-1.09 | -2.86%
BP PLC's gross profit margin for the first quarter of its fiscal year 2012 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. BP PLC has weak liquidity. Currently, the Quick Ratio is 0.68 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 15.57% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Net Sales ($mil) | 94040.0 | 85329.0 |
| EBITDA ($mil) | 9965.0 | 12416.0 |
| EBIT ($mil) | 6757.0 | 9581.0 |
| Net Income ($mil) | 5915.0 | 7254.0 |
| Balance Sheet | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 14395.0 | 20165.0 |
| Total Assets ($mil) | 303544.0 | 286592.0 |
| Total Debt ($mil) | 46470.0 | 47102.0 |
| Equity ($mil) | 118126.0 | 102208.0 |
| Profitability | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Gross Profit Margin | 14.2 | 18.43 |
| EBITDA Margin | 10.6 | 14.55 |
| Operating Margin | 7.19 | 11.23 |
| Sales Turnover | 1.27 | 1.08 |
| Return on Assets | 8.07 | -0.89 |
| Return on Equity | 20.73 | -2.49 |
| Debt | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Current Ratio | 1.23 | 1.21 |
| Debt/Capital | 0.28 | 0.32 |
| Interest Expense | 277.0 | 292.0 |
| Interest Coverage | 24.39 | 32.81 |
| Share Data | Q1 FY12 | Q1 FY11 |
|---|---|---|
| Shares outstanding (mil) | 3169.37 | 3144.42 |
| Div / share | 0.48 | 0.42 |
| EPS | 1.84 | 2.29 |
| Book value / share | 37.27 | 32.5 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 7113662.0 | 7208647.0 |
BUY. BP PLC's P/E ratio indicates a significant discount compared to an average of 16.38 for the Oil, Gas & Consumable Fuels industry and a significant discount compared to the S&P 500 average of 15.19. To use another comparison, its price-to-book ratio of 1.03 indicates a discount versus the S&P 500 average of 2.12 and a significant discount versus the industry average of 5.14. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, BP PLC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BP 5.00 | Peers 16.38 | BP 5.24 | Peers 11.76 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. BP is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. BP is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| BP 5.92 | Peers 11.24 | BP NM | Peers 1.10 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. BP is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. BP's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| BP 1.03 | Peers 5.14 | BP 979.31 | Peers 94.39 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. BP is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. BP is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| BP 0.32 | Peers 1.56 | BP 24.19 | Peers 29.11 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. BP is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. BP trails its peers on the basis of sales growth |
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