Bp Plc (NYSE: BP)

Sector: Energy Industry: Oil & Gas Integrated CIK: 0000313807
Market Cap 98.37 Bn
P/B 1.85
P/E 1,788.57
P/S 0.51
ROIC (Qtr) 18.58
Div Yield % 5.22
Rev 1y % (Qtr) -0.72
Total Debt (Qtr) 72.53 Bn
Debt/Equity (Qtr) 1.37
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About

BP PLC, known by its ticker symbol BP, is a prominent player in the energy industry, specializing in the exploration, production, refining, marketing, and distribution of oil and natural gas, along with the manufacture and sale of petrochemicals. The company's operations span various regions globally, including the Gulf of Mexico, the North Sea, and other parts of the world. BP's revenue generation primarily stems from the sale of its main products, which include crude oil, natural gas, and refined petroleum products such as gasoline, diesel fuel,...

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Investment thesis

Bull case

  • Healthy cash reserves of 36.56B provide 5.91x coverage of short-term debt 6.19B, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 260.03B provides 3.59x coverage of total debt 72.53B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 24.49B provides exceptional 19.75x coverage of minority interest expenses 1.24B, showing strong core operations.
  • Operating cash flow of 24.49B provides strong 22.74x coverage of stock compensation 1.08B, indicating sustainable incentive practices.
  • Robust tangible asset base of 260.03B provides 15.81x coverage of working capital 16.45B, indicating strong operational backing.

Bear case

  • Operating cash flow of 24.49B provides thin coverage of dividend payments of (5.06B) with a -4.84 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 11.61B show weak coverage of depreciation charges of 18.16B, with a 0.64 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 12.41B represents just -1.50x of debt issuance (8.30B), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 18.16B relative to operating cash flow of 24.49B, which is 0.74x suggests significant maintenance capital requirements affecting free cash flow.
  • Operating cash flow of 24.49B barely covers operating expenses of 23.86B with a 1.03 ratio, suggesting thin operational efficiency margins and limited flexibility.

Consolidation Items Breakdown of Revenue (2017)

Consolidation Items Breakdown of Revenue (2017)

Peer comparison

Companies in the Oil & Gas Integrated
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 XOM Exxon Mobil Corp 630.73 Bn 18.39 1.45 42.04 Bn
2 CVX Chevron Corp 360.16 Bn 29.26 2.14 41.54 Bn
3 TTE TotalEnergies SE 172.29 Bn 13.13 0.94 61.42 Bn
4 IMO Imperial Oil Ltd 99.73 Bn 51.19 4.54 2.90 Bn
5 BP Bp Plc 98.37 Bn 1,788.57 0.51 72.53 Bn
6 SU Suncor Energy Inc 67.22 Bn 15.56 1.87 10.59 Bn
7 CVE Cenovus Energy Inc. 38.97 Bn 17.12 1.04 7.27 Bn
8 NFG National Fuel Gas Co 7.90 Bn 12.06 3.32 2.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.50 1.02
EV to Cash from Ops. EV/CFO 5.65 11.79
EV to Debt EV to Debt 1.91 7.40
EV to EBIT EV/EBIT 11.91 19.95
EV to EBITDA EV/EBITDA 4.49 7.85
EV to Free Cash Flow [EV/FCF] EV/FCF 11.14 46.96
EV to Market Cap EV to Market Cap 1.41 1.30
EV to Revenue EV/Rev 0.72 2.01
Price to Book Value [P/B] P/B 1.85 2.14
Price to Earnings [P/E] P/E 1,788.57 168.60
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.01 0.95
Dividend Payout Ratio % Div Payout % (Qtr) 9,323.80 786.52
Dividend per Basic Share Div per Share (Qtr) 1.96 1.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 40.72 37.80
Interest Coverage Int. cover (Qtr) 2.27 42.88
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 19.31 -10.32
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.75 32.58
Dividend Growth (1y) % Div 1y % (Qtr) 6.88 -4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -85.60 142.66
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 7.39 22.56
EBIT Growth (1y) % EBIT 1y % (Qtr) 9.37 35.32
EBT Growth (1y) % EBT 1y % (Qtr) 9.64 190.68
EPS Growth (1y) % EPS 1y % (Qtr) -85.31 511.78
FCF Growth (1y) % FCF 1y % (Qtr) 0.70 4.66
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.32 16.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.69 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.14 0.13
Cash Ratio Cash Ratio (Qtr) 0.46 0.27
Current Ratio Curr Ratio (Qtr) 1.21 1.06
Debt to Equity Ratio Debt/Equity (Qtr) 1.37 0.88
Interest Cover Ratio Int Coverage (Qtr) 2.27 42.88
Times Interest Earned Times Interest Earned (Qtr) 2.27 42.88
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.50 18.39
EBIT Margin % EBIT Margin % (Qtr) 6.03 6.19
EBT Margin % EBT Margin % (Qtr) 3.38 1.30
Gross Margin % Gross Margin % (Qtr) 28.30 30.31
Net Profit Margin % Net Margin % (Qtr) 0.00 -1.26