debt / EBITDA | 1.18 | -6.07 | 0.93 | 0.55 | 0.44 | 0.73 |
| Current Ratio | 1.12 | 1.22 | 1.15 | 1.09 | 1.21 | 1.25 |
BP p.l.c. has weak operating margins with a stable trend, declining EPS growth, and positive cash flows. On the other hand, the company benefits from growing revenues and increasing reinvestment in the business and healthy leverage levels. Furthermore, BP p.l.c. has just enough current assets to cover current liabilities, as shown by its current ratio of 1.25.
