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BP PLC
BP : NYSE : Basic Materials
$41.30 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 9,072,100
03/02/15 - 4:04 PM ET

Financial Analysis


BP PLC's gross profit margin for the fourth quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. BP PLC has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 13.81% 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.

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Income Statement Q4 FY14 Q4 FY13
Net Sales ($mil)73997.093717.0
EBITDA ($mil)2037.04409.0
EBIT ($mil)-1829.0673.0
Net Income ($mil)-4407.01042.0


Balance Sheet Q4 FY14 Q4 FY13
Cash & Equiv. ($mil)30092.022987.0
Total Assets ($mil)284305.0305690.0
Total Debt ($mil)52854.048192.0
Equity ($mil)111441.0129302.0


Profitability Q4 FY14 Q4 FY13
Gross Profit Margin8.9710.87
EBITDA Margin2.754.7
Operating Margin-2.470.72
Sales Turnover1.241.24
Return on Assets1.327.67
Return on Equity3.3918.13
Debt Q4 FY14 Q4 FY13
Current Ratio1.371.33
Debt/Capital0.320.27
Interest Expense290.0245.0
Interest Coverage-6.312.75


Share Data Q4 FY14 Q4 FY13
Shares outstanding (mil)3033.313101.92
Div / share0.60.57
EPS-1.440.33
Book value / share36.7441.68
Institutional Own % n/a n/a
Avg Daily Volume9236579.07413603.0

Valuation


HOLD. BP PLC's P/E ratio indicates a significant premium compared to an average of 22.70 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 19.92. For additional comparison, its price-to-book ratio of 1.13 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 12.65. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BP 34.18 Peers 22.70   BP 3.83 Peers 12.70

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

BP is trading at a significant premium 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 16.41 Peers 32.77   BP 0.48 Peers 0.60

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.

 

Discount. 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 trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BP 1.13 Peers 12.65   BP -83.52 Peers 37.56

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.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BP is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BP 0.35 Peers 2.27   BP -6.75 Peers 8.57

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 significantly trails its peers on the basis of sales growth

 

 

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