It hasn't been a great afternoon session for BP p.l.c. investors, who have watched their shares sink by -1.7% to a price of $31.18. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
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 18.35 and an average price to book (P/B) ratio of 1.6. In contrast, BP p.l.c. has a trailing 12 month P/E ratio of -76.0 and a P/B ratio of 8.45.
BP p.l.c. has moved -9.7% over the last year compared to 9.2% for the S&P 500 — a difference of -18.9%. BP p.l.c. has a 52 week high of $37.39 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.
