BP : NYSE : Basic Materials
$33.68 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 7,039,800
09/26/16 - 4:01 PM ET

Financial Analysis


BP PLC's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. BP PLC has weak liquidity. Currently, the Quick Ratio is 0.81 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 12.62% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)46442.062051.0
EBITDA ($mil)4999.05753.0
EBIT ($mil)1362.01988.0
Net Income ($mil)-1419.0-5823.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)23624.032883.0
Total Assets ($mil)263136.0285431.0
Total Debt ($mil)55727.057104.0
Equity ($mil)92726.0106119.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin17.4214.97
EBITDA Margin10.769.27
Operating Margin2.933.2
Sales Turnover0.731.0
Return on Assets-2.0-2.22
Return on Equity-5.67-5.97
Debt Q2 FY16 Q2 FY15
Current Ratio1.251.39
Debt/Capital0.380.35
Interest Expense291.0281.0
Interest Coverage4.687.07


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)3129.533053.15
Div / share0.60.6
EPS-0.46-1.91
Book value / share29.6334.76
Institutional Own % n/a n/a
Avg Daily Volume7503952.09767491.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.16 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 15.56. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing 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 NM Peers 80.60   BP 6.34 Peers 10.97

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

BP's P/E is negative making this valuation measure meaningless.

 

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 14.05 Peers 49.84   BP NA Peers 3.87

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BP 1.16 Peers 15.56   BP 17.79 Peers -227.20

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 0.56 Peers 2.58   BP -32.40 Peers -26.14

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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