BP : NYSE : Basic Materials
$35.48 | %
Today's Range: 35.29 - 35.805
Avg. Daily Volume: 5646900.0
12/02/16 - 4:00 PM ET

Financial Analysis


BP PLC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged 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 0.87 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 9.87% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)47047.056152.0
EBITDA ($mil)3238.04202.0
EBIT ($mil)-258.0465.0
Net Income ($mil)1620.046.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)25566.031946.0
Total Assets ($mil)262216.0273299.0
Total Debt ($mil)58997.057405.0
Equity ($mil)91376.0101383.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin13.6113.06
EBITDA Margin6.887.48
Operating Margin-0.550.83
Sales Turnover0.690.91
Return on Assets-1.4-2.77
Return on Equity-4.03-7.48
Debt Q3 FY16 Q3 FY15
Current Ratio1.251.4
Debt/Capital0.390.36
Interest Expense310.0283.0
Interest Coverage-0.831.64


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)3152.163058.33
Div / share0.60.6
EPS0.510.02
Book value / share28.9933.15
Institutional Own % n/a n/a
Avg Daily Volume5455362.09395295.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.16 indicates a significant discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 20.54. 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 38.75   BP 7.45 Peers 12.67

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 14.11 Peers 44.30   BP NA Peers 0.47

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 20.54   BP 50.81 Peers -239.55

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 0.58 Peers 2.56   BP -26.87 Peers -20.64

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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