BP PLC
BP : NYSE : Basic Materials

$37.02 -1.09 | -2.86%
Today's Range: 37.02 - 37.53
Avg. Daily Volume: 6,948,300
05/30/12 - 4:00 PM ET
TRADE NOW

Financial Analysis


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 ($mil)94040.085329.0
EBITDA ($mil)9965.012416.0
EBIT ($mil)6757.09581.0
Net Income ($mil)5915.07254.0


Balance Sheet Q1 FY12 Q1 FY11
Cash & Equiv. ($mil)14395.020165.0
Total Assets ($mil)303544.0286592.0
Total Debt ($mil)46470.047102.0
Equity ($mil)118126.0102208.0


Profitability Q1 FY12 Q1 FY11
Gross Profit Margin14.218.43
EBITDA Margin10.614.55
Operating Margin7.1911.23
Sales Turnover1.271.08
Return on Assets8.07-0.89
Return on Equity20.73-2.49
Debt Q1 FY12 Q1 FY11
Current Ratio1.231.21
Debt/Capital0.280.32
Interest Expense277.0292.0
Interest Coverage24.3932.81


Share Data Q1 FY12 Q1 FY11
Shares outstanding (mil)3169.373144.42
Div / share0.480.42
EPS1.842.29
Book value / share37.2732.5
Institutional Own % n/a n/a
Avg Daily Volume7113662.07208647.0

Valuation


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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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

 

 

Latest Stock Upgrades/Downgrades