BP Plc
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BP PLC's gross profit margin for the fourth quarter of its fiscal year 2020 has decreased 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 0.84 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has significantly decreased by 27.60% 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 FY20 | Q4 FY19 |
---|---|---|
Net Sales ($mil) | 44789.0 | 71109.0 |
EBITDA ($mil) | 2804.0 | 8245.0 |
EBIT ($mil) | -622.0 | 3811.0 |
Net Income ($mil) | 1358.0 | 19.0 |
Balance Sheet | Q4 FY20 | Q4 FY19 |
---|---|---|
Cash & Equiv. ($mil) | 31444.0 | 22641.0 |
Total Assets ($mil) | 267654.0 | 295194.0 |
Total Debt ($mil) | 81926.0 | 77446.0 |
Equity ($mil) | 71250.0 | 98412.0 |
Profitability | Q4 FY20 | Q4 FY19 |
---|---|---|
Gross Profit Margin | 12.92 | 16.18 |
EBITDA Margin | 6.26 | 11.59 |
Operating Margin | -1.39 | 5.36 |
Sales Turnover | 0.67 | 0.94 |
Return on Assets | -7.58 | 1.36 |
Return on Equity | -28.5 | 4.09 |
Debt | Q4 FY20 | Q4 FY19 |
---|---|---|
Current Ratio | 1.22 | 1.12 |
Debt/Capital | 0.53 | 0.44 |
Interest Expense | 749.0 | 886.0 |
Interest Coverage | -0.83 | 4.3 |
Share Data | Q4 FY20 | Q4 FY19 |
---|---|---|
Shares outstanding (mil) | 3377.34 | 3373.53 |
Div / share | 0.32 | 0.62 |
EPS | 0.4 | 0.01 |
Book value / share | 21.1 | 29.17 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1.698522E7 | 1.6510124E7 |
SELL. 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. Conducting a second comparison, its price-to-book ratio of 1.21 indicates a significant discount versus the S&P 500 average of 4.05 and a discount versus the subsector average of 2.25. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, BP PLC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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BP NM | Peers 46.80 | BP 7.11 | Peers 9.32 | |||||||||||||||||||||
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 discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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BP 10.61 | Peers 18.03 | BP NA | Peers 0.85 | |||||||||||||||||||||
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 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. |
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Price/Book |
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Earnings Growth |
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BP 1.21 | Peers 2.25 | BP -602.50 | Peers -331.04 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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BP 0.48 | Peers 2.02 | BP -35.22 | Peers -30.40 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. BP significantly trails its peers on the basis of sales growth. |
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