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BP

BPNYSE:BP Stock Report

Last Price

UK£32.10

Market Cap

UK£105.4b

7D

2.9%

1Y

29.4%

Updated

19 Jan, 2022

Data

Company Financials +
BP fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health3/6
Dividends4/6

BP Stock Overview

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

BP Competitors

Occidental Petroleum

NYSE:OXY

US$33.5b

Saudi Arabian Oil

SASE:2222

ر.س7.4t

Walmart

NYSE:WMT

US$399.3b

Reliance Industries

NSEI:RELIANCE

₹16.0t

Price History & Performance

Summary of all time highs, changes and price drops for BP
Historical stock prices
Current Share PriceUK£32.10
52 Week HighUK£32.64
52 Week LowUK£20.43
Beta0.85
1 Month Change25.15%
3 Month Change9.04%
1 Year Change29.38%
3 Year Change-19.99%
5 Year Change-13.31%
Change since IPO96.41%

Recent News & Updates

Dec 29

BP: Investors Have Questions About The Energy Transition

BP stock has been mostly trading between $20-30 for the last couple of years. BP is transitioning to green energy over a short time frame. We think that companies in transition should be avoided to preserve capital and income. There are better ways to play upstream energy.

Dec 22

BP Midstream Merger: Still A Fair Deal, Hold BP For 10%/Year Returns

BP Midstream Partners has finalized the terms of its all-stock merger with BP at 0.575 BP ADS's per BPMP unit. The new ratio is 10.8% better than the initial proposal announced in August, about as I expected. Valuation is fair compared to similar midstream MLPs. BP can deliver 10.6% per year total return through 2030, similar to BPMP's pre-merger distribution yield. This return is possible even with declining hydrocarbon production and growing renewables.

Dec 14

BP: Dividends In 2022, A Coiled Spring Ready To Rebound Higher

After halving their dividends during 2020 and restarting growth earlier in 2021, BP heads towards 2022 with their dividends appearing like a coiled spring ready to rebound higher. Their cash flow performance has continued strengthening thanks to strong oil prices, which appear more likely to increase rather than decrease in 2022. This suggests very strong dividend coverage, and combined with their share buybacks removing a sizeable portion of shares, they have ample scope to boost their dividends. They already accelerated their dividend growth earlier in 2021 versus their original capital allocation strategy, thereby making it reasonable to expect this again given the favorable backdrop. Since this sets the scene for even more dividend growth in the future, I believe that maintaining my bullish rating is appropriate.

Shareholder Returns

BPUS Oil and GasUS Market
7D2.9%0.7%-4.6%
1Y29.4%45.7%7.7%

Return vs Industry: BP underperformed the US Oil and Gas industry which returned 46.8% over the past year.

Return vs Market: BP exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is BP's price volatile compared to industry and market?
BP volatility
BP Average Weekly Movement4.5%
Oil and Gas Industry Average Movement7.3%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: BP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BP's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190863,600Bernard Looneyhttps://www.bp.com

BP p.l.c. engages in the energy business worldwide. It operates through Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments. It produces and trades in natural gas; offers biofuels; operates onshore and offshore wind power, and solar power generating facilities; and provides de-carbonization solutions and services, such as hydrogen, and carbon capture, usage and storage.

BP Fundamentals Summary

How do BP's earnings and revenue compare to its market cap?
BP fundamental statistics
Market CapUS$105.41b
Earnings (TTM)US$6.60b
Revenue (TTM)US$208.30b

16.0x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BP income statement (TTM)
RevenueUS$208.30b
Cost of RevenueUS$175.97b
Gross ProfitUS$32.33b
ExpensesUS$25.73b
EarningsUS$6.60b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.34
Gross Margin15.52%
Net Profit Margin3.17%
Debt/Equity Ratio70.8%

How did BP perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

66%

Payout Ratio

Valuation

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

6.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BP ($32.1) is trading below our estimate of fair value ($34.48)

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


Price To Earnings Ratio

PE vs Industry: BP is good value based on its PE Ratio (16x) compared to the US Oil and Gas industry average (18.2x).

PE vs Market: BP is good value based on its PE Ratio (16x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: BP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BP is good value based on its PB Ratio (1.4x) compared to the US Oil and Gas industry average (2.2x).


Future Growth

How is BP forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BP's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: BP's earnings are forecast to decline over the next 3 years (-1.2% per year).

High Growth Earnings: BP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BP's revenue (0.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: BP's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BP's Return on Equity is forecast to be low in 3 years time (15.3%).


Past Performance

How has BP performed over the past 5 years?

-27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BP has a large one-off gain of $16.3B impacting its September 30 2021 financial results.

Growing Profit Margin: BP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BP has become profitable over the past 5 years, growing earnings by -27.6% per year.

Accelerating Growth: BP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (17.4%).


Return on Equity

High ROE: BP's Return on Equity (8.3%) is considered low.


Financial Health

How is BP's financial position?


Financial Position Analysis

Short Term Liabilities: BP's short term assets ($90.5B) exceed its short term liabilities ($78.1B).

Long Term Liabilities: BP's short term assets ($90.5B) do not cover its long term liabilities ($119.2B).


Debt to Equity History and Analysis

Debt Level: BP's net debt to equity ratio (36.2%) is considered satisfactory.

Reducing Debt: BP's debt to equity ratio has increased from 62.8% to 70.8% over the past 5 years.

Debt Coverage: BP's debt is well covered by operating cash flow (31.3%).

Interest Coverage: Insufficient data to determine if BP's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

3.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BP's dividend (3.91%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: BP's dividend (3.91%) is in the top 25% of dividend payers in the US market (3.48%)


Stability and Growth of Payments

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 reasonable payout ratio (65.7%), BP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BP's dividends in 3 years are forecast to be well covered by earnings (32.4% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Bernard Looney (51 yo)

5.75yrs

Tenure

US$2,538,099

Compensation

Mr. Bernard Looney serves as Director at Public Joint Stock Company Rosneft Oil Company since June 2, 2020. He has been Chief Executive Officer of BP PLC and join the BP Board on 5 February 2020. He was th...


CEO Compensation Analysis

Compensation vs Market: Bernard's total compensation ($USD2.54M) is below average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Insufficient data to compare Bernard's compensation with company performance.


Leadership Team

Experienced Management: BP's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: BP's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: BP p.l.c.
  • Ticker: BP
  • Exchange: NYSE
  • Founded: 1908
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Implied Market Cap: UK£77.338b
  • Listing Market Cap: UK£105.409b
  • Shares outstanding: 19.62b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:36
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.