DB:BPE5

Stock Analysis Report

Executive Summary

BP p.l.c. engages in the energy business worldwide.


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has BP's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BPE5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.3%

BPE5

6.9%

DE Oil and Gas

9.1%

DE Market


1 Year Return

-42.5%

BPE5

35.1%

DE Oil and Gas

-13.1%

DE Market

Return vs Industry: BPE5 underperformed the German Oil and Gas industry which returned 35.1% over the past year.

Return vs Market: BPE5 underperformed the German Market which returned -13.1% over the past year.


Shareholder returns

BPE5IndustryMarket
7 Day0.3%6.9%9.1%
30 Day4.1%2.0%-1.0%
90 Day-34.7%-21.6%-20.7%
1 Year-38.7%-42.5%39.0%35.1%-10.6%-13.1%
3 Year-17.9%-31.5%-6.1%-14.5%-10.7%-18.1%
5 Year-19.9%-42.0%201.3%155.4%-10.7%-22.8%

Price Volatility Vs. Market

How volatile is BP's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is BP undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BPE5 (€3.81) is trading below our estimate of fair value (€13.65)

Significantly Below Fair Value: BPE5 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BPE5 is poor value based on its PE Ratio (21x) compared to the Oil and Gas industry average (6.9x).

PE vs Market: BPE5 is poor value based on its PE Ratio (21x) compared to the German market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: BPE5 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: BPE5 is good value based on its PB Ratio (0.9x) compared to the DE Oil and Gas industry average (1x).


Next Steps

Future Growth

How is BP forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

35.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BPE5's forecast earnings growth (35.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: BPE5's earnings (35.1% per year) are forecast to grow faster than the German market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BPE5's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: BPE5's revenue is forecast to decline over the next 3 years (-1.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BPE5's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has BP performed over the past 5 years?

50.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BPE5 has a large one-off loss of $3.0B impacting its December 31 2019 financial results.

Growing Profit Margin: BPE5's current net profit margins (1.5%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: BPE5's earnings have grown significantly by 50.1% per year over the past 5 years.

Accelerating Growth: BPE5's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BPE5 had negative earnings growth (-57.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (0.4%).


Return on Equity

High ROE: BPE5's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is BP's financial position?


Financial Position Analysis

Short Term Liabilities: BPE5's short term assets ($82.1B) exceed its short term liabilities ($73.6B).

Long Term Liabilities: BPE5's short term assets ($82.1B) do not cover its long term liabilities ($120.9B).


Debt to Equity History and Analysis

Debt Level: BPE5's debt to equity ratio (67.2%) is considered high.

Reducing Debt: BPE5's debt to equity ratio has increased from 46.3% to 67.2% over the past 5 years.

Debt Coverage: BPE5's debt is well covered by operating cash flow (38.1%).

Interest Coverage: BPE5's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

What is BP's current dividend yield, its reliability and sustainability?

10.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BPE5's dividend (10.07%) is higher than the bottom 25% of dividend payers in the German market (1.54%).

High Dividend: BPE5's dividend (10.07%) is in the top 25% of dividend payers in the German market (4.57%)


Stability and Growth of Payments

Stable Dividend: BPE5's dividend payments have been volatile in the past 10 years.

Growing Dividend: BPE5's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (207.9%), BPE5's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BPE5's dividends in 3 years are forecast to be covered by earnings (81.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Bernard Looney (49yo)

0.17

Tenure

Mr. Bernard Looney has been group chief executive of BP PLC and join the BP Board on 5 February 2020.He was the Chief Executive of Upstream at BP p.l.c. since April 2016 and served as its Chief Operating O ...


Leadership Team

NamePositionTenureCompensationOwnership
Brian Gilvary
Group CFO & Executive Director8.25yrsUS$6.56m0.016% $12.1m
Bernard Looney
Group Chief Executive Officer & Director0.17yrno data0.0014% $1.1m
David Eyton
Executive Vice President of Innovation & Engineering1.58yrsno datano data
Dame Angela R. Strank
Chief Scientist & Head of Technology - Downstream5.92yrsno datano data
Craig Marshall
Group Head of Investor Relationsno datano datano data
Eric Nitcher
Executive Vice President of Legal3.25yrsno datano data
Rahul Saxena
Group Ethics & Compliance Officerno datano datano data
Geoff Morrell
Group Head of Communications & External Affairs2.67yrsno datano data
Helmut Schuster
9.08yrsno datano data
Steve Marshall
Head of Training Academy and Vice President13.25yrsno datano data

4.6yrs

Average Tenure

57yo

Average Age

Experienced Management: BPE5's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Gilvary
Group CFO & Executive Director8.25yrsUS$6.56m0.016% $12.1m
Bernard Looney
Group Chief Executive Officer & Director0.17yrno data0.0014% $1.1m
Susan Dio
Chairman & President of BP America1.92yrsno datano data
Paula G. Reynolds
Former Senior Independent Director4.92yrsUS$206.00k0.00036% $277.4k
Ian Edward Davis
Senior Independent Director2.92yrsUS$170.00k0.00026% $200.3k
Helge Lund
Independent Chairman of the Board1.25yrsUS$880.00k0.0030% $2.3m
Melody Meyer
Independent Non-Executive Director2.92yrsUS$168.00k0.00010% $77.1k
Brendan Nelson
Independent Non-Executive Director9.42yrsUS$161.00k0.000050% $38.5k
Dame Dowling
Independent Non-Executive Director8.17yrsUS$143.00k0.00011% $84.8k
John Sawers
Independent Non-Executive Director4.92yrsUS$146.00k0.00011% $84.8k

3.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: BPE5's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BPE5 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BP p.l.c.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BP p.l.c.
  • Ticker: BPE5
  • Exchange: DB
  • Founded: 1889
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: UK£67.477b
  • Listing Market Cap: UK£77.055b
  • Shares outstanding: 20.10b
  • Website: https://www.bp.com

Number of Employees


Location

  • BP p.l.c.
  • 1 St James's Square
  • London
  • Greater London
  • SW1Y 4PD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BPNYSE (New York Stock Exchange)ADR(CNV INTO 6 ORD USD0.25 SHS)USUSDJan 1968
0HKPLSE (London Stock Exchange)ADR(CNV INTO 6 ORD USD0.25 SHS)GBUSDJan 1968
BP NBMV (Bolsa Mexicana de Valores)ADR(CNV INTO 6 ORD USD0.25 SHS)MXMXNJan 1968
BSUBST (Boerse-Stuttgart)ADR(CNV INTO 6 ORD USD0.25 SHS)DEEURJan 1968
BPAQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BP.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
BP.ALSE (London Stock Exchange)8% CUM 1ST PRF GBP1GBGBPJan 1992
BP.BLSE (London Stock Exchange)9% CUM 2ND PRF GBP1GBGBPJan 1992
BPEDB (Deutsche Boerse AG)ORD USD0.25 REGD(DT ZERT)DEEURJan 1992
BPSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
BPE5XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
BPE5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BPLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
0M5MLSE (London Stock Exchange)ORD USD0.25 REGD(DT ZERT)GBEURJan 1992
BPEXTRA (XETRA Trading Platform)ORD USD0.25 REGD(DT ZERT)DEEURJan 1992
BPBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/5 ADRARARSSep 2000

Biography

BP p.l.c. engages in the energy business worldwide. It operates through three segments: Upstream, Downstream, and Rosneft. The Upstream segment is involved in the oil and natural gas exploration, field development, and production; midstream transportation, storage, and processing; and marketing and trading of liquefied natural gas (LNG), and power and natural gas liquids (NGLs). This segment also engages in the ownership and management of crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing facilities and transportation, as well as in NGLs processing business. The Downstream segment refines, manufactures, markets, transports, supplies, and trades in crude oil, petroleum, and petrochemical products and related services to wholesale and retail customers. It offers gasoline, diesel, and aviation fuel; lubricants, and related products and services to the automotive, industrial, marine, and energy markets under the Castrol, BP, and Aral brands; and petrochemical products, such as purified terephthalic acid, paraxylene, acetic acid, olefins and derivatives, and specialty petrochemical products. The Rosneft segment engages in the exploration and production of hydrocarbons, as well as jet fuel, bunkering, bitumen, and lubricants activities. This segment also owns and operates 13 refineries in Russia; and approximately 3,000 retail service stations in Russia and internationally. The company also produces ethanol, bio-isobutanol, bio-power, and solar energy; transports hydrocarbon products through time-chartered and spot-chartered vessels; and holds interests in wind farms. BP p.l.c. was founded in 1889 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 04:34
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.