LSE:BP.

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Mediocre balance sheet second-rate dividend payer.


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


Market Performance


7 Day Return

-2.7%

BP.

0.4%

GB Oil and Gas

1.7%

GB Market


1 Year Return

-11.9%

BP.

-4.7%

GB Oil and Gas

2.9%

GB Market

Return vs Industry: BP. underperformed the UK Oil and Gas industry which returned -4.7% over the past year.

Return vs Market: BP. underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

BP.IndustryMarket
7 Day-2.7%0.4%1.7%
30 Day-5.6%-2.7%-0.7%
90 Day-5.7%-2.7%-1.8%
1 Year-6.4%-11.9%0.09%-4.7%8.0%2.9%
3 Year20.0%-0.4%33.0%15.6%18.2%3.8%
5 Year53.5%11.2%31.4%7.1%35.6%6.1%

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

Valuation

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

14.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BP. (£4.88) is trading below our estimate of fair value (£5.71)

Significantly Undervalued: BP. is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BP. is poor value based on its PE Ratio (14.3x) compared to the Oil and Gas industry average (6.7x).

PE vs Market: BP. is good value based on its PE Ratio (14.3x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BP. is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: BP. is overvalued based on its PB Ratio (1.3x) compared to the GB Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is BP forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BP.'s forecast earnings growth (11.5% per year) is above the savings rate (1.2%).

Earnings vs Market: BP.'s earnings (11.5% per year) are forecast to grow slower than the UK market (12.9% per year).

High Growth Earnings: BP.'s earnings are forecast to grow, but not significantly.

Revenue vs Market: BP.'s revenue (3.2% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: BP.'s revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BP.'s Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has BP performed over the past 5 years?

26.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BP.'s earnings have grown significantly by 26.4% per year over the past 5 years.

Accelerating Growth: BP.'s earnings growth over the past year (25.6%) is below its 5-year average (26.4% per year).

Earnings vs Industry: BP. earnings growth over the past year (25.6%) underperformed the Oil and Gas industry 29.4%.


Return on Equity

High ROE: BP.'s Return on Equity (8.8%) is considered low.


Return on Assets

ROA vs Industry: BP.'s Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: BP.'s Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is BP's financial position?


Financial Position Analysis

Short Term Liabilities: BP.'s short term assets ($71.5B) exceeds its short term liabilities ($66.9B)

Long Term Liabilities: BP.'s short term assets (71.5B) do not cover its long term liabilities (122.7B)


Debt to Equity History and Analysis

Debt Level: BP.'s debt to equity ratio (65.2%) is considered high

Reducing Debt: BP.'s debt to equity ratio has increased from 39.3% to 65.2% over the past 5 years.

Debt Coverage: BP.'s debt is well covered by operating cash flow (37.1%).

Interest Coverage: BP.'s interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet

Inventory Level: BP. has a high level of physical assets or inventory.

Debt Coverage by Assets: BP.'s debt is covered by short term assets (assets are 1.059060x debt).


Next Steps

Dividend

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

6.53%

Current Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%2.0%markettop25%5.4%industryaverage5.4%forecastin3Years6.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BP.'s dividend (6.53%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: BP.'s dividend (6.53%) is in the top 25% of dividend payers in the UK market (5.41%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.1%), BP.'s dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BP.'s dividends in 3 years are forecast to be covered by earnings (71.1% payout ratio).


Next Steps

Management

What is the CEO of BP's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Bob Dudley (64yo)

9yrs

Tenure

US$14,666,000

Compensation

Mr. Robert Warren Dudley, also known as Bob, has been the Group Chief Executive Officer/Managing Director of BP p.l.c. since October 1, 2010 and has been its Executive Director since April 6, 2009. Mr. Dud ...


CEO Compensation Analysis

Compensation vs. Market: Bob's total compensation ($USD14.67M) is about average for companies of similar size in the UK market ($USD4.63M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.8yrs

Average Tenure

58yo

Average Age

Experienced Management: BP.'s management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: BP.'s board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,945,33802 May 19
Bernard Looney
EntityIndividual
Shares347,630
Max PriceUS$5.60
SellUS$5,905,89606 Feb 19
Bernard Looney
EntityIndividual
Shares1,092,208
Max PriceUS$5.41
SellUS$573,88005 Dec 18
Brian Gilvary
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Executive Director
Shares107,256
Max PriceUS$5.35

Ownership Breakdown


Management Team

  • Steve Marshall

    Head of Training Academy and Vice President

    • Tenure: 12.8yrs
  • Bob Dudley (64yo)

    Group CEO & Executive Director

    • Tenure: 9yrs
    • Compensation: US$14.67m
  • Craig Marshall

    Group Head of Investor Relations

    • Tenure: 0yrs
  • Brian Gilvary (57yo)

    Group CFO & Executive Director

    • Tenure: 7.8yrs
    • Compensation: US$7.98m
  • Helmut Schuster (58yo)

    Executive Vice President of Group Human Resources & Group HR Director

    • Tenure: 8.6yrs
  • Geoff Morrell (50yo)

    Group Head of Communications & External Affairs

    • Tenure: 2.2yrs
  • Angela R. Strank (66yo)

    Chief Scientist & Head of Technology - Downstream

    • Tenure: 5.4yrs
  • Eric Nitcher (56yo)

    Group General Counsel

    • Tenure: 2.8yrs
  • David Eyton (58yo)

    Group Head of Technology

    • Tenure: 0yrs
  • Rahul Saxena

    Group Ethics & Compliance Officer

    • Tenure: 0yrs

Board Members

  • Paula G. Reynolds (62yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: US$199.00k
  • Ian Edward Davis (68yo)

    Senior Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$172.00k
  • Helge Lund (57yo)

    Independent Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$168.00k
  • Nils Andersen (61yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: US$143.00k
  • Bob Dudley (64yo)

    Group CEO & Executive Director

    • Tenure: 9yrs
    • Compensation: US$14.67m
  • Brendan Nelson (69yo)

    Independent Non-Executive Director

    • Tenure: 8.9yrs
    • Compensation: US$162.00k
  • Brian Gilvary (57yo)

    Group CFO & Executive Director

    • Tenure: 7.8yrs
    • Compensation: US$7.98m
  • Dame Dowling (66yo)

    Independent Non Executive Director

    • Tenure: 7.7yrs
    • Compensation: US$160.00k
  • John Sawers (63yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: US$151.00k
  • Susan Dio (58yo)

    Chairman & President of BP America

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: BP p.l.c.
  • Ticker: BP.
  • Exchange: LSE
  • Founded: 1889
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: UK£98.691b
  • Shares outstanding: 20.21b
  • 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)SPONSORED ADRUSUSDJan 1968
0HKPLSE (London Stock Exchange)SPONSORED ADRGBUSDJan 1968
BP NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNJan 1968
BSUBST (Boerse-Stuttgart)SPONSORED ADRDEEURJan 1968
BP.BLSE (London Stock Exchange)9% CUM 2ND PRF GBP1GBGBPJan 1992
BPLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
BPEDB (Deutsche Boerse AG)ORD USD0.25 REGD(DT ZERT)DEEURJan 1992
BPAQ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BPEXTRA (XETRA Trading Platform)ORD USD0.25 REGD(DT ZERT)DEEURJan 1992
BP.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
BP.ALSE (London Stock Exchange)8% CUM 1ST PRF GBP1GBGBPJan 1992
BPE5XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
BPE5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BPSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 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 dev ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:33
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.